Business Systems

Categories n Transaction Processing Systems n Information Systems –Information Reporting Systems –Decision Support Systems –Executive Information Systems n Office Systems n Design and Manufacturing Systems

Transaction Processing Systems n handles an organization’s business transactions n provides a current record of the company’s activities n processed information is stored in a database

Typical Transactional Processing Operations n payroll systems n order entry n inventory control n accounts receivable n accounts payable n general ledger

Information Systems n developed to help managers make decisions by providing them with information n information needs vary depending upon the management level

Managers and Information Needs n Top level management –strategic planning –unstructured decisions n Middle level management –tactical planning –semi-structured decisions n Lower level management –operational planning –structured decisions

Information Reporting Systems n support structured decision making primarily at the lower and middle management levels n information is in the form of computer generated, preformatted reports n information for the reports comes from the database generated by the transactional processing system

Types of Reports n Scheduled Reports –categorize and summarize information –automatically produced on a regular basis –widely distributed throughout the organization

Types of Reports (cont.) n Exception Reports –inform management of unusual happenings –automatically produced if something atypical occurs –useful for early detection of problems

Types of Reports (cont.) n Demand Reports –specialized reports that a manager requests on a particular subject –produced upon request –fill irregular needs for information

Decision Support Systems n provide middle and upper level managers with tools for organization and analysis of information n useful for users who want to create their own decision models and output formats n oriented toward present and future events

Decision Support Systems (cont.) n provide access to both internal and external information sources n contains productivity software such as spreadsheets and database management systems n often includes software used for forecasting, optimization, and simulation

Executive Information Systems n customized decision support systems used by top level managers n highly personalized n designed for ease of use

Office Systems n using computer technology to increase productivity throughout the entire organization (office automation) –document processing –electronic mail –desk accessories –decision support tools –teleconferencing

Design and Manufacturing Systems n Computer-Aided Design (CAD) n Computer-Aided Manufacturing (CAM) –robotics n Computer-Integrated Manufacturing (CIM) –enables CAD, CAM, and other business activities to be tied together by computers

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