1. Information Systems
Chapter 10

2. Introduction
An information system is a collection of people, procedures, software, hardware, and data
They all work together to provide information essential to running an organization
Computers are used in organizations to keep records of events
Information system (key term) is a collection of all necessary resources working together to run an organization.

3. Computer-Based Information Systems
Almost all organizations have computer-based information systems
Four types of computer-based information systems that help track and keep information flowing in the amount and direction organization needs to stay on track:
TPS –Transaction processing system (key term) ; records day-to-day transactions; foundation for other information systems
MIS – Management information system (key term) ; summary of detail from TPS; produces standard reports for management
DSS – Decision support system (key term) ; data source: flexible analytical tool; assists managers with solutions for a wide range of problems; uses the TPS
ESS – Executive support system is also referred to as the Executive information system (EIS) (Key Term) ; highly summarized information presentations; gives senior management a broad company view, assists with strategic planning; sourced internally from TPS and MIS, and from external sources

4. Transaction Processing Systems (TPS)
Records day-to-day transactions in a database
Also called data processing systems (DPS)
One of the most essential uses of a TPS is in Accounting
Sales order processing
Accounts receivable
Inventory and purchasing
Because TPS helps keep track of routine operations and records some firms call this data processing system (DPS) (key term)
Records routine, day-to-day operations in a database
Foundation for other information systems within organization
Associated with sales, order processing, inventory (Key Term), purchasing (Key Term), accounts payable (Key Term), accounts receivable (Key Term), payroll (Key Term) – other accounting functions.

5. Management Information Systems (MIS)
Produces standardized reports in summarized structured form to support decision-making by middle managers
Produces predetermined format reports
Periodic reports
Exception reports: unusual events
Demand reports: on request
MIS use databases; DBMS required to integrate the databases of the different departments
A computer-based information system that produces standardized reports in summarized, structured form
Periodic reports (key term) – produced at regular intervals
Exception reports (key term) – call attention to unusual events
Demand reports (key term) – opposite of periodic, is produced only upon request

6. Decision Support Systems (DSS)
Enables managers to get answers to unexpected problems
Reports do not have a fixed format
Support 3 decision models:
Strategic: Top-level managers
Tactical: Middle-level managers
Operational: Low-level managers
DSS is quite different from transaction processing system
Gives a summary of the data
Helps decision makers analyze unanticipated situations
Managers often must contend with unanticipated questions; DSS help provide answers to unexpected, non-recurring problems
DSS helps user (management or otherwise) make decisions
For larger problems a group decision support system (GDSS) (Key Term) is used

7. Executive Support Systems (ESS)
Designed for top management
Similar to MIS and DSS but easier to use
Provides immediate access to a company's key performance indicators
ESS is a like a DSS or MIS that can present, summarize, and analyze data from an organization’s databases
Emphasis on ease of use so that executives may operate without extensive training
Easy, direct access about the company’s performance; highly summarized information to help make decisions; combines internal data from TPS and MIS with external data

8. Other Information Systems
Information workers
Data workers: Assistants, clerks
Knowledge workers: Engineers
Office automation systems (OASs)
Supports data workers
Project management programs like Microsoft project
Videoconferencing systems
Knowledge work systems (KWSs)
Use specialized systems, such as CAD/CAM (involved in product design and manufacturing)
Expert Systems: Used to apply the expert knowledge to specific user problems
Information workers (key term) create, distribute, and communicate information.
Information workers –
Communication and distribution - data workers (key term); include but not limited to secretaries, clerks,
Creation - knowledge workers (key term); engineers, and scientists
Office automation systems (OASs) (key term) support the activities of data workers by managing documents, communications, and scheduling. Secretaries and clerks are data workers
Project Managers(key term) – programs designed to schedule, plan, and control project resources
Videoconferencing (key term) systems – computer systems using the computer and Internet that allow people located at various geographical locations to communicate and conduct in-person meetings
Knowledge work systems (KWSs) (key term)
CAD/CAM (computer-aided design/computer-aided manufacturing) (Key Term) – used by design and manufacturing engineers