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INeoRnATSON SySTEMns
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16 Management^ Infarmetion^ Systome
InMormation Systems
Oyerations Sport Systems
Management Support Systems
Support of
Managerial
Decision Making
SuNt of Risinet Oerations
Executive Sperializar Processing
Systerns
Management Decision Intormation
Sialied Traneaction^ Prorese^ Enterprise^ Support Information Systems
resinp Prnoeesino^ Control^ Collaboration
Svstems Systems Systems
Prespecified Reporting tor Managers
Systeme (^) Systems Systems
Prooessino Control^ of^ Team^ and Interactive^ Information Businese Industrial (^) Workgroup Decision^ Tailored^ for Traneaction Processes Collaboration Support Executives
Knowledge Functional Management
Systems
Strategic
Information
Expert (^) Business Systems Systems Systems
Support
Competitive
Advantage
Support Basic Business
Expert (^) Manage Organizational Knowledge
Advice to Dacision Makers (^) Functions
IGURE 1.6 (^) Operations and (^) management classifications of (^) information systems. Note^ how^ this^ conceptual overview^ emphasizes the main (^) purposes of (^) intormation (^) systems that (^) support business operations and^ managerial decision^ making.
Operations Support Systems
intormation (^) systems have (^) always been needed (^) to
process data^ generated by, and used in, business
operations. Such^ operations support systems produce a
internal and variety^ of^ information^ products^ for
external use; however, they do not
can best (^) be used emphasize^ the^ specitic^ information^ products that
by managers. Further^ processing by management information
required. The^ role^ of^ a^ business firm's systems^ is^ usually
transactions, operations^ support^ systems^ is^ to^ process^ business
control (^) industrial (^) processes,
and support^ enterprise^ communications^ and^ collaboradons.
update corporate databases^ efficiently. See (^) Figure 1.7.
FIGURE 1.7 A (^) summary of
operations support systems with examples.
Operations Support Systems
Transaction (^) processing (^) systems. Process (^) data resulting from^ business (^) transactions,
operational databases, and^ produce business documents. update
and accoun ting Examples: sales^ and^ inventory processing
systens. Process (^) control (^) systems. Monitor (^) and control (^) industrial
power generation, and steel processes.^ Examples: petroleum retining.
production systems.
Enterprise collaboration systems.
Support team, workgroup, and
and (^) collaborations. (^) Examples: e-mail, (^) chat, and enterprise communicatiols videoconferencing (^) groupware (^) systems.
Transaction (^) processing systems are^ important examples of^ operations (^) support systems that
Tecord (^) and process the^ data^ resulting from (^) business transactions. (^) They (^) process (^) transactions in two
basic (^) ways. In (^) batch
processing, ransactions data are accumulated over
a period ot
processed (^) periodically. In (^) real-time (^) (or (^) online) t1me and processing, data^ are^ processed transaction (^) occurs. (^) For (^) example, (^) point-of-sale (POS) immediately atter a cash (^) register (^) terminals to systems at (^) many retail (^) stores (^) use (^) electronie
capture and^ transmit sales data
links to (^) regional (^) computer centers for electronically over (^) telecommunications immediate (^) (real-time) or Figure 1.8^ is^ an^ example of (^) software (^) that automates nightly (^) (batch) (^) processing Process (^) control (^) systems monitor (^) and accounting transaction (^) processing. control (^) physical
processes. For^ example, a
petroleum
refinery uses^ electronic sensors linked to
computers to^ monitor (^) chemical processes (^) continualy
and make (^) instant (real-time) (^) adjustments that (^) control the (^) refinery
process. Enterprise collaboration
18 Management Information Systems
DSS to^ perform a^ what-if^ analysis^
as (^) part of^ the^ decision^ to^ deterinine^
how to^ spend advertisin
dollars. A (^) production manager may^ use^ a^
DSS to decide^ how^ much^ product^ to^ manufacture.,^ hacnd
on the^ expected sales^ associated^
with a future^ promotion and^ the^ location^ and^ availability^ of^ th
raw materials^ necessary to^ manufacture^
the procduct. Exccutive^ information^ systems^ (EIS
provide critical^ information^
from a wide^ varicty of internal^ and^ external^ sources^ in^ easy-to-u
displays to^ erecutives^ and^ managers.^
For example, top executives^ may^ use^ touch-screen^ terminale
to view instantly text^ and^ graphics^ displays^
that (^) highlight key arcas^ of^ organizational^ and
competitive performance.^ Figre^
1.10 is an example ofan MIS^ report^ display.
MITOsOR ExUN BHelinoBook N .8 Z A
AS Sales Overview 8ales SN Jdgat Actual Vn1lnnce Niddle Ea (^) Northatn.AmarlcaAmorica 00600 444310 290144
Europe Africa Middlo East B00 660 60 ASIa
Actual Arta 155 OBudget Fumpe^ JUU^ 6B8^286 atin Americ (^) TUU 455 J Narth Ameriea
Customer Feedback 1Ardkde East Quality Service Dellvery Usage Total ISenvice Arica North^ America^ .5U^2 4 rop g. 4. JU.B 4.00 3.2 bu
America (^) Middle East. Rorth Armerica^0 4.10^200 6.00 5.00 10.00 1500 20.
KEM Sales Overview Expense AnalyssAdhoc Analysis SmertForecast lmaact Forecast Analvsls Forerast Reay Source: Courtesy of Infor.
FIGURE 1.10 (^) Management information (^) systems provide information to (^) business easy-to-use formats. professionals^ in^ a^ variety^ of
Other (^) Classifications of (^) Information
Systems
Several other categories of information
systems can^ support either^ operations or
applications. For^ example, expert management
systems can^ provide expert advice for
equipment (^) diagnostics or^ operational^ chores^ like
managerial decisions^ such as loan portfolio
management (^) systems are^ management.^ Knowledge knowledge-based information^ systems that organization, and^ dissemination^ of (^) business support^ the^ creation, knowledge to^ employees and managers company. Information^ systems that (^) focus on throughout a operational and^ managerial (^) applications in basic (^) business (^) functions such (^) as (^) accounting or support (^) o
marketing are^ known^ as functional business
Finally, strategic information systems apply information systemsS
or (^) business (^) processes to technology to^ a^ firms (^) products, services,
help it^ gain a^ strategic advantage over its
It is (^) also (^) important to (^) realize that (^) business competitors. See (^) Figure 1.11. are (^) typically applications of^ information (^) systems in (^) the real world integrated combinations of (^) the (^) several That is (^) because types^ of^ information^ systems just mentioned. conceptual classifications of (^) information systems are^ designed to (^) emphasize many (^) the different (^) roles of (^) information
systems. In^ practice, these roles are combined
or cross-functional informational into integrated
systems that^ provide a
information systems are designed to variety of^ functions. Thus, most
produce information and support decision
making for various
levels of (^) management and
business functions, as well as
perform (^) record-keeping and processing (^) transaction
chores. Whenever
you analyze an information
system, (^) you (^) probably see that it
provides
information for a variety of
managerial levels^ and (^) business (^) functions.
19 Foundations of Inforrnation^ Systems^
in Business
FIGURE 1.11 (^) A summary of other (^) categories of (^) information systems with examples
Other (^) Categories of Information Systems
Expert systems. Knowledge-based systems that^ provide expert advice^ and^ act^ as^ expert^ consultants^
to users.^ Examples: credit
application advisor. process monitor, and diagnostic maintenance systems.
Knowledge management systems. Knowledge-based systems that support the creation, organization, and dissemination ot
business (^) knowledge within the (^) enterprise. Examples: intranct access to best business (^) practices, sales^ proposal strategies,^ and customer (^) problem resolution (^) systems.
Strategic information systems. Support operations or management processes that provide a firm with strategic products,
services, and (^) capabilities for (^) competitive (^) advantage. Examples: online stock (^) trading, shipment tracking, and^ e-commerce^ web
sy'stems.
Functional business systems. Support a variety of operational and managerial applications of the basic business functions of a
company Examples: information systems that support applications in accounting, finance, marketing, operatons management,
and human resource (^) management.
Succas nd Falue^ wih^ T
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