Computer Based Information Systems
Computer Based Information Systems COB 204
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This 7 page Class Notes was uploaded by Chase Wright on Friday February 26, 2016. The Class Notes belongs to COB 204 at James Madison University taught by Dr. Sarah Cheverton in Spring 2016. Since its upload, it has received 36 views. For similar materials see Computer Information Systems in Business at James Madison University.
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Date Created: 02/26/16
Overview of Computer-Based Information Systems CBIS is an information system that uses computer technology to perform some or all of its intended tasks. CBIS have many capabilities, such as… o Perform high-speed, high-volume numerical computations o Provide fast, accurate communication & collaboration within / among organizations o Store huge amounts of information in an easy-to-access, yet small space o Allow quick & inexpensive access to vast amount of information, worldwide o Interpret vast amounts of data quickly & efficiently o Automate both semiautomatic business processes & manual tasks Types of Computer-Based Information Systems Functional Area Information Systems (FAISs) are supporting pillars for the information systems, Business Intelligence Systems & Dashboards o Each department or functional area within an organization has its own collection of application programs / information systems o Each FAIS supports a particular functional area within the organization o Examples… Accounting IS—managers use IT systems to forecast revenues & business activity, to determine the best sources & uses of funds, and to perform audits to ensure that the organization is fundamentally sound & that all financial reports / documents are accurate Finance IS—managers use IT systems to forecast revenues & business activity, to determine the best sources & uses of funds, and to perform audits to ensure that the organization is fundamentally sound & that all financial reports / documents are accurate Production / Operations Management (POM) IS— managers use IT to manage their relationships with their customers. In manufacturing, managers use IT to process customer orders, develop production schedules, control inventory levels, & monitor product quality. They also use IT to design & manufacture products; these processes are called computer-assisted design (CAD) and computer-assisted manufacturing (CAM) Marketing IS—managers use information technology to perform the following: Product Analysis, Site Analysis, Promotion Analysis, & Price Analysis Human Resources IS—managers use IT to manage the recruiting process, analyze & screen job applicants, & hire new employees. They also employ IT to help employees manage their careers, to administer performance tests to employees, & to monitor employee productivity. Finally, they rely on IT to manage compensation & benefits packages Two information systems support the entire organization: Enterprise Resource Planning (ERP) systems & Transaction Processing Systems (TPS) ERP systems are designed to correct a lack of communication among the functional area ISs, which is why the ERP systems span the FAISs. o ERP systems were an important innovation because the various FAISs were often developed as standalone systems & did not communicate efficiently, if at all, with one another. ERP systems resolve this problem by tightly integrating the FAISs via a common database They enhance communications among the functional areas of an organization, which is why experts credit ERP systems with greatly increasing organizational productivity Transaction Processing Systems (TPS) support the monitoring, collection, storage, & processing of data from the organization’s basic business transactions, each of which generates data. o The TPS collects data continuously, typically as soon as the data are generates (in real time), & it provides the input data for the corporate databases o TPSs are considered critical to the success of any enterprise because they support core operations o NEARLY ALL ERP systems ARE TPSs, BUT NOT ALL TPSs ARE ERP systems Interorganizational Information Systems (IOSs) are information systems that connect two or more organizations o Support many Interorganizational operations, of which supply chain management is the best known Supply chain is the flow of materials, information, money, & services from suppliers of raw materials through factories & warehouses to the end customers Electronic commerce (e-commerce) systems are another type of Interorganizational information system, which enable organizations to conduct transactions (business-to-business, B2B, electronic commerce) & customers to conduct transactions with businesses (business-to-customer, B2C, electronic commerce) o E-commerce systems are typically Internet-based Support for Organizational Employees Information systems that typically support particular employees within the organization Clerical workers, who support managers at all levels of the organization, include bookkeepers, secretaries, electronic file clerks, & insurance claim processors Low-level managers handle the day-to-day operations of the organization, making routine decisions such as assigning tasks to employees & placing purchase orders Middle managers make tactical decisions, which deal with activities such as short-term planning, organizing, & control Knowledge workers are professional employees such as financial & marketing analysts, engineers, lawyers, & accountants o All are experts in a particular subject area o They create information & knowledge, which they integrate into the business o In turn, they act as advisors to middle managers & executives Executives make decisions that deal with situations that can significantly change the manner in which business is done o Examples… Introducing a new product line Acquiring other businesses Relocating operations to a foreign country Office Automation Systems (OASs) typically support the clerical staff, lower & middle managers, & knowledge workers o These employees us OASs to… Develop documents » Word processing » Desktop publishing software Schedule resources » Electronic calendars Communicate » E-mail » Voicemail » Video conferencing » Groupware o Functional area information systems summarize data & prepare reports This is primarily for middle managers, but sometimes for lower- level managers Because these reports typically concern a specific function area, report generators (RPGs) are an important type of functional area IS Business Intelligence (BI) systems provide computer-based support for complex, non-routine decisions o Primarily for middle managers middle managers & knowledge workers Also support lower-level managers, but to a lesser extent o These systems are typically used with a data warehouse o They enable users to perform their own data analysis Expert systems (ES) attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, & expertise with a specific domain o Have become valuable in many application areas Primarily, but not exclusively, areas involving decision making o Expert systems can… Operate as standalone systems Be embedded in other applications Dashboards (digital dashboards) are a special form of IS that support all managers of the organization o They provide… Rapid access to timely information Direct access to structured information in the form of reports o Executive dashboards are dashboards that are tailored to the information needs of executives Types of Organizational Information Systems Type of System Function Example Supports the activities Functional Area IS System for processing (FAIS) within specific functional payroll areas Transaction Processing System Processes transaction data Wal-Mart checkout point-of- (TPS) from terminal sale business events Enterprise Resource Integrates all functional Planning Oracle, SAP system areas of the organization (ERP) Supports daily work Office Automation System (OAS) activities of individuals & Microsoft Office groups Produces reports summarized from Report on total sales for Management IS transaction data, usually in each customer one functional area Decision Support System Provides access to data & “What-if” analysis of analysis tools changes in budget Mimics human expert in a Expert System Credit card approval particular area & makes (ES) analysis decisions Executive Dashboard Presents structured, Status of sales by product summarized information about aspects of business important to executives Manages flows of products, Wal-Mart Retail Link system Supply Chain Management services, & information connecting suppliers to Wal- System among organizations Mart Electronic Commerce Enables transactions among System organizations & between www.Dell.com (E-commerce) organizations / customers
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