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Chapter 2

ADMS 2511 Chapter 2

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Administrative Studies
ADMS 2511
Cristobal Sanchez- Rodriguez

CHAPTER 2: INFORMATIONS SYSTEMS: CONCEPT AND MANAGEMENT 2.1 TYPES OF INFORMATION SYSTEMS Computer-Based Information Systems - Uses computer technology to perform some or all of its intended tasks • Hardware: processor, monitor, keyboard and etc. • Software: program or collection of programs that enables the hardware to process data • Database: collection of related files or tables containing data • Network: connecting systems that allows different computers to share resources • Procedures: set of instructions about how to combine above components in order to process information • People: individuals who use the hardware and software - Major capabilities of CBIS: • Perform high-speed, high volume, numerical computations • Provide fast, accurate communication and collaboration within and among organizations • Store Huge amounts of information in an easy-to-access, yet small space • Allow quick and inexpensive access to vast amounts of information, worldwide • Interpret vast amounts of data quickly and efficiently • Increase effectiveness and efficiency of people working in groups in one place or in several locations • Automate both semi-automatic business processes and manual tasks Application Programs - Application program: A computer program designed to support a specific task or business process - Collection of application programs in a single department is known as Departmental Information Systems Breadth of Support of Information Systems Inside the Organization - Functional area information systems: Each department or functional area within an organization has its own collection of application programs or IS - Enterprise Resource Planning (ERP): systems are designed to correct lack of communication among the functional area ISs. - Transaction processing system (TPS): supports the monitoring, collection, storage and processing of data from the organizations basic business transactions. - Organizational information systems (IOSs): support many inter-organizational operations (supply chain management) - Electronic commerce systems: enable organizations to conduct transactions (B2B, B2C) Support for Organizational Employees - Knowledge workers: are professional employees such as financial and marketing analysts, engineers, lawyers and accountants. They create information and knowledge which they integrate into the business. They may use Decision Support Systems - Office Automation Systems (OASs) support the Clerical Staff, lower and middle managers and knowledge workers. OASs used to develop documents, schedule resources and communicate. - Functional area information systems summarize data and prepare reports, which concern a specific functional area. Functional area systems that help management in their decision making are called Management Information Systems. - Business intelligence (BI) systems: provide computer-based support for complex, non-routine decisions, primarily for middle managers and knowledge workers. - Dashboards (digital dashboards): provide rapid access to timely information and direct access to structured information in the form of reports. Clerical Staff (FAIS, OAS) – Lower level managers (operational. OAS, FAIS, Decision SS, BIS) – Middle managers (tactical. FAIS, OAS, DSS, BIS) – Knowledge workers (Expert Systems, DSS, BIS) – Executives (strategic. Executive IS) Different Types Of Is Used By Organizations Functional Area IS - Supports activities within a specific functional area (ex. system for processing payroll) Transaction Processing System - Processes transactions data from business events (ex. Wal-Mart checkout POS terminal) ERP system - Integrates all functional areas of the organization (ex. Oracle, SAP) Office automation system - Supports daily work activities of individual and groups (ex. Microsoft Office) Management Information Systems - Produces reports summarized from transaction data, usually in one functional area (ex. report on total sales for each cust.) Decision Support System - Provides access to data and analysis tools (ex. a “what-if: analysis of changes in budget) Expert System - Mimics human experts in a particular area and makes a decision (ex. credit cart approval analysis) Executive dashboard - Presents structured, summarized information about aspects of business important to executives (ex. report showing status of sales by product) Supply Chain Management System - Manages flows of products, services and information among organizations (Wal-Mart Retail Link System, connecting suppliers) Electronic Commerce System - Enables transactions among organizations and between organizations and customers (www.dell.com) 2.2 COMPETITIVE ADVANTAGE AND STRATEGIC SYSTEMS - Competitive strategy is statement that identifies a business’s strategies to compete, its goals and plans and policies that
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