ADMS 2511 Chapter Notes - Chapter 2: Machine Vision, Information Technology Management, Extranet

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Section V
Chapter 2 notes
- Information Systems (ISs) collect, process, store, analyze and disseminate information
for a specific purpose
- Two major determinants of IS support are the organizations structure and the functions
that employees perform within the organization
- demonstrate that any information system can be strategic meaning that ic an provide a
competitive advantage if it is used properly
Types of Information Systems
Computer Based Information Systems
- The IT architecture and IT infrastructure provide the basis for all information systems in
the organization
- Information System (IS) collects, processes, stores, analyzes and disseminates
information for a specific purpose
- A Computer Based Information System (CBIS), is an information system that uses
computer technology to perform some or all of its intended tasks
- not all information systems are computerized, most are
- Basic components of information systems are:
Hardware: device such as processor, monitor, keyboard, and printer. Together these
devices accept data and information, process them and display them
Software: a program or collection of programs that enables the hardware to process data
Database: is a collection of related files or tables containing data
A Network: is a connecting system (wireline or wireless) that permits different
computers to share resources
Procedures: are set of instructions about how to combine the above components in order
to process information and generate the desired output
People: are those individuals who use the hardware and software, interface with it or use
its output
- Computer based information systems have many capabilities:
- Perform high speed, high volume numerical computations
- provide fast, accurate communication and collaboration within and among org
- store huge amounts of information in an easy to access small space
- allow quick and inexpensive access to vast amounts of information worldwide
- interpret vast amounts of data quickly and efficiently
- increase the effectiveness and efficiency of people working in groups in one
place or in several locations anywhere
- automate both semi automatic business processes and manual tasks
Application Programs: computer program designed to support a specific task or
business process.
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- each functional area or department within a business organization uses dozens of
application programs
- collection of application programs in a single department is referred to as departmental
information system ex, the collection of application programs in the human resources
area are called the human resources information system (HRIS)
Breadth of Support of Information Systems
- Each department or functional area within an organization has its own collection of
application programs or information systems
- The Functional Area of Information Systems: each information system supports a
particular functional area in the organization, example are accounting IS, finance IS,
marketing IS, production/operations management (POM) IS, human resources IS.
- below the functional area IS are two information systems that support the entire
organization: Enterprise Resource Planning Systems and Transaction Processing
- ERP systems: are designed to correct a lack of communication among the functional
area ISs.
- ERP systems important innovation because various functional area ISs often developed
as standalone systems and did not communicate effectively at all with one another
- ERP systems resolve this problem by tightly integrating the functional area ISs via a
common database which enhances communications among the functional areas of an
organization which increases organizational productivity
- nearly all ERP systems are transaction processing systems but transaction processing
systems are not all ERP systems
- A Transaction Processing System (TPS): supports monitoring, collection, storage and
processing of data from the organizations basic business transactions each of which
generates data
- for example each time a cashier swipes an item across bar code reader this is one
- TPS collects data as soon as the data is generated and provides the input data for the
corporate databases
- these support core operations
- Interorganizational Information Systems (IOSs): Information systems that connect
two or more organizations
- they support many inter-organizational operations, of which supply chain management
is the best known
- an organizations Supply Chain describes the flow of materials, information, money and
services from suppliers of raw material through factories and warehouses to the end
- information flows, financial flows and digitizable products go through the internet,
where physical products are shipped
Electronic Commerce Systems: another type of inter-organizational information system
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- these systems enable organizations to conduct transactions called business to business
(B2B) electronic commerce and customers to conduct transactions with businesses called
business- to - consumer (B2C) electronic commerce; typically internet based
Support For Organizational Employees
- Clerical workers, who support managers at all levels of the organization including
accounting, support staff, administrative assistants, data entry personnel and insurance
claim processors
- lower level managers handle the day to day operations of the organization, making
routine decisions such as assigning tasks to employees and placing purchase orders
- middle managers make tactical decisions which deal with activities such as short term
planning, organizing, and control
- Executives, make decisions that deal with situations that can significantly change the
manger in which business is done for example introducing a new product line
- Knowledge workers are professional employees such as financial and marketing
analysts, engineers, lawyers and accountants.
- All knowledge workers are experts in a particular subject area, they create information
and knowledge which they integrate into the business. They act as advisors to middle
managers and executives
- one type of system that knowledge workers may use are decision support system, which
support advanced ‘what if’ analysis and simulations for example they might be asked
whether a new piece of equipment should be purchased or not and then would prepare a
financial analysis to aid in the decision making process
- Office Automation System (OASs) – support clerical staff, lower and middle
managers and knowledge workers – use OAS to develop documents (word), schedule
resources (electronic calenders) and communicate (email)
- functional area information systems summarize data and prepare reports primarily for
middle managers, but sometimes for lower level managers as well
- functional area systems that help management in their decision making are called
management information systems: produce summarized reports (such as hours worked
by department) or reports that provide information based on specific criteria (such as
sales or expenses over a certain dollar amount)
- Business Intelligence (BI) systems: provide computer based support for complex, non
routine decisions, primarily for middle managers and knowledge workers.
- these systems are typically used with a data warehouse and allow users to perform their
won data analysis
- Expert Systems (ES) – attempt to duplicate the work of human experts by applying
reasoning capabilities, knowledge, expertise within a specific domain, primarily designed
to support knowledge workers
- Dashboards (also called digital dashboards) support all managers of the organization.
- dashboards provide rapid access to timely information and direct access to structures
information in the form of reports. Dashboards that are tailored to executives needs are
called executive dashboards.
Type of System Function Example
Functional Area IS Supports the activities A system for processing
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