CHAPTER 11 : INFORMATION SYSTEM

AN INFORMATION SYSTEMS IS A COLLECTION OF PEOPLE, PROCEDURES, SOFTWARE, HARDWARE AND DATA.

THEY WORK TOGETHER TO PROVIDE INFORMATION ESSENTIAL TO RUNNING AN ORGANIZATION.

ORGANIZATIONAL INFORMATION FLOW 

• FUNCTION
• MANAGEMENT LEVELS
• INFORMATION FLOW

 FUNCTION

1. ACCOUNTING - RECORD ALL FINANCIAL ACTIVITY FROM BILLING CUSTOMERS TO PAYING EMPLOYEES
2. MARKETING  - PLANS,PRICES,PROMOTES,SELLS AND DISTRIBUTES THE ORGANIZATION'S GOODS AND SERVICE
3. HUMAN RESOURCES  - FOCUSES ON PEOPLE SUCH HIRING,TRAINING,PROMOTING 
4. PRODUCTION  - CREATE FINISHED GOODS AND SERVICES USING RAW MATERIALS AND PERSONNEL.

5. RESEARCH - IDENTIFIES,INVESTIGATES  AND DEVELOPS NEW PRODUCT AND  SERVICES

MANAGEMENT LEVELS

• TOP MANAGEMENT -  TOP LEVEL MANAGERS ARE CONCERNED WITH LONG-RANGE PLANNING.
• MIDDLE MANAGEMENT - MIDDLE-LEVEL MANAGERS DEAL WITH CONTROL,PLANNING AND DECISION MAKING.
• SUPERVISORS - SUPERVISORS MANAGE AND MONITOR THE EMPLOYEES OR WORKERS. 

INFORMATION FLOW

EACH LEVEL OF MANAGEMENT HAS DIFFERENT INFORMATION NEEDS.
THE INFORMATION FLOWS TO SUPPORT THESE NEEDS;

TOP MANAGEMENT LEVEL INFORMATION FLOW IS VERTICAL,HORIZONTAL AND EXTERNAL 


MIDDLE MANAGERIAL LEVEL INFORMATION FLOW IS VERTICAL AND HORIZONTAL


SUPERVISORY LEVEL INFORMATION FLOW IS PRIMARILY VERTICAL

COMPUTER-BASED INFORMATION SYSTEMS

• ALMOST ALL ORGANIZATIONS HAVE COMPUTER-BASED INFORMATION SYSTEMS.

• LARGE ORGANIZATIONS TYPICALLY HAVE FORMAL NAMES FOR THE SYSTEMS DESIGNED TO COLLECT AND USE THE DATA.

THE MOST COMMON NAMES ARE :

• TRANSACTION PROCESSING
• MANAGEMENT INFORMATION
• DECISION SUPPORT
• EXECUTIVE SUPPORT SYSTEMS 

TRANSACTION PROCESSING SYSTEMS ( TPS )

• TPS HELPS AN ORGANIZATIONAL KEEP TRACK OF ROUTINE OPERATIONS AND RECORDS THESE EVENTS IN A DATABASE.
• ALSO KNOWN AS DATA PROCESSING SYSTEMS (DPS)

• ONE OF THE MOST ESSENTIAL TRANSACTION PROCESSING SYSTEMS IN ORGANIZATION IS IN THE ACCOUNTING AREA. FOR EXAMPLE, AS SHOWN IN THE ABOVE 

  MANAGEMENT INFORMATION SYSTEMS

• IS A COMPUTER-BASED INFORMATION SYSTEM THAT PRODUCES STANDARDIZED REPORTS IN SUMMARIZED STRUCTURED FORM.
• THREE COMMON CATEGORIES OF REPORT :

• PERIODIC REPORTS

• EXCEPTION REPORTS

• DEMAND REPORTS

EXAMPLE PERIODIC REPORTS

EXAMPLE DEMAND REPORT









OTHERS INFORMATION SYSTEMS

• THERE ARE MANY OTHER INFORMATION SYSTEMS TO SUPPORT DIFFERENT INDIVIDUALS AND FUNCTIONS.
• THE FASTEST-GROWING ARE INFORMATION SYSTEMS DESIGNED TO SUPPORT INFORMATION WORKERS.
• INFORMATION WORKERS- DISTRIBUTE, COMMUNICATE AND CREATE INFORMATION.
• 2 SYSTEMS TO SUPPORT INFORMATION WORKERS ARE :

• OFFICE AUTOMATION SYSTEMS (AOSS), INCLUDING

SUPPORT DATA WORKERS

PROJECT MANAGEMENT PROGRAM

VIDEOCONFERENCING SYSTEMS

• KNOWLEDGE WORK SYSTEMS : KNOWLEDGE WORKERS

USE SPECIALIZED INFORMATION SYSTEMS CALLED KNOWLEDGE WORK SYSTEMS (KWSS)TO CREATE INFORMATION IN THEIR AREAS OF EXPERTISE.