Information Systems

 

More and more businesses are realizing that the information in their databases is an important asset that must be protected. It has become a key factor in their short-range and long-range decision making process.

 

The need for timely and accurate information has increased due to:

1.        Expanded Markets (National and International)

2.        Increased Competition (Financially Stronger and Better Organized)

3.        Shorter Product Life Cycles (Less time to perfect=Test Marketing)

4.        Government Regulation (Standard, Guidelines and Laws-i.e. EEO)

 

The Six Elements of an Information System

·         Procedure

·         Personnel

·         Data

·         Equipment

·         Software

·         Users

 

Managers direct resources like people, money, materials and information perform the four management tasks of planning, organizing, leading, and controlling with the help of information.

 

Different Levels of Management and Their Informational Requirements

Senior or Executive Management – Strategic Decisions (overall goals and objectives of an organization)

·         effected by factors not directly controlled by organization

·         information from outside the company

·         summarized information on company performance especially when differs from planned

Middle Management – Tactical Decisions (specific programs and plans to accomplish stated objectives)

·         information generated by the company

·         summarized information but sometimes more detailed to understand variances

Operational Management – Operational Decisions (immediate, day-to-day actions)

·         detailed company production information

·         some summarized information

Nonmanagement Employees – On-the-Job Decisions (job performance)

 

Quality of Information

ü       Accurate

ü       Verifiable

ü       Timely

ü       Organized

ü       Meaningful

ü       Useful

ü       Cost Effective

 

Types of Information Systems

Transaction Processing System (TPS) – billing, inventory control, accounts payable, order entry

                Batch

                Online

Management Information Systems (MIS)

                Executive – easier to use – user interface, graphic presentation, external information

Decision Support Systems (DSS) – unstructured, analytical what-if questions

Expert Systems – combines the human expertise and reasoning on a subject

                Knowledge base

                Inference rules

                Artificial Intelligence