Management Information Systems Chapter 8
ad hoc (on demand) reports
non-routine reports that often contain special information that is not included in routine reports
TPS that processes data in batches at fixed periodic intervals
reports that compare performances of different business units or time periods
computer-integrated manufacturing (CIM)
an information system that integrates various automated factory systems
a business process that originates in one department and ends in another department, and/or originates and ends in the same department while involving other departments
reports that show a greater level of detail than is included in routine reports
enterprise application integration (EAI) system
a system that integrates existing systems by providing layers of software that connect applications together
enterprise resource planning (ERP) system
information system that takes a business process view of the overall organization to integrate the planning, management, and use of all of an organization’s resources, employing a common software platform and database
ERP II systems
interorganizational ERP systems that provide web-enables links between a company’s key business systems (such as inventory and production) and its customers, suppliers, distributors, and others
reports that include only information that exceeds certain threshold standards
functional area information system (FAIS)
a system that provides information to managers (usually mid-level) in the functional areas, in order to support managerial tasks of planning, organizing, and controlling operations
reports that summarize the performance of critical activities
online transaction processing (OLTP)
transaction processing system that processes data after transactions occur, frequently in real time
order fulfillment process
a cross-functional business process that originates when the company receives a customer order and concludes when it receives a payment from the customer
a cross-functional business process that originates when a company needs to acquire goods or services from external sources and concludes when the company receives and pays for them
a cross-functional business process in which a company produces physical goods
reports produced at scheduled intervals
any business event that generates data worth capturing and storing in a database
transaction processing system (TPS)
information system that supports routine, core business transactions
TPSs monitor, store, collect, and process data generated from all business transactions. These data provide the inputs into the organization’s database. An example is the recording of sales transactions upon purchase of items.
Explain the purposes of transaction processing systems, and provide at least one example of how businesses use these systems.
FAIS – a system that provides information to managers (usually mid-level) in the functional areas, to support managerial tasks of planning, organizing, and controlling operations. The major business functional areas are production/operations management, marketing, accounting/finance, and human resources management. Production = inventory management – how much to order, to keep, and when to order. Marketing = customer relations – knowing who customers are and treating them like royalty. Accounting = financial planning – availability and cost of money. HR = recruitment = finding employees, testing them, and deciding which ones to hire.
Define functional area information systems, and provide an example of the support they provide for each functional area of the organization.
ERP systems integrate the planning, management, and use of all the organization’s resources. The major objective of ERP systems is to tightly integrate the functional areas of the organization. Advantages – complete visibility into all the important processes, automatic and coherent workflow from one department/function to another, a unified and single reporting system, more secure. Disadvantages – the cost of ERP system is high, deployment is highly time consuming from often from 1-3 years, migration of existing data to the ERP system is often difficult or impossible, and the training needs of employees can be exhausting.
Explain the purpose of enterprise resource planning systems, and identify four advantages and four drawbacks to implementing an ERP system.
Routine reports – produced at scheduled intervals. Absenteeism rates. Ad hoc (on-demand reports) – nonroutine reports that often contain special information that is not included in routine reports. CFO monitoring cash flow and cash on hand. Exception reports – include only information that falls outside certain threshold standards. Report that shows sales where they fell than 20 percent short of the quota.
Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, and provide an example of each type.
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