Information Systems within the Organization

• A _ is any business transaction that generates data worthy of being captured and stored in a database.

  Transaction
• A _ supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data.

  Transaction Processing System
• Organizations try to automate the TPS data entry as much as possible because of the large volume involved, a process called _.

  Source Data Automation
• What are the two basic ways in which the system processes the data?

  Batch Processing and Online Transaction Processing
• In _, the firm collects data from transactions as they occur, placing them in groups or batches. The system then prepares and processes the batches periodically.

  Batch Processing
• In _, business transactions are processed online as soon as they occur. The system performs the task in real-time by means of online technology.

  Online Transaction Processing
• Each of these _ supports a particular functional area in the organization by increasing each area's internal efficiency and effectiveness.

  Functional Area Information Systems
• _ often convey information in a variety of reports.

  FAISs
• Information Systems for Accounting and Finance:

  1. Financial Planning and Budgeting
  2. Managing Financial Transactions
  3. Investment Management
  4. Control and Auditing
• Auditing has two basic purposes:

  1. To monitor how the organization's monies are being spent; and
  2. To assess the organization's financial health.
• The _ in an organization is responsible for the processes that transform inputs into useful outputs as well as for the overall operation of the business.

  Production/Operations Management Function
• The _ is responsible for managing the organization's supply chain.

  POM function
• _ deals with ordering, purchasing, inbound logistics (receiving), and outbound logistics (shipping) activities. Related activities include inventory management and quality control.

  Logistics Management
• _ determines how much inventory an organization should maintain.

  Inventory Management
• _ used by manufacturing units provide information about the quality of incoming materials and parts, as well as the quality of in-process semifinished and finished products.

  Quality Control Systems
• The planning process that integrates production, purchasing, and inventory management of interdependent items is called _.

  Materials Requirements Planning
• _ integrates a firm's production, inventory management, purchasing, financing, and labor activities.

  Manufacturing Resource Planning
• _ is an approach that integrates various automated factory systems.

  Computer-Integrated Manufacturing
• CIM has three basic goals:

  1. To simplify all manufacturing technologies and techniques;
  2. To automate as many of the manufacturing processes as possible; and
  3. To integrate and coordinate all aspects of design, manufacturing, and related functions via computer systems.
• _ is a business strategy that enables manufacturers to share product-related data that support product design and development and supply chain operations.

  Product Lifecycle Management
• Initial _ applications dealt primarily with transaction processing systems, such as managing benefits and keeping records of vacation days.

  Human Resource Information System
• _ involves finding potential employees, evaluating them, and deciding which ones to hire.

  Recruitment
• Allocates financial resources among participants and activities

  Budgeting
• Financing of asset acquisitions

  Capital budgeting
• the ability to close the books at any time on short notice

  virtual close
• managing organizational investments in stocks, bonds, real estate, and other investment vehicles.

  investment management
• monitoring expenditures and comparing them against the budget

  budgetary control
• knowing who customers are and treating them appropriately

  customer relations
• using software to automate the business tasks of sales, thereby improving the productivity of salespeople.

  salesforce automation
• a principle of production and inventory control in which material and parts arrive precisely when and where needed for production.

  Just-in-time system
• retirement, disability, unemployment, and so on

  benefits administration
• _ are produced at schedules intervals and they range from hourly quality control reports to daily reports on absenteeism rates.

  routine reports
• _ display a greater level of detail.

  Drill-down reports
• _summarize the performance of critical activities.

  Key indicator reports
• _ compare, for example, the performances of different business units or of a single unit during different times.

  Comparative reports
• Such out-of-the-routine reports are called _ that can include requests for the different types of information.

  Ad hoc reports
• _ include only information that falls outside certain threshold standards.

  exception reports
• Historically, the functional area information systems were developed independent of one another, resulting in _.

  information silos
• _ are designed to correct a lack of communication among the functional areas IS.

  enterprise resource planning systems
• _ are inter-organizational ERP systems that provide a Web-enabled links among a company's key business systems and its customers, suppliers, distributors, and other relevant parties.

  ERP II systems