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Chapter 2
Information Systems
in the Enterprise
Dr. Ahmed Aboul-fetouh
IS.Dept.
ITEC 1010
Information and Organizations
Information System (IS)
 Definition
 A set of interrelated elements or components that collect

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(input), manipulate (process), and disseminate (output)
data and information and provide a feedback
mechanism to meet an objective.
For many companies, IS is the name of the department
responsible for computers, networking and data
management. Other companies refer to the department
as IT (Information Technology) and MIS (Management
Information Services).
Information and Organizations
Computer-based Information
Systems
 A CBIS is composed of…
 Hardware
 Software
 Databases
 Telecommunications
 People
 Procedures
 Together they are…
 Configured to collect, manipulate, store, and process
data into information
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Computer-Based Information Systems (cont’d)
 Hardware
 Consists of computer equipment used to
perform input, processing, and output
activities
 Software
 Consists of the computer programs that
govern the operation of the computer
 Database
 Organized collection of facts and
information, typically consisting of two or
more related data files
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Computer-Based Information Systems (cont’d)
 Telecommunications, networks, and the
Internet
 The electronic transmission of signals for
communications
 Networks
 Connect computers and equipment to enable
electronic communication
 Internet
 World’s largest computer network, consisting
of thousands of interconnected networks, all
freely exchanging information
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Information and Organizations
Computer-Based Information Systems (cont’d)
 People
 Can be the most important element in
most computer-based information
systems
 Procedures
 Include strategies, policies, methods,
and rules for using the CBIS
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Information and Organizations
Types of
Business Information Systems
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Information and Organizations
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Information and Organizations
 Management support System , support the
decision-making needs of strategic (top)
management,
tactical
(middle)
management.
 Operations support systems , support the
information processing requirements of the
day-to-day operations of a business as well
as
some
lowerlevel
operations
management functions.
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Information and Organizations
Some Types of
Business Information Systems
 Types
 E-Commerce systems
 Transaction processing systems
 Management information systems
 Decision support systems
 Knowledge Management Systems
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Information and Organizations
Electronic and Mobile Commerce
 E-commerce
 Any business transaction executed
electronically between:
• Companies (business-to-business, B2B)
• Companies and consumers (business-to-
•
•
•
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consumer, B2C)
Consumers and other consumers (consumer-toconsumer, C2C)
Business and the public sector
Consumers and the public sector
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Purchase Order - Traditional
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Purchase Order – E-commerce
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Information and Organizations
Electronic and Mobile Commerce (cont’d)
 Mobile commerce (m-commerce)
 Transactions conducted anywhere, anytime
 E-commerce
 Can enhance a company’s stock prices and
market value
 Electronic business (e-business)
 Uses information systems and the Internet to
perform all business-related tasks and
functions
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Information and Organizations
Transactions Processing Systems
 Transaction
 Any business-related exchange
 E.g., generating a weekly payroll
 Transaction processing system (TPS)
 An organized collection of people, procedures,
software, databases, and devices used to record
completed for business related exchanges
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Information and Organizations
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Information and Organizations
Master File & Transaction File
 Master File
A master file is a file used as a reference for a
particular computer application. It may be
updated when necessary. E.g. a file details of
the goods stored.
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Information and Organizations
Master File & Transaction File
 Transaction File
A transaction file is a file of temporary data,
which has been prepared in order to carry out a
processing operation with the data on a master
file.
Usually the transaction file is being used to
update the master file which contain the data
about the subjects of the organization (customers,
employees, vendors, etc.).
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Information and Organizations
Management Information Systems
 An MIS is…
 An organized collection of people, procedures,
software, databases, and devices used to
routine information to managers and decision
makers
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Information and Organizations
Management Information Systems (MIS) (continued)
Figure 2-5
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Information and Organizations
Schematic of MIS
Marketing
management
information
system
Financial
management
Information
system
Manufacturing
management
Information
system
Common
databases
TPS
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Order
management
information
system
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Information and Decision Support Systems
 Decision support system (DSS)
 Organized collection of people,
procedures, software, databases, and
devices that support problem-specific
decision making
 Used when problem is complex and
information needed to determine
appropriate action is difficult to obtain
and use
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Information and Organizations
IDecision Support Systems Components
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DSS Components
1. Data (Base) Management Subsystem
2. Model (Base) Management Subsystem
3. Knowledge-based (Management)
Subsystem
4. User Interface Subsystem (Dialogue)
5. The User
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Information and Organizations
DSS (Cont..)
Decision Support Systems (DSS)
 Designed to help decision makers
 Provides interactive environment for
decision making
 Use internal information from TPS and
MIS as well as external sources
 Have more analytical power than other
systems
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Specialized Business Information Systems: Knowledge
Management, Artificial Intelligence, Expert Systems, and
Virtual Reality
 Knowledge management systems (KMSs)
 Organized collection of people, procedures,
software, databases, and devices to
• Create, store, share, and use the organization’s
knowledge and experience
 Artificial intelligence (AI)
 Computer system takes on characteristics of
human intelligence
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Information and Organizations
Specialized Business Information Systems:
Knowledge Management, Artificial Intelligence,
Expert Systems, and Virtual Reality (cont’d)
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Information and Organizations
Specialized Business Information Systems: Knowledge
Management, Artificial Intelligence, Expert Systems, and
Virtual Reality (cont’d)
 Expert systems
 Give computer ability to make
suggestions and function like an expert
in a particular field
 Virtual reality
 Simulation of a real or imagined
environment that can be experienced
visually in three dimensions
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Information and Organizations
TPS, MIS, DSS, and AI/ES
Information
AI/ES
Less
More
Less
Routine
Decision
support
Input &
output
More
Less
More
DSS
MIS
Data
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TPS
Information and Organizations
More
Sophistication
& complexity of
processing & analysis
Less
Information Systems in the Functional
Areas of Business
 Finance and accounting
 Sales and marketing
 Manufacturing
 Human resource management
 Legal information systems
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Information and Organizations
Chapter 2 Information Systems in the Enterprise
(Some another Systems from FUNCTIONAL PERSPECTIVE )
(1) Sales and Marketing Systems
Major functions of systems:
• Sales management, market research, promotion, pricing, new
products
Major application systems:
• Sales order info system, market research system, pricing system
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(2) Manufacturing and Production Systems
Major functions of systems:
• Scheduling, purchasing, shipping, receiving, engineering,
operations
Major application systems:
• Materials resource planning systems, purchase order control
systems, engineering systems, quality control systems
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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
(3) Financing and Accounting Information Systems
Major functions of systems:
• Budgeting, general ledger, billing, cost
accounting
Major application systems:
• General ledger, accounts receivable, accounts
payable, budgeting, funds management systems
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Information and Organizations
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing & Accounting Information Systems (Continued)
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SYSTEM
DESCRIPTION
ORGANIZATION
-AL LEVEL
Accounts
receivable
Tracks money owed the firm
Operational
Budgeting
Prepares short-term budgets
Management
Profit planning
Plans long-term profits
Strategic
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Table 2-4
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
(4) Human Resource Management Systems
Major functions of systems:
• Personnel records, benefits, compensation, labor relations, training
Major application systems:
• Payroll, employee records, benefit systems, career path systems,
personnel training systems
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Information and Organizations
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems (Continued) An Employee Recordkeeping System
Figure 2-11
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Information and Organizations
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
(5) Supply Chain Management (SCM)
• Integrates supplier, manufacturer, distributor, and customer
logistics time
• Reduces time, redundant effort, and inventory costs
• Network of organizations and business processes
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INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Supply Chain Management (SCM)
• Helps in procurement of materials, transformation of raw
materials into intermediate and finished products
• Helps in distribution of the finished products to customers
• Includes reverse logistics - returned items flow in the reverse
direction from the buyer back to the seller
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(6) Customer Relationship Management(CRM)
CRM enables an organization to identify, attract, retain
and support customers using multiple channels such as
the World Wide Web, direct sales, telemarketing call
centers, direct mail and retail facilities.
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http://www.crmup.com/?gclid=CIfI-uCbvagCFZoT3wodmVkADw
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