WEEK #3
SEPT 7, 2021
MIS 213
TUTORING HOUR –
CHECK WEB SITE FOR ZOOM
LINK
CHAPTER 2
INFORMATION SYSTEMS
(TYPES)
Set of interrelated components
that collect, process and
disseminate data and
information to provide a
feedback mechanism to meet
an objective.
INFORMATION SYSTEM
DEFINITION (FROM CHAPTER 1)
ELEMENTS OF AN INFORMATION
SYSTEM
IS AND ORGANIZATIONAL
CHANGE
IS can generate organizational change
Process improvements
Customer self service (ATM)
Automation
Online ordering (Amazon.com)
Control
Prerequisite check for course registration
Information flow
Checking if credit card is valid
IS AIDS IN MAKING DECISIONS
AT MULTIPLE LAYERS OF AN ORG.
Operational
Management
Daily/Monthly
Plans
COMMON INFORMATION SYSTEMS
Personal applications
Help make individuals’ work more
efficient and effective.
Transaction processing systems
Collect, monitor, process and store
large volumes of data that are
created by business processes
Bélanger, Van
Slyke, Crossler ©
Prospect Press
2018
2-8
COMMON INFORMATION SYSTEMS
Functional and management information
systems
Focus on functional areas of the
organization, such as financial management
systems, sales force automation systems, or
human resources administration systems
Integrated enterprise systems
Integrated, enterprise-wide, impact multiple
functional areas
Bélanger, Van
Slyke, Crossler ©
Prospect Press
2018
2-9
TPS
TRANSACTION PROCESSING SYSTEMS
Base system
Invoices
Purchase Orders
Shipping
Employee Hours
Project Accountability
TPS provides data to all other systems
TPS DATA PROVIDES INPUT TO OTHER
FUNCTIONAL IS SYSTEMS
Supply Chain
Business
Transactions
Database
with
TPS
Data
Budget Data
Functional
Information
Systems
Goal of IS System:
Provide managers insight
to the regular operations of the firm
FUNCTIONAL IS PROVIDE ON A
REGULAR BASIS:
Daily /
Monthly
Reports Demand
ReportsException
Reports
Goal of IS System:
Provide managers insight
to the regular operations of the firm
EXAMPLES OF
FUNCTIONAL IS
SYSTEMS
FINANCIAL IS
Financial
Statements Uses and
Mgt of
Funds Financial
Statistics
MANUFACTURING IS
JIT
Quality
ControlProduction
Schedule
MARKETING IS
Pricing
ReportsSales by
Salesperson
Customer
Service
HUMAN RESOURCE MIS
Salary
SurveysJob
Applicants
Scheduling
ACCOUNTING IS
Monthly
P&LCost
VarianceTax
Reporting
MGT NEEDS INFORMATION
Operational
Management
Tactical
Management
Daily/Monthly
Plans
Annual /
Monthly
Strategies
EACH LAYER BUILDS MORE INFO TO HELP
MAKE DECISIONS
Operational
Management
Tactical
Management
Daily/Monthly
Plans
Strategic
Annual /
Monthly
Strategies
Long Term /
Acquisitions
CHAPTER 3
EVALUATING INFORMATION
THE BUSINESS BENEFITS OF HIGH-
QUALITY INFORMATION
Information is everywhere in an organization
Employees must be able to obtain and
analyze information to make decisions
Successfully analyzing information can
provide tremendous insight into how an organization is performing
MANAGERS VALUE
INFORMATION…
To improve decision making
To justify decisions
To verify previously-acquired information
To “play it safe” by making sure they do not miss any
relevant information
In the belief that the information may be useful later
Bélanger, Van
Slyke, Crossler ©
Prospect Press
2018
3-23
INFORMATION TIMELINESS
Timeliness is an aspect of information
that depends on the situation
Real-time information – Immediate, up-
to-date information
Real-time system – Provides real-time
information in response to requests
INFORMATION QUALITY
Business decisions are only as good as
the quality of the information used to
make the decisions
INFORMATION QUALITY
Characteristics of High-quality
Information
Accurate
Complete
Consistent
Unique
Timely
UNDERSTANDING THE COSTS OF
USING LOW-QUALITY INFORMATION
The four primary sources of low quality
information include
1. Customers intentionally enter inaccurate information to protect their privacy
2. Different entry standards and formats
3. Operators enter abbreviated or
erroneous information by accident or to
save time
4. Third party and external information contains inconsistencies, inaccuracies,
and errors
UNDERSTANDING THE BENEFITS OF
GOOD INFORMATION
High quality information can
significantly improve the chances of
making a good decision
Good decisions can directly impact
an organization's bottom line
INFORMATION QUALITY VS. COSTS
Context of information quality matters
For example, stock price information is often
delayed for free information services; this is
acceptable to casual investors but
devastating for a day trader
High quality information, however, is
costly
The goal is information that is of sufficient
quality to carry out tasks effectively. Bélanger, Van
Slyke, Crossler ©
Prospect Press
2018
3-29
UPCOMING EXPECTATIONS:
Thursday:
Project 3 (Access Queries)
Friday:
Mini Quiz Chapters 2/3
Next week, will review potential questions for Test #1