Ch. 1 Information Systems: An Overview

Four M's of Resources

-Manpower -Machinery -Materials -Money

Database

Collection of relevant data organized in a series of integrated files.

Process

Component of an information system that generates useful information for decision making, including transaction-processing reports and models for decision analysis.

Information

Consists of facts analyzed by the process component and is an output of an information system

Transaction Processing Systems

Focus on data collection and processing; major reason for using them is cost reduction.

Top-line strategies

Focuses on generating new revenue by offering new products and services to customers or increasing revenue by selling existing products and services to new customers.

Bottom-line strategies

Improves efficiency by reducing overall costs.

Marketing information system (MKIS)

Improves marketing decisions. Provides timely, accurate, and integrated information about the marketing mix-4P's: Price, promotion, place, and product.

Management Information System (MIS)

Organized integration of hardware and software technologies, data, processes, and human elements designed to produce timely, integrated, relevant, accurate, and useful information for decision-making purposes.

Business Intelligence

Provides historical, current, and predictive views of business operations and environments and gives organizations a competitive advantage in the marketplace.

Financial information system (FIS)

Provides information to financial executives in a timely manner.

Logistics information system (LIS)

Reduces the cost of transporting materials while maintaining safe and reliable delivery.

Manufacturing information system (MFIS)

Used to manage manufacturing resources so companies can reduce manufacturing costs, increase product quality, and make better inventory decisions.

Personnel information system (PIS)

[or human resource information system (HRIS)] Provides information that helps decision makers in personnel performing their tasks more effectively. Web technologies improve the efficiency and effectiveness of HR departments. Intranets are used to provide basic HR functions.

Michael Porter's Five Forces

analyzes an organization, its position in the marketplace, and how information systems could be used to make it more competitive. Includes: buyer power supplier power threat of substitute products or services threat of new entrants rivalry among existing competitors.

Data

consists of raw facts and is a component of an information system (can be internal or external)

Computer Literacy

skill in using productivity software, such as word processors, spreadsheets, database management systems, and presentation software, as well as having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologies.

Information Technologies

support information systems and use the Internet, computer networks, database systems, POS systems, and radio-frequency-identification (RFID) tag.

Information Literacy

understanding the role of information in generating and using business intelligence.