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