Chapter 2 MIS
Sumamry CHAPTER 2
1. Define and describe business processes and their relationship to information systems.
A business process is a logically related set of activities that define how specific business tasks are performed, and a business can
be viewed as a collection of business processes. Business processes are concrete workflows of material, information, and
knowledge. Information systems can help organizations achieve greater efficiencies by automating parts of these processes or by
helping organizations redesign and streamline them. Firms can become more flexible and efficient by coordinating their business
processes closely, and, in some cases, integrating these processes so they are focused on efficient management of resources and
2. Describe the information systems supporting the major business functions: sales and marketing, manufacturing and
production, finance and accounting, and human resources.
At each level of the organization, information systems support the major functional areas of the business. Sales and marketing
systems help the firm identify customers for the firm’s products or services, develop products and services to meet customers’ needs,
promote the products and services, sell the products and services, and provide ongoing customer support. Manufacturing and
production systems deal with the planning, development, and production of products or services, and control the flow of production.
Finance and accounting systems keep track of the firm’s financial assets and fund flows. Human resources systems maintain
employee records; track employee skills, job performance, and training; and support planning for employee compensation and career
3. Evaluate the role played by systems serving the various levels of management in a business and their relationship to
There are four major types of information systems in contemporary organizations serving operational, middle, and senior
management. Systems serving operational management are transaction processing systems (TPS), such as payroll or order
processing, that track the flow of the daily routine transactions necessary to conduct business. MIS and DSS provide middle
management with reports and access to the organization’s current performance and historical records. Most MIS reports condense
information from TPS and are not highly analytical. DSS support management decisions when these decisions are unique, rapidly
changing, and not specified easily in advance. They have more advanced analytical models and data analysis capabilities than MIS