Ch.5 How information systems support managerial work and decision making

Ch.5 How information systems support managerial work and decision making

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Ch.5 How information systems support managerial work and decision making 5.1 business process and information systems Business need to deal with many different pieces of information about suppliers, customers, employees, invoices, payments and their products and services. IS can help firms to manage all their information, make better decisions and improve the execution of their business processes. Business processes Refer to the manner in which work is organized, coordinated and focused to produce a valuable product or service. It is workflows of material, information and knowledge-sets of activities. It is also refers to the unique ways in which organizations coordinate work, information and knowledge and the ways in which mgmt chooses to coordinate work. E.g. of functional business processes Manufacturing and production assembling the product, checking for quality and producing bills of materials Sales and marketing identifying customers, making customers aware of the product and selling the product Finance and account paying creditors, creating financial statements and managing cash accounts Human resources hiring employees, evaluating employee s job performance and enrolling employees in benefits plans How IT enhances business processes There is different from IS enhance business processes. IS automate many steps un business processes that were performed manually such as checking a client s credit, generating an invoice and shipping order. However, IT can do much more. It can change the flow of information, making people to access and share information, replacing sequential steps with tasks that can be performed and eliminating delays in decision making. e.g. ordering a book online from Amazon.com or downloading a music from iTunes are new business processes based on new business models with IT 5.2 types of Information Systems P.179 How IS support the business processes of a firm? There are many different business processes because there are different interests, specialties and levels in an organization, different kinds of systems. no single system can provide all the information an organization needs. A typical business organization will have systems supporting processes for each of
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Ch.5 How information systems support managerial work and decision making the major business functions-system for sales and marketing, manufacturing and production, finance and accounting and human resources. Transaction processing systems (TPS) Operational manager need systems to keep the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decision and the flow of materials in a factory. TPS is a computerized system that performs and records the daily routines
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Ch.5 How information systems support managerial work and decision making

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