6. Describe five types of information systems, and give an example of each.
Enterprise computing systems, transaction processing systems, business support systems, knowledge
management systems, and user productivity systems. Enterprise computing refers to information
systems that support company-wide operations and data management requirements. Wal-Mart’s
inventory control system, Boeing’s production control system, and Hilton Hotels’ reservation system are
examples of enterprise computing systems. The main objective of enterprise computing is to integrate a
company’s primary functions to improve efficiency, reduce costs, and help managers make key decisions.
Transaction processing (TP) systems process data generated by day-to-day business operations. Examples
of TP systems include customer order processing, accounts receivable, and warranty claim processing.
Business support systems provide job-related information support to users at all levels of a company.
These systems can analyze transactional data, generate information needed to manage and control
business processes, and provide information that leads to better decision-making. For example, Wal-
Mart, which requires its suppliers to add radio frequency identification, RFID, tags to all items. A retailer
might use to determine the price it must charge to increase profits by a specific amount while volume
and costs remain unchanged. Knowledge management systems simulate human reasoning by combining
a knowledge base and inference rules that determine how the knowledge is applied which consists of a
large database that allows users to find information by entering keywords or questions in normal English
phrases. A knowledge management system uses inference rules, which are logical rules that identify data
patterns and relationships for example, Toshiba maintains for its customers and users. Companies
provide employees at all levels with technology that improves productivity. Examples of user productivity
systems include e-mail, voice mail, fax, video and Web conferencing, word processing, automated
calendars, database management, spreadsheets, desktop publishing, presentation graphics, company
intranets, and high-speed Internet access.
7. Describe four organizational levels of a typical business and their information