Conceptually, information systems in the real world can be classified in several different ways. For example, several types of information systems can be classified conceptually as either operations or management information systems. 1. Operations Support Systems Information systems have always been needed to process data generated by, and used in, business operations. Such operations support systems produce a variety of information products for internal and external use. However, they do not emphasize producing the specific information products that can best be sued by managers. Further processing by management information systems is usually required. The role of a business firm’s operations support systems is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases. 1. 1. Transaction Processing Systems Operations support systems include the major category of transaction processing systems (TPS). Transaction processing systems record and process data resulting from business transactions. Typically examples Continue reading
Business Information Systems
Enterprise Resource Planning (ERP) Implementation
Introduction Enterprise Resource Planning (ERP) is the process of integrating all the business functions and processes in an organization to achieve numerous benefits. First, a single point of data entry helps to reduce data redundancy while saving employee’s time in entering data, thereby reducing labor and overhead costs. Second, the centralization of information, decision-making, and control leads to increases in efficiencies of operations and productivity, as well as coordination between departments, divisions, regions, and even countries. This is especially true for multinational corporations (MNC), in which global integration could result in better communications and coordination around the world. The global sourcing and distribution of parts and services could also provide appropriate benchmarks for operations around the world. Third, the sharing of a centralized database provides business managers with accurate and up-to-date information to make well informed business decisions. Further, it reduces data redundancy while improving data integrity at the same time. Fourth, functional integration Continue reading
The Importance of Accounting Information Systems
Generally, the day-to-day running of a business organization comprises several transactions which the firm engages in. As a result, there is a need to always keep the records in a systematic manner for decision-making and for reference. Accounting is a systematic way of recording business transactions. The data of all the transactions are recorded and kept mainly for future use. These data are tracked and recorded in a computer-based system (financial accounting system) to facilitate the accuracy of the data. The main users of the accounting information are the shareholders, creditors, financial analysts, vendors, and government agencies. There are various categories of books and documents in which the accounting information is kept. For instance, the books of original entry which comprises of various journals such as cash journal, general journal, purchase journal, and sales journal; and the source documents like, cash receipts, bank statements, and cash statements. The information from Continue reading
Transaction Process System – Activities, Objectives and Characteristics
Transaction processing system (TPS), an information system (IS) mostly used by managers in operational management to record internal transactions, economic events that occur within an organization and external transactions where the business event took place outside the organization to make operational decision. TPS supports different tasks by setting a set of rules and guidelines that specify the ways to capture or collect, process and store any transaction in a form of data or information. Transaction Process System Activities Processing business transactions was the first application of computer of most firms. Since the 1950s, Transaction processing system (TPS) have evolved from slow, manual systems to advanced computerized system. TPS, a cross-functional information system were among the earliest computerized systems developed to record, process, validate, and store business for future use or retrieval. Transactions are the economic events or exchange between two or more business entities. Basically, TPS is an organized collection Continue reading
Disaster Recovery Plan (DRP) in Business
Fire, flood, earthquake and accidental deletion of data are all acts that can cause disastrous consequences on data. Such disasters can prevent the network from operating normally, which in turn can hamper the organization’s business. These disasters can be classified into man-made disasters and environmental disasters. Man-made disasters are intentionally or unintentionally caused by humans. For example, a user accidentally deletes the data, virus and malicious programs can damage data and various other events can cause data loss and downtime. Environmental disasters are non-preventive but can be reduced if appropriate precautions are taken. Environmental disasters include fire, flood, earthquake, tornado and hurricane. Disaster recovery deals with recovery of data that is damaged due to destructive activities. The time required to recover from a disaster depends on the disaster recovery plan implemented by the organization. A good disaster recovery plan can prevent an organization from any type of disruption. Disaster Recovery Continue reading
Electronic Data Interchange (EDI) Standards and Specifications
Electronic Data Interchange Standards Generally speaking, Electronic Data Interchange (EDI) is considered to be a technical representation of a business conversation between two entities, either internal or external. Note, there is a perception that “EDI” consists of the entire electronic data interchange paradigm, including the transmission, message flow, document format, and software used to interpret the documents. Electronic Data Interchange (EDI) is considered to describe the rigorously standardized format of electronic documents. The Electronic Data Interchange standards were designed to be independent of communication and software technologies. EDI can be transmitted using any methodology agreed to by the sender and recipient. This includes a variety of technologies, including modem (asynchronous, and bisynchronous), FTP, Email, HTTP, AS1, AS2, WebSphere MQ, etc. It is important to differentiate between the EDI documents and the methods for transmitting them. While comparing the bisynchronous protocol 2400 bit/s modems, CLEO devices, and value-added networks used to Continue reading