Business Systems

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Business Systems
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Categories

• Transaction Processing Systems
• Information Systems
• Information Reporting Systems
• Decision Support Systems
• Executive Information Systems
• Office Systems
• Design and Manufacturing Systems

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Transaction Processing Systems

• handles an organizations business transactions
• provides a current record of the companys
  activities
• processed information is stored in a database

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Typical Transactional Processing Operations

• payroll systems
• order entry
• inventory control
• accounts receivable
• accounts payable
• general ledger

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Information Systems

• developed to help managers make decisions by
  providing them with information
• information needs vary depending upon the
  management level

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Managers and Information Needs

• Top level management
• strategic planning
• unstructured decisions
• Middle level management
• tactical planning
• semi-structured decisions
• Lower level management
• operational planning
• structured decisions

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Information Reporting Systems

• support structured decision making primarily at
  the lower and middle management levels
• information is in the form of computer generated,
  preformatted reports
• information for the reports comes from the
  database generated by the transactional
  processing system

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Types of Reports

• Scheduled Reports
• categorize and summarize information
• automatically produced on a regular basis
• widely distributed throughout the organization

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Types of Reports (cont.)

• Exception Reports
• inform management of unusual happenings
• automatically produced if something atypical
  occurs
• useful for early detection of problems

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Types of Reports (cont.)

• Demand Reports
• specialized reports that a manager requests on a
  particular subject
• produced upon request
• fill irregular needs for information

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Decision Support Systems

• provide middle and upper level managers with
  tools for organization and analysis of
  information
• useful for users who want to create their own
  decision models and output formats
• oriented toward present and future events

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Decision Support Systems (cont.)

• provide access to both internal and external
  information sources
• contains productivity software such as
  spreadsheets and database management systems
• often includes software used for forecasting,
  optimization, and simulation

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Executive Information Systems

• customized decision support systems used by top
  level managers
• highly personalized
• designed for ease of use

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Office Systems

• using computer technology to increase
  productivity throughout the entire organization
  (office automation)
• document processing
• electronic mail
• desk accessories
• decision support tools
• teleconferencing

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Design and Manufacturing Systems

• Computer-Aided Design (CAD)
• Computer-Aided Manufacturing (CAM)
• robotics
• Computer-Integrated Manufacturing (CIM)
• enables CAD, CAM, and other business activities
  to be tied together by computers

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E-Business vs. E-Commerce
Supply Chain Management
Supplier
Manufacturer
Distributor
Retailer
Customer