Business Systems
Categories
Transaction Processing Systems
 Information Systems

– Information Reporting Systems
– Decision Support Systems
– Executive Information Systems
Office Systems
 Design and Manufacturing Systems

Transaction Processing
Systems
handles an organization’s business
transactions
 provides a current record of the company’s
activities
 processed information is stored in a
database

Typical Transactional
Processing Operations
payroll systems
 order entry
 inventory control
 accounts receivable
 accounts payable
 general ledger

Information Systems
developed to help managers make decisions
by providing them with information
 information needs vary depending upon the
management level

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
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

Types of Reports

Scheduled Reports
– categorize and summarize information
– automatically produced on a regular basis
– widely distributed throughout the organization
Types of Reports (cont.)

Exception Reports
– inform management of unusual happenings
– automatically produced if something atypical
occurs
– useful for early detection of problems
Types of Reports (cont.)

Demand Reports
– specialized reports that a manager requests on a
particular subject
– produced upon request
– fill irregular needs for information
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

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

Executive Information
Systems
customized decision support systems used
by top level managers
 highly personalized
 designed for ease of use

Office Systems

using computer technology to increase
productivity throughout the entire
organization (office automation)
–
–
–
–
–
document processing
electronic mail
desk accessories
decision support tools
teleconferencing
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
E-Business vs. E-Commerce
Supply Chain Management
Supplier
Manufacturer Distributor
Retailer
Customer