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From Chapter 2, I understand the followings According to Laudon & Laudon: IT = Hardware + Software IS = IT + People + Procedures Three System

Types Operational Level Core business operations Management level Assessment Tools Strategic Level Integration of Internal & External Data for trend

Identification & Long Range Decisions or Enterprise Impact Decisions. Four Major System Types 1. TPS; Transaction Processing System Core systems at the operational level

2. MIS; Management Information Systems Provides information to managers


for planning, controlling and deciding. Typical short term & vertical in nature.

3. DSS; Decision Support Systems Integrate various horizontal sources of data


to aid decision making at the management level. 4. ESS; Executive Support Systems Provides support to big picture problems. Guides the direction of the organization. At a minimal, these systems usually share data and TPS is typically the main provider of internal data and collector of external data. Functional Business Systems Sales Contact customers, Sell Product, Take Orders, Sales Follow-up Marketing More research oriented; Identifying customers, seeking needs,

making needs, planning products, advertising, promotion. Manufacturing, Production Planning, Developing, Maintaining, Schedule,

Labor & Resource management. Financial Manage Firms assets. Decide where the money is going and

where it comes from. Accounting/Auditing Record keepers.

Human Resources Keeper of organizations workforce. Legal issues, traffic

coordinator for flow of people. Some development/training roles.

Management Opportunities/Challenges Integration Many organizations have disparate TPS and MIS systems. Data, reporting and processing from different areas of a firm are on separate systems.

Management & Employee Training Managers often let people resource slide

into obsolescent, creating turnover and under achievers. System Resource Management Identifying what is critical, useful or useless.

Solution Guidelines Inventory Information needs, data available, systems capabilities and labor capabilities.

Be aware that labor needs to know the power (capabilities) and use of IS

tools & resources Employ measurable goals. Set benchmarks, regular measurement

procedures, and accountability policies.

Additional Terminology

CAD; Computer Aided Design Used to create digital models and

specifications. CRM; Customer Relationship Management Customer integration into your

business processes.

Enterprise Applications support organization wide process coordination and

integration; umbrella or basin. ERP; Enterprise Resource Planning Mends fragmented data system to

provide single point of service

Inter-organizational Systems System coordination among different

organizations. Knowledge Based Management Systems Collect, Store and distribute

development and business knowledge or rules to varying business systems or functions.

Portal - a single gateway for users, such as employees, customers and

companys partners to log into and retrieve corporate information, company history and other services or resources.

PLM; Product Life Cycle Management Tracks and provides all details

regarding a product; from material acquisition to distribution and return. SCM; Supply Chain Management A type of Inter-organizational system

coordinating vertically along the supply chain.