Introduction to Information Systems

Introduction to Information Systems (IS)

An information system is defined as the process that collects, processes, stores, analyzes, and disseminates information for a specific purpose. Most ISs are computerized. I would like to introduce a few ISs that would increase your company’s growth and profit.

• Enterprise resource planning (ERP): This information system allows businesses to have all processes in one centralized data base. It would encompass the use of an organization’s resources such as planning, scheduling, and finances.

o Having an ERP system like SAP, would provide the information necessary to control the business processes of the organization. Systems may include finance, accounting, marketing, human resources, production, inventory management and distribution.

• Transaction Processing Systems (TPS): An information system that supports the monitoring, collection, storage, and processing of data from business transactions.

o Having a TPS in place would account for all items being purchased and making sure when a customer adds an item to their cart, another person cannot order that same item if there is only one left. If multiple items are in stock, the TPS monitors all items to make sure your inventory goes in and out smoothly.

• Office Automation Systems (OAS): Information systems that typically support the clerical staff, lower and middle managers, and knowledge workers. Common systems are Microsoft Outlook, Word, Excel, and Power Point.

o Having an OAS in place would make it easier on employees who deal with computer programs to make schedules, complete payroll, e-mail, company documents, etc.

• Management Information System (MIS): Produces reports summarized from transaction data, usually in one functional area.

o Having a MIS (e.g. Quickbooks) would allow the business to maintain proper accounting records such as

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