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MIS final chapter 10 information systems within the organization
Terms in this set (41)
any business event that generates data worthy of being captured and stored in a database
transaction processing system (TPS)
supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates and collects data continuously, in real time.
Source data automation
a process in which organizations try to automate the TPS data entry as much as possible because of the large volume involved.
the firm collects data from transactions as they occur, placing them in groups or batches then prepares and processes the batches periodically.
online transaction processing (OLTP)
business transactions are processed online as soon as they occur and system performs these tasks in real time by means of online technologies.
financial planning and budgeting
Appropriate management of financial assets and is an important part of managerial planning for both acquiring and utilizing resources.
managing financial transactions
accounting/finance software packages that are integrated with other functional areas (e.g., Peachtree offers a sales ledger, a purchase ledger, a cash book, sales order processing, invoicing, stock control, a fixed assets register, etc.).
Systems for managing organization investments in in stocks, bonds, real estate, and other assets that are subject to complex regulations and tax laws, which vary from one location to another.
control and auditing
effectively control their finances and financial statements. Let us examine some of the most common forms of financial control.
financial and economic forecasting
Knowledge about the availability and cost of money a key ingredient for successful financial planning including flow projections which inform organizations what funds they need, when they need them, and how they will acquire them.
global stock exchanges
Financial markets operate in global, 24/7/365, distributed electronic stock exchanges that use the Internet both to buy and sell stocks and to broadcast real-time stock prices
managing multiple currencies
Financial and accounting systems utilize financial data from different countries to convert currencies (with conversion ratios that constantly flux) in seconds.
the ability the books quickly at any time, on very short notice (rather than quarterly) which provides almost real-time information on the organization's financial health.
expense management automation (EMA)
systems that automate the data entry and processing of travel and entertainment expenses through Web-based applications that enable companies to quickly and consistently collect expense information, enforce company policies and contracts, and reduce unplanned purchases as well as airline and hotel expenses.
Financial ratio analysis
: monitoring the company's financial health by assessing a set of financial ratios including liquidity ratios , activity ratios, debt ratios, and profitability ratios
monitoring how the organization's monies are being spent and assessing the organization's financial health.
managers at various levels monitor departmental expenditures and compare them against the budget and the operational progress of corporate plans.
systems that assist human resource personnel in finding potential employees, evaluating them, and deciding which ones to hire.
human resources development
IS that assist human resource personnel in helping new hires become part of the corporate human resources pool through evaluation and development.
Human resources planning and management
Managing human resources in large organizations requires extensive planning and detailed strategy
Enterprise resource planning systems (ERP)
systems designed to correct a lack of communication among the functional area IS and they adopt a business process view of the overall organization to integrate the planning, management, and use of all of an organization's resources, employing a common software platform and database.
ERP II systems
interorganizational ERP systems that provide Web-enabled links among a company's key business systems—such as inventory and production—and its customers, suppliers, distributors, and other relevant parties.
Enterprise application integration (EAI) system
integrates existing systems by providing software, called middleware, that connects multiple applications allowing existing applications to communicate and share data.
Core ERP modules
Financial, operations, and human resource management
These modules support accounting, financial reporting, performance management, and corporate governance.
These modules manage the various aspects of production planning and execution such as demand forecasting, procurement, inventory management, materials purchasing, shipping, production planning, production scheduling, materials requirements planning, quality control, distribution, transportation, and plant and equipment maintenance.
Human resource management
These modules support personnel administration (including workforce planning, employee recruitment, assignment tracking, personnel planning and development, and performance management and reviews), time accounting, payroll, compensation, benefits accounting, and regulatory requirements.
Customers and suppliers demand access to ERP information including order status, inventory levels, and invoice reconciliation.
These modules collect information used throughout the organization, organize it, and apply analytical tools to assist managers with decision making.
Benefit of ERP- organizational flexibility and agility
ERP systems break down many former departmental and functional silos of business processes, information systems, and information resources making organizations more flexible, agile, and adaptive.
Benefit of ERP- decision support
provide essential information on business performance across functional areas which significantly improves managers' ability to make better, more timely decisions.
benefit of ERP- quality and efficiency
ERP systems integrate and improve an organization's business processes, generating significant improvements in the quality of production, distribution, and customer service
limitations of ERP- business process predefined by best practices
may require companies need to change their existing business processes to fit the predefined business processes incorporated into the ERP software.
limitations of ERP- difficult to implement
ERP systems can be extremely complex, expensive, and time consuming to implement.
Implementing ERP systems
vanilla, custom, and best of breed apporach
a company implements a standard ERP package, using the package's built-in configuration options
a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm.
Best of breed approach
combines the benefits of the vanilla and customized systems while avoiding the extensive costs and risks associated with complete customization.
originates when a company needs to acquire goods or services from external sources, and it concludes when the company receives and pays for them.
order fulfillment process
(order-to-cash process) process in which the company sells goods to a customer originating when the company receives a customer order, and concluding when the company receives a payment from the customer.
occurring only in companies that produce physical goods, this process follows one of two strategies: make-to-stock and make-to-order.
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