2 - Overview of Information Systems
2 - Overview of Information Systems
Support
Business Decision Making
Support
Business Processes and Operations
Support for Business Processes.
For example, most retail stores now
use computer-based information
systems to help them
◦record customer purchases,
◦keep track of inventory,
◦pay employees,
◦buy new merchandise, and
◦evaluate sales trends.
Store operations would grind to a halt
without the support of such information
systems.
Support Decision Making.
Information systems also help store
managers and other business professionals
make better decisions.
For example, decisions on
◦ what lines of merchandise need to be added or
discontinued, or on
◦ what kind of investment they require,
are typically made after an analysis provided
by computer-based information systems.
This not only supports the decision making of
store managers, buyers, and others, but also
helps them look for ways to gain an
advantage over other retailers in the
competition for customers.
Support Competitive Advantage.
Gaining a strategic advantage over competitors
requires innovative use of information
technology. For example, store management
might make a decision
◦ to install touch-screen kiosks in all of their stores,
with links to their e-commerce website for online
shopping.
This might attract new customers and build
customer loyalty because of the ease of
shopping and buying merchandise provided by
such information systems.
Thus, strategic information systems can
help provide products and services that give a
business a comparative advantage over its
competitors.
Trends in Information Systems
The business applications of
information systems have expanded
significantly
1950-1960 1960-1970
over the years.
1970-1980 1980-1990 1990-2000
Electronic
Data Management
Processing Information
- TPS Decision
Systems Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce
Untilthe 1960s, the role of most
information systems was simple:
transaction processing, record-keeping,
accounting, and other electronic data
processing (EDP) applications. Then
another role was added, the concept of
management information systems.