INFORMATION SYSTEMS Report by Phineee

INFORMATION SYSTEMS
WITHIN ORGANIZATION
Learning Outcomes
1. Define and understand Transactions processing systems;
2. Explain the purpose of transaction processing system;
3. Identify the functional areas in information systems;
4. Define and understand Enterprise Resource Planning;
5. Explain the purpose of enterprise resource planning systems;
6. Enumerate and discuss the advantages and some disadvantages of
ERP systems;
7. Discuss the three major types of reports generated by the functional
area information systems and enterprise resource planning systems.
TRANSACTION PROCESSING
SYSTEMS
Supports the monitoring, collection, storage and
processing of data worthy of being captured and stored
in a database.
O Examples may include:
1. products manufactured
2. sales made
3. persons hired
4. payroll check generated
5. etc
Two ways how Transaction Processing Systems (TPS) are
being processed:
1. Batch Processing is when the firm collects
data from transactions as they occur, placing
them in groups, or batches, then prepares and
processes the batch
Examples of batch processing are transactions of credit
cards, generation of bills, processing of input and
output in the operating system etc.
O 2. Online Transaction Processing (OLTP) is when
business transactions are processed online as soon as
they occur.
*Also called : Real-Time
Many TPSs take advantage of source data automation.
Source data automation involves collecting data from
sensors (e.g., barcode scanners) that allows data entry
directly into a computer without
The examples of OLTP systems are Automated Teller
Machine (ATM), Online banking systems, online ticket
reservation systems, stock exchange systems, and e-
commerce websites where people perform multiple online
transactions concurrently.
Functional Area Information
Systems
Functional area information systems are systems that provide
information to managers (usually midlevel) in the
functional areas, in order to support managerial task of
planning, organizing, and controlling operations
Each department or functional area within an organization has

its own collection of application programs, or information
systems. Each of these functional area information systems
supports a particular functional area in the organization by
increasing each area’s internal efficiency and effectiveness.
FAIS’s often convey information in a variety of reports.
Functional Area Information Systems Example
Functional Area Information Systems
Examples are:
O Finance (FIN): provide internal and external professional
access to stock, investment and capital spending
information.
O Accounting (ACC): similar to financial MIS, more related
to invoicing, payroll, receivables.
O Marketing (MKT): pricing, distribution, promotional, and
information by customer and salesperson.
O Operations (OPS): regular reports on production, yield,
quality, inventory levels. These systems typically deal with
manufacturing, sourcing, and supply chain management.
O Human Resources Management (HR): employees, benefits,
hiring’s, etc.
A summary of capabilities of a FAIS are organized by functional
area in the following chart
ENTERPRISE RESOURCE
PLANNING
is business management software—typically a
suite of integrated applications—that a company
can use to collect, store, manage and interpret
data from many business activities, including:
• Product planning, cost
• Manufacturing or service delivery
• Marketing and sales
• Inventory management
• Shipping and payment
ENTERPRISE RESOURCE
PLANNING
O ERP provides an integrated view of core business
processes, often in real-time, using common databases
maintained by a database management system. ERP
systems track business resources— cash, raw
materials, production capacity—and the status of
business commitments: orders, purchase orders, and
payroll. The applications that make up the system
share data across the various departments
(manufacturing, purchasing, sales, accounting, etc.)
that provide the data.[1] ERP facilitates information
flow between all business functions, and manages
connections to outside stakeholders.
That is, ERP systems are designed to break
down the information silos of an organization.
These silos did not communicate well with one
another , and this lack of communication and
integration made organizations less efficient.
This inefficiency was particularly evident in
business process that involve more than one
functional area, such as procurement and
fulfillment
Key advantages include:
O Organizational flexibility
O Decision Support
O Quality and Efficiency
O Error reduction
O Reduced redundancy
O Decreased costs (over time)
Disadvantages may be:

O Usually generic in nature
O Can be costly to customize
O May have complex interconnections and take lots of time
(and money!) up front
O Training
Reports
Many Information Systems generate reports that collect and organize
data into presentable & readable information.
Types of Reports (3 major categories)
1. Routine reports (i.e. monthly or weekly sales reports by product)
2. Ad hoc (on demand) reports (i.e. how many surplees did we sell
did we sell this week)
O Drill-down reports (i.e. how many surplees did we sell this week for
store 134)
O Key-indicator reports (i.e. what is our cash inflow versus outflow for
a week)
O Comparative reports (i.e. what are the sales of watermelon surplees
versus lime surplees)
3. Exception reports (i.e. details stores that are not close to the
average surplee versus total sales)
DO YOU HAVE ANY
QUESTIONS?
THANK YOU FOR LISTENING! 
LULA, ZYDEL B.
TANAY, JOSEPHINE P.
-REPORTERS-

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INFORMATION SYSTEMS

Each department or functional area within an organization has

Disadvantages may be:

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