© 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 1 Information in Action

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 2 What is Data Processing? ► Manipulation or transformation of symbols for the purpose of increasing their usefulness. ► Data processing (DP) and transaction processing (TP) are often used interchangeably. ► Applied to business data 11-2

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 3 Transaction processing system ► Transaction processing system (TPS) is the information system that gathers data describing the firm’s activities, transforms the data into information, and makes the information available to users both inside and outside the firm. ► Gathers data describing a firm’s activity ► Transforms data into information ► Makes information available to users inside and outside the firm 11-3

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 4 Data Processing Tasks 1. Gather data 2.Manipulate data 11-4 ► 3. Store data ► 4. Document preparation

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 5 Organizational Information System ► A computer-based system that makes information available to users with similar needs. 12-5

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 6 Executive Information System (EIS) Organizational Information Systems Marketing information system Manufacturing information system Financial information system Human resource information system 12-6

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 7 Report Writing Software ► Periodic and special reports may look the same ► Difference is in what triggers the report  Periodic report ► Produced on a schedule  Special report ► Produced when something out of the ordinary occurs 12-7

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 8 Organizational Information Systems Organizational information systems are developed to meet the needs for information relating to those particular parts of the organization. Organizational information systems are developed to meet the needs for information relating to those particular parts of the organization. ► Marketing information system (MKIS) provides information that relates to the firm’s marketing activities.

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 9 Other Organizational Information System ► Human Resources information system (HRIS) provides information to managers throughout the firm concerning the firm’s human resources. ► Manufacturing information system provides information to managers throughout the firm concerning the firm’s manufacturing operations. ► Financial information system provides information to managers throughout the firm concerning the firm’s financial activities.

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 10 The Executive Information System ► Executive information system (EIS) is a system that provides information to upper- level managers on the overall performance of the firm; also called Executive support system (ESS).

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 11 Product Subsystem  Product life cycle; introduction, growth, maturity, and decline  Information answers 3 key questions: 1. Introduce? 2.Change strategy? 3.Delete?

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 12 SalesVolume STAGES Introduction Growth MaturityDecline Should the product be introduced Should the product strategy be changed Should the product be deleted The Product Life Cycle and Related Decisions

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 13 Customer Relationship Management ► Customer relationship management (CRM) is the management of the relationships between the firm and its customers so that both the firm and its customers receive maximum value from the relationship.

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 14 Data Warehousing ► Data warehouse describes data storage that has the following characteristics:  Storage capacity is very large.  Data are accumulated by adding new records, as opposed to being kept current by updating existing records with new information.  Date are easily retrievable.  Date are used solely for decision making, not for use in the firm’s daily operations. ► Data mart is a database that contains data describing only a segment of the firm’s operations.

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 15 OLAP ► On-line analytical processing (OLAP) enables the user to communicate with the data warehouse either through a GUI or a Web interface and quickly produce information in a variety of forms, including graphics.

© 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 16 Data Mining ► Data mining is the process of finding relationships in data that are unknown to the user.