Information Systems

within the Organization

Bernadeta Ratri Dewi / 181524419
Shalsabilla /
 1. Transaction Processing Systems
(TPSs)
• A transaction → any business event that generates data worthy of being captured and
stored in a database.
• Transaction Processing Systems (TPS)→ supports the monitoring, collection, storage and
processing of data from the organization’s basic business transactions, each of which
generates data
• The TPS collects data continuously, typically in real time→ as soon as the data
generated- and it provides the input data for the corporate databases
• There are 2 basic ways in system processes data :
1. Batch Processing → the firms collects data from the transactions as
they occur, placing them in group or batches. The system then prepares and
processes the batches periodically for example : every night
2. Online transaction processing (OLTP) → business transactions are
processed online as soon as they occur. For example : when you pay for an
item at a store
2. Functional Area Information
Systems (FAISs)
Functional Area Information Systems
(FAISs)
1) Information Systems for Accounting and Finance
1) Financial Planning and Budgeting
- Financial and economic forecasting
- Budgeting → allocates financial resources among participants and activities
2) Managing Financial Transactions
- Global stock exchanges
- Managing multiple currencies
- Virtual close → the ability to close the books at any time on short notice
- Expense management automation → system that automate the data entry and
processing of travel and entertainment expenses
3) Investment Management
→ Managing organizational investments in stocks, bonds, real estate and other
investment vehicles
4) Control and Auditing
- Budgetary Control → monitoring expenditures and comparing them against the
budget
- Auditing → ensuring the accuracy of the organization’s financial transactions and
assessing the condition of the organization’s financial health
- Financial ratio analysis → monitor the company’s financial health by assessing a set
of financial ratios.
2) Information Systems for Marketing
- Customer Relations → know who customers are and treat them like royalty
- Customer profiles and preferences
- Customer force automation → using software to automate the business tasks of sales
3) Information Systems for Production/ Operations Management
- In-House Logistics and Materials Management → deals with ordering,
purchasing, inbound logistics (receiving) and outbound logistics (shipping)
- Inventory Management → when to order new inventory, how much inventory to
order and how much inventory to keep in stock
- Quality Control → controlling for defects in incoming material and defects in
goods produced
- Planning Production and Operations → material requirements planning (MRP)
and manufacturing requirements planning (MRP II)
- Computer-Integrated Manufacturing (CIM) → also called digital manufacturing,
is an approach that integrates various automated factory systems
- Product Lifecycle Management → business strategy that enables manufacturers to
collaborate on product design and development efforts, using the Web
4) Information Systems for Human Resources Management
- Recruitment → finding employees, testing them and deciding which one to hire
- Human Resources Development → develop and evaluated the employees
- Human Resources Planning and management → payroll and employees’ records,
benefits administration, employee relationship management
 Reports
3 Categories of repots :
1) Routine reports → reports that produced at scheduled intervals
2) Ad hoc (on-demand) reports
- Drill-down reports → Display a grater level of detail
- Key indicator reports → summarize the performance of critical activities
- Comparative reports → comparing performances in company
3) Exception Reports → include only information that falls outside certain threshold
standards.