Information Systems for Business Management and Performance

Management Systems and Business Groups

How do systems serve the different management groups in a business? Systems serving operational management are transaction processing systems (TPS), such as payroll or order processing, that track the flow of the daily routine transactions necessary to conduct business. Management information systems (MIS) produce reports serving middle management by condensing information from TPS; these are not highly analytical. Decision-support systems (DSS) support management decisions that are unique and rapidly changing using advanced models. These systems for business intelligence serve multiple levels of the organization in the form of graphs, charts, and dashboards delivered via portals using many sources of internal and external information.

Enterprise Applications and Performance

How do systems that link the enterprise improve organizational performance? Enterprise applications are designed to coordinate multiple functions and business processes. Enterprise systems integrate the key internal business processes of a firm into a single software system to improve coordination and decision making. Supply chain management (SCM) systems help the firm manage its relationship with suppliers to optimize the planning, sourcing, manufacturing, and delivery of products and services. Customer relationship management (CRM) systems coordinate the business processes surrounding the firm and its customers.

Collaboration and Social Business

Why are systems for collaboration and social business so important and what technologies do they use? Collaboration is working with others to achieve shared and explicit goals. Social business is the use of internal and external social networking platforms to engage employees, customers, and suppliers, and it can enhance collaborative work. Collaboration and social business have become increasingly important in business because of globalization, the decentralization of decision making, and growth in jobs where interaction is the primary value-adding activity. Collaboration and social business enhance innovation, productivity, quality, and customer service.

The Information Systems Department

What is the role of the information systems function in a business? The information systems department is the formal organizational unit responsible for information technology services. It is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm's IT infrastructure. The department consists of specialists, such as:

• Programmers
• Systems analysts
• Project leaders
• Information systems managers

The department is often headed by a Chief Information Officer (CIO).