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Data Information System Customer Process

In this chapter we discuss data information system customer process.

Computer literacy

having skills in using productivity software.

Information literacy

understanding the role of information in generating and using business intelligence.

Business Intelligence

-provides historical, current, and predictive views of business operations and environments.
-gives organizations a competitive advantage in the marketplace.

Transaction processing systems (TPSs)

-focus on data collection and processing
-cost reduction
-operations repetitive
-human involvement minimal
ex.) payroll

Management information system (MIS)

-Organized integration of hardware and software technologies, data, processes, and human elements.
-designed to produce timely, integrated, relevant, accurate, and useful information.
-Include: hardware components, MIS software, and processes.
-used in both the private and public sectors.
-many organizations use information systems to gain a competitive advantage.

4 Major Components of an Information System

Data, Database, Process, and Information


-input to the system
-sources of data: external and internal
-time orientation
-aggregated and disaggregated


-heart of an information system
-collection of all relevant data organized in a series of integrated files.
-essential for the success of any information system
managed with database management system (DBMS): ex.) Oracle
-reduces personnel time needed to gather, process, and interpret data manually.


-generates the most useful type of information for decision making.
-generally includes transaction-processing reports and models for decision analysis.
-includes a wide rand of models to support all levels of decision making.


-output of an information system
-facts that have been analyzed by the process component.
-second most important resource in any organization.

Examples of Information Systems

Ex. 1) A university: stores all student data in a database, built-in capability, other types of analysis can be done.
Ex. 2) Teletech: international textile company, database stores data on products, suppliers, sales personnel, costs, process components, and forecasting models.

Information technologies

achieve goals of information systems.

Personnel information system (PIS) or Human resource information system (HRIS)

designed to provide information that helps decision makers in personnel carry out their tasks more effectively.

Intranet vs. Internet

Intranets are private, Internet is public.

Logistics information system (LIS)

-designed to reduce the cost of transporting materials.
-maintains safe and reliable delivery.

Manufacturing information system (MFIS)

-manages manufacturing resources
-companies can reduce manufacturing costs, increase product quality, and improve inventory decisions.


Graphic User interface

RFID tags

Radio Frequency Identities: active and passive.

UPS Delivery Intercept

Web-based service that allows customers to intercept and reroute packages before they are delivered.

Financial information system (FIS)

provides information to financial executives in a timely manner.

Marketing information system (MKIS)

-improve marketing decisions
-provide timely, accurate, and integrated information about the marketing mix.

Michael Porter’s 3 Strategies for Competing in the Marketplace

1. Overall cost leadership
2. Differentiation
3. Focus

Information systems

-help organizations reduce the cost of products and services
-assist with differentiation and focus strategies
-can help bottom-line and top-line strategies

Enterprise systems

-supply chain management (SCM)
-customer relationship management (CRM)
-Enterprise resource planning (ERP)
-collaboration software

Five Forces Model

1. Buyer power:high when customers have many choices, low when they have few choices.
2. Supplier power:high when customers have fewer options, low when customers have more options
3. Threat of substitute products or services: high when many alternatives for an organization’s products or services available.
4. Threat of new entrants: low when duplicating a company’s product or service is difficult
5. Rivalry among existing competitors:high when many competitors occupy the same marketplace position.


-top information systems job belongs to the chief technology officer (CTO)/ chief information officer (CIO): oversees long-range planning and keeps an eye on new developments that can affect a company’s success
-chief privacy officer (CPO): responsibility for managing risks and business impacts of privacy laws and policies.

Manager of Info Systems Services

responsible for managing hardware, software, and personnel within the info systems department.

Systems Analyst

-responsible for design and implementation of information systems
-requires computer knowledge, information systems background, and thorough understanding of business systems and functional areas within a business organization.