rganizations utilize various types of information systems to help run their daily operations. These systems are primarily transactional systems that concentrate on the management and ﬂow of low-level data items pertaining to basic business processes such as purchasing and order delivery. This data
is often rolled-up and summarized into higher-level decision support systems to help ﬁrms understand what is happening in their organizations and how best to respond. In order to achieve seamless handling of this data, organizations must ensure that their business information systems are tightly integrated across the enterprise. Doing so allows organizations to manage and process basic business processes as efﬁciently and effectively as possible and to make better informed decisions. The purpose of this section of the textbook is to highlight the various types of business information systems found in organizations and how they relate to one another. The chapters found within this section speak to various types of business information systems and their role in helping ﬁrms reach their strategic goals. Though each chapter is devoted to a speciﬁc type of business information system (e.g., those used for strategic decision making, supply chain management, customer relationship management, and enterprise resource planning), bear in mind that these systems must work in tandem with each other so that organizations will be better prepared to meet their strategic business goals and outperform their competitors.
Strategic Decision Making
Why Do I Need To Know This
This chapter describes various types of business information systems found across the enterprise used to run basic business operations and used to facilitate sound and proper decision making. An overview is given ﬁrst on decision-making information systems and then later on the various kinds of enterprise systems typically found in organizations.
Explain the difference between transactional information and analytical information. Be sure to provide an example of each. Deﬁne TPS, DSS, and EIS and explain how an organization can use these systems to make decisions and gain competitive advantages. Describe the three quantitative models typically used by decision support systems. Describe the relationship between digital dashboards and executive information systems. Identify the four types of artiﬁcial intelligence systems. Describe the four basic components of supply chain management. Explain customer relationship management and the beneﬁts it can provide to an organization. Deﬁne enterprise resource planning and explain its importance to an organization. Identify how an organization can use business process reengineering to improve its business.
As a business student, you need to know what types of information systems exist in an enterprise as a ﬁrst step towards understanding how to utilize these systems to improve organizational performance. From this chapter, you will gain an appreciation for the various kinds of information systems employed by organizations and how they can be utilized to help organizations make strategically informed decisions. Better yet, you will get a taste of the complexity and importance of integrating these various systems together. As a business student, you should recognize the importance of integrating various types of business information systems to help improve organizational decision making. This chapter should help pave the way.
3.5. 3.6. 3.7.
opening case study
Information Systems are Central at Grocery Gateway
Grocery Gateway is Canada’s leader in online retailing of home and ofﬁce delivered groceries. Founded by a group of entrepreneurs who had the idea that people had better things to do in life than grocery shop, Grocery Gateway started out with only a handful of employees and a couple of...