The World without Bankruptcy Laws
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
An information system is integrated and co-ordinate network of components, which combine together to convert data into information.
An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control.
Information processing consists of input; data process, data storage, output and control.
During input stage data instructions are fed to the systems which during process stage are worked upon by software programs and other queries.
During output stage, data is presented in structured format and reports.
In any given organization information system can be classified based on the usage of the information. Therefore, an information system in an organization can be divided into operations support system and management support system.
In an organization, data input is done by the end user which is processed to generate information products i.e. reports, which are utilized by internal and or external users. Such a system is called operation support system.
The purpose of the operation support system is to facilitate business transaction, control production, support internal as well as external communication and update organization central database.
The operation support system is further divided into a transaction-processing system, processing control system and enterprise collaboration system.
In manufacturing organization, there are several types of transaction across department.
Typical organizational departments are Sales, Account, Finance, Plant, Engineering, Human Resource and Marketing. Across which following transaction may occur sales order, sales return, cash receipts, credit sales; credit slips, material accounting, inventory management, depreciation accounting, etc.
These transactions can be categorized into batch transaction processing, single transaction processing and real time transaction processing.
In a manufacturing organization, certain decisions are made by a computer system without any manual intervention. In this type of system, critical information is fed to the system on a real-time basis thereby enabling process control. This kind of systems is referred as process control systems.
In recent times, there is more stress on team effort or collaboration across different functional teams. A system which enables collaborative effort by improving communication and sharing of data is referred to as an enterprise collaboration system.
Managers require precise information in a specific format to undertake an organizational decision. A system which facilitates an efficient decision making process for managers is called management support system.
Management support systems are essentially categorized as management information system, decision support system, expert system and accounting information system.
Management information system provides information to manager facilitating the routine decision-making process. Decision support system provides information to manager facilitating specific issue related solution.
An information system can be categorized based upon activity into strategic planning system, tactical information system and operational information system.
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