Chapter 5: Functional and Enterprise Systems

Vocabulary flashcards generated from Chapter 5 lecture notes covering Enterprise Information Systems, MIS, TPS, CRM, DSS, SIS, VMS, AIS, HRMS, and ERP.

Enterprise Information System

A single system central to an organization that ensures information can be shared across all functional levels and management hierarchies to improve business processes.

Management Information System (MIS)

An integrated machine system that provides relevant information to support business operations, management, and decision-making.

Structured or Programmable Decisions

Decisions made only if rules of instantly recognizable decisions have been specified in advance, allowing personnel with limited knowledge to handle decision-making.

Unstructured or Non-programmable Decisions

Decisions made with no pre-established decision procedure, which result in additional cost.

Data Flow Diagram (DFD)

A modeling tool commonly used to describe the flow of data in a system by analyzing processes and breaking complex processes into simple ones.

Transaction Processing System (TPS)

An information system that records and processes a company's daily business transactions, such as customer orders, payments, invoices, payroll, and inventory.

Data Processing Activities of a TPS

The systematic workflow of handling transaction data, consisting of data entry, collection, validation, manipulation, processing, storage, and report generation.

Batch Processing

A type of TPS processing that groups data over a period and processes it all at once, such as daily sales updates.

Online and Real-Time Processing

A type of TPS processing that processes data instantly upon entry to keep the database up-to-date, such as airline reservations.

Hybrid Processing

A type of TPS processing that combines batch and real-time methods by collecting data immediately but processing it at scheduled intervals.

Customer Relationship Management (CRM)

Strategies, practices, and technologies used by business organizations to manage and analyze data from stakeholders, current customers, and potential customers.

Decision Support System (DSS)

A computerized program used to support determinations, judgments, and courses of action in an organization or a business.

Communication-driven DSS

A type of DSS that provides a platform for people to meet and collaborate using the Internet or client/server links such as messaging software and online meeting systems.

Data-driven DSS

A type of DSS used for seeking answers from a given database, accessed via the Internet or client/server links by managers, staff, and suppliers.

Document-driven DSS

The most common type of DSS, used to search through websites and pages to find documents using keywords via the Internet and a client/server system.

Knowledge-driven DSS

A type of DSS with a broad range of users, used to spread management instructions or to choose products and/or services.

Model-driven DSS

A complex system used by staff and managers to analyze and make decisions regarding a business using PC software and hardware, the Internet, and client/server systems.

Strategic Information System (SIS)

A type of information system developed in response to corporate business initiatives that analyzes business initiatives to create strategies for competitive advantage.

Vendor Management System (VMS)

A web-based procurement application that allows business organizations to directly manage the procurement process for temporary, permanent, contract, and contingent staff.

Accounting Information System (AIS)

A vital tool in finance that streamlines the collection, storage, and processing of financial data for internal reporting and management control.

General Model of AIS

An information system architecture operating within the business organization and external environment to manage data collection, data processing, database management, and information generation.

Source Documents

Records that entirely capture the key data of every business transaction, normally including date, entity, quantity, and amount.

Turnaround Documents

Outputs of an accounting system that serve as inputs to another part of the system, improving efficiency, reducing data redundancy, and eliminating human error.

Legacy System

An existing system of business operations in an organization that uses old versions of technology which may be considered past investments.

Human Resource Management System (HRMS)

Software that combines human resources and technology to automate HR tasks like tracking employee information, making processes faster and more accurate.

Payroll Processing in HRMS

An integrated HR function handling employee details, attendance reports, payslips, payroll checks, reports to management, and ledger updates.

Enterprise Resource Planning (ERP)

An integrated software tool that uses, maintains, and manages enterprise data, allowing business organizations to automate and integrate business processes.

Systems Application and Products (SAP)

A German company and market leader in ERP software, ranking as the third largest software company in the world and catering mostly to small- and medium-sized enterprises (SMEs).