Information Technology Workbook

8   Using information systems
Information systems exist to enable the interaction of an organization with its customers. In manufacturing industries this means keeping track of supplies of raw materials and the labor and processes to transform them into finished goods. For all organizations it means recording revenues and expenses in accordance with accounting principles, paying its employees, and maintaining records for tax purposes. In earlier days many organizations created their own business computer programs. Now organizations often license software for these purposes from vendors. This may be integrated across many business areas as an enterprise resource planning (ERP) system. An ERP system may integrate raw materials supply, warehousing, accounting, shipping, marketing, finance, and customer relationship management (CRM) in a large common database.

A business system accumulates data as it handles transactions such as orders and payments. Reporting is done from this data for daily operations and to manage financial status. Trend and status data is often summarized for management in graphic form by an Executive Information Systems (EIS). Many times this data is combined with a Geographic Information System (GIS) to associate it with geographical areas.


Copyright 2006 Jim Janossy and Laura McFall                                           Click here or scroll down for web and podcast links

8.1   Enterprise Resource Planning Systems

8.2   Risks and a case study

8.3   CRM and the limits of data usage

8.4   Executive and Geographic Information Systems

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