Chapter 1

THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT
 
 
 
A Computer(-Based) Information System is essentially an IS using computer technology to carry out some or all of its planned tasks. The basic components of computer based information system are:
  • Hardware- these are the devices like the monitor, processor, printer and keyboard, all of which work together to accept, process, show data and information.
  • Software- are the programs that allow the hardware to process the data.
  • Databases- are the gathering of associated files or tables containing related data.
  • Networks- are a connecting system that allows diverse computers to distribute resources.
  • Procedures- are the commands for combining the components above to process information and produce the preferred output.
The first four components (hardware, software, database and network) make up what is known as the information technology platform. Information technology workers could then use these components to create information systems that watch over safety measures, risk and the management of data. These actions are known as information technology services.
Certain information systems support parts of organizations, others support entire organizations, and still others, support groups of organizations. Recall that each department or functional area within an organization has its own collection of application programs, or information systems. These functional area information systems (FAIS) are supporting pillars for more general IS namely, business intelligence systems and dashboards. As the name suggest, each FAIS support a particular function are within the organization, e.g.: accounting IS, finance IS, production/operation management (POM) IS, marketing IS, and human resources IS. In finance and accounting, managers use IT systems to forecast revenues and business activity, to determine the best sources and uses of funds, and to perform audits to ensure that the organization is fundamentally sound and that all financial reports and documents are accurate. Other types of organizational information systems are FAIS, Transaction processing systems, enterprise resource planning, office automation system, management information system, decision support system, expert system, executive dashboard, supply chain management system, and electronic commerce system. Dashboards are a special form of IS that support all managers of the organization. They provide rapid access to timely information and direct access to structured information in the form of reports. Expert systems attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain.

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