![]() The decision support system will apply both types of data as variables in a quantitative model that managers can analyze and interpret. From external sources (such as industry data and Pennsylvania demographics), managers might find the data needed to determine whether there’s sufficient demand for a casino in the state. The first step is to extract data from internal sources to decide whether the company has the financial strength to expand its operations. To decide whether it would be a wise business move, management could use a decision support system like the one illustrated in Figure 15.6 “Decision Support System”. For example, suppose that a gaming company is considering a new casino in Pennsylvania (which has recently legalized slot machines). Such flexibility is particularly valuable to makers of customized products.Ī decision support system is an interactive system that collects, displays, and integrates data from multiple sources to help managers make nonroutine decisions. ![]() A CIM system is a common element in a flexible manufacturing system, which makes it possible to change equipment setups by reprogramming computer-controlled machines that can be adapted to produce a variety of goods. The CIM system may also control industrial robots-computer-run machines that can perform repetitive or dangerous tasks. A CAD/CAM system can be expanded by means of computer-integrated manufacturing (CIM), which integrates various operations (from design through manufacturing) with functional activities ranging from order taking to final shipment. Many companies link CAD systems to the manufacturing process through computer-aided manufacturing (CAM) systems that not only determine the steps needed to produce components but also instruct machines to do the necessary work. Computer-aided design (CAD) software, for instance, enables designers to test computer models digitally before moving new products into the prototype stage. As you can see, transaction processing system output can consist not only of documents sent to outside parties (in this case, notification of payment received), but also of information circulated internally (in the form of reports), as well as of information entered into the database for updating.Īs we saw in Chapter 11 “Operations Management in Manufacturing and Service Industries”, modern companies rely heavily on technology to design and make products. The information would be processed by the firm’s transaction processing system, but it wouldn’t be a financial transaction.įigure 15.5 “Transaction Processing System” illustrates a transaction processing system in which the transaction is a customer’s electronic payment of a bill. The marketing department, for example, might add some demographic data to its customer database. Everything else is a nonfinancial transaction. Sales of goods to customers, purchases of inventory from suppliers, and salaries paid to employees are all financial transactions. A financial transaction is an economic event: it affects the firm’s assets, is reflected in its accounting statements, and is measured in monetary terms. Input data are called transactions-events that affect a business. Most of an organization’s daily activities are recorded and processed by its transaction processing system, which receives input data and converts them into output-information-intended for various users. Let’s look at some of the widely available information systems designed to support people at the operational and upper-management levels. To design marketing programs, for instance, marketing managers rely on summary information gleaned from a dedicated customer-relationship management system. Such a system isn’t very helpful, however, to middle or top-level managers, who need systems to help them carry out their oversight and planning responsibilities. There’s even a printed script that can be used to guide the conversation. Working from a prioritized list of customer names displayed on a computer screen, the salesperson clicks on a name to view relevant information about the customer, such as background and preferred casino activities. to help its casino salespeople connect to top customers on a more personal basis. ![]() Caesars’s IT group, for example, developed the Player Contact System (Dunn, 2003 Dunn, 2003). That’s why organizations often tailor information systems to meet particular needs. Discuss ways in which an IS can be designed to meet the needs of individuals at various organizational levels.Īs we saw earlier, different managers, operational units, and functional areas have different information needs.
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