IT: Chapter Ten

accounting
organizational department that records all financial activity from billing customers to paying employees
accounts payable
activity that shows the money a company owes to its suppliers for the materials and services it has received
accounts receivable
activity that shows what money has been received or is owed by customers
balance sheet
lists the overall financial condition of an organization
computer-aided design/computer-aided manufacturing (CAD/CAM) system
knowledge work systems that run programs to integrate the design and manufacturing activities; widely used in manufacturing automobiles
data
raw, unprocessed facts that are input to a computer system that will give complied information when the computers processes those facts; also defined as facts or observations about people, places, things, and events
data processing system (DPS)
transaction processing system that keeps track of routine operations and records these events in a database; AKA transaction processing system (TPS)
data worker
person involved with the distribution and communication of information (ex. secretaries and clerks)
decision model
gives the decision support system its analytical capabilities; three types of models within: tactical, operational, strategic
decision support system (DSS)
flexible analysis tool that helps managers make decisions about unstructured problems (such as effects of events and trends outside the organization)
demand report
produced on request (ex. report on the numbers and types of jobs held by women and minorities done at the request of the government)
exception report
report that calls attention to unusual events
executive information system (EIS)
sophisticated software that can draw together data from an organization’s databases in meaningful patterns and highly summarized forms
expert system (knowledge-based system)
computer program that provides advice to decision makers who would otherwise rely on human experts; type of artificial intelligence that uses a database to provide assistance to users
external data
data gathered from outside an organization (ex. data provided by market research firms)
general ledger
activity that produces income statements and balance sheets based on all transactions of a company
group decision support system (GDSS)
system used to support the collective work of a team addressing large problems
human resources
organizational department that focuses on the hiring, training, and promoting of people, as well as any number of human-centered activities within the organization
income statement
statement that shows a company’s financial performance, income, expenses, and the difference between them for a specific time period
information system
collection of hardware, software, people, data, and procedures that work together to provide information essential to running an organization
information systems manager
oversees the work of programmers, computer specialists, systems analysts, and other computer professionals
information worker
employee who creates, distributes, and communicates information
internal data
data from within an organization consisting principally of transactions from the transaction processing system
inventory
material or products that a company has in stock
inventory control system
system that keeps records of the number of each kind of part or finished good in the warehouse
knowledge work system (KWS)
specialized information system used to create information in a specific area of expertise
knowledge base
system that uses a database containing specific facts, rules to relate these facts, and user input to formulate recommendations and decisions
knowledge-based system
programs duplicating human knowledge; type of artificial intelligence that uses a database to provide assistance to users
knowledge worker
person involved in the creation of information (such as engineer and scientist)
management information system (MIS)
computer-based information system that produces standardized reports in a summarized and structure form; generally used to support middle managers
marketing
organizational department that plans, prices, promotes, sells, and distributes an organization’s goods and services
middle management
middle-level managers deal with control and planning; implement the long-term goals of the organization
office automation system (OAS)
system designed primarily to support data workers; focuses on managing documents, communicating, and scheduling
operational model
decision model that helps lower level managers accomplish the organization’s day-to-day activities (such as evaluating and maintaining quality control)
payroll
activity concerned with calculating employee paychecks
periodic report
reports for a specific time period as to the health of the company or a particular department of the company
production
organizational department that actually creates finished goods and services using raw materials and personnel
project manager
software that enables users to plan, schedule, and control the people, resources, and costs needed to complete a project on time; is an OAS
purchase order
form that shows the name of the company supplying the material or service and what is being purchased
purchasing
buying of raw materials and services
research
organizational department that identifies, investigates, and develops new products and services
sales order processing
activity that records the demands of customers for a company’s products or services
strategic model
decision model that assists top managers in long-range planning, such as stating company objectives or planning plant locations
supervisor
manager responsible for managing and monitoring workers; supervisors have responsibility for operational matters
system software
“background” software that enables the application software to interact with the computer; consists of the operating system, utilities, device drivers, and language translators; works with application software to handle the majority of technical details
tactical model
decision model that assists middle level managers to control the work of the organization (such as financial planning and sales promotion planning)
top management
concerned with long-range (strategic) planning; supervise middle management
transaction processing system (TPS)
system that records day-to-day transactions (such as customer orders, bills, inventory levels, production output); tracks operations and creates databases
user
any individual who uses a computer
videoconferencing system
computer system that allows people located at various geographic locations to have in-person meetings; is an OAS
five departments for the five functions
accounting, marketing, production, human resources, research
three basic management levels
top level, middle level, supervisors
top level
concerned with long-range planning and forecasting
middle level
deals with control, planning, decision making, and implementing long-term goals
executive support systems (ESS)
assist top-level executives; similar to MIS or DSS but easier to use