Chapter 10
Information Systems for Business Operations

V. LECTURE NOTES

SECTION I: Business Information Systems

10-1 Information Systems in Business:

As a prospective managerial end user you should have a general understanding of the major ways information systems are used to support each of the functions of business. The term business information systems is used to describe a variety of types of information systems (transaction processing, information reporting, decision support, etc.) that support the functions of business such as accounting, finance, marketing, or human resource management.

Analyzing Gulf States Paper

We can learn a lot about how information technology provides major business benefits in manufacturing and other functional areas of business from the Real World Case of Gulf States Paper Corporation.

Take a few minutes to read it, and we will discuss it (See Gulf States Paper Corporation in section XI).

10-2 Cross Functional Information Systems: [Figure 10.2]

Information systems can be grouped into business function categories, however, in the real world information systems are typically integrated combinations of functional information systems. Such systems support business processes, such as product development, production, distribution, order management, customer support, and so on. There is a strong emphasis in many organizations to develop such composite or cross-functional information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes. These organizations view cross-functional information systems as a strategic way to share information resources and improve the efficiency and effectiveness of a business, thus helping it attain its strategic objectives.

Applications of information systems in the functional areas of business