Information Technology Reference
In-Depth Information
computers and information systems to achieve their goals. Knowing how to deploy transac-
tion processing, management information, decision support, and special-purpose systems to
help an organization achieve its goals is a key aspect of information systems literacy.
Information Systems in the Functional Areas of Business
Information systems are used in all functional areas and operating divisions of business. In
finance
and
accounting
, information systems forecast revenues and business activity, deter-
mine the best sources and uses of funds, manage cash and other financial resources, analyze
investments, and perform audits to make sure that the organization is financially sound and
that all financial reports and documents are accurate.
Sales
and
marketing
use information
systems to develop new goods and services (product analysis), select the best location for
production and distribution facilities (place or site analysis), determine the best advertising
and sales approaches (promotion analysis), and set product prices to get the highest total
revenues (price analysis). In
manufacturing
, information systems process customer orders,
develop production schedules, control inventory levels, and monitor product quality. In
addition, information systems help to design products (
computer-assisted design,
or
CAD
),
manufacture items (
computer-assisted manufacturing,
or
CAM
), and integrate machines or
pieces of equipment (
computer-integrated manufacturing
, or
CIM)
.
Human resource manage-
ment
uses information systems to screen applicants, administer performance tests to em-
ployees, monitor employee productivity, and more.
Legal information systems
analyze product
liability and warranties and help to develop important legal documents and reports.
Festo, a global manufacturer of
components and controls for
industrial automation, uses a CAD
system when developing its
products.
(Source: Courtesy of Festo AG &
Co. KG.)
Information Systems in Industry
In addition to being used in every department in a company, information systems are used
in almost every industry or field in business. The
airline industry
develops Internet auction
sites to offer discount fares and increase revenue.
Investment firms
use information systems
to analyze stocks, bonds, options, the futures market, and other financial instruments,
and provide improved services to their customers.
Banks
use information systems to help
make sound loans and good investments as well as to provide online check payment for
account holders. The
transportation industry
uses information systems to schedule trucks and
trains to deliver goods and services at the lowest cost.
Publishing companies
use information
systems to analyze markets and to develop and publish newspapers, magazines, and books.
Healthcare organizations
use information systems to diagnose illnesses, plan medical treat-
ment, track patient records, and bill patients. Health maintenance organizations (HMOs)
use Web technology to access patients' insurance eligibility and other information stored in
databases to cut patient costs.
Retail companies
are using the Web to take orders and provide
customer service support. Retail companies also use information systems to help market
products and services, manage inventory levels, control the supply chain, and forecast de-
mand.
Power management
and
utility companies
use information systems to monitor and
control power generation and usage.
Professional services
firms employ information systems
