Management Information Systems The following information technology terms focus on information systems from a non-technical business/organizational perspective.

Artificial intelligence (AI)

Science and technology to develop computers that can think and function in ways normally associated with human intelligence, including reasoning, inference, learning and problem solving

Automatic teller machine (ATM) A special-purpose transaction terminal used to provide remote banking services Automation The replacement of human workers by machines; the automatic transfer and positioning of work by machines, or the automatic operation and control of a work process by machines, without significant human intervention or operation, in order to improve performance Business information system Information system within a business organization that supports one of the traditional functions of business such as marketing, finance or production Business process reengineering (BPR) The reinventing of processes within a business; the use of information technology to bring about major changes and cost savings in an organization's structure Business to business (B2B) Transactions between two businesses, or companies whose customers are primarily other businesses Chargeback system Methods of allocating costs to end user departments based on the information services rendered and information system resources utilized Chief information officer (CIO) a senior strategic-level management position that oversees all information technology systems and personnel for a firm, concentrating on long-range information system planning and strategy Competitive advantage Providing a product or service in a way that customers value more than the competition's Competitive strategies

Strategies used by a firm to confront its competitive forces, such as cost leadership, product differentiation and business innovation Computer-aided software engineering (CASE) tools Software that automates some or all steps in the systems development life cycle Conversion Moving from old system to new system. Plunge or direct cutover conversion immediately replaces the old system with the new one. Parallel conversion uses both until the new system performs correctly. Pilot or piecemeal conversion starts with a small group or region. Phased conversion introduces the new system in stages. Cost-benefit analysis Identifying the advantages or benefits and the disadvantages or costs of a proposed solution Critical success factors factors critical to organizational success; the process of evaluating prospective IT systems by comparing system costs with system benefits; a small number of key factors that executives consider critical to the success of the enterprise, where successful performance will assure the success of the organization and attainment of its goals Data Unprocessed, unorganized information; raw facts or observations Database A collection of data or information stored in an organized way; a computer database is a file that contains tables whose rows are records and whose columns are fields. The database comes with software for data entry, queries and reports; tables in a relational database are related by common fields Database management approach an approach to the storage and processing of data in which independent files are consolidated into a common pool or database of records available to different application programs and end users for processing and data retrieval Database management system (DBMS) A set of computer programs that controls the creation, maintenance and utilization of the databases of an organization Data mining

Use of software tools to query information in a data warehouse Data warehouse A logical collection of information, gathered from many different operational databases, that supports business analysis activities and decision-making tasks Decision support system (DSS) a highly flexible and interactive IT system designed to support decision making when the problem is not structured; an information system that utilizes decision models, a database, and a decision maker's own insights in an ad hoc, interactive analytical modeling process to reach a specific decision by a specific decision maker Demand aggregation Combines purchase requests from multiple buyers into a single large order which justifies a discount from the business Digital divide Differences in information technology access and capabilities in different countries or regions of the world Disintermediation By using the Internet as a delivery vehicle, intermediate players in a distribution channel can be bypassed Distribution chain The path followed from the originator of a product or service to the end consumer Domain expert The person who provides the domain expertise in the form of problem-solving strategies Economic feasibility Whether expected cost saving, increased revenue, increased profits and reductions in required investment exceed the costs of developing and operating a proposed system Electronic bill presentment and payment (EBPP) Send bills over the Internet and provide an easy way to pay them if the amount looks correct Electronic business Use of information technology for internal organizational management and communication

Electronic cash or digital cash An electronic representation of cash Electronic commerce Buying and selling goods and services electronically; commerce accelerated and enhanced by information technology, especially the Internet, enabling customers, consumers and companies to form powerful new relationships that would not be possible without the enabling technologies Electronic data interchange (EDI) exchange of business transaction documents between computers of two organisations; the electronic transmission of source documents between the computers of different organizations; direct computerto-computer transfer of transaction information contained in standard business document such as invoices and purchase orders in a standard format Electronic funds transfer The development of banking and payment systems that transfer funds electronically instead of using cash or paper documents such as checks Electronic market Exchange of information, products, services and payments using Internet, networks and digital technologies, e.g. prices, purchase orders, invoices, shipping notices Emerging technology A new technology not yet fully exploited by businesses Enterprise analysis a planning process that analyzes organizational information requirements and emphasizes how computer-based information systems will improve the performance and competitive position of a business enterprise, including planning how information systems can support the basic business processes, functions and organizational units of an organization Enterprise network Hardware, software and media connecting information technology resources of an organization Enterprise resource planning (ERP) Coordinated planning of all an organization's resources involved in production, development, selling and servicing of goods and services Enterprise software

A software suite with common business applications, tools for modeling how the entire organization works, and development tools for building applications unique to the organization Executive information system (EIS) An information system that provides strategic information tailored to the needs of top management; a highly interactive management information system combined with decision support systems and artificial intelligence for helping managers identify and address problems and opportunities Executive support system (ESS) An executive information system with additional capabilities, including data analysis, decision support, electronic mail, and personal productivity tools Expert system An artificial intelligence system that applies reasoning capabilities to reach a conclusion; a program that works with knowledge and relies on a database of if-then rules to draw inferences, in much the way a human expert does Extranet An intranet that is restricted to an organization and certain outsiders, such as customers and suppliers Feasibility study or review whether a proposed system can be implemented and meet requirements; a preliminary study that investigates the information needs of end users and the objectives, constraints, basic resource requirements, cost/benefits, and feasibility of proposed projects Financial information system Information system that supports financial managers in the financing of a business and the allocation and control of financial resources; includes cash and securities management, capital budgeting, financial forecasting and financial planning Firewall Special security software to protect private networks such as intranets and extranets Geographic information system (GIS) A decision support system designed specifically to work with spatial information Global reach The ability of an organization to extend its reach to customers anywhere there is an Internet connection, and at a much lower cost

Globalization The expansion of international business and trade between countries by transnational firms; customers, suppliers, distributors, retailers and competitors exist all over the world for any type of business Group decision support system (GDSS) A decision support system which provides support for problem formulation and solution and decision making by groups or teams of people Groupware or workgroup support system Communications software that supports collaborative efforts of a team Hierarchical data structure a logical data structure in which the relationships between records form a hierarchy or tree structure; the relationships among records are one-to-many, since each data element is related only to one element above it Information Data with meaning in a particular context Information architecture A conceptual framework that defines the basic structure, content and relationships of the organizational databases that provide the data needed to support the basic business processes of an organization Information system (IS) a set of people, procedures and resources that collects, transforms and disseminates information in an organization; a system that accepts data resources as input and processes them into information products as output; a system that uses the resources of hardware, software and people to perform input, processing, output, storage and control activities that transform data resources into information products; a purposefully designed system that brings data, computers, procedures, and people together to manage information important to an organization's mission Information technology (IT) hardware, software, telecommunications, database management, and other information processing technologies used in computer-based information systems; computer-based tools used to work with information and support the information needs of an organization Internet service provider (ISP) Organization with a direct Internet connection which sells Internet connections to organizations and individuals

Intranet an internal organizational Internet that is guarded against outside access by a firewall; a private version of the Internet, using Internet technologies such as Web browser and servers on local area networks Knowledge Facts, information, skills, awareness, or familiarity acquired through experience or education; theoretical or practical understanding of a subject Knowledge information systems Information systems used by knowledge and data workers to produce, store and disseminate knowledge Knowledge worker A person whose primary work activities include working with, creating, using and distributing information Knowledge work system (KWS) Engineering, graphics or managerial workstations for creating expertise/knowledge Management information system (MIS) planning, development, management and use of information technology tools to help people perform all tasks related to information processing and management; an information system that provides information to support managerial decision making; can be an information reporting system, executive information system or decision support system; a system that provides periodic, predetermined, and/or ad hoc reporting capabilities Mass customization When a business gives its customers the opportunity to tailor its products or services to the customer's specifications Office automation system (OAS) a computer-based information system that collects, processes, stores and transmits electronic messages, documents and other forms of office communications among individuals, work groups and organizations; an office productivity application such as word processing, document imaging or calendar Operational information systems Information systems that assist operational management with managing and directing day-to-day operations and implementation of goals and strategies Organizational feasibility

How well a proposed information system supports the objectives of an organization's strategic plan for information systems Outsourcing Delegating specific work to a third party for a specified length of time, at specified cost, and at a specified level of service Pilot study in the development of an information system, the institution of the new system in only one part of an organization; when that portion of the organization is satisfied with the system, the rest of the organization then starts using it Point of sale terminal a computer terminal used in retail stores that serves the function of a cash register as well as collecting sales data and performing other data processing functions; captures information and commands at the point of origin of a transaction, typically in a retail environment Private network Communications media owned or leased by an organization to connect its networks or network components Prototype a working model; for an information system, includes tentative versions of user input and output, databases and files, control methods, and processing routines; a working system model that is functional enough to draw feedback from users Prototyping the rapid development and testing of prototypes of new information system applications in an interactive, iterative process, involving both systems analysts and end users Public network Network used by more than one organization Quality assurance Methods for ensuring that information systems are free from errors and fraud and provide information products of high quality Relational data structure

a logical data structure in which all data elements within the database are viewed as being stored in the form of simple tables; data elements from various tables are linked through their common fields Request for proposal a formal document that describes in detail your logical requirements for a proposed system and invites outsourcing organizations to submit buds for its development Risk management Identification of risks or threats, implementation of security measures, and monitoring these measures for effectiveness Source data automation The use of automated methods of data entry that attempt to reduce or eliminate many of the activities, people and data media required by traditional data entry methods Strategic information systems information systems that provide a firm with competitive products and services that give it a strategic advantage over its competitors in the marketplace; information systems which promote business innovation, improve operational efficiency, and build strategic information resources for a firm; information systems used by senior managers to monitor long-term trends, make long-term plans and provide overall direction and guidance Supply chain Paths reaching out to all suppliers of parts and services to a company; information systems can improve collaboration between trading partners in order to reduce time and costs System a group of interrelated or interacting elements forming a unified whole; working together toward a common goal by accepting inputs and producing outputs; A collection of components purposefully organized into a functioning whole to accomplish a goal Systems analysis Analyzing in detail the components and requirements of a system; the information needs of an organization, characteristics and components of current systems, and functional requirements of proposed systems Systems design

a blueprint, plan or model of a system; deciding how a proposed information system will meet the information needs of end users; includes logical and physical design; it should satisfy system requirements developed in the systems analysis Systems development Developing information systems by a process of investigation, analysis, design, implementation and maintenance Systems implementation Putting a planned system into action; the stage of systems development in which hardware and software are acquired, developed and installed, the system is tested and documented, people are trained to operate and used the system, and an organization converts to the use of a newly developed system Systems life cycle In information systems, the birth, development, use, and eventual abandonment of the system Systems maintenance The monitoring, evaluating and modifying of a system to make desirable or necessary improvements Technical feasibility Whether reliable hardware and software, technical resources capable of meeting the needs of a proposed system can be acquired or developed by an organization in the required time Total quality management (TQM) Assuring that everyone in the organization is responsible for quality Transaction An exchange of goods, services or funds Transaction processing system (TPS) An information system that processes data arising from the occurrence of business transactions; usually used for daily routine transactions and record-keeping, especially sales, payroll, reservations, shipping, and worker tracking Unstructured or non structured decisions decisions which must be made in situations where it is not possible to specify in advance most of the decision procedures to follow; there may be several "right" answers, and no precise way to get a right answer

Virtual private network A public network that uses security techniques to simulate a private network, generally slower in performance but lower cost What-if analysis Observing how changes to selected variables affect other variables in a mathematical model Work flow analysis a study of the way documents and other information related to a process moves through an organization, in order to improve efficiency