Management Information Systems
Glossary of Terms
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 computer-to-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 organisation 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 nonstructured 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 organisation, in order to improve efficiency
Sources: Haag (2002), O'Brien (1995)