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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
Glossary of Terms
