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Networking Essay

1548 words - 7 pages

Evolution of Information Systems (Relevant to AAT Examination Paper 8: Principles of Auditing and Management Information Systems) David Chow FCCA, FCPA, CPA (Practising) This article discusses the evolution of information systems, levels of management decision-making and information systems that enhance the value of information. Students are encouraged to understand the reasons for the development of an information system and its replacement; these will help you identify the benefits and limitations of each type of information system. From EDP to MIS Until the 1960s, the role of most information systems was simple. They were mainly used for electronic data processing (EDP),purposes such as ...view middle of the document...

In order to satisfy such needs, the concept of decision support systems (DSS) was born. The new role for information systems was to provide managerial end users with ad hoc and interactive support of their decision-making processes. Decision support systems – provide interactive ad hoc support for the decision-making processes of managers and other business professionals. Examples: product pricing, profitability forecasting and risk analysis systems. In the 1980s, the introduction of microcomputers into the workplace ushered in a new era, which led to a profound effect on organizations. The rapid development of microcomputer processing power (e.g. Intel’s Pentium microprocessor), application software packages (e.g. Microsoft Office), and telecommunication networks gave birth to the phenomenon of end user computing. End users could now use their own computing resources to support their job requirements instead of waiting for the indirect support of a centralized corporate information services department. It became evident that most top executives did not directly use either the MIS reports

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or the analytical modelling capabilities of DSS, so the concept of executive information systems (EIS) was developed. Executive information systems – provide critical information from MIS, DSS and other sources, tailored to the information needs of executives. Examples: systems for easy access to analysis of business performance, actions of all competitors, and economic developments to support strategic planning. Moreover, breakthroughs occurred in the development and application of artificial intelligence (AI) techniques to business information systems. With less need for human intervention, knowledge workers could be freed up to handle more complex tasks. Expert systems (ES) and other knowledge management systems (KMS) also forged a new role for information systems. ES can serve as consultants to users by providing expert advice in limited subject areas. Expert systems – knowledge-based systems that provide expert advice and act as expert consultants to users. Examples: credit application advisor, process monitor, and diagnostic maintenance systems. Knowledge management systems – knowledge-based systems that support the creation, organization and dissemination of business knowledge within the enterprise. Examples: intranet access to best business practices, sales proposal strategies and customer problem resolution systems. The mid- to late 1990s saw the revolutionary emergence of enterprise resource planning (ERP) systems. This organization-specific form of a strategic information system integrates all facets of a firm, including its planning, manufacturing, sales, resource management, customer relations, inventory control, order tracking, financial management, human resources and marketing – virtually every business function. The primary advantage of these ERP systems lies in their common interface for all computer-based organizational functions and...

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