IS Value

The Business Information System that I chose was The Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning. Transaction Processing is very important to businesses and it collects data (Input) of any transactions that are happening within the business whether it be a customer transaction or an employee getting a paycheck. It also stores, for example the number of hours employee’s worked in a week and corresponds it to their pay (manipulate) to see what they will get paid for the week (output). Many of these transaction systems also have a Feedback mechanism that will correct errors. For example there will be parameters for the amount of hours that can be worked, such as 0-100 and anything outside of that an error or correction will occur. Feedback as shown on Page 8 is critical to this system as well as most because if there is no feedback and the input is wrong, money will be lost and nobody will know about it.

             Enterprise Resource planning manages the vital business operations of a global organization. It stores and outputs information to help a company reduce the costs of their products so customers will return to do business with that organization. The information it will store is how much products cost, how popular of an item it is and how much the company is paying to get it. The output is if the item isn’t selling enough at its current price and there is room to lower the price so money isn’t lost on the product. Feedback once again is extremely important to this system because the information must be correct in order to reduce the price of a product. If information is not correct then you may lose money if you reduce the price of a product that is already low enough.