Every organization must perform certain basic operations: pay employees, pay bills, monitor
revenue, and file government reports. Operations are relatively structured, short term, and
easy to computerize. They form the foundation of the company. MIS supports operations by
collecting data and helping to control the underlying processes. Transaction-processing systems are responsible for capturing, storing, and providing access
to the basic data of the organization. The goal is to capture the transaction data as soon
as possible. Common collection methods include point-of-sale devices, process control,
electronic data interchange, and electronic commerce websites. Because data is the foundation
for all other decisions, transaction-processing systems must maintain data integrity and
minimize the threats to the data. Financial data has always been important to any business organization. Accounting systems
have been created over many years to help collect data, maintain its accuracy, and provide
standardized reports to management. Financial checks and balances—such as doubleentry
accounting, separation of duties and audit trails—are used to maintain data integrity.
Processing of accounting information leads to monthly, quarterly, and annual information
cycles in most businesses. Human resources systems illustrate the problems entailed in transaction processing:
maintaining accurate databases and producing timely reports, and supporting employee and
management needs at a low cost. They also show that good transaction-processing systems
can provide additional benefits by offering new services. |
2003 McGraw-Hill Higher Education