Unit 6: Information Systems within the Organization

Information systems are not monolithic; different types of systems serve different levels and functions within an organization. Understanding this internal landscape is crucial for managing a business effectively. Some systems are designed to handle the high volume of day-to-day activities, while others support the specific needs of departments like marketing or finance. Increasingly, however, the trend is towards integrated systems that span the entire organization.

Information systems within organizations Figure 1: Information Systems within the Organization

flowchart TB
    subgraph ORG["Organizational Information Systems"]
        direction LR
        TPS["⚙️ TPS\nTransaction\nProcessing"]
        FAIS["🏭 FAIS\nFunctional Area\nSystems"]
        ERP["🌐 ERP\nEnterprise\nResource Planning"]
    end

    TPS -->|"Data Feeds"| FAIS
    FAIS -->|"Integrated Into"| ERP

    ERP --> TRUTH["✅ Single Source of Truth"]

    style ERP fill:#2d5016,color:#fff

Figure 2: Evolution of Organizational IS

This unit explores the key types of information systems found within organizations. We will start by examining Transaction Processing Systems (TPS), the workhorses that capture daily business data. We will then look at Functional Area Information Systems (FAIS) that serve specific departments, and the problems of information silos they can create. Finally, we will delve into Enterprise Resource Planning (ERP) systems, the massive, integrated platforms that aim to provide a single source of truth and manage all major business processes in a unified way.