Critical Information Systems
Lance Kaea Carson
BSA 310
May 15, 2011
Rich Harrell Critical Information Systems

An Information System is an organizations framework for efficiency, productivity, and functionality. It “is a collection of hardware, software, data, people and procedures that are designed to generate and disseminate information and data that supports the activities of an organization” (International Graduate, 2011). Kudler Fine Foods is an organization specializing in providing domestic and imported sustenance to consumers. This paper clarifies an information system critical to their business process and examines how this system has an effect on the organization’s intricate structure. Information Systems

Information systems used by organizations often follow a “traditional hierarchical structure” (Turban & Volonino, 2010. p.42). The structure commonly consists of seven functional types (1) Personal and Productivity Systems, (2) Transaction Processing Systems, (3) Functional and Management Information Systems, (4) Enterprise Systems, (5) Inter-organizational Systems, (6) Global Systems, and (7) Special Systems. Each category plays an essential role in the overall function of an organization when utilized. The development of an application program is used to execute or support a specific organization task or business process through the use of that information system. Although system types and applications can be independent of each other, most systems and programs are often reliant on each other and are broken down into smaller systems called sub-systems. These systems are all connected by means of a network. A local area network (LAN) allows an organization’s information system to communicate with each other through wireless or hardwire connections. These connections are vital to all information systems especially, large organizations such as Kudler Fine Foods, to collect, process, store, analyze, and disseminate data and information throughout the organization.

Critical Systems

The transaction processing system (TPS) is an information system type used by organizations such as Kudler Fine Foods to “…capture and process data generated during an organization’s day-to-day activities” (Discovering Computers, 1999). This is a highly critical system because it governs not just one aspect of Kudler Fine Foods’ organizational structure, but contributes to the core operations of the company. Transaction processing systems provide support for other existing systems already used by the organization and open the door for other information technology (IT) systems that may need to be developed or acquired later as well. The management information system (MIS) is an excellent example of how critical TPS is to other IT systems. TPS is frequently attributed to the design of MIS and other evolved information systems.

Structure Effect

Kudler Fine Foods is a retail store specializing in the sale of domestic and imported food products. The company has three stores throughout the San Diego metropolitan area, making communication and business transactions essential to the company’s well being. Its entire operation depends on business transactions made either by the organization, employees, or consumers. For example, a business activity such as conducting inventory can be extremely time-consuming and represents a large aspect of Kudler Fine Foods’ Budget. Transaction processing systems can help eliminate non-generating income merchandise, maintain adequate inventory levels, and track sales. Other activities that prove TPS is critical to Kudler’s organization are deposits, payments, and ordering. All transactions of which require data to be captured and processed to generate a specific result through potential sub-systems.
Another example is how retail stores often use point-of-sale (POS) terminals, a probable sub system of TPS that uses registers or computers with specific applications to complete a needed task. Kudler Fine Foods uses POS terminals to “…check-out and record items, quantities, prices, taxes, and totals for all sales transactions” (Apollo Group, Inc, 2009) This in turn shows how TPS supports other information systems such as finance and accounting, sales and marketing, and operations. Most transaction processing systems today are online systems that increase speed and efficiency of activities. However, batch processing is still used for tasks not needing immediate consideration.

Conclusion

Information systems are not mere tools that can be omitted from an organizations business process without any negative impact. Information systems are essential to an organization and should always be considered as a beneficial improvement. Organizations like Kudler Fine Foods need to consider the critical basis that information systems provide to a growing business. Kudler Fine Foods’ transaction processing system clearly shows how critical it is to its overall existence. The structure of its information system is built to support every aspect of the organizations growth potential and future success. References
Apollo Group, Inc. (2009). Kudler Fine Foods. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/op/supplyChainOverview.htm
Discovering Computers 2000 - Concepts for a Connected World. (1999). Types of Information Systems. Retrieved from http://bisom.uncc.edu/courses/info2130/Topics/istypes.htm
Sandringham Publishing Ltd. (2011). What are Information Systems? Retrieved from http://www.internationalgraduate.net/information-systems.htm
Turban, E., & Volonino, L. (2010). Information technology for management: Improving performance in the digital economy (7th ed.). Hoboken, NJ: John Wiley & Sons, Inc.