Chap 6.1 Types of Is

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6.0 INFORMATION SYSTEM

6.1 Types of Information System


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Learning Outcomes

At the end of this topic, students should be able to : Define Information System Identify several types of Information System Describe the purpose of each Information System


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Information System

is a collection of hardware, software, data, people, andprocedures that work together to produce qualityinformation.

Transaction Processing System Management Information System Decision Support System Executive Support System Office Automation System

5 types of Information System

What is Information System (IS)


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Transaction Processing System(TPS)

o An information system that captures and processes data from day-to-day business activities.

o is a computerized system that performs and records the daily,routine transactions necessary to conduct the business

o Examples: sales order entry, hotel reservation systems, payroll,

employee record keeping, shipping

o monitors, collects, stores and processes data generated fromall business transactions.

o Batch processing: where all of the transactions are collectedand processed as one group or batch at a later stage.

o Real-time processing: where the transaction is processedimmediately

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Purpose

What is TPS?

Types of TPS


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Source data automation involves collecting data from sensors (e.g.,barcode scanners)and entering the data directly into a computerwithout human intervention.

Batch Processing is when the firm collects data from transactions as

they occur, placing them in groups or batches , then prepares andprocesses the batches periodically (eg. every night).

Online Transaction Processing (OLTP) is when businesstransactions are processed online as soon as they occur. real time

Transaction Processing System(TPS)

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Related term for TPS


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Management Information System(MIS)

an information system that generates accurate, timely, andorganized information

Why ? so that managers and other users can make decisions,solve problems, supervise activities, and track progress.

How? Eg:o To process a sales order,

q the transaction processing system records the sale,updates the customers account balance, and reducesthe inventory count.

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Using this information, the related managementinformation system produces reportsv that recap daily sales activities,v summarize weekly and monthly sales activities,v list customers with past due account balances,v chart slow- or fast-selling products,v and high-light inventory items that need reordering.

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A management information system focuses on creatinginformation that managers and other users need to perform

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Management information systems often are integrated withtransaction processing systems.

What is MIS?


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Management Information System(MIS)

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Create three (3) types of reports:

DetailedReport

SummaryReport

Exception

Report


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Create three (3) types of reports

lists just transactions. E.g., a detailed Flight Report

lists the number of passengers booked for agiven flight.

consolidates data usuallywith totals, tables, orgraphs, so that managerscan review it quickly andeasily.

DetailedReport

SummaryReport


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Create three (3) types of reports

identifies data outside of anormal condition.

These out-of-the-ordinaryconditions, called the exceptioncriteria, define the normalactivity or status range.

E.g, a Premier Club BookingException Report notifies theairlines marketing departmentthat some flights have not metminimum goals for bookingPremier Club members.

Benefit :o

Exception reports savemanagers time. Instead of searching through a detailedreport, managers simply reviewthe exception report.

o These reports help managersfocus on situations that requireimmediate decisions or actions.

ExceptionReport


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a computer-based system that aids the process of decision making(Finlay,1994)

used by knowledge workers include non-management staff such as stockbrokers, financial analyst, production coordinators, city planners, etc.

to help management make decisions in situations where there is uncertaintyabout the possible outcomes of those decisions. Help to analyze information, recognize problems and making decision (most

reports are in the form of charts and diagram). Assist in solving semi structured problems Support, not replace the manager Contribute to decision effectiveness rather than efficiency. E.g.,

o What products should we sell in the future?o How should we market and sell them?o What is the best way to provide customer satisfaction?o How should we invest? How do we get maximum return?

Decision Support System (DSS)3

What is DSS?

Purpose


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Interaction between a TPS and aDSS


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SystemCharacteristic

TransactionProcessingSystem

Decision Support System

User Clerical Individual knowledge worker &all management levels

Reason fordevelopment Cost saving Improve decision makingeffectiveness

Processing efficiency Yes No

Ease of use Low High

Usage volume /frequency

High Moderate to low

Database use Heavy updating,few reading

Primarily read only

Comparison of TPS and DSS


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Difference between DSS and MIS


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A special type of DSS which supports the strategic information needs of executive management.

An ESS presents information as charts and tables that show trends, ratios,and statistics that aid in the decision making process.

Manager use an ESS to analyze a company's financial trends A good way to think about an ESS is to imagine the senior management

team in an aircraft cockpit - with the instrument panel showing them thestatus of all the key business activities. ESS typically involve lots of dataanalysis and modelling tools such as "what-if" analysis to help strategicdecision-making.

to help senior management make strategic decisions. It gathers, analyses andsummarises the key internal and external information used in the business.

Executive Support System (ESS)4

What is ESS?

Purpose


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enables employees to perform tasks using computers andother electronic devices, instead of manually.

helps in optimising or automating existing office procedures Increases and improve the productivity of employees who

need to process data and information assists with communications among employees

Generate Microsoft Word documents or business formsfrom data stored in other applications such as Microsoft

Access Generate presentations from external data Automatically send emails to customers or groups in

Microsoft Outlook Create custom data entry mechanisms for Microsoft

Office Documents

Office Automation System(OAS)5

What is OAS?

Purpose

Example


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Summary

Define Information System Identify several types of Information System Describe the purpose of each Information System