INFORMATION

SYSTEM

2

What

is Info

rmati

on

Sys

tem

?

Information System (IS) is

any combination of information technology and

people's activities using

that technology to support

operations, management,

and decision-making.Information technology is a

general term that describes

any technology that helps to

produce, manipulate, store,

communicate, and/or

disseminate information.

3

The purposes of Information

system are:• to process input• maintain data• produce reports• handle queries• handle on line transactions

• generate reports, and other

output.

Transformation of data into

information is the

primary function of

information system.

What

is Info

rmati

on

Sys

tem

?

4

StrategicManagement

TacticalManagement

OperationalManagement

Top Management

MiddleManagement

Rank in File

• Executive Support Systems (ESS)

• Decision Support Systems (DSS)

• Management Information Systems (MIS)

• Knowledge Work Systems (KWS)

• Office Automation Systems (OAS)

• Transaction Processing Systems (TPS)

5

A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.

Transaction Processing System (TPS)

Features: Focus on basic business systems that serve the

operational level

A computerized system that performs and records the daily routine transactions necessary to the conduct of the business.

6

Rapid Processing. TPS systems are designed to

process transactions virtually instantly to ensure

that customer data is available to the processes

that require it.

Reliability . TPS systems are designed to

incorporate comprehensive safeguards and

disaster recovery (back up) systems.

Standardization. Transactions must be

processed in the same way each time to maximise

efficiency.Controlled Access. Restricted access to the

system ensures that employees who lack the skills

and ability to control it cannot influence the

transaction process. Transaction Processing System

(TPS)

7

8

Knowledge Work Systems (KWS)

Three general categories:

professional support systems

office information systems

knowledge management systems

Office System- Document Imaging

This system converts documents and images into digital form so they can be stored and accessed by the computer.

9

Management Information System

(MIS)Decision Support System (DSS)

Point-of-Sale (POS) System

Point-of-Sale (POS) System

General Ledger System

General Ledger System

Purchase

Inventory

Accounting

MISDSSMIS

DSS

Sales analysis ReportProfitability Analysis Report

Capital Investment Report

Item

Operational Level

Tactical LevelManagement information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product,service or a business-wide strategy.

Basically MIS is the extension of Decision Support System (DSS).

10MIS vs. DSS

MISPeriodic reports

Pre-specified, generic reports

DSSSpecial reports that may

only be generated once

May not know what kind

of report to generate

until the problem surfaces; specialized

reports.

11

MIS DSSSupport Info about

performanceInfo and modeling to analyze problems

Report Form

Periodic reportsor On Demand

Interactive Inquiries

Format Pre-specifiedFixed format

Flexible and Adaptable

Processing Extract and manipulate data

Analytical modeling of data

MIS vs. DSS

12

Typical MIS Reporting

Periodic Scheduled Reports

Example: Monthly Financial Statements

Exception ReportsExample: List of items out of stock

These reports contain information

but they might not directly help you

determine the best decision to

make.

13

Modeling helps predict the outcome of

a decision.This directly helps you make a decision

Possibly an optimal decision

With a DSS you can explore possible

alternatives.

How is DSS reporting different?

Type of Modeling

Example

What-if analysis

What if we cut advertising by 10% what would happen to sales?

Sensitivity analysis

Let’s cut advertising by 1% repeatedly so we can see its relationship to sales

Goal-seeking analysis

Let’s try increasing advertising until sales reach $1 million

Optimization analysis

What level of advertising maximizes our overall profit?

Analytical Modeling is the key

14

Executive Support System (ESS) or

Executive Information System (EIS)

Top level managementDesigned to the individual

Ties CEO to all levelsVery expensive to keep upExtensive support staff

15

OperationalManagement Decisions

TacticalManagement DecisionsStrategicManagement Decisions

MIS

DSS

EIS

TPS

IS Relationship

16Next topic: Tools/Concepts for IT

support business Nov 30, 2010