TYPES OF INFORMATION

SYSTEMS

Dr. NIKITA JAIN

Associate Professor
TYPES OF INFORMATION SYSTEMS

Transaction Management
processing information
systems system

Decision Executive
support support
systems system
 Transaction processing system

Transaction processing system is a type of information system.

TPSs collect, store, modify and retrieve the transactions of an
organization. A Transaction is an event that generates or
modifies data that is eventually stored an information system.

E.g : Order entry system, cheque processing systems,

accounts receivables systems, payroll systems and ticket
reservation systems
These systems help any company to conduct operations and
keep track of its activities
 A PAYROLL TPS

EMPLOYEE DATA To general ledger

Employee Payroll
/file database
System
Management
reports
Employee number
Address Pa rate
Gross pay
To government
Federal tax
agencies
Medicare State tax
Net pay

Employee paychecks
Online queries
 TPS CHARACTERISTICS

A TPS records internal and external transactions for a company. It is a

repository of data that is frequently accessed by other systems
A TPS performs routine , repetitive tasks .It is mostly used by lower
level managers to make operational decisions
Transactions can be recorded in batch mode or online.In batch mode the
files are updated periodically.In online mode , each transaction is
recorded as it occurs
There are six steps in processing a transaction, they are: data entry, data
validation, data processing and revalidation, storage – output generation
and query support
 Objectives of TPS

• Process data generated by and about transactions

• Maintain a high degree of accuracy and integrity
• Avoid processing fraudulent transactions
• Produce timely user responses and reports
• Increase labor efficiency
• Help improve customer service
• Help build and maintain customer loyalty
• Achieve competitive advantage
 MIS

Designates a specific category of information systems

serving middle management.
Provides middle managers with reports on organization’s
current performance.
Information thus obtained is used to monitor and control
and business and predict future
 Characteristics of MIS

• MIS is an integrative system

• MIS is Sub System concept
• Provides relevant information to management
• MIS is flexible
• Enhances productivity
• Is a coordinated system
• Feedback system
 MIS
TPS
Order
file
Order
Sales
Processing
data
system

Production Materials Unit

Master Product reports
file
Resource MIS
Cost data
Planning
system
managers
Product
change
Accounting data
file General
Ledger
Expense
system data
 Decision Support System

A decision support system (DSS) is a computer program application that

analyzes business data and presents it so that users can make business
decisions more easily. It is an "informational application" (to distinguish
it from an "operational application" that collects the data in the course
of normal business operation).
Typical information that a decision support application might gather and
present would be:

•Comparative sales figures between one week and the next

•Projected revenue figures based on new product sales assumptions.
•The consequences of different decision alternatives, given past
experience in a context that is described
•A decision support system may present information graphically and may
include an expert system or artificial intelligence (AI). It may be aimed at
business executives or some other group of Knowledge workers
 Characteristics of Decision support
system

1. Provides rapid access to information

2. Handles large amount of data from different sources
3. Provides report and presentation flexibility
4. Offer both textual and graphical orientation
5. Support drill down analysis
6. Perform complex, sophisticated analysis
7. Comparisons using advanced s/w
Activities in decision support
system

What if Sensitivity
analysis analysis

Goal seeking Optimization

analysis analysis
VOYAGE-ESTIMATING DECISION SUPPORT
SYSTEM
Ship file eg
speed,capacity
PC

Port distance
Restriction file

fuel
consumption
cost file

Ship charter hire

history cost file

Analytical
Models Port expense
database file

Online
queries
EXECUTIVE SUPPORT SYSTEMS FOR
SENIOR MANAGEMENT

Issues at senior Management level:

• What will employment be in 5 yrs ?

• What are long term industry cost trends
• Where does our firm fit in?
• What products should we be making in next 5 yrs?
• What new acquisitions would protect us from
cyclical business swings ?
Characteristics of ESS

1. Tailored to individual executives

2. Easy to Use
3. Have drill down abilities
4. Support the need for the external data
5. Help with situations that have high degree of
uncertainty
6. Have a future orientation
7. Are linked with value added business
processes
 Role of ESS

• Addresses non routine decision requiring judgement ,

evaluation, and insight
• Presents graphs and data from many sources through an
interface that is easy for senior managers to use
• Incorporates data about external events such as new tax
laws or competitors ,but also draws a summarized
information from internal MIS and DSS
• It filters ,compresses and track critical data , displaying that
data of
greatest importance to senior managers.
 MODEL OF AN EXECUTIVE SUPPORT
SYSTEM
ESS
Workstation/Portal

• Menus
ESS • Graphics ESS
Workstation/Portal • Communications Workstation/Portal
• Digital Dashboards

Internal data External data

TPS/MIS data Dow Jones

Financial data Internet news feeds
Office systems Standard & Poor
• Menus Modelling/analysi • Menus
• Graphics s • Graphics
• Communications • Communications
• Digital Dashboards • Digital Dashboards
 Feasibility study
Operational feasibility
how well the proposed system supports the business priorities of the organization
How well the proposed system will solve the identified problem
How well the proposed system will fit with the existing organizional
structure
Economic feasibility
Cost saving, increased revenue , decreased investment requirement,
increased profit ,cost benefit analysis
Technical feasibility
Hardware ,software , and network capability ,reliability and availability
Human Factors Feasibility
Employee, customer ,supplier acceptance , management support
,determining the right people for the various new or revised roles
Legal/Political feasibility
Patent , copyright and licensing , government restrictions , affected stakeholders
and reporting authority