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Types of Information Systems

The document describes different types of business information systems used at various levels of management, including transaction processing systems, management information systems, decision support systems, executive support systems, and knowledge work systems. It provides examples of each type of system and discusses their characteristics, inputs, processing capabilities, outputs, and typical users. The relationships between the different systems are also explained, showing how data flows from transaction processing systems into analytical systems used by higher levels of management for planning and decision making.

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Silpa Tulasi
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30 views

Types of Information Systems

The document describes different types of business information systems used at various levels of management, including transaction processing systems, management information systems, decision support systems, executive support systems, and knowledge work systems. It provides examples of each type of system and discusses their characteristics, inputs, processing capabilities, outputs, and typical users. The relationships between the different systems are also explained, showing how data flows from transaction processing systems into analytical systems used by higher levels of management for planning and decision making.

Uploaded by

Silpa Tulasi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Types of Information Systems

Business Information Systems


Business Information System
Why Organizations need
Information Systems

• Linking Departments whose Functions are


different
• Enhancing Worker Productivity
• Increasing Quality of Goods and Services
• Meeting Global Challenges
• Capturing opportunities in the Market Place
• Supporting Corporate Strategy

3
BIS -Objectives
• To provide requisite information support for
managerial functions within the organization.
• To make available, right information at the right
place at the right time at the lowest cost
• To ensure that wrong and unwanted information is
not generated; the condition of the ‘information
overload’ is avoided
Management Hierarchy
• Top (Strategic) Management

• Middle (Tactical) Management

• Line (Operational) Management


Information Systems
IS support needed by people depends on their
role in the organization.
– Top managers make strategic decisions
– Middle managers make tactical decisions
– Line managers make operations decisions
– Knowledge workers create and integrate
knowledge
– Clerical workers use and manipulate
information
Types of Information Systems
Types of information systems at various
levels

Level 1-Transaction Processing Systems (TPS)

Level 2-Management Information Systems (MIS)

Level 3-Decision Support Systems (DSS)

Level 4-Executive Support Systems (ESS)

Knowledge Work Systems (KWS) or KMS –


encompassing the organizational knowledge –
mainly useful for professionals , tech staff
Transaction Processing Systems (TPS):
A computerized system that performs and records
daily routine transactions necessary to the
conduct of the business
Inputs: Transactions or events
Processing: Sorting; listing; merging; updating
Outputs: Detailed reports; lists; summaries
Users: Operational staff; supervisors

Eg: payroll system; production instructions


Management Information System (MIS):
Information Systems at the management level of
an organization that serve the management
functions
• Inputs: Summary transaction data
• Processing: Simple models; low level analysis
• Outputs: Summary reports
• Users: Middle managers

Eg: Weekly, monthly, and annual resource


allocation.
Decision Support System (DSS):

IS at the management level that combine data and


sophisticated analytical models or data analysis tools to
support semi or unstructured decision making

• Inputs: databases optimized for statistical analysis


• Processing: Interactive. Simulations, statistical
analysis
• Outputs: Responses to queries; statistical test
results.
• Users: Professionals, staff

Eg: Which could be a region to pilot test a new


product?
Types of DSS - Analytical Modeling

• What-if Analysis
• Sensitivity Analysis
• Goal Seeking Analysis
• Optimization Analysis
MIS Vs DSS
• DSS has more analytical capabilities built into it.
• Perform what-if analysis.
• Managers can change inputs and get an idea of
the changes in the output

• Some characteristics of MIS that make them


differ from DSS
• Structured and semi-structured decisions
• Output is often the kind that you need routinely
each term (quarter, month, year) to evaluate how
to proceed next (quarterly sales data for past 5
years)
Executive Support System (ESS):
IS at the strategic level to address unstructured decision
making through advanced graphics and communications.

Top level (strategic level)-


• Inputs: Aggregate data. Internal and external
• Processing: Interactive and graphical simulations
• Outputs: Projections
• Users: Board Members, Top Mgmt execcutives
Eg: 5-year operating plan.
What business should we be in ? How to diversify?
Competition scenario? Which unit to sell? What to
buy? etc

• Gets data from all internal IS plus external industry


data bases
Characteristics of Executive Support Systems (ESS)

Top level management

Designed for the individual requirements

Ties CEO to all levels

Very expensive to keep up

Extensive support staff


Interrelationships among systems

ESS

DSS
MIS

TPS
KWS
TPS,MIS,DSS,EIS

INTERRELATIONSHIPS:

- TPS generally feed all other systems

- MIS generally indicate when a DSS is needed and


provide input for them to crunch

- ESS take all internal data but usually only summary data
from MIS and DSS level

Output data from one is input data for others to process


Office Automation Systems(OAS)

• Toward A “Paperless” Office

• Redesign Of Work Flow

• Integrated Software
History of the role of Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic


Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
Commerce
-Internetworked
E-Business &
Commerce
Information Architecture and Information Technology
Infrastructure
TOWARD THE
DIGITAL FIRM
TPS
Weekly Atta consumption from XYZ grocery store during
September

Sep Week 1 Week 2 Week 3 Week 4 Total

Annapurna 8 6 7 5 26

Pillsbury 7 5 1 4 17

Aashirwad 11 7 5 9 32

Unbranded 2 0 1 2 5

* - packets of 1 kg each
MIS
Month wise Sales figures of 1 kg packet of Atta from XYZ
grocery store

  Sep Oct Nov Dec Jan Feb Total

               

Annapurna 26 31 33 19 34 21 164

Pillsbury 17 21 12 20 16 9 95

Aashirwad 32 28 27 40 31 22 180

Unbranded 5 11 18 16 16 12 78

Total 80 91 90 95 97 64 517

* - packets of 1 kg each
DSS
From the MIS report, the following shall be the consumption
and re-order budget for future re-order

  Total % consumption Re-order Budget

       

Annapurna 164 32% 40%

Pillsbury 95 18% 10%

Aashirwad 180 35% 45%

Unbranded 78 15% 5%

Total 517 100% 100%


ESS
The Consumption pattern of Atta from XYS helps the owner
determine the re-order budget for Atta for the next few
months.

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