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Business Information System Assignment-I What Is An Information System?

An information system (IS) collects, stores, and disseminates data to meet objectives. There are several types of IS used in businesses: transaction processing systems record business transactions; enterprise resource planning systems manage vital business operations; management information systems provide routine information to managers; and decision support systems help with problem-specific decision making. A credit card transaction processing system allows customers to make contactless payments. It verifies customers' credit card details and facilitates money transfers between customer and merchant accounts for smooth completion of transactions.

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Amit Sanglikar
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227 views

Business Information System Assignment-I What Is An Information System?

An information system (IS) collects, stores, and disseminates data to meet objectives. There are several types of IS used in businesses: transaction processing systems record business transactions; enterprise resource planning systems manage vital business operations; management information systems provide routine information to managers; and decision support systems help with problem-specific decision making. A credit card transaction processing system allows customers to make contactless payments. It verifies customers' credit card details and facilitates money transfers between customer and merchant accounts for smooth completion of transactions.

Uploaded by

Amit Sanglikar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS INFORMATION SYSTEM

ASSIGNMENT-I
PART I

What is an Information System?


An information system or (IS) is a set of inter-related components that
collect, manipulate, store and disseminate data and information and
provide a feedback mechanism to meet an objective.
An IS have four components: Input, Processing, Output and Feedback.
IS are of two types, Manual and Computer based.

A computer based information system or (CBIS) is a set of hardware,


software, database, telecommunication, people and procedure. The
most common types of information systems used in business
organizations are those designed for electronic and mobile commerce,
transaction processing, management information and decision support.

What are its types?


A business organization or enterprise has to deal with various
resources which need to channelize for earning profits. The resources
for an enterprise are raw material, finance, personnel and other
resources which are to be used in such a way that they are cost
effective, dynamic and earn high revenues as well as help in decision
making. The various types of IS are as follows –

Transaction Processing Systems (TPS):


It is an organized collection of people, procedures, software, databases
and device used to record complete business transactions.
Enterprise Resource Planning (ERP):
It is a set of integrated programs that manages the vital business
operations for an entire multi-site global organization. It can replace
many applications with one unified set of programs making the system
easier to use and more effective.

Management Information Systems (MIS):


It is an organized collection of people, procedures, software, databases
and device that provide routine information to managers and decision
makers. It enhances operational efficiency.

Decision Support Systems (DSS):


It is an organized collection of people, procedures, software, databases
and device that support problem specific decision making. The focus is
on making effective decisions and helps the manager do the right thing.

Knowledge Management Systems (KMS):


It is an organized collection of people, procedures, software, databases
and devices to create, store, share and use the organization’s
knowledge and experience.
Artificial Intelligence (AI):
The computer system takes on the characteristics of human
intelligence. It is used to do complex, dangerous, routine and boring
tasks, which see, store and process visual images and understand and
act on verbal or written commands in any language of the world. The AI
learning systems help computers learn from past mistakes and
experiences.
Expert Systems (ES):
This system gives the computer the ability to make suggestions and act
like an expert in a particular field. Their unique value is that they allow
organizations to capture and use the wisdom of experts and specialists
due to which years of experience and specific skills are not lost. Expert
systems can be applied to any field. The collection of data, rules,
procedures and relationships to follow to achieve value or proper
outcome is contained in the expert systems knowledge base.

Virtual Reality (VR):


It is a simulation of a real or imaginary world that can be experience
visually in 3-D. It is presented in full scale and relates properly to the
human size.

What are the major roles of an IS?

Askenäs (2000) proposes five roles that an information system may be


allowed to take in an organization: Bureaucrat, Manipulator,
Administrative assistant, Consultant and Dismissed. Dismissed
signifies an information system that is not used at all by some or all
intended users. These roles are specific to the relation between the
information system and an individual or a group of people. Different
individuals in the organization may see the IS as having different roles.
Therefore, these roles may coexist. We suggest that the way an
information system is used is influenced by the perceived fit between
the structure in the company.
PART II

TRANSACTION PROCESSING SYSTEM

Credit card transaction processing system in a bank:

Many banks often use credit card transaction processing system. In India almost
all banks are using transaction processing system to allow the customers the ease
of payment through various means. The bank we have taken as an example is
HDFC.

People:

The people who are generally involved are the client and the merchant (to some
extent). The task of the client is to enter his credit card information so that his
money is transferred safely to the merchant or payee. The task of the merchant is
to confirm the transaction as soon as he receives the money.

Process:

There are two type of credit card transaction processing system. They are:

 Merchant account processing


 Third party credit card transaction processing

Merchant account processing:

Merchant account credit card transaction processing is a type of credit card


transaction processing where the money is directly processed by the merchant
account providing bank.

Process:

 Using the secure form on the web site, the user enters the necessary
information.
 SSL-encrypted technology encrypts information entered by the client.

 The encrypted data is passed to the credit card transaction processing


gateway.

 The gateway decrypts data using a SSL certificate.

 The gateway verifies the information provided by the client.

 The information is re-encrypted using SSL technology and passed on to the


credit card transaction processing bank.

 On confirmation, the money gets transferred from your account to the


merchants account.

Third party credit card transaction processing:

In third party credit card transaction processing, the money is transferred through
a third party credit card transaction processing company to the bank. It comes
into use when the merchants account is not acquired due to the banks strict
policies and guidelines.

Process:

 Using the secure form on the web site, the user enters the necessary
information.

 SSL-encrypted technology encrypts information entered by the client.

 The encrypted data is passed to the third party credit card transaction
processing company.

 The encrypted data is passed to the credit card transaction processing


gateway.

 The information is verified and passed to the bank.

 The money is transferred by the bank from the client’s credit card to the
third merchant credit card transaction processing company.
 The money is then transferred by the third party credit card transaction
processing company to your third party merchant account.

 Payouts are then made by bank transfer, checks, PayPal, etc.

Data:

The data which is entered is the client’s details. The details include his Name,
Address, Phone/Mobile Number, Credit Card Number and C.V.V. Number. These
details are required for the smooth flow of transaction and for the safety of
money with respect to both the client and the merchant.

All this data is usually asked by the merchant before taking to the merchant’s
transaction page.

The most important data is the client’s credit card number and the C.V.V.
number. The credit card number is a unique number assigned to every customer
of the bank using a credit card system. This number helps to identify the client in
the credit card transaction processing gateway. The data is stored in a database of
the credit card firm and help to confirm the client details during a transaction.

Uses:

The following are the uses of credit card transaction processing system:

 It allows the client to purchase any item from any part of the world.
 The client can make payments to various merchants without actually
visiting them.
 The transaction processing system validates information on its own without
getting people to work.
 TPS is used to store and retrieve data.

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