E-Business, how business use Information - It is a specialize system that is built to

System promote the creation of knowledge and to

make sure that knowledge and technical skills
TYPES OF INFORMATION SYSTEM
are properly integrated into the business

- It helps the workers in creating and

propagating new information and knowledge
by providing them graphics, analytical and
document management tools

Ex. Computed Aided Design Systems, Virtual

reality systems, financial work station

4. Operational Level (Base)

4 Main Categories - serves the operational managers

1. Strategic Level (Top) - support your operational managers by

keeping track the basic/elementary activities
- serves the needs of your top/senior
and transaction of the organizations (ex. sales,
managers
cash deposit, payroll, flow of material in your
- Helps senior managers tackle and address company)
strategic issues and long-term trends both in
-principle purpose is to answer routine
the firm or the internal and in the external
questions and to track the flow of transaction
environment
through the organizations. (how much is the
- Principle concern is the matching changes in ending balance of your inventory, what is the
the external environment with the existing ending balance of receivables of particular
organizational capabilities. customer)

- What will employment level in 5 years, what Ex. Systems to record your bank deposit,
are the long-term industries... Systems that tracks the number of hours work
each day by employees
2. Management Level
Functional Areas
- caters the needs of your middle managers
 Sales and Marketing
- serves the monitoring, controlling, the  Manufacturing
decision making and administrative activities  Finance
of your middles managers
 Accounting
- provides for periodic report, in an interring  Human Resources
period rather than instant information
MAJOR TYPES OF SYSTEMS
Ex. Reports of the total financing cost of the
1. Executive Support Systems (ESS)
company, reports on whether actual cost
exceeds our budgets - Senior managers is catered, to help them
make or grow decision
- support non-routine, often answer the
question what ifs - Serves the strategic level of the organization,
they address non-routine decisions,
3. Knowledge Level System
judgements, evaluation and incites
- serves the knowledge and data workers
- Design to incorporate external events such that knowledge and technical skills are
as updates in tax law, properly integrated in business

- draw and summarize information from - caters on knowledge workers such as

internal sources such as MIS and your decision engineering department etc.
support systems
5. Office Automation Systems (OAS)
-make use of the most advance graphic
- tool that enables data to move from one
software
system to another on its own without human
-not design primarily to solve specific intervention and without inaccuracies
problems instead your ESS provides a
- this system is a tool to help the organization
generalized computing and communications
collect, manage and analyse securely to
capacity that can be applied to a changing
accomplish the every data’s and processes
way of problems
within the organization
2. Decision Support System (DSS)
6. Transaction Processing Systems (TPS)
- caters generally management level of the
- are the basic business systems in an
organization
organization that serves the operational level
- helps managers in making decisions that are of the entity
unique, rapidly changing
- Computerized system that performs and
- have more analytical power than any other record the daily routine transaction necessary
systems, because they use a variety of models to conduct a business
to analyse the data, or they can condense or
Ex. Daily collection of task, daily AR, sales
sum up large amount of data into a simplified
order entry, shipping
information which can be analyse by your
middle class management or decision makers

-design so that the users can work with them

directly

3. Management Information System (MIS)

- Also designate specific category of

information system serving the management
level functions

- serves the management level of organization QUALITIES OF TPS

by providing them with reports and often
- Basic business systems that serve the
online access to the organization current
operational level
performance and historical records
- A computerized system that performs
- depend greatly on your TPS, and records the daily routine
transactions necessary to the conduct
- compress and summarize in your regular
of the business
schedule

4. Knowledge Work Systems (KWS)

- Specialized system that is used to promote

the creation of knowledge and to make sure
 Management Information System (MIS)

- Structured and semi-structured

decisions
- Report control oriented
- Past and present data
- Internal orientation
- Lengthy design process

CHARACTERISTICS OF DECISION SUPPORT

CHARACTERISTICS OF KNOWLEDGE WORK
SYSTEM (DSS)
SYSTEMS (KWS)
- Help managers in making decisions
Knowledge level
that are unique and not specially
 Inputs: Design specifications that are
Management Level
used to promote the creation of a
knowledge  Inputs : Low volume data
 Processing: Modelling, usually done  Processing: Interactive
 Outputs: Designs, graphics  Outputs: Decision analysis
 Users: Technical staffs  Users: Professionals, staff
Example: Engineering work station Example: Contract cost analysis
CHARACTERISTICS OF MANAGEMENT
INFORMATION SYSTEM (MIS)

- Summarize and report on the

company’s basic operations

Management level

 Inputs: High volume data from TPS

 Processing: Summarize and compress
high volume data to simple models
 Outputs: Summary reports
 Users: Middle managers CHARACTERISTIC OF EXECUTIVE SUPPORT
SYSTEM (ESS)
Example: Annual budgeting
- Design to filter, compress and track
critical data, displaying the data of
greatest importance to senior
managers

Strategic Level

 Inputs: Aggregate data

 Processing: Interactive
 Outputs: Projections
 Users: Senior managers

Example: 5-year operating plan

EXECUTIVE SUPPORT SYSTEM (ESS)

- Top level management

- Designed to the individual
- Ties CEO to all levels
- Very expensive to keep up

TPS are the major sources of data to other

systems

ESS primarily is a recipient of data from lower

level systems

MIS, KWS, DSS may exchange data each other

as well

MAJOR FUNCTIONS OF SYSTEMS

 Sales management
 Market research
 Promotion
 Pricing
 New products

MAJOR APPLICATION SYSTEMS

 Sales order information system

 Market research system
 Pricing system