NAME :- Shaheer Shaikh

GR.NO :- 501

CLASS :- SYBMS

SUBJECT :- I.T ASSIGNMENT

What are Information Systems
Information systems are collections of multiple information resources to gather, process, store,
and disseminate information.

Tools such as laptops, databases, networks, and smartphones are examples of information
systems. So yes, as you read this article, you’re employing an information system! Many people
rely on various types of information systems to communicate with friends and family, bank or
shop online, or look up information via a search engine.

Companies and organizations employ information systems to communicate and work with their
customers and suppliers, manage the organization, perform essential business operations, and roll
out and maintain marketing campaigns.

Main Applications of Information Technology

Although companies need good information to create better goods and services, they must also
have a reliable, cost-effective system to store the information that allows rapid data access when
required. In addition, a sound information system helps businesses keep logs of essential
activities and store valuable assets such as communication records, revision histories, activity
logs, operational data, and other relevant documents.

1- Information/Data Storage:
Although companies need good information to create better goods and services, they must also
have a reliable, cost-effective system to store the information that allows rapid data access when
required. In addition, a sound information system helps businesses keep logs of essential
activities and store valuable assets such as communication records, revision histories, activity
logs, operational data, and other relevant documents. By storing information in an organized
manner, businesses understand why problems and roadblocks occur and how to solve them.

2- Rolling Out New Products and Services:

Although there is an ever-increasing demand for new goods and services, any business that wants
to stay competitive needs information to make better decisions and consequently offer better
products. Information systems help analyze independent processes and organize the company’s
work activities. So, an information system allows a business to better understand how it can
design, create, and sell services or products that people want.
3- Simplified Decision Making:
It’s challenging enough to make decisions, let alone consistently making the exact, right
decisions. There are no guarantees that an organization’s decisions will work. However,
information systems help take some of the pain out of the process by offering information rapidly
and easily.

4- Improving Employee Behaviors and Attitudes:

Information systems can be effectively employed to improve communication between employers
and employees. An efficient information system empowers employees by making relevant
information more accessible, helping them become a part of the decision- making process. This
empowerment boosts motivation and increases commitment to the project or assignment.

Here are some broad categories that highlight types of information system applications:

• Communication: Information system applications allow rapid data sharing on a global scale.

• Education: Information systems help make remote learning easier (particularly useful during
pandemics) and make people more comfortable with tech advancements such as smartphones,
tablets, and other network devices.

• Employment: The advent of information systems has directly resulted in creating new
positions such as data analyzers and cyber-security experts.

• Finance: Information systems make the transfer of funds more manageable and more secure.

• Healthcare: Thanks to information systems, healthcare providers can access vital medical
records faster.
• Security: Information systems make easier to employ data safeguards to reduce the likelihood
of a data breach or malware.
How does an information system work ?
An I.S is a powerful tool that can bring many different functions together. By connecting system
components, it enables IT departments to collect, store and process information in an efficient
way and distribute it for a variety of purposes. The system can also produce reporting in different
formats and to a variety of devices. Reports can include text files, spreadsheets, graphics and
complex data visualizations. This comprehensive platform streamlines internal operations and
allows businesses to access data quickly and accurately.

The basic process an IS follows includes the following steps:

1. Input: The system collects data and information from various sources, such as sensors,
keyboards, scanners or databases.

2. Processing: The system transforms the raw data into meaningful information by applying
various operations, such as sorting, classifying, calculating, analyzing or synthesizing.

3. Storage: The system stores the processed information in a structured and secure way, such
as in a database, a file system or in cloud storage.

4. Output: The system presents the information to the users in a usable format, such as reports,
graphs, charts or dashboards.

5. Feedback: The system collects feedback from users and other stakeholders to evaluate its
performance and improve its design and functionality.

The effectiveness of an IS depends on its alignment with the organization’s goals, reliability,
security and usability.
Typical Components Of Information Systems

An I.S is composed of a variety of components, from physical hardware to software and data.
Each component serves an important role in the overall functioning of the system.

Hardware for an IS includes computers and servers. Computer hardware is essential for
providing users with access to the system, while servers provide storage space for data, programs
and applications that make up the system.

Networks such as local area networks (LANs), wide area networks (WANs), intranets and cloud
networks are important for interconnecting different components and allowing user access from
anywhere in an organization.

Software is an integral part of an IS. Operating systems such as Windows or Linux provide
underlying platforms, while databases allow users to store and retrieve large amounts of data. An
enterprise may run on hundreds of different software applications, as well as large software
packages that integrate multiple applications.

Data is another important component. This includes structured data stored in databases, as well
as unstructured data such as text documents, images or audio files. Users can access this data
through various applications within the system for reporting or analysis purposes.

People play a key role in any IS, from administrators who manage the system itself to users who
interact with it daily. Administrators must understand how to configure hardware and software
and troubleshoot issues. Meanwhile, end users must become familiar with interfaces and learn to
perform tasks within the system to get work done.

Processes governing how components work together within an IS are critical. IT leaders must
define procedures for everything from setting up secure user accounts to creating emergency
backup plans. Understanding how all these pieces fit together is essential for an IS to meet a
company’s needs effectively.

System Security

Data management
Data management involves maintaining the accuracy, consistency and integrity of the data stored
in the system. IS administrators must develop and implement data backup processes to prevent
data loss in case of system failures or disasters. They must also ensure that data is stored in a
structured and organized manner so that it can be easily accessed and analyzed. Data security is
another key aspect of data management, and administrators must ensure that data access controls
and encryption mechanisms are in place to prevent unauthorized access and data breaches.

Network management
Network management involves monitoring and maintaining the network infrastructure to keep it
functioning correctly. IS administrators must ensure that network devices such as routers,
switches and servers are correctly configured and the network is working at optimal performance
levels. They must also troubleshoot network issues as they arise and manage traffic to avoid
congestion and delays. In addition, network management involves implementing network
security devices and measures, such as firewalls and intrusion detection and prevention systems,
to prevent unauthorized access and attacks.

System maintenance
IS administrators must make sure that the system is running smoothly by performing regular
maintenance tasks such as system updates and hardware upgrades, as well as implementing a
patch management process. They must also monitor system performance metrics, such as CPU
and memory usage, to identify and troubleshoot performance issues.

User support
Users rely on the IS to perform their jobs successfully; therefore, administrators must provide
users with the necessary training and support to enable them to use the system effectively. They
must also offer help desk support to assist users with any problems they encounter while using
the system. Administrators must also ensure that users have access to job-appropriate data, while
also maintaining access control to protect sensitive information.

Six Major Types Of Information Systems

Now that we have dealt with the basics, let’s look at the six primary types of information
systems. Although information systems are not limited to this list, typical businesses and
organizations have the following six, each system supporting a different organizational level.

For starters, we have the transaction processing systems (TPS) at the operational level. Next are
the office automation systems (OAS) and knowledge work systems (KWS), both working at the
knowledge level. Next, the management level has the management information systems (MIS)
and decision support systems (DSS), and we conclude with the executive support systems (ESS)
at the strategic level. Let’s explore the different types of information systems more in-depth.

Figure 1 : Transaction Processing System

 1- Transaction Processing System (TPS)
Transaction processing is essential to helping businesses perform daily operations. Transactions
are defined as any activity or event that affects the company, and include things like deposits,
withdrawals, shipping, billing customers, order entry, and placing orders. TPS supports these
business transactions.

Advantages Of Transaction Processing System (TPS)

Productivity: By using TPS, the staff of the company increases their productivity. Also,
customers get more trust and satisfaction in the company.

Fast: The transactions are carried out in fast time and there is no delay. The real-time transaction
is also a type of TPS in which no delay in time occurs.

Low cost: As most of the work is carried out by TPS so less staff is needed to be hired.
Large data: TPS can process a large amount of data. There are thousands of transactions done
by the TPS on daily basis.

Use anywhere: TPS can be used anywhere you want. You can use it in organizations, stores,
banks, schools etc. Also, customers can do transactions online from anywhere.

Disadvantages Of Transaction Processing System (TPS)

Setup cost: The initial setup cost of TPS is high. You have to buy a license for TPS software.
Also, you need to buy computers, cameras and price detecting devices.

Incompatible: Sometimes your software and hardware have compatibility problems. Some
hardware has drivers problems.

Overload problem: Sometimes there occurs a high number of transactions on the TPS so it
slows down the system or it stops working.

High internet: Users need to have a high internet connection to use the TPS.

Standard format: TPS lacks a standard format.

Examples Of Transaction Processing Systems (TPS)

Some examples of TPS are:-

• Online store
• Buying through credit/debit card
• Bus/railway ticket reservation
• Payroll
• Employee record-keeping

Figure 2 : Office Automation System

2- Office Automation System (OAS)

OAS consists of computers, communication- related technology, and the personnel assigned to
perform the official tasks. The OAS covers office transactions and supports official activity at
every level in the organization. The official activities are subdivided into managerial and clerical
activities. Office automation systems include the following applications:

• Email: The email application also covers file attachments such as audio, video, and documents.

• Voice Mail: This application records and stores phone messages into the system’s memory and
can be retrieved anytime.

• Word Processing: Word processing covers the creation of documents, including memos,
reports, letters, and anything else that’s printable electronically. The created text can be copied,
edited, and stored via word processing commands, and checked for grammar and spelling, line
and word counting, and headers and footers.
Advantages Of Office Automation System

Work anywhere: Employees can now work from anywhere if they have internet access. They
can remotely connect with the boss and work remotely.

Accuracy: With the most modern application software like MS Excel and MS Word, data is
entered into the software with accuracy. You can now work with consistency without doing error
mistakes. Data is entered into the software with accuracy.

Decision making: Office management can take decisions quickly. In old days all the data is
hardcoded and finding the data of any person was very difficult and takes many days. But in
current days, data can be fetched in seconds even if there are a million records on computers.

Better collaboration: Office management and team members can collaborate through audio and
video chat. They can use WhatsApp, TeamViewer, Skype and other communication software.
Time-saving: As team members in the office can communicate with each other online so it saves
their time. There is no time limit for communication. The team members can discuss important
points while they are not in the office also.

Disadvantages Of Office Automation system

Privacy issue: Customer data is stored in the office and any employee can get access to the data.
Office employees can use customers’ data in the wrong way also.

Risk of job: As most of the work is done automatically so employees get the risk of losing their
jobs. Office management also hires fewer people in the office because of the automatic office
system.
Real communication gets affected: As most office work is done automatically so employees do
not get time to discuss office work. They get busy automating the processes. All the work is
ready-made by the software and human thinking power is less used.

Less customization: Some popular software like MS PowerPoint and MS Access are difficult to
customize. Sometimes you need to make the software customized but it becomes not possible to
do so.

Lack of irregular work: The software which is used in the automated office does regular work.
If any irregular data is fed into the software then it may give you exceptions and cannot process
and correct the data automatically

Examples Of Office Automation System

Some examples of office automation systems are:-

• Human resource management system

• Email and messaging system
• Business intelligence systems
• Electronic calendar and scheduling systems
• Accounting and financial management systems

Figure 3 : Knowledge Work System

 3- Knowledge Work System (KWS)

The KWS is a specialized system that expedites knowledge creation and ensures that the
business’s technical skills and knowledge are correctly applied. The Knowledge Work System
aids workers in creating and disseminating new information using graphics, communication, and
document management tools. Here are some examples of KWS:

1- Computer-Aided Design Systems (CAD): CAD systems automate design creation and
revision via computers and graphics software, especially in the manufacturing and tooling
processes.
 2- Financial Workstations: These systems pull and combine data from many different
internal and external sources, covering research reports, market data, and management
data. Financial workstations can rapidly analyze huge amounts of financial data and
trading situations.

3- Virtual Reality Systems: These systems take the CAD system to the next level, using
interactive graphics utilities to create realistic computer-generated simulations. VR
systems are typically found in scientific, educational, and business circles.

Advantages Of Knowledge Work System

Some of the common benefits of knowledge management include:

• improved organisational agility

• better and faster decision making
• quicker problem-solving
• increased rate of innovation
• sharing of specialist expertise
• better communication
Disadvantages Of Knowledge Work System

• finding ways to efficiently capture and record business knowledge

• making information and resources easier to find
• motivating people to share, reuse and apply knowledge consistently
• aligning knowledge management with the overall goals and business strategy
• choosing and implementing knowledge management technology
• integrating knowledge management into existing processes and information systems

Example Of Knowledge Work System

• Sportion Race’s customer-centric self-service
• Vend’s Knowledge Centered Service
• Khan Academy’s community
• Canva’s crisp design
• Tesco’s internal help center

Figure 4 : Management Information System

4- Management Information System (MIS)

Middle managers handle much of the administrative chores for day-to-day routines and
performance monitoring, ensuring that all the work is aligned with the organization’s needs.
That’s why MIS is such a valuable tool. Management Information Systems are specially
designed to help middle managers and supervisors make decisions, plan, and control the
workflow. The MIS pulls transactional data from various Transactional Processing Systems,
compiles the information, and presents it in reports and displays. Additionally, these reports can
be produced monthly, quarterly, or annually, although MIS can have more immediate reports
(e.g., hourly, daily).
Advantages Of Management Information Systems (MIS)

Increased Efficiency: One of the primary advantages of MIS is that it can help organizations
become more efficient. MIS systems automate many routine tasks, freeing up employees to focus
on higher- level tasks. This can save time and reduce errors, ultimately leading to cost savings
for the organization.

Improved Decision-Making: MIS systems provide organizations with real-time data and
analytics, which can help managers make more informed decisions. For example, an MIS system
can provide data on sales trends, inventory levels, and customer preferences, allowing managers
to make decisions based on facts rather than intuition.

Enhanced Communication: MIS systems can improve communication within an organization.

For example, an MIS system can provide a centralized platform for employees to share
information, collaborate on projects, and coordinate tasks. This can help teams work more
effectively and achieve their goals more efficiently.

Better Data Management: MIS systems can help organizations better manage their data. For
example, an MIS system can provide tools for data entry, storage, and retrieval. This can help
ensure data is accurate, up- to-date, and easily accessible when needed.

Competitive Advantage: Finally, MIS systems can provide organizations with a competitive
advantage. By using data and analytics to make informed decisions, organizations can become
more efficient, more responsive to customer needs, and better able to compete in the
marketplace.

Disadvantages Of Management Information Systems (MIS)

Costly Implementation: Implementing an MIS system can be costly for organizations. There
may be expenses related to purchasing software, hardware, and training employees to use the
system. This can be a significant investment for some organizations.
Technical Issues: MIS systems can experience technical issues, such as system crashes or data
loss. This can be frustrating for employees who rely on the system to do their jobs. Organizations
may need to invest in additional technical support to address these issues.

Security Risks: MIS systems can also pose security risks. If the system contains sensitive data,
such as customer information or financial records, it could be targeted by cybercriminals.
Organizations need to ensure that their systems are secure and take steps to protect against
potential data breaches.

Dependence on Technology: MIS systems are dependent on technology, which means that if the
system goes down, employees may not be able to perform their job duties. This can lead to lost
productivity and revenue for the organization.

Potential for Human Error: Finally, MIS systems can be prone to human error. If employees
enter incorrect data or fail to update the system in a timely manner, it can lead to inaccurate data
and decision- making. This can be a significant issue for organizations that rely heavily on data
to make informed decisions.

Example Of Management Information System

Consider a large hospital-a plethora of patients and staff hustling around. The hospital has
multiple departments, each employing nurses, surgeons, and physicians. Some are permeant
employees, and others work for a few hours. The hospital’s administration needs to record
everything.
The hospital installs a health information system to record every minute detail. The MIS also
tracks every single expense. As a result, the doctors get easy access to patient information; there
is minimal chaos.

Figure 5 : Decision Support System

 5- Decision Support System (DSS)
The DSS is a management-level, interactive computer-based information system that helps
managers to make decisions. The Decision Support System specifically gives middle managers
the information necessary to make informed, intelligent decisions. Decision Support Systems use
different decision models to analyze or summarize large pieces of data into an easy-to-use form
that makes it easier for managers to compare and analyze information. Often, these summaries
come in the form of charts and tables.
Advantages Of Decision Support System (DSS)

Fast: DSS is a fast method for taking decisions. Computers give us results fast. The data we need
is displayed on the screen within a few minutes. We have to just take decisions overselves after
getting data from the computer software.
Automation: If you want to reward any customer then you don’t need to worry. The software
will know which consumer buy most of the company products and you will give them a 50%
discount on their next purchase. So it automates the process of decision making.

Efficient: It is an efficient method. There are fewer chances that computerized data may be
wrong. Computers always extract the data that we feed to them. If we feed relevant data then it
will output data that is accurate.

Communication: The top company authority gets accurate data from the computerized software.
The company CEO and managerial staff communicate with each other and make decisions. They
have all the statement ready from the software and they have to only say yes or no to the
statements.

Satisfaction: If you make a random decision without any valid data in front of you then you will
be not confident in your decision. But if you first see the data and then make a decision then you
get satisfaction with your decisions.
Disadvantages Of Decision Support System (DSS)

Limited skills: If the management of the company gets all the data prepared by the system then
they don’t do any research by themselves. I mean they will do less mental things. Their brain will
become limited. Their skills will be not polished.

Blame computer: If any staff make mistake then he will directly blame the computer. He will
tell that his computer is not working that is why I am not giving a result.

Machine dependent: All the data is kept in the computer machine. So the CEO will be bound to
the machine. He cannot decide without investigating data from the machine.

Overconfidence: The management of the company becomes overconfidence. They know all the
data and take decisions upon data. But they don’t know that they are doing clerical work. They
are making fewer self-decisions and they are most of the time fetching data from the machine.
Wrong coding of software: Sometimes the software is not coded correctly. The software may
get errors and shows wrong results. I mean it will show errors which you try to fetch data. So the
IT staff of the company have to make sure that software works well before handling it to
management staff.

Examples Of Decision Support System (DSS)

Some examples of DSS are:-

• Search engine e.g. Google

• Weather forecasting
• Real estate
• Making budgets of the companies
• Air traffic
Figure 6 : Executive Information System

6- Executive Support System (ESS)

The ESS is like the MIS but for executive-level decision-making. The decisions involve
company-wide matters, so the stakes are higher. Consequently, they demand more insight and
judgment. The ESS provides greater telecommunication, better computing capabilities, and more
efficient display options than the DSS. Executives use ESS to make effective decisions through
summarized internal data taken from DSS and MIS and external sources. In addition, executive
support systems help monitor performances, track competitors, spot opportunities, and forecast
future trends.

Advantages Of Executive Support System

• ESS supports mobility i.e. clients can move from one place to another without getting
disconnected to the network. As there are more than one AP, whenever a client will move, it will
automatically jump from one AP to another AP and get connected. This is also known as
roaming.

• DS is a system that is one of the best and essential parts of ESS. It usually connects more than
one AP to form ESS and therefore allows users to move freely.

• It also hides mobility of all stations within ESS from everything and other stations present
outside ESS.

• ESS provide better strength and boost signal all over wireless network.

• BSS can cover small areas of business but cannot cover large areas. Therefore, ESS is mostly
used by large scale organization, business, offices, etc. because it provides network coverage
over large areas.

Disadvantages Of Executive Support System

• ESS supports mobility but roaming between different Aps of different vendors can create
problems.

• While roaming, handoff is not specified. Handoff simply means transferring of clients signal
from one AP or BSS to another.

• As it covers large area, ESS is not highly secure.

Example Of Executive Support System

Executive Support Systems (ESS) are tools designed to provide senior-level management with
easy access to key organizational information and support strategic decision-making. Here are
three real-world examples of ESS in different industries are as follows:

Healthcare Industry: In a large hospital, an ESS can help top-level executives make strategic
decisions regarding resource allocation, patient care quality, and overall operational efficiency.
The system may analyze data from patient records, department performance, financial
information, and more to provide insights on areas that need improvement, cost-saving
opportunities, and trends in patient care. As a result, executives can develop strategies to achieve
organizational goals while maintaining high patient satisfaction levels.

Retail Industry: A global retail chain can utilize an ESS to track sales, inventory, customer data,
and market trends across multiple stores and regions. This enables top-level management to
make informed decisions on store expansions, product offerings, pricing strategies, and
promotional activities. In response to shifts in consumer behavior or market conditions, the ESS
can help identify opportunities for improvement and support the development of effective
business strategies.