IS CLASSIFICATION

Information System can be classified in the following six different classes : Transaction Processing System Management Information System Executive Support System Office Automation Systems Business Expert System

Transaction Processing System

 TPS are relevant to all four functional areas of business organization production, marketing, finance and human resource because each functional area needs some kind of transaction processing. However, more emphasis is put on the financial transactions and the system applied for this purpose is known as accounting information system or accounting transaction processing.  TPS is also known as Data Processing System. Data processing was performed manually before the advent of microcomputers. Nowadays, with the help of powerful microcomputers data processing system is accomplished electronically.  Transaction processing system is mainly conducted in operational level in the management hierarchy.  Transactions can be externally generated or could be internal to an organization.  Any internal event i.e. recorded by the information is considered to be a transaction. Examples like transferring WIP from one stage of production to the next, recording depreciation on equipment, making routine file changes like adding or deleting records or changing employee address are all examples of internal transaction.  In many cases, organizations are required to process transactions in a way that is required by its external stakeholders. For example, large business organization is required to maintain its financial transactions as prescribed by Income Tax Act.  TPS are major producers of information. For example, purchase processing systems supply data to the organizations ledger systems which is responsible for maintaining records of the organization for producing reports, such as trial balance, profit and loss account and balance sheet.  Thus, TPS are the only systems from which the managers can obtain up-to-date assessment of organizational performance.  TPS can connect the organization with customers and suppliers. Such connectivity ensures faster transaction processing with results in increased organizational efficiency.  TPS serve the need of operational level of the organization. At the operational level, objectives, tasks and resources are pre defined. For example, a decision regarding granting credit to a customer can be made by a superior concerned as the criteria for allowing credit are pre defined by higher level managers. What the supervisor has to do is merely to determine whether customers meet those criteria.

Office Automation System

 OAS refers to the application of computer and communication technology to office functions.  Office automation systems are meant to improve the productivity of managers at various management levels of management by providing secretarial assistance and better communication facilities.  OAS is combination of hardware, software and people of information system, that process office transactions and support office activities at all levels of the organization.  These systems include wide level range of support facilities which include word processing, electronic filing, email, message data storage, and data and voice communication.  Office activities may be grouped under two classes i) Activities performed by classical personnel (clerks, secretaries and typists etc.) ii) Activities performed by executives (managers, engineers, researchers and economists etc.).  In the first category, the following is the list of activities typing, mailing, scheduling of meetings and conferences, calendar keeping and retrieving documents.  The following list is the list of activities in the second category conferencing, production of information like messages, memos, reports and controlling performance.  IT facilitates both types of activities. A wide variety of office automation devices like fax machines, photocopiers, phones are used in offices.

Business Expert System

 These systems are one of the main types of knowledge based information systems (KBIS).  Knowledge based information system adds knowledge to the main components found in different types of information systems.  AI may be referred to as the capability that makes the computer display intelligent, human like behavior.  A business Expert System (BES) is knowledge based information system that uses the knowledge about a specific, complex application area to act as an expert.  Thus, expert system provides decision support to managers in the form of advice from an expert in a specific problem area.  Expert system finds application in diverse areas ranging from medical, engineering and business.  The main advantages of using expert systems may be outlined as: i) Knowledge/capabilities of many experts can be used to build a single expert system.

ii)

Decision making in critical times can be more reliable, as these systems are not affected by emotional factors or fatigue.

 The expert system is interactive in nature, which enables the user to ask questions. On the basis of these questions, the expert system searches its knowledge from base for facts and rules and comes out with expert advice to the end user in the functional area being explored.  The main components of a Business expert system includes: Knowledge base, Inference Engine and user interface.  Knowledge Base: contains the facts of specific expert area that describe the reasoning procedures of an expert.  Inference engine system contains the logic of reaching an inference from the stored data.  User interface - it is the environment provided to the users to interact with the system for asking questions.  MIS is information which processes data and converts into information.  A management information system uses TPS for its data inputs.  The information generated by the IS may be used for control of operations, strategic and long range planning, short range planning and management control.  MIS is an integrated system. In business organizations, MIS is developed to cater the information needs of managers of each of the functional areas of business.  The functional areas of business may be marketing, production planning, manufacturing, human resource, financial and accounting and correspondingly the information systems are marketing information system, production planning information system, human resource information system, financial information system, accounting information system.

Decision Support Systems

 DSS is an IS application that assists decision makers.  DSS is used in planning, analyzing alternatives and trial and error search for organizations.  DSS incorporate variety of decision models like what if analyses for performing decision making for top level managers.  A DSS is tailored for a specific managerial task and its use is limited to that specific problem.  DSS are primarily designed to serve management control and strategic planning.  MIS processes data to convert it into information whereas DSS processes information to support to support decision making process of a manager.  For example, a salary information system provides information to every employee regarding his basic salary, allowances and deductions if any. However, if an employee wants to make deposits in some schemes for availing income tax rebates, he/she can

make use of DSS. DSS helps the user to decide in which scheme and how much he/she should invest in order to get maximum benefits.  DSS provides an interactive environment through which the user can interact with the system to add or modify the requirement.  The main application areas of DSS are production planning, finance and marketing. DSS supports decision making in procurement analysis, production planning and scheduling, inventory planning and control, finance planning and analysis, strategic tax planning.

DATABASE CONCEPT
Why should we use database system when we have the file system to manage data ?
PROBLEMS IN TRADITIONAL FILESYSTEM In the past, traditional file management had been the outcome of information processing on a small scale, automating one application at a time. Information systems tended to grow independently in individual organization. Thus each division of an organization having multiple functions developed its own applications. Within each division, each functional area tended to develop systems in isolation from other functional areas. This process led to the emergence of information processing. Thus, in traditional file management, each functional area develops its own specialized applications. Each application requires a unique data file. FILE MANAGEMENT SYSTEM OF AN ORGANIZATION

SHORTCOMINGS ON TRADITIONAL FILE SYSTEM DATA REDUNDANCY One of the basic problems in traditional file management is that there is duplication of data, that is data redundancy. Data redundancy occurs because different divisions, functional areas and other groups of the organization collect the same piece of information independently. DATA DEPENDENCE Refers to the explicit description of the data in the programs that uses it. If we have to change the programs that access data when the structure of the file changes; the file system is said to exhibit structural dependence. Since business requirements are subject to change from time to time, addition or deletion of field in a file becomes necessary which requires the modification in all programs using that file. For the data manager, it is important to plan the structure of the data as making the change in the existing structure can be difficult in the file system. LACK OF FLEXIBILITY Traditional file system lacks flexibility as it can deliver only routine scheduled reports after extensive programming efforts but it cannot deliver ad hoc reports or respond to unanticipated information requirements in timely fashion. Information required on ad hoc basis may be required to work for long hours to put the data items in a new file. The entire process is too costly and the information may not be available timely. ATOMICITY PROBLEM A computer system like any other electronic device is subject to failure. In many applications, it is crucial to ensure that once a failure has occurred and once has been detected, the data are restored to a consistent state that existed prior to the failure. If this does not happen, it creates a problem known as atomicity problem. LACK OF SECURITY Traditional file management lacks security as there is a little control over the access to and dissemination of information. As the access is to the whole file and not only a part of it, whole data contained in the file can be accessed. The restriction to data access is at the most in the form of difficulty in locating the information. LACK OF DATA SHARING Traditional file management lacks data sharing in the sense that data cannot be used by multi-users. This happens because the pieces of information in different files and in different parts of the organization cannot be related to one another. In the present multi-user

environment where many users access and update data simultaneously, traditional file management is inadequate to serve this purpose.

DATABASE TECHNOLOGY

Database is a centralized and integrated shared data file which consists of all data used by an organization. Organization of database is in such manner that permits access to any data by any application with equal ease. Data collected can be used in many applications, thereby reducing the chance of data redundancy. It emphasizes on independence of data and programs which involves the concept of separating data definition from the application programs. It provides logical relationships which exists between various records in the database. Data are stored on the direct access storage devices for speedy access to data by different applications.

DATABASE MANAGEMENT SYSTEM FOR AN ORGANISATION

DEFINING DATABASE
A database is an object which contains a huge collection of related and ordered information, organized in such a way that information can be accessed quickly and easily.

A SIMPLE DATABASE
Name J.MATHEWS K.JORDAN N.MURTHY S.GHOSH Reg. No. RG001 RG002 RGOO3 RG004 Dept. PHYSICS CHEMISTRY ACCOUNTS COMPUTER SCIENCE Course B.Sc M.Sc. B.Com MCA Year of Study I II I III

ADVANTAGES OF DBMS Database Administrator

One of the main advantages of the DBMS is that the organization can exert, via DBA, centralized management and control over the data. The database administrator is the focus of the centralized control. Any application requiring change in the structure of a data record requires an arrangement with the DBA, who makes the necessary modifications.

ADVANTAGES OF DBMS Reduction Of Redundancies

Centralized control of data by the DBA avoids unnecessary duplication of data and effectively reduces the total amount of data storage required. It also eliminates the extra processing necessary to trace the required data in large, mass of data. Another advantage of avoiding the duplication is the elimination of inconsistencies that tend to present in the redundant data files.

Shared Data
A database allows the sharing of data under its control by any number of application programs and users.

Data Integrity
Centralized control can also ensure that adequate checks are incorporated in the DBMS to provide data integrity. Data integrity means the data contained in the database are accurate and consistent.

Therefore, the data values being entered for storage could be checked to ensure that they fall within a specified range and are of correct format.

Security
Data is a vital importance to an organization and may be confidential. Such confident data must not be accessed to unauthorized persons. The DBA who has the ultimate responsibility for the data in the DBMS can ensure the proper access procedures are followed, including proper authentication schemes for access to the DBMS and additional checks before permitting access to sensitive data.

Data Independence
Data independence is usually considered from the two points of view: physical independence and logical independence. Physical independence allows changes in the physical storage devices or organization of the files to be made without requiring changes to the conceptual view or any other external views. Thus if the file organization may migrate from one file structure to other the entire resemblance of the application program remains unchanged.

DATABASE MANAGEMENT SYSTEM

A database management system is a software system that allows access to the data contained in the database. The objective of DBMS is to provide a convenient and effective method of defining, storing and retrieving the information contained in the database.

USES OF DBMS
Database Development. Database Interrogation. Database Maintenance. Application Development.

ADVANTAGES OF DBMS
Single repository of data is maintained. All users access the data from the same resource. No duplication of data, hence reduced redundancy of data Quick retrieval of data. Flexibility in change of database structure. Up to date information availability. Authorized access security of data.

Enforce integrity constraints and business rules. Provide backup and recovery procedure.

COMPONENTS OF DBMS