Unit 2

Types of information systems

 Types of information system meaning
• In the early days of computing, each time an information
system was needed it was 'tailor made' - built as a one-off
solution for a particular problem. However, it soon became
apparent that many of the problems information systems set
out to solve shared certain characteristics. Consequently,
people attempted to try to build a single system that would
solve a whole range of similar problems. However, they soon
realized that in order to do this, it was first necessary to be
able to define how and where the information system would
be used and why it was needed. It was then that the search
for a way to classify information systems accurately began.
Three level pyramid model based on type of decisions taken at
different levels in the organization.
Five level pyramid model based on the processing requirement of
different levels in the organization
Four level pyramid model based on the different levels of
hierarchy in the organization
 Types of information system
• 1. Transaction processing system
• 2. Management information system
• 3. Executive information system/Executive support
system
• 4. Decision support system
• 5. Expert system
• 6. Communication support system
• 7. Office support system/ Office automation system
 Transaction processing system
• Transaction Processing System are
operational-level systems at the bottom of the
pyramid. They are usually operated directly by
shop floor workers or front line staff, which
provide the key data required to support the
management of operations. This data is
usually obtained through the automated or
semi-automated tracking of low-level activities
and basic transactions.
 The main objective of a transaction processing
system is to answer routine questions such as;
• How many printers were sold today?
• How much inventory do we have at hand?
• What is the outstanding due for Shankar
singh?
• Transaction processing system process
transaction in two basic ways
• In a batch processing system, transactions are
accumulated over a period of time and processed
as a single unit, or batch. For example, a store
may update its sales records every day after the
store closes. Or, a payroll system may process all
the time cards every two weeks to determine
employee earnings and produce paychecks.
• In a real-time processing system, transactions are
processed immediately as they occur without any
delay to accumulate transactions. Real-time
processing is also referred to as online transaction
processing, or OLTP. In this case, the records in the
system always reflect the current status.
• A good example of a real-time processing system
would be airline ticket reservations.
Transaction processing cycle
 Transaction processing cycle
The business data goes through a transaction
processing cycle that includes:
1. Data Collection
2. Data Editing
3. Data Correction
4. Data Manipulation
5. Data Storage
6. Document Production
 1. Data Collection
• The process of capturing and gathering all data
necessary to complete transactions is called data
collection.
• It can be manual such as completing a purchase
order by hand. It can also be automated via special
input device such as scanners and terminals.
• Data collection begins with a transaction (such as
customer order) and results in the origination of data
that is input to the transaction processing system.
• Automatic data collection is termed as source
data automation. An example is the use of
scanning device at the grocery store to read
UPC code and hence the price of an item.
Another example is an employee badge used
as a time card when going in and out of an
office building.
 2.Data editing
• An important step in processing data is to
check for validity and completeness of data.
Controls must be placed in the data-entry
form.
• For example, quantity and cost must be
numeric and names must be alphabetic.
 3. Data Correction
• A data that is not entered properly needs to
be entered correctly.
• Data correction involves reentering incorrect
data in the data entry point.
• For example, a UPC code not found in the
retail store checkout, is given a special code to
complete the transaction for an item.
 4. Data Manipulation
• The process of performing calculations and
other data transformations is termed data
manipulation.
• Examples are, sorting data, summarizing data,
finding price of five items, calculating
employee weekly pay, and so on.
 5. Data Storage
• Involves updating one or more database
tables or files with new transactions.
• For example, inserting new customer
information, updating customer
demographics, updating inventory
transactions, creating new student
registration, and so on.
 6. Document production
• TPSs produce important business documents
such as sales receipts, order entry list,
customer list, invoices, purchase orders,
inventory on-hand report, paychecks, and so
on.
• Documents can be hard copy paper report or
displayed on computer screen.
 OBJECTIVES OF TRANSACTION PROCESSING
SYSTEMS
Process data generated by and about transactions
• The primary objective of any TPS is to capture,
process, and store transactions and to produce a
variety of documents related to routine business
activities.
• Processing orders, purchasing materials,
controlling inventory, billing customers, and
paying suppliers, result in transactions that are
processed by a TPS.
 Ensure data and information integrity and accuracy
• One objective of any TPS is error-free data input and
processing.
• Rules must be in placed and implemented in the
programming to ensure data accuracy before it is
stored.
• Another of a TPS is to ensure that all data and
information stored in the file or database are
accurate, current, and appropriate.
Produce timely documents and reports
• Transaction processing systems produce routine
documents such as order slip, shipping order,
invoice, purchase order, inventory status report,
inventory on-hand report, customer list,
paycheck, and so on.
• These documents need to be produced in
timely manner to perform routine business
transactions.
 Increase labor efficiency
• Transaction processing system can substantially
reduce routine clerical and other labor
requirements.
• An automated scanning device in a retail store
can substantially reduce the item processing
time. This not only increases checkout
efficiency but also a reduction of the manual
workforce.
 Help provide increased and enhanced service
• TPSs can provide services faster than humans,
thus increasing the number and varieties of
services it can offer to customers.
• Examples are, automated university
registration system, automated billing
inquiries, automated bank account transfers,
and so on.
 Help build and maintain customer loyalty
• TPS can be used to build customer loyalty.
Examples are, ease of use of the system, easy
access of customer account, timely reporting
of information, automated telephone
answering and faxing, and web-based
information processing, can help satisfy
customers.
 Achieve competitive advantage
• A competitive advantage provides a significant
and long-term benefit for the organization.
• For example, UPS and FedEx systems keep
track of a package at each stage of its
traversal. Customers can use a tracking
number to find the latest status of the
package.
 Benefits of TPS
• The TPS keeps a stable database and reduces risk of loss of
user information in the occurrence of terminal or network
failure.
• The TPS is able to effectively recover from operating system
failure and also handle system failures depending on what
stage the transaction was in when the system failure
occurred.
• The TPS can process large amount of data in real time or
batches.
• The use of TPS in organizations is a key feature in improving
customer service and satisfaction.
• A TPS allows for the user/customer to have a
level of reliability and confidence during
transactions.
• TPS is swift and cost-effective.
• The use of TPS in businesses minimizes the
occurrence of error during data transactions.
• TPS is available in both batch and real time
process
• The TPS is designed to be user friendly.
• It is versatile as it encourages the use of online
payment system in real time and increases
more payment methods.
• TPS can function anywhere. This means that
location, geography, language, or methods are
a barrier to using a transaction processing
system.
 Limitations of TPS
• TPS must be designed to exclusively fit the
business/Organization needs.
• TPS may be expensive to set up and install.
• The use of TPS lacks a standard format.
• Installation of TPS may be disturbed by
hardware and software incompatibility.
• Maintenance of a TPS requires the use of
specialized personnel.
• A TPS can be difficult to handle if the business is not
large enough to utilize it.
• User may need a good internet connection to access its
services.
• Third party interference may occur in real time (such as
hackers and theft of identity etc) due to its online nature.
Firewalls must be constantly upgraded else it will lead to
loss of customers as a result of not being secure.
• Requests may overload system that may lead to crashing
of websites and loss of information in real time.
 2. Management Information System

• “MIS is a computer based network containing

one or more operating systems, provides
relevant data to management for decision-
making purposes and also contains the
necessary mechanism for implementing
changes of responses made by management
in this decision making”. — THOMAS. R.
PRINCE
 Need for MIS
• Business driven: the purpose of MIS is to
meet information needs of the organization
and its stakeholders –
• Management oriented/Directed: MIS is
designed to meet the information needs of
the management at all levels so that the
organisational objectives are achieved
• Flexibility and ease of use: The MIS is designed flexible
enough to accommodate new requirements . System is
easy to operate so that not much computer skills are
required on the part of the user to access databases
• Common Databases: MIS stores transaction data for
present and future uses. Applications access this
database for relevant data to process transaction or to
generate information. The system maintains general
databases so that any functional subsystem can access
the database
• Integrated System: MIS views organization
information needs from a systems point of view.it
blends together database of all subsystems of the
business system and through information
interchange integrates the organization –
• Avoids redundancies in data storage: MIS is an
integrated system. It avoids unnecessary
duplication and redundancy in data gathering and
change
• Distributed System: Most organization have
their offices sales outlets. –
• Heavy planning: Design and implementation
of MIS require detailed and meticulous
planning of such activities as acquisition and
deployment of hardware and software
 Characteristics of MIS
• 1). System approach:
• The information system follows a System’s
approach. The system’s approach implies a
wholistic approach to the study of the system
and its performance to achieve the objective
for which it has been formed.
• 2). Management oriented:
• For designing of MIS top-down approach
should be followed. Top-down approach
suggests that the system development starts
from the determination of the management
needs and overall business objectives.
Management oriented characteristic of MIS
also implies that the management actively
directs the system development efforts.
• 3). Need based:

• MIS design and development should be as per the information

needs of managers at different levels that are strategic planning
level, management control level and operational control level.
4) Exception based:

• MIS should be developed on the exception based reporting

principle, which means an abnormal situation, that is the
maximum, minimum or expected values vary beyond the limits.
In such cases there should be exception reporting to the decision-
maker at the required level.
• 5) Future oriented
• Besides exception based reporting, MIS should
also look at the future. In other words MIS
should not merely provide past or historical
information, rather it should provide
information on the basis of projections based
on which actions may be initiated.
• 6) Integrated:

• Integration is significant because of its ability to produce

more meaningful information. For example, in order to
develop an effective production scheduling system, it is
necessary to balance such factors as: set-up costs, work
force, overtime rates, production capacity, inventory
level, capital requirements and customer services.
Integration means taking a comprehensive view of the
subsystems that operate within the company.
• Common data flows:
• Because of the integration concept of MIS, there is
an opportunity to avoid duplication and redundancy
in data gathering, storage and dissemination. System
designers are aware that a few key source
documents account for much of the information
flow. For example, customer’s orders are the basis
for billing the customer for the goods ordered,
setting up accounts receivables, initiating production
activity, sales analysis, sales forecasting etc.
 STEPS INVOLVED IN EVALUATION OF MIS
SYSTEM
1 Technical Evaluation
• Hardware
• Software tool
• Software design criteria
• Reported bugs in software
• Database Design
• Data Structure selection
• Operating system features
• Data Security
• Built in checks and controls
• Fault tolerance levels
2. Utility Evaluation
• The usefulness of information
• The Accuracy of information
• Correctness of the information support
provided by the system
3. Economic Evaluation
• Comparison of Actual with that of standards
• The cost related to implementation delays
• The cost related to time overrun
 Scope of MIS
• 1. Production information System
• Transaction processing
• Operation Control
• Managerial control
• Strategic planning
• 2. Marketing information system
• Planning
• Promotion
• Sale of existing products
• The development of new Products
• Customer satisfaction
• Market information
3. Human Resource Information System –
• Recruitment
• Placement
• Compensation
• Development of employees
• Record Keeping
• Employee evaluation
4. Finance and Accounting Information System
• Granting credit to customer
• Cash management
• Financial arrangement
• Record and report of the flow of funds
• Profit and loss account
• Balance Sheet
5. Logistics Information System
- Purchase requisitions
- Manufacturing orders
- Receiving reports
- Shipping reports
- Reports related to stock
 Advantages of MIS
• 1. It Facilitates planning: MIS improves the quality of
plants by providing relevant information for sound
decision - making. Due to increase in the size and
complexity of organizations, managers have lost personal
contact with the scene of operations.

2. In Minimizes information overload: MIS change the

larger amount of data in to summarize form and there by
avoids the confusion which may arise when managers
are flooded with detailed facts.
• 3. MIS Encourages Decentralization: Decentralization of
authority is possible when there is a system for monitoring
operations at lower levels. MIS is successfully used for
measuring performance and making necessary change in
the organizational plans and procedures.

4. It brings Co-ordination: MIS facilities integration of

specialized activities by keeping each department aware of
the problem and requirements of other departments. It
connects all decision centers in the organization.
• 5. It makes control easier: MIS serves as a link
between managerial planning and control. It
improves the ability of management to
evaluate and improve performance. The used
computers has increased the data processing
and storage capabilities and reduced the cost.

6. MIS assembles, process, stores, Retrieves,

evaluates and disseminates the information.
 Disadvantages of MIS
• MIS Expense
• MIS implementation can be very expensive for
companies looking to manage their operations
more effectively. Installation costs can be
extremely expensive for large companies.
• Employee Training
• Properly trained employees are a critical part
of an MIS. Employees are at the front lines of
business operations and create or manage the
daily activities of the company. 
• MIS Flexibility
• Once an MIS is created and installed in a
company, it may prove to be an inflexible
system. Making changes quickly to reflect
fluctuating business operations may not be
possible depending on the MIS style and
functionality.
• Information Flaws
• The MIS is designed to provide information to
management so sound decisions can be made
regarding company operations. The biggest
flaw an MIS can have is pulling incorrect or
inadequate information for management. This
problem results in wasted time and money for
the company, leading to another review of the
MIS to correct the information flaws.
 Executive support system/Executive
information system
• An Executive Information System (EIS) is a type
of management information system intended
to facilitate and support the information
and decision-making needs of senior executives
by providing easy access to both internal and
external information relevant to meeting the
strategic goals of the organization. It is
commonly considered as a specialized form of
a Decision Support System (DSS)
• The emphasis of EIS is on graphical displays and
easy-to-use user interfaces. They offer strong
reporting and drill-down capabilities. In general,
EIS are enterprise-wide DSS that help top-level
executives analyze, compare, and highlight trends
in important variables so that they can monitor
performance and identify opportunities and
problems. EIS and data warehousing technologies
are converging in the marketplace.
 Characteristics of the Executive support
system/ Executive Information System
• 1. Informational characteristics
i. Flexibility and ease of use.
ii. Provides the timely information with the
short response time and also with the quick
retrieval.
iii. Produces the correct information.
iv. Produces the relevant information.
v. Produces the validated information.
• 2. User interface/orientation characteristics
i. Consists of the sophisticated self help.
ii. Contains the user friendly interfaces
consisting of the graphic user.
iii. Can be used from many places.
iv. Offers secure reliable, confidential access.
v. Is very much customized.
vi. Suites the management style of the
individual executives.
• 3. Managerial / executive characteristics
i. Supports the over all vision, mission and the
strategy.
ii. Provides the support for the strategic management.
iii. Sometimes helps to deal with the situations that
have a high degree of risk.
iv. Is linked to the value added business processes.
v. Supports the need/ access for/ to the external
data/ databases.
vi. Is very much result oriented in the nature.
• Executive Information System / Executive Support
System capabilities
1. Helps in accessing the aggregated or macro or global
information.
2. Provides the user with an option to use the external
data extensively.
3. Enables analysis of the ad hoc queries.
4. Shows the trends, the ratios and the various deviations.
5. Helps in incorporating the graphic and the text in the
same display, which helps to have a better view.
• 6. It helps in the assessment of the historical as also the
latest data.
7. Problem indicators can be highlighted with the help of
the Executive Information System / executive support
system.
8. Open ended problem explanation with the written
interpretations can be done with the help of the
Executive Information System / executive support
system.
9. Offers management by the exception reports.
10. Utilizes the hyper text and the hyper media.
• Advantages of EIS
• Easy for upper-level executives to use, extensive
computer experience is not required in operations
• Provides timely delivery of company summary
information
• Information that is provided is better understood
• Filters data for management
• Improves to tracking information
• Offers efficiency to decision makers
• Disadvantages of EIS
• System dependent
• Limited functionality, by design
• Information overload for some managers
• High implementation costs
• System may become slow, large, and hard to
manage
• Need good internal processes for data management
• May lead to less reliable and less secure data
 Decision Support System
A decision support system (DSS) is a computer program
application that analyzes business data and presents it so that
users can make business decisions more easily. It is an
"informational application" (to distinguish it from an "operational
application" that collects the data in the course of normal
business operation).Typical information that a decision support
application might gather and present would be:
• Comparative sales figures between one week and the next
• Projected revenue figures based on new product sales
assumptions
• The consequences of different decision alternatives, given past
experience in a context that is described
 DSS vs ESS/EIS
DSS EIS
It stands for Decision Support System. It stands for Executive Support System.
It analyzes unanticipated situations using It presents summary information in a
data. flexible, easy to use, graphical format,
designed for top executives.
It provides detailed information. It provides precise information.
It uses internal data. It uses internal and external data both.
It is for middle management. It is for top level management.
 Characteristics of a DSS.
• Facilitation. DSS facilitate and support specific decision-making activities and/or
decision processes.
•

Interaction. DSS are computer-based systems designed for interactive use by

decision makers or staff users who control the sequence of interaction and the
operations performed.
•

Ancillary. DSS can support decision makers at any level in an organization. They
are NOT intended to replace decision makers.
• Repeated Use. DSS are intended for repeated use. A specific DSS may be used
routinely or used as needed for ad hoc decision support tasks.
•

Task-oriented. DSS provide specific capabilities that support one or more tasks related
to decision-making, including: intelligence and data analysis; identification and design
of alternatives; choice among alternatives; and decision implementation.
•

Identifiable. DSS may be independent systems that collect or replicate data from other
information systems OR subsystems of a larger, more integrated information system.
•

Decision Impact. DSS are intended to improve the accuracy, timeliness, quality and
overall effectiveness of a specific decision or a set of related decisions.
 Disadvantages of Decision Support Systems

• Information Overload: A computerized decision making system may

sometimes result in information overload. Since it analyzes all aspects
of a problem, it leaves a user in a dilemma what to consider and what
not to consider. Not each bite of information is necessary in decision
making. But when it’s present, a decision maker finds it difficult to
ignore information that is not a priority.
• Too much Dependence on DSS: It is true that decision support
systems are integrated into businesses to make everyday decisions
faster and more easily. Some decision makers develop a tendency to
depend too much on computerized decision making and don’t want
to apply their own brains. Clearly, there is a shift in focus and decision
makers may not hone their skills further because of excessive
dependence on DSS.
• Devaluation of Subjectivity: A decision support system
promotes rational decision making by suggesting alternatives
basis the objectivity. While bounded rationality or restricted
irrationality plays a critical role in decision making, subjectivity
cannot and should not be rejected. A DSS promotes objectivity
and relegates subjectivity, which can have serious impact on a
business.
• Overemphasis on Decision Making: Clearly the focus of
computerized decision making is on considering all aspects of a
problem all the time, which may not be required in many of the
situations. It is essentially important to train the users to ensure
effective and optimal use of DSS.
• Cost of Development: The cost of decision
making decreases once a decision support
system is installed. But development and
implementation of a DSS requires a huge
monetary investment. Customization may
attract higher cost. If you’re on a tight budget,
you might not get a customized DSS specific to
your needs.
 Advantages of DSS
• Time savings. For all categories of decision
support systems, research has demonstrated
and substantiated reduced decision cycle time,
increased employee productivity and more
timely information for decision making. 
• Enhance effectiveness. A second category of
advantage that has been widely discussed and
examined is improved decision making
effectiveness and better decisions. 
• Improve interpersonal communication. DSS can improve
communication and collaboration among decision makers. In
appropriate circumstances, communications- driven and group DSS
have had this impact.
• Competitive advantage. Vendors frequently cite this advantage for
business intelligence systems, performance management systems,
and web-based DSS. Although it is possible to gain a competitive
advantage from computerized decision support, this is not a likely
outcome. Vendors routinely sell the same product to competitors
and even help with the installation. Organizations are most likely to
gain this advantage from novel, high risk, enterprise-wide, inward
facing decision support systems. Measuring this is and will continue
to be difficult.
•  Cost reduction. Some researches and
especially case studies have documented DSS
cost saving from labor savings in making
decisions and from lower infrastructure or
technology costs. This is not always a goal of
building DSS.
•  Increase decision maker satisfaction.
• DSS may reduce frustrations of decision makers,
create perceptions that better information is being
used and/or creates perceptions that the individual is
a "better" decision maker. 
• Promote learning. Learning can occur as a by-product
of initial and ongoing use of a DSS. Two types of
learning seem to occur: learning of new concepts and
the development of a better factual understanding of
the business and decision making environment. 
• Increase organizational control. Data-driven
DSS often make business transaction data
available for performance monitoring and ad
hoc querying. 
 Group decision support system
• A group decision support system (GDSS) is an
interactive computer-based system that
facilitates a number of decision-makers
(working together in a group) in finding
solutions to problems that are unstructured in
nature. They are designed in such a way that
they take input from multiple users interacting
simultaneously with the systems to arrive at a
decision as a group.
Features of Group Decision Support System (GDSS)

• Ease of Use: It consists of an interactive

interface that makes working with GDSS
simple and easy.
• Better Decision Making: It provides the
conference room setting and various software
tools that facilitate users at different locations
to make decisions as a group resulting in
better decisions.
• Emphasis on Semi-structured and
Unstructured Decisions: It provides important
information that assists middle and higher-
level management in making semi-structured
and unstructured decisions.
• Specific and General Support: The facilitator controls the
different phases of the group decision support system
meeting (idea generation, discussion, voting and vote
counting, etc.) what is displayed on the central screen
and the type of ranking and voting that takes place, etc.
In addition, the facilitator also provides general support
to the group and helps them to use the system.
• Supports all Phases of the Decision Making: It can
support all the four phases of decision making, viz
intelligence, design, choice, and implementation.
• Supports Positive Group Behavior: In a group
meeting, as participants can share their ideas
more openly without the fear of being
criticized, they display more positive group
behavior towards the subject matter of the
meeting.
 Group Decision Support System (GDSS) Software Tools

• Electronic Questionnaire: The information generated

using the questionnaires helps the organizers of the
meeting to identify the issues that need immediate
attention, thereby enabling the organizers to 
create a meeting plan in advance.
• Electronic Brainstorming Tools: It allows the participants
to simultaneously contribute their ideas on the subject
matter of the meeting. As the identity of each
participant remains secret, individuals participate in the
meeting without the fear of criticism.
• Idea Organizer: It helps in bringing together,
evaluating and categorizing the ideas that are
produced during the brainstorming activity.
• Tools for Setting Priority: It includes a collection
of techniques, such as simple voting, ranking in order
and some weighted techniques that are used for
voting and setting priorities in a group meeting.
• Policy Formation Tool: It provides the necessary
support for converting the wordings of policy
statements into an agreement.
 Advantages of GDSS:

• Anonymity – drive out fear leading to better decisions from a

diverse hierarchy of decision makers
• • Parallel Communication – eliminate monopolizing providing
increased participation, better decisions
• • Automated record keeping – no need to take notes, they’re
automatically recorded
• • Ability for virtual meetings – only need hardware, software and
people connected
• • Portability – Can be set up to be portable… laptop
• • Global Potential – People can be connected across the world
• No need for a computer expert – although some basic experience is
a must
 Disadvantages of GDSS:

• Cost -infrastructure costs to provide the hardware and

software/room/network connectivity can be very expensive
• • Security – especially true when companies rent the facilities for GDSS;
also, the facilitator may be a lower-level employee who may leak
information to peers
• • Technical Failure – power loss, loss of connectivity, relies heavily on
bandwidth and LAN/WAN infrastructure – properly setup system should
minimize this risk
• • Keyboarding Skills – reduced participation may result due to frustration
• • Training – learning curve is present for users, varies by situation
• • Perception of messages – lack of verbal communication could lead to
misinterpretation
 Office automation system
• Office automation refers to the varied
computer machinery and software used to
digitally create, collect, store, manipulate, and
relay office information needed for
accomplishing basic tasks. Raw data storage,
electronic transfer, and the management of
electronic business information comprise the
basic activities of an office automation
system. 
• Office automation makes it possible for
business organizations to improve their
productivity and recognize easier ways to do
business in profits. Started primarily as data
processing and word processing tool, office
automation now includes more sophisticated
and complex tasks like integrating front office
and back-end systems.
 The Benefits of Office Automation System

• Data Storage and Manipulation: Data storage includes important and

confidential office documents and records. Office automation system includes
data applications, which are used to create or edit a document, file, spreadsheet
or an image. There are various types of word processing and desktop
presentation packages available, which allow creating or editing textual data.
Similarly, you can find dedicated applications for editing spreadsheets and
images.
• Data Management: Data management is one of the major components of office
automation system that offers strategic advantages by simplifying the
management of stored data and information. Large business organizations can
monitor and control various projects and activities within the office through an
electronic management system. Program schedules, tickler systems or reminder
systems, and task management are some of the features, which empower
businesses to have an eye on all business processes without any hassle.
• Data Exchange: Exchange of stored or manipulated data and information is also
an important component of an office automation system. Sending files or
exchanging data or information between one or more than one member of an
organization has become possible with an electronic transfer application.
Through a network connection, all data and information, including text
documents, presentations, spreadsheets, images, and videos can be sent in real-
time within a few seconds. Illustrating the collaborative nature of an office
automation system, this would allow your employees to collaborate in real-time
and enhance their productivity.
• Accuracy: Computer systems and other machines are as effective as a human
brain. Once the bugs are removed from a program or an application, it can help
you in getting 100% accuracy in the day-to-day business processes. The software
programs are more reliable than the human, who actually made it. Implementing
an advanced business automation software reduces the probability of errors.
• Save Time and Resources: Office automation empowers businesses to save both
time and money. It simplifies and automates those complex tasks, which earlier
required a dedicated resource and a great amount of time. For example, with the
introduction of the latest computer technologies and network communications,
businesses are now not constricted by geographical limitations. And hence, they
can easily save both time and money spent on traveling. Another great example is
the digital storage, which eliminates the need of preserving hard copies and
hence, saving paper and nature as well.
• Reduced Costs: Since every business process is now automated, you don’t need
to invest much on hiring new resources for taking care of those tasks, which can
be easily executed using an office automation system. As we know that time
saved is money saved, your business enterprise can easily save huge by
automating various complex business processes. With saving large on the overall
expenditure and investment on other resources, your profit margins are surely
going to improve.
 Disadvantages of Office Automation

• Initial investment costs may  hinder organization from

automating processes
• Team will become reliant on automated / electronic
processes
• Automation may be seen as a silver bullet to resolve
organization woes or competitive gaps
• Organizations may not have the skillset to manage office
automation efforts
• Businesses may automate the wrong processes
• Reduces team or customer interaction if some high value
processes are automated
 Features of Office Automation System (OAS)

•  Ubiquity:
Office Automation is now a ubiquitous system. Firms
around the world are opting for office automation
because of its immense professionalism.
• 2. Automating manual tasks: 

• This computer-controlled system focuses precisely in

automating every possible task to bring furthermore
comfort in working. 
• Lessening working-load: 

• In today’s world the arena of work in firms are

widening day by day to which this very system is
quite well capable. Superior ability of handling
load and increasing enjoyment in work is one of
Office Automation system vital features.
• Multitasking: 

• There are so many types of customs that are

performed in a firm. Office Automation system
is there to handle this massively important
custom of a firm, multitasking. 
• Ensured feasibility: 

• Feasibility means practicability. Any work

lacking feasibility remains questionable and
doubtful. Office Automation system always
has a close look at the confirmation of
feasibility of work in an office. 
•  Office environmental sustainability: 

• The system is capable of making the workforce

work on it, work with it. This is how it confirms
its sustainability and adaptability with the
office environment. 
•  Scopes of competitive advantage: 

• Competitive advantage means the forward-

moving plus-point of a firm over other firms. A
firm can start to think of reigning over other
firms when it starts to increase the amount of
competitive advantage. 
 Examples of OAS
• Document approvals: there can be automated systems that requests signatures
from office managers for sign-off, reducing the need for administrative staff
• Security intrusion detection: office networks are often broken into by hackers,
having an intrusion detection system can help office managers protect and
safeguard vital assets
• Utility management: connected devices and IoT allows lights and heating to be
disabled or reduced when there aren’t any employees at work
• Lead routing: a CRM system can often allow a customer request to be
forwardedto sales or marketing teams seamlessly while reducing manual entry
• Quote fulfillment: organizations can automatically provide quotes to customers
by having them fill out a self-service form
• Vacation or sick day request: a company can define rules and entitlements for
employees whereby a system can automatically manage the sick/vacation days
of employees
• Office entry automation: allow employees to come in
and out of the office using magnetic badges or biometric
systems( finger print, voice recognition, etc.) instead of
employing a team of security concierge staff
• Automated concierge: offices have begun using robots
and touch screens to provide visitors with a innovative
concierge experience 
• Data backup and archiving: instead of having someone
manually copy and paste key company files, setup
automated backup and ensure all corporate files are safe
 Expert system
• Definition
An automated reasoning system that attempts
to mimic the performance of the human
expert.
• Expert System is an interactive and reliable
computer-based decision-making system
which uses both facts and heuristics to solve
complex decision-making problems. It is
considered at the highest level of human
intelligence and expertise. The purpose of an
expert system is to solve the most complex
issues in a specific domain.
 Characteristics of Expert System
• The Highest Level of Expertise: The Expert system in
AI offers the highest level of expertise. It provides
efficiency, accuracy and imaginative problem-solving.
• Right on Time Reaction: An Expert System in Artificial
Intelligence interacts in a very reasonable period of
time with the user. The total time must be less than
the time taken by an expert to get the most accurate
solution for the same problem.
• Good Reliability: The Expert system in AI needs to be
reliable, and it must not make any a mistake.
• Flexible: It is vital that it remains flexible as it the is
possessed by an Expert system.
• Effective Mechanism: Expert System in Artificial
Intelligence must have an efficient mechanism to
administer the compilation of the existing knowledge
in it.
• Capable of handling challenging decision &
problems: An expert system is capable of handling
challenging decision problems and delivering
solutions.
Components of the Expert System
• User Interface
• The user interface is the most crucial part of
the Expert System Software. This component
takes the user's query in a readable form and
passes it to the inference engine. After that, it
displays the results to the user. In other words,
it's an interface that helps the user
communicate with the expert system.
• Inference Engine
• The inference engine is the brain of the expert
system. Inference engine contains rules to solve a
specific problem. It refers the knowledge from the
Knowledge Base. It selects facts and rules to apply
when trying to answer the user's query. It provides
reasoning about the information in the knowledge
base. It also helps in deducting the problem to find
the solution. This component is also helpful for
formulating conclusions.
• Knowledge Base
• The knowledge base is a repository of facts. It
stores all the knowledge about the problem
domain. It is like a large container of
knowledge which is obtained from different
experts of a specific field.
 Benefits of Expert Systems

• It improves the decision quality

• Cuts the expense of consulting experts for problem-solving
• It provides fast and efficient solutions to problems in a narrow area of
specialization.
• It can gather scarce expertise and used it efficiently.
• Offers consistent answer for the repetitive problem
• Maintains a significant level of information
• Helps you to get fast and accurate answers
• A proper explanation of decision making
• Ability to solve complex and challenging issues
• Artificial Intelligence Expert Systems can steadily work without getting
emotional, tensed or fatigued.
 Limitations of the Expert System

• Unable to make a creative response in an

extraordinary situation
• Errors in the knowledge base can lead to wrong
decision
• The maintenance cost of an expert system is too
expensive
• Each problem is different therefore the solution
from a human expert can also be different and
more creative