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Types of Information Systems

The document discusses different types of business information systems classified by the organizational level they support. It describes transaction processing systems (TPS) that handle daily operations, management information systems (MIS) that provide reports for middle management, decision support systems (DSS) that help with analysis and "what-if" scenarios, and executive support systems (ESS) that provide information for strategic decisions by senior executives. The systems are interrelated and can overlap, with transaction data from TPS feeding into MIS, DSS, and ESS and outputs from one system serving as inputs to others. Examples of each type of system are provided for functional areas like sales, manufacturing, and finance.

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30 views28 pages

Types of Information Systems

The document discusses different types of business information systems classified by the organizational level they support. It describes transaction processing systems (TPS) that handle daily operations, management information systems (MIS) that provide reports for middle management, decision support systems (DSS) that help with analysis and "what-if" scenarios, and executive support systems (ESS) that provide information for strategic decisions by senior executives. The systems are interrelated and can overlap, with transaction data from TPS feeding into MIS, DSS, and ESS and outputs from one system serving as inputs to others. Examples of each type of system are provided for functional areas like sales, manufacturing, and finance.

Uploaded by

gopan009
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Types of Information Systems

Business Information Systems


Objectives
What are the key information systems in a business?

What role do they play ?Classify IS based on


the organizational level they support

How do information systems support the major


business functions?

How do these functions interrelate?

What role does software have in management of


those interrelationships?
Business Information System
Why Organizations need
Information Systems

• Linking Departments whose Functions are


different
• Enhancing Worker Productivity
• Increasing Quality of Goods and Services
• Meeting Global Challenges
• Capturing opportunities in the Market Place
• Supporting Corporate Strategy

4
BIS -Objectives
• To provide requisite information support for
managerial functions within the organization.
• To make available, right information at the right
place at the right time at the lowest cost
• To ensure that wrong and unwanted information is
not generated; the condition of the ‘information
overload’ is avoided
Management Functions

• Planning
• Organising
• Staffing
• Directing and
• Controlling
Management Hierarchy
• Top (Strategic) Management
• Middle (Tactical) Management
• Line (Operational) Management
Information Systems

IS support needed by people depends on their


role in the organization.
– Top managers make strategic decisions
– Middle managers make tactical decisions
– Line managers make operations decisions
– Knowledge workers create and integrate
knowledge
– Clerical workers use and manipulate
information
Types of Information Systems
Types of information systems at various
levels

Level 1-Transaction Processing Systems (TPS)

Level 2-Management Information Systems (MIS)

Level 2-Decision Support Systems (DSS)

Level 3-Executive Support Systems (ESS)

Knowledge Work Systems (KWS) or KMS –


encompassing the organizational knowledge –
mainly useful for professionals , tech staff
Transaction Processing Systems (TPS):
A computerized system that performs and records
daily routine transactions necessary to the
conduct of the business
Inputs: Transactions or events
Processing: Sorting; listing; merging;
updating
Outputs: Detailed reports; lists; summaries
Users: Operational personnel; supervisors
Examples: payroll system; production
instructions
Student grade cards preparation
Management Information System (MIS):

• Inputs: Summary transaction data


• Processing: Simple models; low level
analysis
• Outputs: Summary reports
• Users: Middle managers

Example: Weekly, monthly, and annual resource


allocation. Not five year plans and not daily
details, but something in between.
Decision Support System (DSS):
• Inputs: databases optimized for statistical
analysis
• Processing: Interactive. Simulations and
statistical analysis
• Outputs: Responses to queries; statistical
test results.
• Users: Professionals, staff
Example: Could answer the following
query:
“We need to trim 5% of our service offerings
to limit complexity in operations. Which
items are the worst performing?
“Sales analysis- which regions to concentrate?
etc
Types of DSS - Analytical Modeling

• What-if Analysis
• Sensitivity Analysis
• Goal Seeking Analysis
• Optimization Analysis
MIS Vs DSS
• DSS has more analytical capabilities built into
it. Perform what-if analysis.managers can
change inputs and get an idea of the changes
in the output

• Some characteristics of MIS that make them


differ from DSS
• Structured and semi-structured decisions
– Output is often the kind that you need routinely
each term (quarter, month, year) to evaluate how
to proceed next (quarterly sales data for past 5
years)
Executive Support System (ESS):

Top level (strategic level)-


• Inputs: Aggregate data. Internal and external
• Processing: Interactive and graphical simulations
• Outputs: Projections
• Users: Senior managers

Example: 5-year operating plan. Answer questions like


“what are long-term industry cost trends and how are
we doing relative to them?”
“ What business should we be in ?How to diversify?
Competition scenario?Which unit to sell?What to
buy? etc
• Gets data from all internal IS plus external industry
data bases
Characteristics of Executive Support Systems (ESS)

Top level management

Designed for the individual requirements

Ties CEO to all levels

Very expensive to keep up

Extensive support staff


Systems - Overlapping perspective

A single software package like Microsoft Office or


even an application like Microsoft Excel could
be classified as any or all of the following:
DSS, TPS, MIS, or ESS (a trivial ESS, DSS,
etc.)
• What matters here is how the tool is used
• Basically, a CBIS meets a need posed by the
environment
• A service is provided by the CBIS is a solution.
It is a DSS, etc., depending on what solution
in the corporate hierarchy it serves.
Interrelationships among systems

ESS

DSS
MIS

TPS
KWS
TPS,MIS,DSS,EIS

INTERRELATIONSHIPS:

- TPS generally feed all other systems

- MIS generally indicate when a DSS is needed and


provide input for them to crunch

- ESS take all internal data but usually only summary data
from MIS and DSS level

Output data from one is input data for others to process


Office Automation Systems(OAS)

• Toward A “Paperless” Office*

• Redesign Of Work Flow

• Integrated Software
History of the role of Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic


Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
Commerce
-Internetworked
E-Business &
Commerce
Information Architecture
TOWARD THE and Information Technology
InfrastructureDIGITAL FIRM
Identify the TPS,MIS,DSS,EIS in the
following functional areas

Sales and Marketing

Manufacturing and production

Finance and accounting

Human resources

Write down at least two items for each IS in each of the functional
areas
Sales and Marketing

TPS
• Order Processing
MIS
• Sales management

DSS
• Sales analysis - region wise

EIS
• Sales trend forecasting – 5year
Manufacturing and Production
TPS
• Material movement monitoring and control
MIS
• Inventory control
• Production scheduling
DSS
• Operations analysis
• Inventory analysis
• Production planning and control
EIS
• Operations planning – 5 year
• Facilities location
KWS - CAD
Human resources
TPS
• Employee records/attendance keeping

MIS
• Personnel Info systems

DSS
• Employee cost analysis

EIS
• Personnel planning
• Succession planning
Finance and accounting
TPS
• Payroll
• Accounts payable

MIS
• Annual budgeting

DSS
• Profitability analysis
• Cost analysis

EIS
• Profit planning
• Investment planning

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