CONTENTS
o Introduction to Information System
o Types of Information System
o Parts of Information System
o Business Information System
o Transaction procession system
o Management Information System
o Marketing Information System
o Manufacturing Information System
o INTRODUCTION TO INFORMATION SYSTEM
Information systems (IS) is the study of complementary networks of hardware and software
that people and organizations use to collect, filter, process, create, and distribute data.
Information systems are combinations of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute useful data, typically in
organizational settings. Information systems are interrelated components working together to
collect, process, store, and disseminate information to support decision making, coordination,
control, analysis, and visualization in an organization.
o TYPES OF INFORMATION SYSTEM
1. Executive Support Systems (ESS)
This type of IS was designed to help senior management support the business and make
strategic decisions. It gathers, analyses and summarizes the key internal and external
information used in the everyday business. It supports an inventory of all present
information assets; projected revenue figures based on new product sales expectations
and reasonable sales figures between one week and the next. For example, a CEO may
require overall sales for the company, along with sales for every department separately,
and general economic data for the year.
2. Management Information Systems (MIS)
MIS is mostly concerned with internal sources of information. These systems usually
take data from the transaction processing systems and summaries it into a series of
management reports. MIS is an information system that generates exact, timely and
structured information so managers and other users can make decisions, resolve
problems, supervise activities, and track progress. For example, complied data of call
volume in a call center with abandon % and call service levels for every hour, every day
and monthly summary.
3. Decision Support Systems (DSS)
DSS is an information system intended to help users reach a decision when a decision-
making situation arises. This system comprises tools and techniques to help collect
relevant information and analyses the choices and alternatives. DSS usually involves use
of complex spreadsheet and databases to create models which will help determine
difficult situations and its possible outcomes.
4. Knowledge Management Systems (KMS)
KMS exist to help businesses create and share various information. These are typically
used in industries where employees create new knowledge and expertise – which can
then be shared by other people in the organization to create additional commercial
opportunities. Good examples include firms of lawyers, training related businesses,
accountants and management consultants.
5. Transaction Processing Systems (TPS)
TPS are designed to process repetitive transactions efficiently and accurately. A business
will have many (sometimes several) TPS; e.g.: billing systems to send invoices and
statements to clients; systems which calculate weekly or monthly payroll and tax
payments; stock control systems to route all transactions into, within and out of the
business; production and purchasing systems to analyses and calculate all raw material
requirements.
6. Office Automation Systems (OAS)
OAS are systems that try to improve the efficiency of employees who need to process
data and information. The best example is the wide range of software systems that exist
to improve the productivity of employees functioning in an office (e.g. Microsoft Office
XP) or systems that allow personnel to work from home or while on the move. Another
good example would be salesforce system which is a ticketing system used to process IT
information in the office and on the go.
o PARTS OF INFORMATION SYSTEM
1. Hardware
Information systems hardware is the part of an information system that can touch – the
physical components of the technology. Computers, keyboards, disk drives, iPads, and
flash drives are all examples of information systems hardware.
2. Software
Software is a set of instructions that tells the hardware what to do. Software is not
tangible. It cannot be touched. When programmers create software programs, what they
are really doing is simply typing out lists of instructions that tell the hardware what to do.
3. Data
The third component is data. We can think of data as a collection of facts. For example,
the street address, the city we live in, and our phone number are all pieces of data. Like
software, data is also intangible.
4. Procedures
Procedures are the policies that govern the operation of a computer system. “Procedures
are to people what software is to hardware” is a common analogy that is used to illustrate
the role of procedures in a CBIS.
5. People
When thinking about information systems, it is easy to get focused on the technology
components and forget that we must look beyond these tools to fully understand how they
integrate into an organization. A focus on the people involved in information systems is
the next step.
o BUSINESS INFORMATION SYSTEM
A large category of information systems comprises those designed to support the business of an
organization. These systems rely on the data obtained by transaction processing systems, as
well as on data and information acquired outside the organization (on the Web, for example)
and provided by business partners, suppliers, and customers.
o TRANSACTION PROCESSION SYSTEM
A small business processes transactions that result from day-to-day business operations, such
as the creation of pay checks and purchase orders, using a transaction processing system, or
TPS. The TPS, unlike a batch system, requires that users interact with the system in real time to
direct the system to collect, store, retrieve and modify data. A user enters transaction data by
means of a terminal, and the system immediately stores the data in a database and produces any
required output.
For example, a small-business owner may direct a bank system to debit a savings account for
$500 and credit the company's checking account for $500. Because of constant system updates,
a user can access current TPS data, such as an account balance, at any point.
o MANAGEMENT INFORMATION SYSTEM
Information systems support all levels of management, from those in charge of short-term
schedules and budgets for small work groups to those concerned with long-term plans and
budgets for the entire organization. Management Information systems provide routine, detailed,
and voluminous information reports specific to each manager’s areas of responsibility. These
systems are typically used by first-level supervisors. Generally, such reports focus on past and
present activities, rather than projecting future performance.
MIS can create prescheduled reports, which company management can use in strategic, tactical
and operational planning and operations. For example, an MIS report may be a pie chart that
illustrates product sales volume by territory or a graph that illustrates the percentage increase or
decrease in a product's sales over time
o MARKETING INFORMATION SYSTEM
A system that analyzes and assesses marketing information, gathered continuously from
sources inside and outside an organization. Timely marketing information provides basis for
decisions such as product development or improvement, pricing, packaging, distribution, media
selection, and promotion. See also market information system.
o MANUFACTURING INFORMATION SYSTEM
A management information system that is targeted for use anywhere production is
taking place. Modern management information systems are generally computerized and
are designed to collect and present the data which managers need in order to plan and
direct operations within the company. The manufacturing function is concerned with
the production of goods that the business sells. Production of goods that the business
sells.
Manufacturing information Manufacturing information provide services to support the
provide services to support the manufacturing function.
