Types of Information System

Types of Information System

Operational-level • support operational managers by keeping track of the elementary activities

and transactions of the organization, such as sales, receipts, cash deposits,
systems payroll, credit decisions, and the flow of materials in a factory.

Tactical Management- • serve the monitoring, controlling, decision-making, and administrative

activities of middle managers. The principal question addressed by such
level systems systems is this: Are things working well?

Strategic-level • help senior management tackle and address strategic issues and long-term
trends, both in the firm and in the external environment.
systems
Interrelationship of Information Systems
Operational level
Management systems
Transaction Processing System (TPS)
• Business systems that serve the operational level
• Computerized system that performs and records daily routine
transactions necessary to conduct the business
Qualifier of TPS - ACID
Atomicity
• a system must finish the whole transaction process, even though it is complete or not.
• The system must not terminate if the process is canceled it must notify both the client and the company about the process it
undergone.
• In short it must finish the entirety of the transaction process.
Consistency
• All input data must have the same data type, i.e. if all values are positive numbers negative values are refused to be considered.

Isolation
• it is very important for the system to be isolated when it comes to transfer of funds to two different accounts.
• It must be isolated because when debiting one the other account it should also simultaneously apply the crediting on the other
end, the other account.
Durability
• the system must ensure that the transaction is only one way process,
• it cannot be undone, and in case of a crash or failure in the system it must accomplish documentation of all the processes it
undergone
 Features of
TPS

Rapid Continuous Data

Ease of Use
Response Availability Integrity
Types of TPS

Batch Processing System

• 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.
• Whatever the time period in a batch system, there is some time delay between the actual event and the
processing of the transaction to update the records of the organization.
Batch processing system
Types of TPS
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.
• Example A: airline ticket reservations. When you book a ticket and select a seat, that
booking is made right away, and nobody else can get that same seat even a second later. Any
changes you make to your reservation are also updated in real time.
• Example B: stock market. When you submit an order to buy a stock, that order is processed
immediately and not at the end of the day.
• While real-time processing is often more efficient and in some cases necessary, batch
processing may be more effective. In the case of a payroll system, there is really no need to
keep track of how much an employee has earned every minute of the day and doing this every
two weeks is likely sufficient.
Real time processing system
Transaction Processing Cycle

Transaction Database Report Inquiry

Data Entry
Processing Maintenance generation processing
Stages of Transaction Processing Cycle
• the system processes the inquiries made using the database.
Processing of inquiries

• depending on the outcome of the inquiries, the system processes the activity such
Processing the transaction as buying or selling

• the system uses application to support systems for planning, analysis and decision
Making decisions making. Decisions are made on the transaction e.g. at what price to sell.

Update master file • the system then stores the information relating to the transaction.

Produce reports • the system also produces a report on the transaction.

Management Support
Systems
Management Support Systems
Management Decision Executive
information Support Systems information
systems (MIS) (DSS) systems (EIS)

Provide information in the Provide interactive ad hoc Provide critical information

form of prespecified support for the decision- from MIS, DSS, and other
reports and displays to making processes of sources tailored to the
support business decision managers and other information needs of
making. business professionals. executives.

Examples: systems for easy

Examples: sales analysis, access to analyses of
Examples: product pricing,
production performance, business performance,
profitability forecasting,
and cost trend reporting actions of competitors, and
and risk analysis systems.
systems. economic developments to
support strategic planning.
Management Information
System (MIS)
MIS
A management information system (MIS) is system of collecting, processing, storing,
disseminating and utilizing data in the form of information needed to carry out the
functions of Management.

Today, the term is used broadly in a number of contexts and includes (but is not limited
to):

• Decision support systems,

• Resource and people management applications,
• Enterprise Resource Planning (ERP),
• Supply Chain Management (SCM),
• Customer Relationship Management (CRM),
• Project management and Database retrieval applications.
MIS – Functional View
How MIS obtains data from TPS
Reports in MIS
• This traditional form of providing information to managers uses a prespecified format designed to
provide managers with information on a regular basis.
Scheduled Reports • Typical examples of such periodic scheduled reports are daily or weekly sales analysis reports and
monthly financial statements.

• In some cases, reports are produced only when exceptional conditions occur. Exception reporting
reduces information overload instead of overwhelming decision makers with periodic detailed
Exception Reports reports of business activity.
• For example, a credit manager can be provided with a report that contains only information on
customers who have exceeded their credit limits.

• Information is available whenever a manager demands it. For example, Web browsers, DBMS
query languages, and report generators enable managers at PC workstations to get immediate
Demand Reports responses or to find and obtain customized reports as a result of their requests for the
information they need. Thus, managers do not have to wait for periodic reports to arrive as
scheduled.

Push Reporting • Information is pushed to a manager’s networked workstation. Thus, many companies are using
Webcasting software to broadcast selectively reports
Impact of MIS

MIS helps to monitor performance and results

MIS can provide alters to managers, on all deviations between expected results, pre-established
objectives and budgets.

MIS facilitates systemization of business operations

As MIS begins with definition of data and attributes, it brings common understanding and
terminology in the organization

Management across various functions of an organization becomes efficient with better tracking and
monitoring.
Decision Support Systems
(DSS)
Decision Support System
• Decision Support Systems (DSS) are a class of computerized
information system that support decision-making activities.
• DSS are interactive computer-based systems and subsystems
intended to help decision makers use communications technologies,
data, documents, knowledge and/or models to complete decision
process tasks.
• The system utilizes information, models and data manipulation tools
to help make decision in semi-structured to unstructured situations.
Application of DSS

Typical information gathered by DSS may include

• Projected revenue and sales figures, some based on new product sales
projections
• Comparative sales figures between selected periods

DSS applications are used in diverse fields

• Medical diagnosis
• Credit loan verification
• Evaluating engineering projects
• Forest management
Components of DSS Data
base
Model
base
User
Interface
Database

Organizational

Data base
Information
External
Information
Personal
Information
Model based analysis in DSS
Key Characteristics of DSS
• They are designed to assist managers in their decision processes in
semi-structured or unstructured tasks.
• They support managerial judgment; rather than replacing it.
• DSS improve the effectiveness of the decisions; not the efficiency with
which decisions are being made.
Other Characteristics of DSS
Facilitation • Enable decision making activities and processes

Interactive: • Computer based systems design for interactive use, with control on the sequence and operations
performed.

Ancillary • Supports decision makers at any level in an organization

Repeated use • Intended for repeated use either on routine or ad-hoc basis

Task oriented • Provides specific capabilities that support one or more tasks related to decision making such as
data analysis, design of alternatives, choice among alternatives, decision implementation

Identifiable: • DSS may be independent systems that collect or replicate data from other IS or subsystem of
larger systems.

Decision impact: • DSS are intended to improve the accuracy, timeliness, quality and overall effectiveness of the
decisions.
Data Visualisation Systems (DVS)
• Data visualization systems represent complex data using interactive,
three-dimensional, graphical forms such as charts, graphs, and maps.
• DVS tools help users interactively sort, subdivide, combine, and
organize data while the data are in their graphical form.
• This assistance helps users discover patterns, links, and anomalies in
business or scientific data in an interactive knowledge discovery and
decision support process.
Data Visualization System
Geographical Information Systems (GIS)
• A geographic information system is a DSS that uses geographic
databases (maps with spatial data) to construct and display maps, as
well as other graphics displays
• GIS support decisions affecting the geographic distribution of people
and other resources.
GIS based DSS
Online Analytical Processing (OLAP)
• OLAP (online analytical processing) is computer processing that
enables a user to easily and selectively extract and view data from
different points of view
• OLAP is a technology for data discovery, including capabilities for
limitless report viewing, complex analytical calculations, and
predictive “what if” scenario (budget, forecast) planning
Analytical operations (Features) of OLAP

• Consolidation involves the aggregation of data, which can involve simple roll-ups or complex
groupings involving interrelated data.
Consolidation

• OLAP can also display detailed data that is the base consolidated data. This process is called
drill-down.
Drill-down

• . Slicing and dicing refers to the ability to look at the database from different viewpoints. Slicing
and dicing is often performed on various time duration to analyze trends and find time-based
Slicing and patterns in the data.
Dicing
Online analytical processing may involve the use of specialized servers and multidimensional databases.

OLAP provides fast answers to complex queries posed by managers and analysts using traditional and Web-enabled OLAP software.
Executive Information
System
Executive Information System

EIS provides executives with real-time, immediate and easy

access to information, that is critical to accomplishing an
organization’s strategic vision, objectives & crises
management.
• Address non-routine decision requiring judgement, evaluation and insight
• Support the need for external, forward-looking data (for predictions &
forecasting).
• Help with situations with high degree of uncertainty
• Linked with value-added business processes
Features of EIS

In an EIS, information is presented in forms tailored to the preferences of the

executives using the system.
• Graphical user interfaces
• Dashboards
• Exception reporting
• Trend analysis
• Drill down capability

The ability to drill down , which allows executives to retrieve displays of related
information quickly at lower levels of detail, is another important capability.
Characteristics of EIS
• Flexibility & Ease of Use
• Timely information
• Correct information
• Relevant information
• Validated information
Information
Characteristics
• User friendly
• Easily Accessible
• Offers secure, reliable &
confidential access
• Suite the management style
of individual executives
User Interface
Characteritics
• Result oriented
• Associated with value added
business process
• Helps to deal with situations
of high degree of risk
• Supports overall vision,
mission and strategy
Executive
characteristics
Capabilities of EIS

Can
incorporate Range from
Supports
Defining Strategic Strategic Crisis graphical macro level
external data
overall vision planning control management and/or text to global
extensively
based information
display
Benefits of EIS
Quality of decisions
Access to information
Achievement of improves with
across organization by
organizational aggregated perspective
integrating many
objectives of the information
sources of data
presented

Facilitates proactive
Provides better rather than reactive
Provides competitive
strategic planning & response to
advantage
control organizational
challenges