Chapter 7 Information System

7.1 Types Of Information System 7.2 System Development Life Cycle

Learning Outcomes LEARNING OUTCOMES 7.1 Types of Information System At the end of this topic, student should be able to: 1. Define Information System 2. Identify several types of Information System 3. Describe the purposes of each Information System

Definition Information System 7.1 Types of Information System Definition Information System Is a that work together to produce quality information. Is a set of interrelated elements or components that collect (input), manipulate (process), store disseminate (output) data and information and provide corrective reaction (feedback mechanism) to meet an objective. (Stair & Reynolds, 2012) (Shelly & Vermaat, 2012)

The Component Of Information System 7.1 Types of Information System The Component Of Information System

Component of Information System 7.1 Types of Information System Component of Information System 1. Hardware Hardware refers to the that the database system runs on. Example mainframe, minicomputer, microcomputer, network, input/output peripherals etc. 2. Software Software refers to a used by a computer in a database system. This includes the DBMS, the operating system of a computer and network, application and utility program.

Component of Information System 7.1 Types of Information System Component of Information System 3. Data Data comprises of . This includes operational data and metadata. 4. Procedures Procedures refer to the that govern the design and use of a database system.

Component of Information System Component of Information System 7.1 Types of Information System Component of Information System Component of Information System 5. People People encompasses . This includes the business analysts, database designer, data administrators, DBA, application programmers and end-users.

4 Levels of Information System

4 Levels of Information System

Transaction Processing System (TPS) 7.1 Types of Information System Transaction Processing System (TPS) Management Information System (MIS) Decision Support System (DSS) Executive Support System (ESS)

Graphical representation of information system 7.1 Types of Information System Graphical representation of information system in a triangle

Transaction Processing System (TPS) 7.1 Types of Information System Transaction Processing System (TPS) Is an information System that captures and processes data day-to-day An operational system that record and process data resulting from business transactions. Examples of transactions are deposits, payments, orders and reservations Two basic way of process transaction 1. 2.

7.1 Types of Information System Transaction Processing System (TPS) Figure 14-14 With batch processing, all airline reservations are processed together at the end of the day. With OLTP, reservations are processed immediately. (Shelly & Vermaat, 2012) - page 733

Transaction Processing System (TPS) 7.1 Types of Information System Transaction Processing System (TPS) 1. Batch processing Transactions data are and processed periodically. The computer collect data over time and process all transactions later, as a group.

Transaction Processing System (TPS) 7.1 Types of Information System Transaction Processing System (TPS) 2. Online Transaction Processing(OLP) / Real-Time Processing The computer processes each transaction as it is entered. Data are occurs.

The intent of these system is to process transactions faster 7.1 Types of Information System Purpose TPS The intent of these system is to process transactions faster reduce clerical costs improve customer service

Management Information System (MIS) 7.1 Types of Information System Management Information System (MIS) Is an information system that Produce meaningful information for manager or produce report.

Management Information System (MIS) 7.1 Types of Information System Management Information System (MIS) Purpose MIS Produce meaningful information for managers Three basic types of reports 1. 2. 3. Assist lower management in problem solving and making decision.

Decision Support System (DSS) 7.1 Types of Information System Decision Support System (DSS) Helps users DSS give direct computer support to managers during the decision-making process. Example : A production manager may use a DSS to decide how much product to manufacture based on the expected sales associated with a future promotion and the location.

Decision Support System (DSS) 7.1 Types of Information System Decision Support System (DSS) Purpose DSS Help users retrieve data and analyze the result Allow managers to create a model of the factors affecting a decision Reports are in the form of charts or diagram

Executive Support System (ESS) 7.1 Types of Information System Executive Support System (ESS) A special type of Decision Support System (DSS) that serve the strategic level of the organisation

Executive Support System (ESS) 7.1 Types of Information System Executive Support System (ESS) Purpose Supports the strategic information needs of executive management. Gathers and presents information to Senior management in the form of graphics and reports used to assist in decision making.

Executive Support System (ESS) 7.1 Types of Information System Executive Support System (ESS) Example Manager use an ESS to analyze a company's financial trends ESS

Office Automation System (OAS) 7.1 Types of Information System Office Automation System (OAS) Is an information system that enables employees to perform tasks using computers and other electronic devices. The system help employee to collects, process, store and transmit electronic message, document and other form of communication among individual, work group and organizations.

Office Automation System (OAS) Example 7.1 Types of Information System Office Automation System (OAS) Example A school posted its class schedules on the internet. When the school updates the schedule, students receive an email notification.

Office Automation System (OAS) 7.1 Types of Information System Office Automation System (OAS) Purpose Increase employee productivity Assists with communication among employee

7.1 Types of Information System Types of IS Characteristics Transaction Processing System (TPS) Provides raw data used in Processing in EIS, MIS and DSS The lowest level of information system Used by businesses to record “transaction” information Transactions include things like booking airline tickets, purchasing goods or services

7.1 Types of Information System Types of IS Characteristics Management Information System (MIS) A step up from TPS This type of systems is used for routine reporting Reports are used to monitor and control normal business activities Provides input to be used in the managerial decision process. Generate report in various time – basis (weekly, monthly, and/or yearly) Data is provided from internal company sources only.

7.1 Types of Information System Types of IS Characteristics Decision Support System (DSS) Provides information to managers who must make judgments about particular situations. Supports decision-makers in situations that are not well structured

7.1 Types of Information System Types of IS Characteristics Executive Support System (ESS) Used for strategic business planning Relatively long time-frame considered Unstructured and open-ended (many variables can be considered) For accurate results EIS require information from inside and outside the business Its major activity is information scanning and evaluation, it deals mainly with the intelligence phase of decision-making.

EXERCISE 7.1 Types of Information System Explain the components of information system What is TPS and who is the users of TPS? What is the main difference between TPS and MIS? Differentiate MIS from DSS. Who are the users of OAS? What is ESS and who are the main users of ESS?

References Shelly, G. B., & Vermaat, M. E. (2012). Discovering Computer 2012 Complete. Boston: Course Technology Cengage Learning Haag, S., Cummings, M., & Dawkins, J. (2000). Management Information Systems for the Information Age (2nd Edition). Boston: McGraw Hill. Rainer R.K. (2012). Introduction to Information Technology (4th Edition). New Jersey: John Wiley & Sons Inc.