1 Types of Business Information Systems Different people have different information needs depending on their work

Types of Information Systems Slide 2 Types of IS Transaction Processing System (TPS) Management Information System (MIS) Decision Support System (DSS) Executive Information Systems (EIS) Expert Systems (ES) Knowledge Management Systems (KMS)

Types of Information Systems Slide 3 What is a TPS? Situation used - Recording, documenting all areas of business Financial transactions: receipts and payments Materials: raw materials, finished goods recording Computer transactions: updating data files Large volume of transactions Reporting is mostly for control

Types of Information Systems Slide 4 What is an MIS? Reports on ‘Performance’ –Planned versus actual performance –Periodic or on-demand (ad hoc) reports –Highlights factors that affect performance Objective is to help planning and control An MIS may cover a department, branch, or can be organization-wide

Types of Information Systems Slide 5 What is a DSS? A computer system that supports a decision maker Has “mathematical model” of the situation Allows for interaction - user feeds in data to the model and looks at results Helps but does NOT replace the decision maker

Types of Information Systems Slide 6 DSS cont/ Can be used at all managerial levels To solve semi-structured problems (some of the outcomes known and some unknown) Each DSS is designed for a particular problem/decision area

Types of Information Systems Slide 7 DSS cont/ Needs access to large databases Uses real data to look at ‘hypothetical’ situations Looks at alternative solutions

Types of Information Systems Slide 8 DSS cont/ Situations used: –Financial planning –Product planning –Investment planning A DSS has a limited lifespan - once a decision has been taken the DSS may be obsolete

Types of Information Systems Slide 9 EIS or ESS Tailored to suit top executives –User-friendly (for people not too computer literate) –Used for scanning the environment –Fast, easy access to critical information –Key indicators of the company performance –Ability to ‘drill down’ for further information

Types of Information Systems Slide 10 What is an Expert System? Software applied to assist in reaching a decision/conclusion which might otherwise have required an expert’s opinion

Types of Information Systems Slide 11 Expert Systems cont/ Programs that make the knowledge or ability of experts widely available Usually developed by eliciting knowledge from experts This is stored in a ‘Knowledge Base’ which acts as a database for the user

Types of Information Systems Slide 12 More about Expert Systems Only useful to help solve highly- structured problems (diagnose fault with a car or diagnose a disease or illness)

Types of Information Systems Slide 13 Components of an Expert System –Rules in the form of if-then relationships –Knowledge in the form of a database - the ‘Knowledge Base’ –An Inference Engine – which is the software that draws the conclusions –Human interaction – the users

Types of Information Systems Slide 14 What is a Knowledge Management System? A system that uses data that is collected either intentionally or accidentally in the course of business

Types of Information Systems Slide 15 Data Mining This is the practice of analysing data and using the findings to further the strategic objectives of the company (direct mailings etc) Store loyalty cards are used to collect vast quantities of information about customers