Types, Purposes and Applications of Information Systems
Hardware +software +people +procedures + data = Information System
Information System• Generic reference to a computer based system that provides data processing capabilities for department or, perhaps, an entire company; information that people need to make better, more informed decisions.
• Data processing capability system’s capability to handle and process data.
Types of Information Systems1. Data processing systems2. Management information systems3. Decision support systems4. Executive information systems5. Expert systems
1. Data Processing Systems (DP)• are concerned with transaction handling and record-keeping,
• data are entered and stored in a file format, and stored files are updated during routine processing.
• Periodic outputs include action documents (invoices) and scheduled reports, primarily for operational-level managers.
Drawback of Data Processing Systems• Inflexible• cannot accommodate data processing or information needs that are not already built into system
2. Management Information Systems (MIS)• Method, a function, an approach, a process, an organization, a system, and a subsystem.
• An MIS is an integrated structure of databases and information flow that optimizes the collection, transfer, and presentation of information throughout the multilevel organization
The MIS versus DP System• The integrated database of an MIS enables greater flexibility in meeting the information needs of management than the traditional file environment of DP systems.
• An MIS integrates the information flow between functional areas where DP systems tend to support a single functional area.
• An MIS caters to the information needs of all levels of management where DP systems focus on operational-level support.
• Management’s information needs are supported on a more timely basis with an MIS (on-line inquiry capability) than with DP system (usually scheduled reports).
Characteristics of Management Information Systems• supports the data processing functions of transaction handling and record keeping.• uses an integrated database and supports a variety of functional areas.
• Provides operational, tactical and strategic- level managers with easy access to timely but, for the most part, structured information.
• is somewhat flexible and can be adapted to meet changing information needs of organization• provides envelop of system security that limits access to authorized personnel.
3. Decision Support Systems• Decision support system (DSS) are interactive information systems that rely on an integrated set of user-friendly hardware and software tools to produce and present information targeted to support management in the decision making process.
• A decision support system can help close the information gap and allow managers to improve the quality of their decisions.
• To do this, DSS data support system hardware and software employ the latest technological innovations.Ex. (color graphics and database management system) planning and forecasting models, user- oriented 4GLs, and even artificial intelligence.
The DSS versus MIS• management information systems are oriented to supporting decisions that involved structured problems,• In contrast, decision support systems are design to support decision-making processes involving semistructured and unstructured problems
• an MIS is designed and created to support a specific application (accounting, inventory control) or a set of applications• a DSS is a set of decision support tools that can be adapted to any decision environment.
Characteristics of Decision Support Systems• A DSS makes general-purpose models, simulation capabilities, and other analytical tools available to the decision maker.• A DSS can be readily adapted to meet the information requirements of any decision environment.