information system

1. Information
System
Types
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2. Introduction to business applications
• Businesses need information systems for a wide
variety of tasks.
• These business systems help firms to supervise
employees, control production processes, forecast
future events and maintain records for managers,
investors, and government agencies.
• Different types of application software are used for
processing data in all kinds of business.
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3. Introduction to business applications
Manual system
Mechanical System
TPS System
MIS System
DSS System
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Expert System

4. The above figure suggests six different types of
information systems.
1. Manual system
These system consists primarily of documentation: handbooks,
procedure manuals and other written materials that describe system
functions provide instructions.
2. Mechanical System
These system were able to substitute mechanical processes from manual
procedures. The devices used facilitated data processing, improved
computational accuracy and decreased the time required to prepare
reports.
3. TPS
The first computerized applications were basically automated manual
or mechanical systems that simply computerized earlier processing
method
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5. 4. MIS
5. DSS
6. ES
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6. Types of Information systems
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Information system types
Operational
Information system
Business
Information system
Specialized
Information system
TPS
DSS
MIS
EIS
AI
OLAP
KIS
GIS & DVS

7. TPS
(TRANSACTION PROCESSING
SYSTEM)
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8. Introduction
• Transaction Processing Systems (TPS) are
cross functional systems that process data
resulting from the daily routine transactions
necessary for business functions.
• Transactions are events that occur as part of
doing business, such as sales, purchases,
deposits, payments etc.
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9. • Automated TPSs consist of all the components of
a computer based information system (CBIS),
including databases, telecommunications, people,
procedures, software and hardware devices used
to process transactions.
• TPSs are considered as operational level systems
as they keep track of the elementary activities and
transactions of the organization.
• These systems are used mainly by operational
level employees of an organization.
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10. • Input to a TPS: Basic business transactions such
as customer orders, purchase orders, receipts and
invoices are inputs to a TPS.
• Processing: In order to produce the required
output processing is carried out on input data. The
processing activities include data collection, data
editing, data correction, data manipulation and
data storage and document production.
• Output of a TPS: Updated records after the last
transaction.
• Users: Operational personnel; supervisors
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11. Types of TPS Functional Area
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12. • As TPSs often perform activities related to
customer contacts - such as order processing and
invoicing
• These information systems play a critical role in
providing value to the customer. Apart from
external customers, internal stakeholders also
heavily rely on TPSs to carry out routine
operations of the organization.
• Therefore, if TPSs fail to operate correctly, the
impact on the organization can be high.
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13. Transaction Processing Cycle
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14. TPS Application
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TPS support the order processing, purchasing and accounting
business processes. Although each organization may have
unique business processes, only a generalized view is
presented.

15. Order Processing System
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16. Purchasing transaction process system
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17. Accounting processing system
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18. MIS
(MANAGEMENT INFORMATION
SYSTEM)
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19. Introduction
• The main objective of MIS is to provide lower and middle
management with printed or electronic reports with inquiry
capabilities so that they can control, organize and plan more
effectively and efficiently.
• Computerized MISs typically extract and summarize data from
TPSs to allow managers to monitor and direct the organization.
• MISs can also provide employees accurate feedback about easily
measured aspects of their work.
• The same data could be summarized in measure of performance,
such as total sales for each type of item, for each salesperson and for
each hour of the day.
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20. Five Characteristics of a MIS In general
MIS perform the following functions.
1. Provide reports with fixed and standard formats
For example, scheduled reports for inventory control
may contain the same type of information placed in
the same locations on the reports
2. Produce hard-copy and soft-copy reports
Some MIS reports are printed on paper. Other reports
can be soft-copy reports where typically the output is
displayed on a computer screen.
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21. 3. Use internal data stored in the computer system
These sources of data can be outputs generated by TPSs or
ERP systems. Some MISs use external sources of data about
competitors, the industry, economy and so on. The Internet is
often used as a source for external data.
4. Allow end users to develop their own custom reports
Typically, analysts and programmers involve in developing
and implementing complex MIS reports.
5. Require user requests for reports developed by systems
personnel
As mentioned previously, typically, IS personnel develop and
implement MIS. If any user needs to access these systems,
they typically require to submit a formal request to the IS
department.
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22. MIS in Functional Areas of Business
• Most organizations are structured along functional lines or
areas.
• Some of the traditional functional areas include
1. Finance
2. Manufacturing
3. Marketing
4. human resources
• The MIS can be divided along those functional lines, in order
to produce reports tailored to individual functions.
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23. 1. Financial MIS
The following figure describes a basic financial
MIS. The typical inputs to a MIS include internal
TPS databases, additional corporate databases of
internal data and external data.
1. Profit/Loss and Cost systems
2. Auditing (Internal External)
3. Funds Usage and Management
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24. 2. Marketing MIS
A marketing MIS supports managerial activities
related to product development, distribution,
pricing decisions, promotions, and sales
forecasting.
1. Market research
2. Product development
3. Promotion and advertising
4. Product pricing
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25. 3. Human Resource MIS
The personnel function relates to all other functional
areas in the business, the human resource MIS plays a
valuable role in ensuring organizational success.
1. Human resource planning
2. Personnel selection and Recruiting
3. Training and skills inventory
4. Scheduling and job placement
5. Wage and salary administration (medical
payments, saving plans, retirement accounts)
6. Outplacement (job counselling and training, job
and executive search, retirement and financial
planning)
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26. 4.Manufacturing MIS
Manufacturing has been improved by advances in
technology. With emphasis on greater quality and
productivity, having an efficient and effective
manufacturing process is becoming critical to the
success of manufacturing organizations
1. Design and engineering
2. Master production schedule and inventory
control
3. Process control
4. Quality control and testing
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27. 5. Other Management Information Systems
In addition to finance, manufacturing, marketing and
human resource MIS some companies have other
functional MIS.
 Accounting MIS
An information system provides aggregate information on
accounts payable, accounts receivable, payroll and many
other applications.
 Geographical Information Systems
A computer system is capable of assembling, storing,
manipulating and displaying geographically referenced
information, that is data identified according to its location.
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28. DSS
(DECISION SUPPORT SYSTEMS)
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29. Introduction
• Decision support systems (DSS) helps in making decision and also in its
performance evaluation.
• These systems can be used to sense the decision by performing sensitivity
analysis on various parameters of the problem.
• DSS help such manager solve the semi structured and unstructured
problems they typically face in the real world.
• Decision support system can be defined as
– Computer based systems
– That help decision makers
– Confront ill-structured problems
– Through direct interaction
– With data and analysis models
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30. • Characteristic and Components of DSS
– DSS focus on decision processes rather than
transactions processing . DSS aim at top
managers and executive decision maker.
– DSS can be easily designed, it is simple in
structure, and can be quickly implementation and
altered.
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31. • Inputs: databases optimized for statistical analysis
• „Processing: Interactive. Simulations and statistical analysis „
• Outputs: Responses to queries; statistical test results. „
• Users: Professionals, staff „
• Example: Could answer the following query: “We need to trim
5% of our menu offerings to limit complexity in operations.
Which items are the worst performing; are most likely to lead
to sales of other products left on the menu, and have the most
ingredients unique to their recipes?”
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32. DSS Components
• Main components of a DSS include a database
and a model base.
• In addition a typical DSS contains a dialogue
manager, which allows decision makers to easily
access and manipulate the DSS and to use
common business terms and phrases.
• Apart from the dialogue manager additional
components include access to the internet,
networks and other computer-based systems.
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33. The database
• The database management system allows managers and decision
makers to perform qualitative analysis on the company’s vast
stores of data in databases, data warehouses, and data marts.
• Data-driven DSSs tap into vast stores of information contained
in the corporate database, retrieving information on inventory,
sales, personnel, production, finance, accounting and other
areas.
• A database management system can also be connected to
external databases to give managers and decision makers even
more information and decision support. External databases can
include the Internet, libraries, government databases, and more.
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34. The Model base
• The model base allows managers and decision makers
to perform quantitative analysis on both internal and
external data.
• It is a software component that consists of models used
in computational and analytical routines that
mathematically express relationships among variables.
The dialogue manager
• The dialogue manger allows users to interact with the
DSS to obtain information. It assists with all aspects of
communications between the user and the hardware and
software that constitute the DSS
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35. Analytical modelling
• Using a DSS involves four basic types of
analytical modelling activities.
1. What-if analysis
2. Sensitivity analysis
3. Goat seeking analysis
4. Optimization analysis
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36. EIS
(EXECUTIVE INFORMATION
SYSTEMS)
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37. Introduction
• EIS developed focusing on meeting the strategic information
needs of top management, now it is widely used by persons at
middle levels in the organizational structure.
• EISs serve to indicate issues of importance to the organization,
indicate new directions the company may take, and help
executives monitor the company’s progress.
• Some of the major decision making that can be supported
through an EIS are, ability to provide an overall vision,
strategic planning and organizing, strategic control and crisis
management.
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38. • „Inputs: Aggregate data. Internal and external
• „Processing: Interactive and graphical
simulations „
• Outputs: Projections
• „Users: Senior managers
Example: 5-year operating plan. Answer
question like “what are long-term industry
cost trends and how are we doing relative to
them?
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39. Characteristics of ESS
• Tailored to individual executives
An ESS is an interactive hands-on too, that allows an
executive to focus, filter and organize data and information.
• Easy to use
An ESS must be easy to learn and use and not very
complex, in order to save the time of top-level executives.
• Have drill-down abilities
An ESS allows executives to drill down into the company to
determine how certain data was produced. Drilling down
allows an executive to get more detailed information if
needed.
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40. • Support the need for external data
Information from competitors, the federal government, trade associations
and journals and consultants are required to make effective top level
decisions.
• Help with uncertain situations
Handling these unknown situations using modelling and other ESS
procedures help top-level managers to measure the amount of risk in a
decision.
• Have a future orientation
Meaning those decisions will have a broad impact for years or decades.
• Linked with value-added business processes
ESSs are linked with executive decision making about value added
business processes.
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41. Types of systems at the four levels
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42. AI
(ARTIFICIAL INTELLIGENCE)
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43. Introduction
• Artificial Intelligence (AI) is a field of science and
technology based on disciplines such as computer
science, biology, psychology, linguistic, mathematics
and engineering.
• A major power of AI is the development of computer
functions normally associated with human intelligence
such as reasoning, learning and problem solving.
• Artificial Intelligence systems include the people,
procedures, hardware, software data and knowledge
needed to develop computer systems and machines that
demonstrate the characteristics of intelligence.
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44. Major Application Areas of Artificial
Intelligence
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45. 1. Cognitive science
• This area of AI is based on research on biology,
neurology, psychology, mathematics etc.
• It focuses on researching how the human brain
works and how humans think and learn.
• The results of such research in human
information processing are the basis for the
development of a variety of computer-based
applications in AI.
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46. 2. Robotics
• Basic disciplines of robotics include AI, Engineering and
physiology.
• This technology produces robot machines with computer
intelligence and computer controlled, human like physical
capabilities.
• This area includes applications designed to give robots the
powers of
Visual perception: sight
Tactility: ability use the sense of touch
Dexterity: ability in using hands skilfully
Locomotion: physical ability to move over any surface
Navigation: the intelligence to properly find ways to a
destination.
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47. 3. Cognitive science
• This area of AI is based on research on biology,
neurology, psychology, mathematics etc.
• It focuses on researching how the human brain
works and how humans think and learn.
• The results of such research in human
information processing are the basis for the
development of a variety of computer-based
applications in AI.
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48. Natural interfaces
• Development of natural interfaces is essential to the natural
use of computers by humans. This area of applications are
designed for
– Natural languages and Speech recognition
ability to communicate with computers and robots in conversational
human languages and have them understand us as easily as we
understand each other.
– Multisensory Interfaces
development of multisensory devices that use variety body movements
to operate computers.
– Virtual reality
using multisensory human computer interfaces that enable human users
to experience computer simulated objects, spaces, activities and worlds
as they actually exist.
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49. Expert Systems
• An expert system is a knowledge-based information system
that uses its knowledge about a specific, complex application
area to act as an expert consultant to end users.
• They must also be able to explain their reasoning process and
conclusions to a user.
• Expert systems can provide decision support to end users in
the form of advice from an expert consultant in a specific
problem area.
• Components of an Expert System
– Knowledge Base
– Software resource
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