This document discusses three main types of information systems: transaction processing systems, management information systems, and decision support systems. Transaction processing systems collect and store transaction data and include examples like ATMs and grocery store checkout scanners. Management information systems provide reports to help managers make decisions and track business data. Decision support systems analyze data to help users make business decisions, presenting information graphically with tools like comparative statistics. The information systems discussed are relevant to learning objectives as they are integral to daily life and work activities.

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INFORMATION SYSTEMS
Information systems
Alphonzo A. Wright III
Trident University International

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INFORMATION SYSTEMS
An information system is a system composed of people and computers that processes or
interprets information. Information systems are an integrated set of components for collecting,
storing, and processing data and for delivering information. There are three types of information
systems that will be defined and will be shown in real world examples. The first information
system is the transaction processing system which substitutes computer-based processing for
manual procedures. Management information systems will be the next system discussed and how
it deals with well-structured processes, which includes record keeping applications. The last
information to be discussed is the decision support system in which provides information to
managers who must make judgments about particular situations. The system also supports
decision-makers in situations that are not well structured.
Transaction processing systems collect and store data about transaction and at times
controls decisions made as part of a transaction. An example of (TPS) would be using an ATM,
an individual would slide their debit or ATM card and the stored data on their account would be
accessed and lets the account holder go through the transaction of receiving funds. Another
example is the grocery store, when the cashier slides the item through the scanner the stored data
on the product is looked up and applied to the screen to show a price on it. Payroll is another
example of a transaction information system, the employers tracks the hours worked
electronically and generates checks or direct deposit based upon the input information. There are
three components of a transaction system: the user of the information, which is the person
belonging to the organization that owns the transaction system. The participants are the second
component, who the individuals who conduct the information processing. The people from the

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environment become participants of a system as they directly enter transactions and perform
validation.
Management information is the study of people, technology, organizations, and the
relationships among them. The professionals of management information systems help firms
maximize their benefit from investments in business processes, personnel and equipment. A
management information system can also be described as a computerized database of financial
information organized and programmed in such a way that it produces regular reports on
operations for every level of management in a company. The management information system is
a way to obtain special reports easily. An example of the management information system is
reports designed to help lower management to make decision on employees or daily business.
A decision support system is a computer program application that analyzes business data
and presents it so that users can make a business decisions more easily. A decision support
system may present information graphically and may include an expert system or artificial
intelligence. Examples of a decision support system would be comparative figures from one
week to the next. The consequence of different decision alternatives, given past experience in a
context that is described is another example of decision support system. The information
systems are related to the learning objective because it explores and explains it incorporates
information in daily activities and on the job. The information system is involved in everyday

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life, from going to Wal-Mart for some laundry detergent to receiving a work productivity report
from your manager.

5. References
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Shim, Jae K. and Joel F. Siegel. The Vest Pocket Guide to Information Technology. John Wiley
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Torode, Christina. "xSPs Rethink Business Models." Computer Reseller News. 15 July 2002.
Zwass, V. (n.d.). INFORMATION SYSTEM. Retrieved from
http://www.britannica.com/EBchecked/topic/287895/information-system