This document discusses various types of information systems used in businesses including transaction processing systems, business support systems, knowledge management systems, and user productivity systems. It describes how these systems support different organizational levels from top managers to operational employees by providing relevant information to help with strategic planning, decision making, and day-to-day job functions. The document emphasizes the importance of integrating these systems to enable information sharing across business processes.

1. Systems process data generated by day-to-
day business operation
It include customer order processing, accounts receivable, and
warranty claim processing.
Transaction Processing System perform a series of tasks when
ever a specific transaction occurs.
Transaction Processing System are efficient because they
process a set of transaction-related commands as a group
rather than individually.
Transaction Processing System ensure that if any single element of
a transaction fails, the system does not process the rest of the
transaction.

2. Business Support system
 Provides job-related information support to users at all
levels of a company.
• These systems can analyze transactional
data, generate information needed to
manage and control business processes, and
provide information that leads to better
decision-making.

3.  Companies soon realized that computer also could
produce valuable information. This system called.
• Management Information System (MIS)
• Because the managers were the primary users.
Today, employees at all levels need information to
perform their jobs, and they rely on information
systems for that support.
• A business support system can work hand-
in-hand with a TP system

4.  To compete effectively, firms must collect
production, sales, and shipping data and
update the company-wide business support
system immediately. The newest
development in data acquisition is called.
• Radio Frequency Identification (RFID)
• This technology, which uses high frequency
radio waves to track physical objects.

5.  An important feature of a business support
system is decision by creating a computer
model and applying a set of variables.
• Example:
• A truck fleet dispatcher might a series of
what-if scenario to determine the impact
increase shipments or bad weather.
Alternatively the manager might use the
what-if analysis to determine the price it
must charge to increase profits by a
specific amount while volume and cost
remain unchanged.

6. Knowledge Management System
 Sometimes called Expert System because they
simulate human reasoning by combining a
knowledge base and interference rules that determine
how the knowledge is applied.
• Knowledge Based = consist of a large database
that allows user to find information by
entering keywords or questions in normal
English phrase.
• KMS uses inference rules, which are logical
rules that identify data pattern and
relationships.

7. User Productivity System
 Companies provide employees at all level with
technology that improves productivity.
• Example:
• User productivity system = include e-mail, fax,
video conferencing, word processing, automated
calendars, database management, spreadsheets,
desktop publishing, presentation graphics,
Company intranets and high speed internet
access.
• UPS also called Groupware = it is a programs
run on a company intranet and enable users
to share data, collaborate on projects, and
work in teams.

8. Information System Integration
 Most large companies require systems that combine
transaction processing, business support, knowledge
management, and user productivity feature.
• Example: Product warranty claim.
a customer service representative enters the claim
into the TPS and TPs update two systems the KMS
that tracks products problems and warranty
activity, and the QCS with decision support
capabilities.
• The quality control engineers uses the what-if analysis
to determine if it would be advantageous to make
product design changes in order to reduce warranty
claims.

9.  A typical organizational model indentifies business
functions and organization levels.
 Within the functional areas, operational personnel
report to supervisors and team leaders. The next level
includes middle managers and knowledge workers, who
in turn report to top managers. In a corporate structure,
the top managers report to a board of directors elected
by the company’s shareholders.
A systems analyst must understand the company’s
organizational model in order to recognize who is
responsible for specific processes and decision and to
aware of what information is required by whom.

10. Information System Users and Their Needs
 Corporate organizational structure has
changed considerably in recent years. As part
of downsizing and business process re-
engineering, many companies reduced the
number of management levels and delegated
responsibility to operational personnel.
Although modern organization charts tend to
be flatter, an organization hierarchy still
exists in most companies.

11. Top Managers
Organizational
Level
Middle Manager &
Knowledge Workers
Supervisions Team
Leaders
Operational
Employee

12. Top Managers
 Develop long range-plans, called a strategic
plan, which define the company’s overall
mission and goals. To plot a future course,
top managers ask questions such as “HOW
much should the company invest in
information technology” or “HOW much
will Internet sales grow in the in the next five
years?” or “ Should the company build new
factories or contract out the production
functions?”

13.  Strategic planning affects the company’s
future survival and growth, including long-
term IT plans. Top Managers focus on the
overall business enterprises and use IT to set
the company’s course and direction.
To develop a strategic plan, top managers also
need as economic forecast, technology trends,
competitive threat, and

14. Middle Managers and Knowledge
Workers
 Provides direction, necessary resources, and
performance feedback to supervisors and team
leaders. Because they focus on a somewhat
shorter time frame.
 Need more detailed information than top
managers, but somewhat less than supervisors
who oversee day-to-day operations.
 Knowledge workers include professional staff
members such as system analysts, BSS, KMS,
UPS .

15. Supervisors and Team Leader
 Oversee operational employees and carry out
day-to-day functions. They coordinate
operational tasks and people, make necessary
decisions, and ensure that the right tools,
materials, and training are available.

16. Business Function
Production
Marketing
Human
Resource
I.T.
Accounting
Sales

17. System Development Tools and
Techniques