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Types
of
Information Systems
ISR Lecture IV

1

Transaction Processing System
(TPS)
Transaction Processing System (TPS)
A computerized system that performs and
records daily routine transactions necessary to
the conduct of the business
TPSs are information systems that process data
resulting from the occurrence of business
transactions
...
)
REPORT
GENERATION
DATA
ENTRY

PROCESSING

ADHOC
INQUIRIES

DATABASE

Management information system
(MIS)
provides information
organization

for

managing

an

Extract and summarize data from TPSs
Allow managers to monitor & direct the organization
Provide accurate feedback
Provide pre-specified reports on a scheduled basis
Top managers make strategic decisions
Middle managers make tactical decisions
Line managers make operations decisions
Knowledge workers create and integrate knowledge
Clerical workers use and manipulate information

5

Decision support system (DSS)
an interactive information system that provides
information, models, and data manipulation tools
to help make decisions in semi-structured and
unstructured situations
Support analytical work
Simulation and Optimization
Simulation model – calculates the simulated outcome of
tentative decisions and assumptions
Optimization model – determine optimal decisions based on
criteria supplied by the user, mathematical search
techniques, and constraints

6

Decision support system (DSS) (cont
...
)

Executive information system (EIS)
A highly interactive system that provides a
flexible access to information for monitoring
results and general business conditions

Use both internal and competitive information
User-friendly interface

8

Strategic Level Systems

Information
Systems that
Support LongRange Planning
of Senior
Management
...


10

Operational Level Systems

Produces
routine
answers

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Types of systems at the 4 levels
Level 1-Transaction Processing Systems (TPS)
Level 2-Management Information Systems (MIS)
Level 2-Decision Support Systems (DSS)
Level 3-Executive Information Systems (EIS)

12

Types of systems at the 4 levels (cont
...
)
Level two (management level)Management Information System (MIS):
Inputs: Summary transaction data
Processing: Simple models; low level analysis
Outputs: Summary reports
Users: Middle managers
Example: Weekly, monthly, and annual resource allocation
...


14

Types of systems at the 4 levels (cont
...
)
level two (management level)Decision Support System (DSS):

Inputs: databases optimized for statistical analysis
Processing: Interactive
...

Users: Professionals, staff

Example: Could answer the following query:

“We need to trim 5% of our menu offerings to limit
complexity in operations
...
)
Top level (strategic level)Executive Support System (ESS):
Inputs: Aggregate data
...
Answer question like “what
are long-term industry cost trends and how are we doing
relative to them?”
Gets data from all internal IS plus external industry data
17

Types of systems at the 4 levels (cont
...
)
Groupware
Software and related procedures that help teams work
together by sharing information and by controlling
internal workflows
...
g
...


EXTRANETS: Similar to intranets, but geared
towards customers
Examples of applications:Detailed product descriptions,
FAQs, Maintenance information, etc
...

Cross-Functional Systems
Management Support Systems
Operations Support Systems
24

Cross-Functional Systems : An Example
The Order Fulfillment Process

order fulfillment cuts across sales, accounting,
and manufacturing and distribution
25



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