Chapter 7 Information System

7.1 Types Of Information System
7.2 System Development Life Cycle
11
7.0 INFORMATION SYSTEM
1

7.1 Types Of Information System
At the end of this topic, student should be able to:
1. Define Information System
2. Identify several types of Information System
3. Describe the purposes of each Information System
2
Learning Outcome
2 2

● Is a collection of hardware, software, data,
people, and procedures that work together to
produce quality information.
(Shelly & Vermaat, 2012)
● Is a set of interrelated elements or components that collect
(input), manipulate (process), store disseminate (output) data
and information and provide corrective reaction (feedback
mechanism) to meet an objective.
(Stair & Reynolds, 2012)
● An information system supports daily, short-term and long
range activities of users.
Definition Information System
3 3

The Component Of Information System
4 4

1. Hardware
Hardware refers to the computer system that the database
system runs on. Example mainframe, minicomputer,
microcomputer, network, input/output peripherals etc.
2. Software
Software refers to a collection of programs used by a
computer in a database system. This includes the DBMS,
the operating system of a computer and network,
application and utility program.
3. Data
Data comprises of all facts stored in a database. This
includes operational data and metadata.
Component of Information System
5 5

4. Procedures
Procedures refer to the instruction and rules that govern the
design and use of a database system.
5. People
People encompasses all users of a database system. This
includes the business analysts, database designer, data
administrators, DBA, application programmers and end-users.
Component of Information System
6 6

USERS 7
TOP LEVEL
MANAGEMENT
MIDDLE LEVEL
MANAGEMENT
LOW LEVEL
MANAGEMENT

Graphical representation of information system in a triangle
8
Types of Information System
(Executive Support System)
DSS
MIS
TPS
ESS
(Executive Support System)
(Management Information System)
(Transaction Processing System)
TOP
LEVEL
MANAGEMENT
MIDDLE
LEVEL
MANAGEMENT
LOW
LEVEL
MANAGEMENT
8

1. Transaction Processing System (TPS)
2. Management Information System (MIS)
3. Decision Support System (DSS)
4. Executive Support System (ESS)
5. Office Automation System (OAS)
Types of Information System
9 9

➢ Is an information System that use by Operational level
management (OLM) to captures and processes data
day-to-day business transaction / activity.
➢ Used by Low Level Management such as Line supervisor.
➢ An operational system that record and process data
resulting from business transactions.
Transaction Processing System (TPS)
10 10

➢ Examples of transactions are deposits, payments,
orders and reservations
➢Two basic way of process transaction:
1. Batch processing
2. Online transaction Processing
(OLTP) / Real -Time Processing
11
11

1.Batch processing
○ Transactions data are accumulated over a period of time
and processed periodically.
○ The computer collect data over time and processes all
transactions later, as a group.
○ Example : Paying by check, Credit card transaction,
Electric bill, Salaries, credit card monthly statement.
12 12

2. Online Transaction Processing (OLP)
/ Real-Time Processing
•The computer processes each transaction as it is entered.
•Data are processed immediately after a transaction occurs
•Example : reservation system, ATM transaction, Airline
ticket booking.
13 13

Batch processing vs OLTP
Figure 14-14
With batch processing,
all airline reservations
are processed together
at the end of the day.
With OLTP,
reservations are
processed immediately.
(Shelly & Vermaat, 2012)
- page 733
14 14

Purpose of TPS
● Capture and process data from day-to-day
business activities.
● The intent of these system is to
● process transactions faster
● reduce clerical costs
● improve customer service
15 15

Management Information System (MIS)
▪ Is an information system that used by middle
level management that generates accurate,
timely and organized information
▪ Produce meaningful information for manager or
produce report
16 16

● Produce meaningful information for
managers
● Three basic types of reports
1. Detailed
2. Summary
3. Exception
● Assist lower management in problem solving
and making decision.
Purpose of MIS
17 17

Detailed report: A list of all transaction
18

Summary report :
Data usually with totals, tables or graph, so that
manager can review it quickly and easily
19

Exception report :
Data outside of a normal condition / unusual condition
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● Is an information system that used by middle level
management (MLM) to help analyze information and
make decisions.
● DSS give direct computer support to managers during the
decision-making process.
● Example :
A production manager may use a DSS to decide
how much product to manufacture based on the
expected sales associated with a future promotion
and the location.
Decision Support System (DSS)
21 21

Purpose of DSS
● Help users retrieve data and analyze the
result
● Allow managers to create a model of the
factors affecting a decision
● Reports are in the form of charts or diagram
22 22

Executive Support System (ESS)
● Is an information system that used by top
level management to support the strategic
information needs of executive
management to set goal and long term
planning.
● A special type of Decision Support System
(DSS) that serve the strategic level of the
organisation.
23 23

● Supports the strategic information needs of
executive management.
● Gathers and presents information to Senior
management in the form of graphics and
reports used to assist in decision making.
Purpose of ESS
24 24

Executive Support System (ESS)
ESS
Manager use an ESS to analyze
a company's financial trends
25 25

● Is an information system that enables employees
to perform tasks using computers and other
electronic devices.
● The system help employee to collect, process,
store and transmit electronic message, document
and other form of communication among
individual, work group and organizations.
● Example :
A school posted its class schedule on the internet.
When the school admin updates the schedule,
students receive an email notification.
Office Automation System (OAS)
26 26

● Increase employee productivity
● Assists with communication among employee
Purpose of OAS
27 27

Summary
28
Types of IS Characteristics
Transaction
Processing System
(TPS)
● Provides raw data used for processing
in ESS, MIS and DSS
● The lowest level of information system
● Used by businesses to record “
transaction” information
● Transactions include things like
booking airline tickets, purchasing
goods or services.
28

Management
Information
System (MIS)
● A step up from TPS
● This type of systems is used for routine
reporting
● Reports are used to monitor and control
normal business activities
● Provides input to be used in the managerial
decision process.
● Generate report in various time – basis
(weekly, monthly, and/or yearly)
● Data is provided from internal company
sources only.
29
Summary
29

Decision
Support
System (DSS)
● Provides information to managers who must
make judgments about particular situations.
Supports decision-makers in situations that
● are not well structured
30
Summary
30

31
Summary
Executive
Support System
(ESS)
● Used for strategic business planning
● Relatively long time-frame considered
● Unstructured and open-ended (many
variables can be considered)
● For accurate results ESS require
information from inside and outside the
business.
● Its major activity is information
scanning and evaluation, it deals
mainly with the intelligence phase of
decision-making.
31

IS - MAP
OAS :Clerical workers
33

1. Explain the components of information system
2. What is TPS and who is the users of TPS?
3. What is the main difference between TPS and MIS?
4. Differentiate MIS from DSS.
5. Who are the users of OAS?
6. What is ESS and who are the main users of ESS?
EXERCISE
34 34

References
● Shelly, G. B., & Vermaat, M. E. (2012). Discovering
Computer 2012 Complete. Boston: Course Technology
Cengage Learning
● Haag, S., Cummings, M., & Dawkins, J. (2000).
Management Information Systems for the Information
Age (2nd
Edition). Boston: McGraw Hill.
● Rainer R.K. (2012). Introduction to Information
Technology (4th
Edition). New Jersey: John Wiley &
Sons Inc.
35 35

7.2 System Development Life Cycle (SDLC)
At the end of this topic, students should be able to:
1.Identify the steps of system development life
cycle
2. Describe each step of system development life
cycle
Learning Outcome
36

What is SDLC ?
● is a set of activities used to build an information
system
● each phase of system development consist of a
series of activities and the phase form a loop
37

STEPS OF SDLC : Activities contain five (5) phases
38
Planning
1
Maintenance
5
Design
3
Implementation
4
Analysis
2

SDLC (Major Activities)
1st
phase: Planning ▪ Review project requests
▪ Prioritize project requests
▪ Allocate resources
▪ Identify project development team
2nd
phase: Analysis ▪ Conduct preliminary investigation
▪ Perform detailed analysis activities:
- Study current system
- Determine user requirements
- Recommend solution
3rd
phase: Design ▪ Acquire hardware and software, if necessary
▪ Develop details of the new or modified system.
4th
phase:
Implementation
▪ Develop programs,
▪ Install and test new system
▪ Train users
▪ Convert to new system
5th
phase: Maintenance . Perform maintenance activities
. Monitor system performance
. Evaluate system security
39

1st
phase: Planning
• Begins when the steering committee received a project
request
• Committee members usually consists of five to nine members
• example: mix of vice presidents, managers, non-management
users, and IT personnel
40

● Purpose: The Steering committee evaluates :
○ if it has enough funds and budget
○ the remaining project request based on their value
to the organization
○ approves some projects and rejects others
● During the meeting, committee member decides the
project request identifies an improvement to the
system
1st
phase: Planning
41

1. Conduct preliminary investigation
• Sometimes called the feasibility study
• Defines the problem - The main purpose is to determine
the exact nature of the problem or improvement &
decide whether it is worth pursuing.
• Interview the user who submitted the project request
and others users.
• Upon completion of the preliminary investigation, the
systems analyst writes the feasibility report to present
the team’s findings to the steering committee.
2nd
phase: Analysis
42

Feasibility study:
43

2. Perform detailed analysis activities:
• Detailed analysis sometimes is called logical design
because the systems analysts develop the proposed
solution without regard to any specific hardware or software.
• Involves three major activities:
2nd
phase: Analysis
44

1. Acquire hardware and software
• The activity consists of four major tasks:
1. Identify technical specifications
2. Request vendor proposals
3. Test and evaluate vendor proposals
4. Make a decision
3rd
phase: Design
45

2. Develop details of the new or modified system
• After the systems analyst identifies the data and process
requirements, the next step is to develop detailed design
specifications for the components in the proposed solution.
• A detailed design sometimes is called a physical design
because it specifies hardware & software — the physical
components required — for automated procedures.
• The activities include developing designs for the databases,
inputs, outputs & programs.
3rd
phase: Design
46

4th
phase: Implementation
• The purpose of this phase is to Construct or build
the new or modified system and then deliver it to
the user
• Four (4) major activities
1. Develop programs
2. Install and test new system
3. Train users
4. Convert to new system
47

1. Develop programs
○ If the organization purchases packaged software (no
modifications required) the development team may skip
this activity.
○ For custom software or packaged software, however,
programs are developed or modified either by an outside
firm or in-house.
○ Programmers write or modify programs from the program
specification package created during the analysis phase.
○ These program development follow an organized set of
activities known as the program development life cycle.
4th
48

2. Install and test new system
• If the organization acquires new hardware or software,
someone must install and test it
• Tests performed during this step include:
1. unit tests - verifies that each individual program or object
works by itself.
2. systems tests - verifies that all programs in an application
work together properly
3. integration tests - verifies that an application works with
other applications.
4. acceptance tests - performed by end- users & checks the
new system to ensure that it works with actual data.
4th
49

3. Train user
• Training involves showing users exactly how they will use
the new hardware and software in the system.
• Some training takes place as one-on-one sessions or
classroom style lectures
• Other organizations use Web-based training, which is a
self-directed, self-paced online instruction technique.
4th
50

4. Convert to new system
• The final implementation activity is to change from
the old system to the new system.
• This change can take place using one or more of
the following conversion strategies:
1. direct
2. parallel
3. phased
4. pilot
4th
51

52
4th
52

4th
DIRECT CONVERSION
The old system is
replaced by the new
system all at once
PARALLEL
CONVERSION
The old system and new
system are both operated
until it is determined that
the new system is working
properly
53

PHASED
CONVERSION
The system is
implemented by module
(each module can be
implemented using
either direct or parallel
conversion
PILOT CONVERSION
The new system is used
at only one location
within the organization.
After it is determined that
the new system is
working
54

5th
phase: Maintenance
• Provide ongoing assistance for an information
system after the system is implemented
• Three (3) major activities
1. Perform maintenance activities
2. Monitor system performance
3. Evaluate system security
55

1. Perform maintenance activities
• corrective maintenance
(process of identify and correcting errors in an IS)
• adaptive maintenance
(process of including new features/capabilities in an IS)
5th
phase: Maintenance
56

2. Monitor system performance
• perfective maintenance,
•determine if the system is inefficient/unstable
at any point,
•if this occurs, investigation must be done
5th
phase: Maintenance
57

3. Evaluate system security
• All elements of an information system must be secure
from threats both inside and outside.
• Users should be allowed access only to the data and
information for which they are authorized (Maintain
confidentiality)
• Data should be secure so that intruders cannot alter,
damage, or steal data. (Ensure integrity and reliability)
• Networks need safeguards to prevent them from being
compromised. (Limited access to information)
5th
phase: Maintenance
58

Shelly, G.B., & Vermaat, M. (2012).
Discovering computers: Your interactive guideto the
digital world.
Boston, MA: Course Technology/ Cengage Learning.
REFERENCES
59

1.Differentiate between database and information system.
2.List ALL database and information system components.
3.List ALL types of information system (IS), it’s purpose
and user(s).
4.List and explain ALL phases of system development life
cycle (SDLC).
Answer ALL questions:
60

ANSWERS:
1.Differentiate between database and information
system:
Database Information System
Is a collection of data organized in a
manner that allows access, retrieval
and use of that data.
Is a collection of hardware, software,
data, people, and procedures that
work together to produce quality
information.
2. List ALL database and information system
components.
●Database: People, Hardware, Software, Data, Procedure.
●Information System: People, Hardware, Software, Data, Procedure.
61

Types of IS Purpose User
OAS Enable employee to perform tasks using computers and electronic devices.
Purpose: 1.Increase employee productivity
2.Assist communication among employee.15
ALL / clerical worker
TPS is an IS that collects, store, modifies and retrieves transaction of an
organization. e.g. ATM
Purpose: 1.Process transactions faster
2.Reduce clerical costs
3.Improve customer service.
supervisor, line
manager, (clerk,
cashier, customer,
student CANNOT
state as a USER )
MIS is an IS that generates accurate, timely and organized information.
Purpose: 1.Produce meaningful information for managers
(detailed, summary, exceptions report)
2.Assist lower management in problem solving and
making decision.
Middle manager,
doctor, supervisor
DSS is an IS that helps users analyze information and make decisions.
Purpose:
1.Analyze information recognize problems and make decision
2.Assist in solving semi structured problems
3.Contribute to decision effectiveness.
Assistant president,
Chief Executive
Officer (CEO)
ESS Types of DSS supports strategies information needs of executive
management
Purpose: 1.Gather and presents info to senior management
(graphic & report) to assist decision making.
Vice president,
CEO, board of
director, President.
62

Phases of SDLC Descriptions
PLANNING •Review and approve the project request
•Prioritize project request
•Allocate resources
•Develop a team
ANALYSIS •Preliminary investigation/feasibility study
•Detailed analysis/logical design
•Study current system
•Determine project request
•Recommend solution
DESIGN •Acquire hardware and software
•Physical design – prototype, CASE tools
IMPLEMENTATION •Develop program
•Install and testing
•Train user
•Convert to new system
MAINTENANCE •Perform maintenance(corrective and adaptive)
•Monitor system performance(perfective maintenance)
•Evaluate System security
63

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