Information system and its types
- 1. INFORMATION SYSTEM AND ITS TYPES An information system is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range and long-range activities of users in an organization. Information Systems are classified into five categories: 1. Office Information System (OIS) An information system that uses hardware, software and networks to enhance work flow and facilitate communications among employees. With OIS, employees can perform task electronically using computers and other electronic devices, instead of manually. For example, a registration department might post the class schedule on the Website and email students when the schedule is updated. An OIS supports a range of business office activities such as creating and distributing graphics and documents, sending messages, scheduling and accounting. All levels of users from executive management to non-management employees utilize and benefit from the features of an OIS. The software an office information system uses to support these activities include word processing, database, presentation graphics, email, web browsers, web page authoring. Office information systems use communication technology such as voice mail, fax, videoconferencing and electric data interchange for the electronic exchange of text, graphics, audio and video. An office information also uses a variety of hardware, including computers equipped with modems, video cameras, speakers and microphones, scanners and fax machines. 2. Transaction Processing Systems (TPS) It is an information system that captures and processes data generated during an organization day-to-day transactions. A transaction is a business activity such as a deposit, payment, order or reservation. Clerical staff typically perform the activities associated with transaction processing which include the following: Recording a business activity such as student’s registration, a customer’s order, an employee’s timecard or a client’s payment. Confirming an action or triggering a response such as printing a student’s schedule, sending a thank-you note to customer, generating employee paycheck or issuing a receipt to a client. Maintaining data which involves adding new data, changing existing data or removing unwanted data. Transaction processing systems were among the first computerized systems developed to process business data.Usually, the TPS computerized an existing manual system to allow for faster processing, reduced clerical costs and improved customer service.
- 2. 3. Decision Support System (DSS) A decision support system is an information system designed to help users reach a decision when a decision making situation arises. A variety of DSSs exist to help with a range of decisions. A DSS uses data from internal and external sources. Internal sources of data might include sales, manufacturing, inventory or financial data from an organization’s database. Data from external sources could include interest rates, cost of a new housing construction or raw material pricing. Some DSS include capabilities that allow us to create a model of factors affecting a decision. A simple model for determining the best product price, would include factors for the expected sales volume at each price level. With the model, we can ask what-if questions by changing one or more of the factors. 4. Management Information System (MIS) An information system that generates accurate, timely and organized information so managers and other users canmake decisions,solveproblems, superviseactivities and track progress. Because it generates reports on a regular basis, a management information system sometimes is called a management reporting system (MRS). An MIS generates three basic types of information: detailed, summary and exception. Detailed information typically confirms transaction processing activities. A detailed order report is an example of a detail report. Summary information consolidates data into a format that an individual can review quickly and easily. To help shorten information, a summary report typicallycontains totals, tables or graphs. An inventory summary report is an example of summary report. Exception information filters data to report information that is outside of a normal condition. These conditions, called the exception criteria, define the range of what is considered normal activity or status. 5. Artificial Intelligence (AI) In the arena of Artificial Intelligence, machines take over complex, risky, routine, or boring tasks, such as welding car frames or assembling computer systems and components. Many automobile companies such as Honda Motor has invested huge money on advanced robotics that allows a person to give orders to a computer using only his or her thoughts. The new system uses a special helmet that can measure and transmit brain activity to a computer (Rowley, 2009). Natural language processing involves computers understanding and acting on verbal or written commands in English, Spanish, or other human languages. Learning systems allow computers to learn from past mistakes or experiences, such as playing games or making business decisions.