Information System Part 1

7.1 Types Of Information System
7.2 System Development Life Cycle

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
Learning
Outcomes
7.1 Types of Information System

 Is a collection of hardware, software, data, people, and
procedures that work together to produce quality information.
 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)
(Shelly & Vermaat, 2012)
Definition Information System

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.
Component of Information System

3. Data
Data comprises of all facts stored in a database. This includes
operational data and metadata.
4. Procedures
Procedures refer to the instruction and rules that govern the
design and use of a database system.
Component of Information 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 SystemComponent of Information System

4 Levels of Information System

 Transaction Processing System (TPS)
 Management Information System (MIS)
 Decision Support System (DSS)
 Executive Support System (ESS)

Graphical representation of information system
in a triangle
ESS
DSS
MIS
TPS

 Is an information System that captures and processes
data day-to-day
 An operational system that record and process data resulting
from business transactions.
 Examples of transactions are deposits, payments, orders and
reservations
 Two basic way of process transaction
1. Batch processing
2. Online Transaction Processing(OLP)/
Real-Time Processing
Transaction Processing System (TPS)

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

1. Batch processing
• Transactions data are accumulated over a period of
time and processed periodically.
• The computer collect data over time and process all
transactions later, as a group.

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.

Purpose TPS
The intent of these system is to
 process transactions faster
 reduce clerical costs
 improve customer service

Management Information System (MIS)
 Is an information system that generates
accurate, timely and organized information
 Produce meaningful information for manager
or produce report

 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 MIS
Management Information System (MIS)

 Helps users 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)

Purpose DSS
Decision Support System (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

Executive Support System (ESS)
 A special type of Decision Support System
(DSS) that serve the strategic level of the
organisation

 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

Manager use an
ESS to analyze
a company's
financial trends
Example
ESS

 Is an information system that enables employees
to perform tasks using computers and other
electronic devices.
 The system help employee to collects, process,
store and transmit electronic message, document
and other form of communication among
individual, work group and organizations.
Office Automation System (OAS)

 A school posted its class schedules on the
internet. When the school updates the schedule,
students receive an email notification.
Example

 Increase employee productivity
 Assists with communication among employee
Purpose

Types of IS Characteristics
Transaction
Processing System
(TPS)
 Provides raw data used in
 Processing in EIS, 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

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.

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

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 EIS 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.

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?

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.

Information System Part 1

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Information System Part 1