Business in Computing

Topics: Management, Decision support system, Decision theory Pages: 18 (2970 words) Published: May 25, 2014
Question 2

What are the major types of system in business? In typical organizations you’re familiar with, describe what role they play.


Successful organizations large and small leverage available technologies to manage business activities and assist in making decisions. They use information systems to collect data and process it according to the needs of the analyst, manager or business owner. Businesses operate more efficiently by using varied information systems to interact with customers and partners, curtail costs and generate revenues. However, data have no value until they are compiled into a system and can provide information for decision making. What is information system?

Information is what is used in the act of informing or the state of being informed. Information includes knowledge acquired by some means. It is processed data which in turn is collection of raw facts, observations and figures. Every business or organization regardless of its size must perform these four functions to succeed. It must produce something, weather a physical product or a service, and it must market and sell the product. The firm must perform finance and accounting tasks to manage its financial assets and fund flows, and it must also focus on human resources issues. Example:-

Types of information systems in business
There are four main categories of systems from a constituency perspective. 1) Transaction processing systems (TPS) are basic business systems that serve the operational level of the organization by recording the daily routine transactions required to conduct business, such as payroll and sales receipts.

Clerical staff typically performs the activities associated with transaction processing, which include the following:

1. Recording a business activity such as a student’s registration, a customer’s order, an employee’s timecard or a client’s payment.

2. Confirming an action or triggering a response, such as printing a student’s schedule, sending a thank-you note to a customer, generating an employee’s paycheck or issuing a receipt to a client.  

3. 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 – a function originally called data processing.  Usually, the TPS computerized an existing manual system to allow for faster processing, reduced clerical costs and improved customer service.  

The first transaction processing systems usually used batch processing.  With batch processing, transaction data is collected over a period of time and all transactions are processed later, as a group.  As computers became more powerful, system developers built online transaction processing systems.  With online transaction processing (OLTP) the computer processes transactions as they are entered.  When you register for classes, your school probably uses OLTP.  The registration administrative assistant  enters your desired schedule and the computer immediately prints your statement of classes.  The invoices, however, often are printed using batch processing, meaning all student invoices are printed and mailed at a later date.  

Today, most transaction processing systems use online transaction processing.  Some routine processing tasks such as calculating paychecks or printing invoices, however, are performed more effectively on a batch basis.  For these activities, many organizations still use batch processing techniques.  

The figure shows that there are the five functional categories of TPS such as:- a) Sales and Marketing
b) Manufacturing and Production
c) Finance and Accounting
d) Human resource
e) Other types of TPS that are unique to a particular industry.

2 Management information systems (MIS) serve middle managers' interests by providing current and historical performance information to aid in planning,...
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