information systems

Topics: Transaction processing, Knowledge management, Information systems Pages: 5 (2191 words) Published: October 28, 2014
TOPIC Information Systems LECTURE 9 Data is streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use. Information is data that have been shaped into a form that is meaningful and useful to human beings. Desired Characteristics of Information Accuracy Clarity Conciseness User Relatedness Relevance Timeliness What is an Information System An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. TYPES OF INFORMATION SYSTEMS Transaction Processing Systems Transaction processing systems (TPS) are the basic business systems that serve the operational level of the organization. A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry, hotel reservation systems, payroll, employee record keeping, and shipping. At the operational level, tasks, resources, and goals are predefined and highly structured. The decision to grant credit to a customer, for instance, is made by a lower-level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteria. An example of a TPS is a payroll TPS, which is a typical accounting transaction processing system found in most firms. A payroll system keeps track of the money paid to employees. The master file is composed of discrete pieces of information (such as a name, address, or employee number) called data elements. Data are keyed into the system, updating the data elements. The elements on the master file are combined in different ways to make up reports of interest to management and government agencies and to send paychecks to employees. These TPS can generate other report combinations of existing data elements. Management Information Systems The term management information systems (MIS) designates a specific category of information systems serving management-level functions. Management information systems (MIS) serve the management level of the organization, providing managers with reports and, in some cases, with online access to the organizations current performance and historical records. Typically, they are oriented almost exclusively to internal, not environmental or external, events. MIS primarily serve the functions of planning, controlling, and decision making at the management level. Generally, they depend on underlying transaction processing systems for their data. Figure 1-2 How management information systems obtain their data from the organizations TPS. In the system illustrated by this diagram, three TPS supply summarized transaction data at the end of the time period to the MIS reporting system. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports. Decision-support systems (DSS) also serve the management level of the organization. DSS help managers make decisions that are unique, rapidly changing, and not easily specified in advance. They address problems where the procedure for arriving at a solution may not be fully predefined in advance. Although DSS use internal information from TPS and MIS, they often bring in information from external sources, such as current stock prices or product prices of competitors.Clearly, by design, DSS have more analytical power than other systems. They are built explicitly with a variety of models to analyze data, or they condense large amounts of data into a form in which they can be analyzed by decision makers. DSS are designed so that...
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