Types of Information Systems (IS) MIS in Practice Types of Information Systems (IS)

Types of IS They are: Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Management Reporting Systems (MRS) Knowledge Based Systems (KBS) Office Information Systems (OIS)

Supports of IS Support for Strategic Planning Support for management Control Support for Operational Control Improved Product Quality Improved Product Delivery Internal Use External Use

Transaction Processing System (TPS) It supports day-to-day operations. For example: Order Entry Systems Cheque Processing Systems Account Receivable Systems Accounts Payable Systems Payroll Systems Ticket Reservation Systems

Transaction Processing System (TPS) Transaction processing is a set of procedures for handling the transactions. Common activity includes: Calculation Classification Sorting Storage Summarization

Examples: Sales Order Processing System: The TPS data contains the list of products, available for sale, their prices and related data. Railway Reservation System: The TPS data contains the location of available seats. It displays a message on the terminal indicating seats sold out to people. It also prints the tickets and perhaps a mailing label for sending them.

Examples: So the TPS program generates two types of outputs: It sends message back to the operator terminal It generates printed documents

Need of MIS It helps management at different levels It is a means of communication where data are collected, stored and retrieved for planning, operation and control of an organization It supports decision making with different types of information obtained from different functional areas of management like HR, Finance, Marketing etc..

Present Information to Managers Functions of MIS Collect Data Store and Process Data Present Information to Managers

To Managers

Decision Making and MIS Relationship between Decision Making and MIS

Sales Representatives External Sources Customers Distributors Competitors Consultants External Environment Government Data Technology Data Social Change Data.. etc Management Information System Managers Decision Making Internal Sources Staff Specialists Sales Representatives Production People Internal Environment Marketing Data Financial Data Production Data Personnel data.. etc

TPS Vs MIS MIS is conceptually a level above They are concerned with day to day operations MIS is conceptually a level above Transaction Processing System. They are concerned with activities that do support operations. Example: Ticket Reservation TPS: Takes orders and print tickets. MIS: Measures and reports the performance of each of the agents who will sell tickets. It keeps track of the number and amount of each agent’s sales and it regularly produce reports about agent’s effectiveness.

Decision Support System (DSS) An information system that utilizes decision models, a data base and a decision makers own insights in an ad-hoc, interactive analytical modeling process to reach a specific decision by a specific decision-maker. Or DSS is a system for providing information to help management with new, un-structured decision making.

Example of DSS A strike by the dancer’s union-- It forces the cancellation of arranged dance performances. The management of the dance association wants to know— The impact on revenue of the cancellation of each performance. A DSS could be used to process the ticket agencies data to produce the information.

Architecture of a generic DSS application

Components of a DSS

MIS Vs. DSS Points MIS DSS Focus On structured tasks and routine decisions On semi structured tasks, requiring managerial judgment Emphasis On data storage On efficiency On data manipulation On effectiveness Reliance On computer expert On managers own judgment Data Access Indirect access by managers Direct access by managers