 Expanding roles of I.S.  Types of I.S.

 Transaction Processing  Record Keeping  Tradional Accounting applications

s  Management reports to support decision making

s  Decision Support System

s  Expert System  Executive Information System

s  Internetworked I.S.

Types of I.S.  Operation Support System  Management Support System

Operation Support System  Process business transaction  Control industrial processes  Support enterprise communication and collaboration  Update corporate databases.

Management Support System  It emphasizes the management orientation of Information technology in business.

Operation Support System  Transaction Processing System  Process Control System  Enterprise Collaboration System

Transaction Processing System  Process data resulting from business transaction e.g. process sales, purchases and inventory changes to update database.  Produces customer statements, employees paychecks, sales receipts, purchase orders, dividend checks, tax forms, financial statements.  Transactions are processed in 2 ways-  In batch processing, data is accumulated over a period of time and processed periodically.  In real time processing, data is processed immediately after a transaction occurs.

Process Control Systems  Physical production processers are automatically made by computers.  Computers monitor a chemical process, capture, process data detected by sensors and instant adjustments to appropriate refinery processes.

Enterprise Collaboration System  Uses a variety of information technology to help people work together.  Help to communicate ideas, share resources, coordinate workgroups.

Management Support System  It focuses on providing information and support for effective decision making.

Management Information System  Provides day to day decision making needs of managers.  Provides a variety of reports.  It retrieve information about internal operations from databases that have been updated by TPS.  They also obtain data from external sources.

Decision Support System  These are interactive computer based information system.  That uses decision models and specialized databases.  To assist the decision making process.  Provides information on an ad hoc basis i.e. as needed.  Important decisions software are electronic spread sheets, graphic package, lotus 1-2-3, DBMS.

Executive Information System  To provide the information to top executives  Sources are letters, memo, reports, meetings, tele calls, social activities i.e. computer and non computer.  Graphic displays are used frequently.  Immediate access to internal and external databases is provided.  EIS provide information about the current status and projected trends.

Other Classifications  Expert System  Knowledge Management Systems (KMS)  Strategic Information System  Business Information System  Integrated Information System

Expert System  The most practical application of AI is the development of ES.  It is knowledge based Information System  It uses its knowledge about a specific area to act as an expert consultant to users.  IT now help diagnose illness, search for minerals, analyze compounds, recommend repairs.

Knowledge Management Systems (KMS)  Some companies encourage employees to share what they know.  These are known as knowledge creating company or learning organization.  KMS help knowledge workers create, organize and share important business knowledge wherever and whenever it is needed.

Strategic Information System  It involves using information technology to develop products, services, and capabilities that give a company strategic advantages over competitive forces it faces in the global market.  It support the competitive position and strategies of an enterprise.  Thus it can be any kind of Information system that helps an organization gain a competitive advantage, reduce a competitive disadvantage or meet other strategic enterprise objectives.

Business Information System  Information system both operations and management activities in the business functions of accounting, finance, HRM, marketing and operations management.

Integrated Information System  In real world information systems are the combinations of several types of information system.  Example of payroll / labor analysis system  Trends in labor cost is HRM IS.  It is generated from data of payroll system.