1. Information System (IS): An IS is a collection of hardware, software and procedures that are designed to generate information that supports –Day to day, short range and long range activities of user in an organization. Benefits of IS –Operational Efficiency –Functional Effectiveness –Taking advantage of opportunities –Better Service –Product differentiations –Client Lock in –Competitor Knock out

2. IS Categories TPS Transaction Processing System) MIS (Management Information System) Knowledgebase –DSS (Decision Support System) –ES (Expert System) –EIS (Executive Information System)

3. 1.TPS: It is the system which is used for recording day to day routine transactions of the organization. Examples of TPS are as follows Inventory Control System Student Information System Order Entry System Accounts Payable System Accounts Receivable Systems Payroll Systems Customer Management System

4. Types of TPS Batch Processing TPS –In batch processing first transaction data is collected over a period of time and all transactions are processed later as a group. Online TPS(OLTPS) –In OLTPS the transactions are processed as they enter into the system.

5. Files used in TPS Master File –Master Files contain identification data, historical transaction and current balances of all accounts Transaction File –TF consists day’s transactions and would include deposits, withdrawls,cheques Reference File –RF contains the data which is being referred in transaction & master file.

6. Transaction processing Cycle Data Entry Transaction Processing –Batch processing –Online processing Database updation Query processing Transaction docs generation

7. Transaction Documents a)Information Docs a)Confirmation of occurrence of transaction b)Action documents c)Control reports d)Periodic reports e)Turn around documents ( the transaction docs which contain perforated tear off portion that should be sent to sender) f)Accounting statements g)These docs are used for legal purpose. h)(Income statements, Cash flow statement, balance sheets, General Ledger.)

8. Advantages of TPS Fast response Accuracy Cost effective Transaction Transparency Security

9. MIS define 1 MIS is an IS which generates accurate an organized information so that the managers and other users can make decision,solve problems, supervise activities and track progress MIS can also be called management reporting system (MRS) because it generates reports regularly. MIS define2 An IS used to convert data from internal and external sources into information and to communicate that information in an appropriate form to managers at all levels in all functions to enable them to make timely and effective decisions for planning directing and controlling activities

10. Features of MIS It supports structured decisions. It is designed to report all existing operations. It has internal focus. It has little analytical capability. Task performed by MIS: Initiating transactions Transaction recording Transaction processing Producing reports Responding to Enquiries

11. Information generated by MIS Detailed information. It confirms the transaction processing activities (detailed order report) Summary information. It consolidates data which a user can review quickly (summarized stock report) Exception information. The information produced under the exceptional condition(expense budget over run report)

12. MIS at different levels of Management: 1-MIS at operational level MIS at this level is used to generate the operational information which is highly formal and quantitative. This information is also used for solving small scale problems. Moreover MIS at operational level it is used for processing transactions and updating files. Input for MIS is transaction data and output of MIS at this level is simple reports. MIS at tactical level: MIS at this level is used for the followings: 1-For exception reporting. 2-For investigating and analysis of data acquired at operational level. MIS at strategic level: MIS as formal systems are less important because it is not always possible to quantify the strategic information therefore MIS at strategic level will only provide summary level data.