What are the different categories of Information Systems? List out and explain.

A Management Information System ICT Revision Questions and Answers

Answer
System Analysts develop several different types of information systems to meet a variety of business needs.

i. Transaction Processing Systems (TPS)
Processing of the business transaction is the primary function of a computer-based system. Computerized Transaction Processing Systems provide speed, accuracy and can be programmed to follow routines without any deviations. Transaction Processing

Systems expedite and improve the routine business activities that of all organization. Organization‘s standard operating procedures that facilitate transaction handling are programmed into the computer software. The system controls the data entry, processes transactions, provides search facilities and produces data and information. High volume of clearly understood transactions of the operating level of an organization and need to enhance the ability of managers to develop more efficient approach for information handling indicates the requirement for computer system’s assistance.

ii. Management Information Systems (MIS)
Transaction processing systems are operation oriented, whereas, Management Information Systems assist managers in decision making and problem solving. They primarily use results produced the Transaction Processing Systems, however other information are also used. In most of the organization, recurring decision must be made on several issues regularly and they require a limited amount of information. Since the decision making process and inputs are well understood, the manager can identify the information required for a decision. A computer based information system can be developed to produce specified reports to address and support recurring decisions.

iii. Decision Support Systems (DSS)
Decision Support Systems are aimed at assisting higher level managers faced with unique non- recurring decision problems. DSS is more applicable when the decisions are of unstructured or semi-structured nature. DSS can be used at the tactical level. It can be best used at the strategic level. A decision Support System is an interactive system that provides the user with easy access to decision models and data from a wide range of sources, to support semi-structured decision- making tasks. It is an informational application that is designed to assist an organization in making decisions through data provided business intelligence tools. Typical information that a decision support applications gathers and present are: (a) comparative sales figures, (b) projected revenues, and (c) consequences of different decision alternatives.

iv. Executive Information System (EIS)
Executive Information systems are designed primarily for the strategic level of management. They enable executives to extract summary data from the database and model complex problems without the need to learn complex query languages, to enter formulae, to use complex statistics or have computing skills. High level summary data and trend analysis is provided at the touch of a button. EIS are more externally focused, strategically based systems using both internal and external data.

v. Expert Systems
Expert Systems are designed to replace the need for a human expert. They are particularly important where expertise is scarce and are expensive. This system is in an area of artificial intelligence that is becoming increasingly popular. They perform specific function or in a specified industry. An expert system allows the users to specify certain basic assumption or formulas and then uses these assumptions or formulas to analyze arbitrary events. Based on the information used as input to the system, a conclusion is produced the system. This system attempts to replace certain extent of subjective decisions of senior managers.



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