DEFINITION OF INFORMATION SYSTEM – ” An information system is a set of interrelated components that works together to collect, process, store and breakdown the information to support decision making. ”
Following are the DIMENSIONS of information system:
1.ORGANIZATIONAL DIMENSION : Information system are part of organization. Information system will have the standard operating procedure and culture of an organization embedded within them. This involves:
a)Functional specialties b)Business processes c)Culture d)Political interest groups
2.MANAGEMENT DIMENSION : Managers perceive business challenges in the environment. Information systems supply tools and information needed by the managers to allocate,coordinate and monitor their work, make decision,create new products and services and make long range strategic decision.
3.TECHNOLOGY DIMENSION : Management uses technology to carry out their functions. It consists of – computer hardware/software, data management technology, networking/telecom technology.Its one of the many tools managers use to cope with the change.
Information Systems are classified by organisational levels, mode of data, processing, system objectives and type of support provided.
Following are the TYPE of information system:
1. Transaction Processing System (TPS):
- Transaction Processing System are information system that processes data resulting from the occurrences of business transactions
- Their objectives are to provide transaction in order to update records and generate reports i.e to perform store keeping function
- The transaction is performed in two ways: Batching processing and Online transaction processing.
- Example: Bill system, payroll system, Stock control system.
2. Management Information System (MIS):
- Management Information System is designed to take relatively raw data available through a Transaction Processing System and convert them into a summarized and aggregated form for the manager, usually in a report format. It reports tending to be used by middle management and operational supervisors.
- Many different types of report are produced in MIS. Some of the reports are a summary report, on-demand report, ad-hoc reports and an exception report.
- Example: Sales management systems, Human resource management system.
3. Decision Support System (DSS):
- Decision Support System is an interactive information system that provides information, models and data manipulation tools to help in making the decision in a semi-structured and unstructured situation.
- Decision Support System comprises tools and techniques to help in gathering relevant information and analyze the options and alternatives, the end user is more involved in creating DSS than an MIS.
- Example: Financial planning systems, Bank loan management systems.
4. Experts System:
- Experts systems include expertise in order to aid managers in diagnosing problems or in problem-solving. These systems are based on the principles of artificial intelligence research.
- Experts Systems is a knowledge-based information system. It uses its knowledge about a specify are to act as an expert consultant to users.
- Knowledgebase and software modules are the components of an expert system. These modules perform inference on the knowledge and offer answers to a user’s question