Types of Information SystemsFollowing are the various types of Information Systems:

• Transaction Processing System• Management Information System• Executive Information System• Decision Support System• Expert System• Functional Area Information System• Office Automation System (Personal Productivity Software)• Collaboration System• Customer Relationship System• Electronic Commerce System• Enterprise resource Planning System

Transaction Processing System• Designed to process day-to-day business event data at the operational

level of the organization.• Performs repetitive tasks automatically, that occur as regular part of a

business’s day-to-day operations. • Situated close to the customers and processes large volumes of data. • Online processing – Transactions processed as they are created giving

immediate results – Results of questions answered • Batch Processing - Processed in batches – Processing of end-term

grade reports.• Example:

Grocery store checkout cash register with connection to network. Payroll processing Sales and order processing Inventory management Product purchasing, receiving and shipping Accounts payable and receivable

Management Information System• Are organizational information systems which gather data from multiple data

sources to produce scheduled and structured reports and also ad hoc reports.• Reports are produced at predefined intervals – daily, weekly or monthly. • MIS is meant for midlevel managerial level personnel for effective decision

making. • This system is designed to produce detailed information to help manage a

firm or a part of a firm. • Examples:

Inventory management and planning systemSales forecastingFinancial management and forecastingManufacturing planning and schedulingAdvertising and product pricing

Executive Information System• Provide very high-level, aggregate information to support executive-level

decision making for highest organizational managers. • Information is provided in a highly aggregated form so that trends and anomalies

can be pointed out. • EIS provides both textual news stories or non-analytical information (Soft data)

and also facts and numbers (Hard data).• Processing of EIS data consists of summarizing and graphical interpreting• Output data of EIS includes summary reports, trends and simulations; feedback

to system operator• Applications:

Executive level decision making Long-range and strategic planning Crisis management Monitoring of internal and external events News retrieval and stock update information system

Decision Support System• These systems provide analysis tools and access to databases in order to

support quantitative decision making.• Helps managerial-level personnel solve semistructured problems.• DSS is designed as an “Interactive” decision tool where as TPS, MIS and EIS

present data in a passive way as a summary of the output. • Commonly used tool of DSS is Microsoft Excel which provides “What-If”

analyses.• Example:

Product demand Sales and resource forecasting. Cost analysis Linear programmming and decision trees Simulation Statistics – Correlation and Regression Output of DSS is in the form of graphs and textual reports Feedback is given to the system through user interface

Expert System• These systems mimic human expert in a particular area and provide answers

or advice by asking a series of questions. • First knowledge is gathered from the expert and it is compiled. The processing in an expert system is known as inferencing

Matching facts and rules, Determining the sequence of questions presented to the user and Drawing a conclusion.

• Examples: Automated system for analyzing bank loan application (Example, IF personal income

is >= Rs.50,000, THEN approve the loan) Medical diagnosis, Machine configuration, automobile diagnosis, financial planning, software application assistance (Wizards)

Office Automation System

• These systems support a wide range of predefined, day-to-day work related activities of individuals and small groups.

• People buy these systems “off-the-shelf”.• People can work individually or work with others using these

systems.• Example: Microsoft Office - Word processor, Spreadsheet and

PowerPoint• Assistance provided to the users include

Communication and schedulingDocument preparationAnalyzing and merging dataConsolidating information

Collaboration System• These systems enable people to communicate, collaborate and

coordinate with each other• Example:

Electronic mail system with automated, shared calendar. Microsoft’s Exchange/Outlook and Lotus Notes are collaboration systems

that provide people with E-mail, automated calendaring and online, threaded discussions.

Videoconferencing and Desktop videoconferencing (fast personal computer, a small camera, a speaker telephone, videoconferencing software and video board)

Groupware – Helps people work together; Example Lotus Notes One form of groupware is the Electronic Meeting Systems (EMSs). Helps

group members solve problems and make decisions through interactive, electronic idea generation, evaluation and voting.

Customer Relationship Management System

• Customer relationship management (CRM) refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data

• The aim of CRM is to improve business relationships with customers, assisting in customer retention, increase sales and support interaction between the customers and the business firm.

• CRM compiles information on customers across different channels such as company's website, telephone, live chat, direct mail, marketing materials and social media.

• CRM collects and compiles information on customers' personal information, purchase history, buying preferences and concerns into a single database.

• CRM automates marketing and sales force efforts and provides technologies for undertaking geographic marketing campaigns based on customers' physical locations.

• Example: Siebel’s suite of e-business software products, including Siebel Sales

Electronic Commerce System• Electronic Commerce is the online exchange of goods, services and money

between firms (B2B) and between firms and customers (B2C). • Other forms of electronic commerce include Business to Employees (B2E) and

Consumer to Consumer (C2C). • EC also involves events leading upto purchase of products/services and also after

sale service. • These systems enable customers to buy goods and services from a firm’s Web site.• These systems work through Internet and

Enable consumers to find information about the products and purchase goods or services.

Business firms can also exchange , information and services electronically • Example: www.flipkart.com or www.amazon.com• Before Electronic Commerce, Electronic Data Interchange (EDI) was in vogue.• EDI refers to the digital or electronic, transmission of business documents and

related data between organisations via telecommunications networks.

Enterprise Resource Planning System

• These systems support and integrate all facets of the business, including planning, manufacturing, sales, marketing and so on.

• ERP provides a common data warehouse and similar application interfaces for servicing an entire enterprise.

• ERP applications make accessing information easier (by providing sharing facility between business activities) by means of central information repository.

• Example is that inventory information is accessible not only to inbound logistics and operations but also to accounting and customer service personnel.

• ERP systems are packaged applications whose vendors include BAAN, Oracle, PeopleSoft, SAP and J.D. Edwards.

• Example: SAP R/3 (Systems, Applications, and Products in Data Processing, Release 3)

Functional Area Information Systems

• Support the activities within a specific functional area of the firm.

• The functional areas are: Accounting and Finance, Human Resources, Marketing and Production and Operations

Accounting and Finance

• These systems are used for managing, controlling and auditing the financial resources of the organisation.

• Examples:Inventory managementAccounts payableExpense accountsCash managementPayroll processing

Accounting Information Systems

Finance Information Systems

Human Resource Management Information System

• Human resources management information system (HRMIS) is the computer software that simplifies and accelerates HR management process and improves its quality via automation of the basic (routine) objectives and activities.

• These systems are used for managing, controlling and auditing the human resources of the organisation.

• Examples: Recruiting and hiring Education and training Benefits management Employee termination Workforce planning

Human Resource Management Information System

Marketing Information Systems• A marketing information system (MKIS) is a software program that allows users to compile and

analyze data in a very easy, organized fashion. • MKIS systems help users make decisions about consumer behavior and the marketing mix,

including products and how they are placed, priced, and promoted. • These systems are used for managing new product development, distribution, pricing, promotional

effectiveness and sales forecasting of the products and services offered by the organisation. • Three components of marketing intelligence network:

1. Continuous monitoring is the procedure by which the changing environment is regularly viewed.2. Marketing research is used to obtain information on particular marketing issues.3. Data warehousing involves the retention of all types of relevant company records, as well as the information collected through continuous monitoring and marketing research that is kept by the organization.

• Examples: Market research and analysis New product development Promotion and advertising Pricing and sales analysis Product location analysis

Marketing Information Systems

Marketing Information Systems

Advantages of Marketing Information Systems:

1. Organized data collection.2. A broad perspective.3. The storage of important data.4. An avoidance of crises.5. Coordinated marketing plans.6. Speed in obtaining sufficient information to make decisions.7. Data amassed and kept over several time periods.8. The ability to do a cost-benefit analysis.

Production and Operations• These systems are used for managing, controlling and auditing the production and operations

resources of the organisation.• Manufacturing

– Design and Engineering– Master Production Scheduling– Inventory Control– Materials Planning– Manufacturing and Process Control– Quality Control

• Examples: Inventory management Cost and quality tracking Materials and resource planning Customer service tracking Customer problem tracking Job costing Resource utilization

Production and Operations

Production and Operations