Types, Purposes and Applications of Information Systems

Hardware +software +people +procedures + data = Information System

Information System

• Generic reference to a computer based system

that provides data processing capabilities for

department or, perhaps, an entire company;

information that people need to make better,

more informed decisions.

• Data processing capability

system’s capability to handle and process data.

Types of Information Systems

1. Data processing systems

2. Management information systems

3. Decision support systems

4. Executive information systems

5. Expert systems

1. Data Processing Systems (DP)

• are concerned with transaction handling and

record-keeping,

• data are entered and stored in a file format,

and stored files are updated during routine

processing.

• Periodic outputs include action documents

(invoices) and scheduled reports, primarily for

operational-level managers.

Drawback of Data Processing Systems

• Inflexible

• cannot accommodate data processing or information needs that are not already built into system

2. Management Information Systems (MIS)

• Method, a function, an approach, a process,

an organization, a system, and a subsystem.

• An MIS is an integrated structure of databases

and information flow that optimizes the

collection, transfer, and presentation of

information throughout the multilevel

organization

The MIS versus DP System

• The integrated database of an MIS enables

greater flexibility in meeting the information

needs of management than the traditional file

environment of DP systems.

• An MIS integrates the information flow

between functional areas where DP systems

tend to support a single functional area.

• An MIS caters to the information needs of all

levels of management where DP systems focus

on operational-level support.

• Management’s information needs are

supported on a more timely basis with an MIS

(on-line inquiry capability) than with DP

system (usually scheduled reports).

Characteristics of Management Information Systems

• supports the data processing functions of transaction handling and record keeping.

• uses an integrated database and supports a variety of functional areas.

• Provides operational, tactical and strategic-level managers with easy access to timely but, for the most part, structured information.

• is somewhat flexible and can be adapted to meet changing information needs of organization

• provides envelop of system security that limits access to authorized personnel.

3. Decision Support Systems

• Decision support system (DSS) are interactive

information systems that rely on an integrated

set of user-friendly hardware and software

tools to produce and present information

targeted to support management in the

decision making process.

• A decision support system can help close the

information gap and allow managers to

improve the quality of their decisions.

• To do this, DSS data support system hardware

and software employ the latest technological

innovations.

Ex. (color graphics and database management

system) planning and forecasting models,

user- oriented 4GLs, and even artificial

intelligence.

The DSS versus MIS

• management information systems are oriented to supporting decisions that involved structured problems,

• In contrast, decision support systems are design to support decision-making processes involving semistructured and unstructured problems

• an MIS is designed and created to support a specific application (accounting, inventory control) or a set of applications

• a DSS is a set of decision support tools that can be adapted to any decision environment.

Characteristics of Decision Support Systems

• A DSS makes general-purpose models, simulation capabilities, and other analytical tools available to the decision maker.

• A DSS can be readily adapted to meet the information requirements of any decision environment.

The DSS Tool Box

4. Executive Information Systems (EIS)