A business has several information systems :
a) Formal Information System
b) Informal Information System
c) Computer Based Information System
Formal Information System : It is based on organizational chart represented by the organization.
Informal Information System : it is an employee based system designedto meet personal and vocational needs and to help in the solution of workrelatedproblems. It also funnels information upward through indirectchannels. It works within the framework of the business and its stated policies.
Computer Based Information System (CBIS) : This category of information system depends mainly on the computer for handling business applications. System analyst develops different types of information systems to meet variety of business needs. There is a class of system collectively known as computer based information system. They can be classified as
- Transaction Processing System (TPS)
- Management Information System(MIS)
- Decision Support System (DSS)
- Office Automation System (OAS)
Transaction Processing System (TPS) : The most fundamental computer based system in an organization pertains to the processing of business transactions. A transaction processing system can be defined as a system that captures, classifies, stores, maintains, updates and retrieves transaction data for record keeping and input to the other types of CBIS.
Transaction Processing System is aimed at improving the routine business activities. A transaction is any event or activity that affects the whole organization. Placing order, billing customers, hiring of employees and depositing cheques are some of the common transactions.
Types of transactions that occur vary from organization to organization but this is true that all organizations process transaction as a major part of their daily business activities. Transaction Processing System provides speed and accuracy and can be programmed to follow routines without any variance.
Management Information System (MIS) : Data processing by computers has been extremely effective because of several reasons. The main reason is that huge amount of data relating to accounts and other transactions can be processed very quickly. MIS are more concerned with levels of management with information essential to the running of smooth business. This Information must be as relevant, timely, accurate, complete and concise as is economically feasible.
Decision Support System (DSS) : It is an information system that offers the kind of information that may not be predictable. Business professionals may need such information only once. These systems do not produce regularly scheduled management reports. Instead, they are designed to respond to wide range of requests. It is true that all the decisions in an organization are not of a recurring nature. Decision support systems assist managers, who make decisions that are not highly structured, often called unstructured or semi structured decision. The decision support systems support, but do not replace, judgments of managers.
Office Automation System (OAS) : Office Automation Systems are among the newest and most rapidly expanding computer based information systems. They are being developed with the hope and expectation that they will increase the efficiency and productivity of office workers, typists, secretaries, administrative assistants, staff professionals, managers and others.