Types of Information System

1. Office Information System (OIS) is an information system that uses hardware, software and
networks to enhance work flow and facilitate communication among employees. Employee
performs tasks electronically using computers and other electronic devices, instead of manually.
Example. A registration department might post the class schedule on the internet and e-
mail students when the schedule is updated. In a manual system, the registration department
would photocopy the schedule and mail it to each students house.
2. Transaction Processing System (TPS) is an information system that captures and processes
data generated during an organization day-to-day transactions. A transaction is a business
activity such as a deposit, payment, order or reservation.
Clerical staff typically performs the activities associated with Transaction processing,
which include the Following:
1. Recording a business activity such as students registration, a customers order, an
employees timecard or a clients payment.
2. Confirming an action or triggering a response, such as printing a students schedule,
sending a thank-you not to a customer, generating an employees paycheck or
issuing a receipt to a client.
3. Maintaining data, which involve adding new data, changing existing data, or
removing unwanted data.
3. Management Information System (MIS) generates accurate, timely and organized information
so managers and other users can make decisions, solve problems, supervise activities, and track
progress. Because it generates reports on regular basis, a management information system
sometimes is called a management reporting system (MRS).

1. Management information system (MIS) often are integrated with transaction
processing system. To process a sales order, for example the transaction processing
system records the sale, update the customers, account balance and makes a
deduction from inventory. Using this information the related management
information system can produce reports that recap sales activities, list customers
with past due account balances, graph slow or fast selling products, and highlight
inventory items that need reordering. Management information system focuses on
generating information management and other users to perform their jobs.
2. An MIS generates 3 basic types of information: detailed, summary and exception.
a. Detailed information typically confirms transaction processing activities, a
detailed order report is an example of a detail report.
b. Summary information consolidates data into a format that an individual
can review quickly and easily. To help synopsize information, a summary
report typically contains totals, tables, or graphs. An inventory summary
report is an example of a summary report.
c. Exception information filters data to report information that is outside of a
normal condition.
4. Decision Support Systems (DSS) is an information system designed to help users reach a
decision when a decision-making situation arises?
a. A sales manager for example might need to determine how high to set yearly quotas
based on increased sales and lowered product costs. Decision support system help
provide information to support decisions.
1. Internal Sources include sales, manufacturing, inventory, or financial data
from organizations database.
2. External sources interest rates, population trends, and costs of new housing
construction or raw material pricing. Users of DSS, often managers.
5. Expert System captures and stores the knowledge of human expert and the imitates human
reasoning and decision making processes for those who have less expertise. Expert system are
composed of 2 main components: Knowledge base is the combined subject knowledge and
experiences of the human expert. Inference rules are a set of logical judgments applied to the
knowledge base each time a user describes a situation to the expert system.

Transaction Processing System (TPS) system that performs or record daily routine transaction such as
sales order entry, payroll, employee record keeping, and shipping
Management Information System (MIS) it designed a specific category of information to middle
management. It is to monitor and control the business and predict future performance.
Decision Support System (DSS) support non routine decision making for middle management. Example
of a non-routine decision: what would you be in the impact on production schedules if we were to
double sales in the month of December?
Executive Support System (ESS) Help senior Management to address strategic issues and long-term
trends, both in the firm and in the external environment. Example: What will employment levels be in
five years? What products should we be making in five years?