INTRODUCTION

In this age of information, almost all fields of endeavour such as

education, manufacturing, research, games, entertainment, and business
treat information systems as a need. Indeed, every activity in our daily life
today requires people to get involved in the use of information systems.
In this age, the success of a business depends on the information system.
Many organisations today use information systems to offer services with
greater satisfaction to customers, to access a wider range of information,
to handle business changes at a greater speed, and to increase the
productivity of workers. Based on a number of researches, an effective
information system should be able to exceed customer expectations and
fulfil business needs.

MEANING OF INFORMATION SYSTEM

A system is simply a group of activities and elements, which have been
arranged to achieve a certain objective. An information system is a
combination of hardware, software and telecommunication
systems, which can support business operations to increase
productivity, and help managers make decision
Many companies today use information as a basis to increase productivity,
producing quality products, providing quality services, creating customer
confidence, and making timely decisions. As such, information technology
has become the prime reason for the success and failure of a company to
compete in business. This illustrates the impact of information technology
on business operations today. As a result, designing an information system
of high quality is important so that organisations can compete
successfully in the global market. Information systems experts need to
understand the business operation of a company before they can design a
comprehensive system. Every business situation is likely to be different.
As an example, business transactions at a supermarket, bank, and hotel
require information systems that are different and unique. A systems
analyst applies a technique called Business Process Modelling to represent
companys operations and information requirements. A systems analyst
works in an information technology based department.

INFORMATION SYSTEM
COMPONENTS
A system is a set of related components, which can process input to
produce a certain output. Every system requires a form of data input. For
example, an ATM machine accepts data when you enter the PIN number. A
washing machine accepts data when you select the start buttons. They
process the inputs and produce their respective outputs.
An information system contains five main components:
1. Hardware
2. Software
3. Data
4. Process
5. Human
Hardware
Hardware is the physical embodiment of an information system. It is one
of the main elements which creates the information system cycle.
Information system's hardware refers to all types of hardware and the
media used for input, processing, managing, distributing and saving
information that are being used in an organisation. Examples of the
hardware are the physical computers, networks, communication
equipment, scanners, digital drives, and so on.
Software
Software consists of two categories
1. The system software
2. The application software.
- System Software controls the computer and contains the operating
system and device drivers, which can communicate with the hardware. It
can also modify data into a new form, prevent viruses and make copies.
- Application Software contains programs which can help users and
enable companies to perform business functions. Users can increase
productivity with the presence of application software such as
spreadsheets, word processing, ordering systems, and accounts
receivable.

 Data
Data refers to the raw facts on anything or entities like student names,
courses and marks. The raw data that has not yet been provided can be
processed to become more useful information. Information is an
organised, meaningful and useful interpretation of data such as a
companys performances or a student's academic performance.
Information systems change data into information, which is useful and
capable of giving a certain meaning to its users.
Process
Process or procedure explains the activities carried out by users,
managers and staff. Process is important for supporting a certain business
model available as written documents or as reference materials on-line.
Process is a guide consisting of orderly steps, which need to be followed
and implemented in order to get a certain decision on a certain matter.
The procedure for using a certain matter is very wide and very important
to ensure that it can be implemented with success. All the information
system components contain management and implementation procedures
on their own, and they are different from each other.
Human
The main objective of an information system is to provide invaluable
information to managers and users, whether inside or outside the
company. Users can be broken up into three categories, which are: -End-Users, consisting of the staff, customers, suppliers and others who
communicate with the information system.
- Internal Users, including the managers, technicians, sales
representatives and corporate officers.
- External Users, consisting of the customers who use the companys
system for performing transactions, suppliers who use the system for
planning sales, and the staff who use the system outside office hours.
The success or failure of an information system depends on whether the
system that has been developed can fulfil the user's requirements, and
the users feel satisfied with the results and the system's operation. A
successful system requires integrated efforts from information technology
experts such as the system analysts, programmers and the information
technology managers so as to fulfil business needs and to support
company's objectives.

Types of information system

While there are several different versions of the pyramid model, the most
common is probably a four level model based on the people who use the
systems. Basing the classification on the people who use the information
system means that many of the other characteristics such as the nature of
the task and informational requirements, are taken into account more or
less automatically.

Four level pyramid model based on the different levels of hierarchy in the
organization

A comparison of different kinds of Information Systems

Using the four level pyramid model above, we can now compare how the
information systems in our model differ from each other.

1. Transaction Processing Systems

What is a Transaction Processing System?
Transaction Processing System are operational-level systems at the
bottom of the pyramid. They are usually operated directly by shop floor

workers or front line staff, which provide the key data required to support
the management of operations. This data is usually obtained through the
automated or semi-automated tracking of low-level activities and basic
transactions.

Functions of a TPS
TPS are ultimately little more than simple data processing systems.
Functions of a TPS in terms of data processing requirements
Inputs

Processing

Outputs

Transactions
Events

Validation
Sorting
Listing
Merging
Updating
Calculation

Lists
Detail
reports
Action
reports
Summary reports?

Some examples of TPS

o Payroll systems
o Order processing systems
o Reservation systems
o Stock control systems
o Systems for payments and funds transfers
The role of TPS
o Produce information for other systems
o Cross boundaries (internal and external)
o Used by operational personnel + supervisory levels
o Efficiency oriented

2. Management Information Systems

What is a Management Information System?

For historical reasons, many of the different types of Information Systems
found in commercial organizations are referred to as "Management
Information Systems". However, within our pyramid model, Management
Information Systems are management-level systems that are used by
middle managers to help ensure the smooth running of the organization in
the short to medium term. The highly structured information provided by
these systems allows managers to evaluate an organization's
performance by comparing current with previous outputs.

Functions of a MIS
MIS are built on the data provided by the TPS
Functions of a MIS in terms of data processing requirements
Inputs
Internal
Internal
Structured data

Processing
Transactions Sorting
Files Merging
Summarizing

Some examples of MIS

o Sales management systems
o Inventory control systems
o Budgeting systems
o Management Reporting Systems (MRS)
o Personnel (HRM) systems
The role of MIS
o Based on internal information flows
o Support relatively structured decisions
o Inflexible and have little analytical capacity
o Used by lower and middle managerial levels

Outputs
Summary
reports
Action
reports
Detailed reports

o Deals with the past and present rather than the future
o Efficiency oriented?

3. Decision Support Systems

What is a Decision Support System?
A Decision Support System can be seen as a knowledge based system,
used by senior managers, which facilitates the creation of knowledge and
allow its integration into the organization. These systems are often used
to analyse existing structured information and allow managers to project
the potential effects of their decisions into the future. Such systems are
usually interactive and are used to solve ill structured problems. They
offer access to databases, analytical tools, allow "what if" simulations, and
may support the exchange of information within the organization.

Functions of a DSS
DSS manipulate and build upon the information from a MIS and/or TPS to
generate insights and new information.
Functions of a DSS in terms of data processing requirements
Inputs

Processing

Modelling
Internal
Transactions
Simulation
Internal
Files
Analysis
External Information?
Summarizing

Outputs
Summary
Forecasts
Graphs / Plots

Some examples of DSS

o Group Decision Support Systems (GDSS)
o Computer Supported Co-operative work (CSCW)
o Logistics systems
o Financial Planning systems

reports

o Spreadsheet Models?
The role of DSS
o Support ill- structured or semi-structured decisions
o Have analytical and/or modelling capacity
o Used by more senior managerial levels
o Are concerned with predicting the future
o Are effectiveness oriented?

4. Executive Information Systems

What is an EIS?
Executive Information Systems are strategic-level information systems
that are found at the top of the Pyramid. They help executives and senior
managers analyse the environment in which the organization operates, to
identify long-term trends, and to plan appropriate courses of action. The
information in such systems is often weakly structured and comes from
both internal and external sources. Executive Information System are
designed to be operated directly by executives without the need for
intermediaries and easily tailored to the preferences of the individual
using them.

Functions of an EIS
EIS organizes and presents data and information from both external
data sources and internal MIS or TPS in order to support and extend
the inherent capabilities of senior executives.
Functions of a EIS in terms of data processing requirements
Inputs
External
Internal
Pre-defined models

Processing
Data Summarizing
Files Simulation
"Drilling Down"

Some examples of EIS

Outputs
Summary
Forecasts
Graphs / Plots

reports

Executive Information Systems tend to be highly individualized and

are often custom made for a particular client group; however, a
number of off-the-shelf EIS packages do exist and many enterprise
level systems offer a customizable EIS module.
The role of EIS
o Are concerned with ease of use
o Are concerned with predicting the future
o Are effectiveness oriented
o Are highly flexible
o Support unstructured decisions
o Use internal and external data sources
o Used only at the most senior management levels

TOPICNAME:
Information system
Name: Gausia Khurshid
Class: Mcom 2nd yr
Roll no: 05

Content
Sl.no
1.

Topic

Introduction to Information
System

2.

Information System
Components
3.
Types Of Information system