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1 Definition of Information System

Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved. An Information System handles the flow and maintenance of information that supports a business or some other operation. It contains information about significant people, places and things within the organization or in the environment surrounding it. Information is derived from meaningful interpretation of data. Data consists of the raw facts representing events occurring in the organization before they are organized into an understandable and useful form for humans. An Information System can be defined technically as a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making and control in an organization. Another definition of an Information system (by Buckingham et al (1987b) is : A system which assembles, stores, processes, and delivers information relevant to an organization (or to a society), in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients and citizens. An information system is a human activity (social) system, which may or may not involve the use of computer systems. Also, in addition to supporting decision-making, information systems help workers and managers to analyze complex problems, to develop new products and to integrate the various modules and departments. Moreover the 'transmission losses' and inter-departmental communication are reduced considerably leading to better coordination and improved transparency (information sharing) within the organization as a whole. Three activities provide the information that organizations need. These activities are Input, Processing and Output. 'Input' consists of acquisition of the 'raw data', which is transformed into more meaningful packets of 'Information' by means of 'Processing'. The processed information now flows to the users or activities also called as 'Output'. The shortcomings are analyzed and

the information is sent back to the appropriate members of the organization to help them evaluate and refine the input. This is termed as 'feedback'.

Examples of 'Information Inputs' would be Transactions, events which would undergo 'processing' in the form of sorting, listing, merging and updating resulting in 'outputs' such as detailed reports, lists and summaries. Another example would be in the manufacturing environment with 'information inputs' such as design specs material requirements and the SOPs (standard operating procedures). These would be 'processed' by the information system by modeling and simulation techniques and would result in standard production models along with the overall cost of the production process which is calculated by the information system from the knowledge base containing material costs, hourly labor costs and other indirect costs. Hence almost totally eliminating a distinct costing function in the scheme of things.

1.2 Meaning of Information System

An information system is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long-range activities of users in an organization. Information systems generally are classified into five categories: office information systems, transaction processing systems, management information systems, decision support systems, and expert systems. The following sections present each of these information systems. Information Systems is an academic/professional discipline bridging the business field and the well-defined computer science field that is evolving toward a new scientific area of study. An information systems discipline therefore is supported by the theoretical foundations of information and computations such that learned scholars have unique opportunities to explore the academics of various business models as well as related algorithmic processes within a computer science discipline. Typically, information systems or the more common legacy information systems include people, procedures, data, software, and hardware (by degree) that are used to gather and analyze digital information. Specifically computer-based information systems are

complementary networks of hardware/software that people and organizations use to collect, filter, process, create, & distribute data (computing). Computer Information System (CIS) is often a track within the computer science field studying computers and algorithmic processes, including their principles, their software & hardware designs, their applications, and their impact on society. Overall, an Information System discipline emphasizes functionality over design. Information System is some kind of combination of information technology and the activities of the people associated to support and execute the necessary operations and management of the system with the responsibility of decision making. Its a system of people and technology depending upon each other to achieve some common goal. Information Technology is distincy from Information System as the latter is seen just as a component of former one. Information system also helps to control and manage the activities and performance of a business process. An Information system can be viewed as a work system where all activities are devoted to different types of digital processing. The main components of typical information system are computer, stored facts, procedures and instructions. Those instructions and procedures are applied on those facts in store to create new information and manage the existing ones. That is the basic structure of an information system and its working principle.

1.3 Objectives of Information System

The main object of an Information System is to focus on exploring the platform or interface between business management and information science with the inseparable aid of computer science. Thus, computer science is merely used as a tool to make it work. Computer Science here acts as a bridge between pure information technology and human activity systems. So, by the term Information System we refer to the wider system consisted of raw data, people related to the organization and their activities, both manual and computer based. Information systems are now leading to the largest economic growth all over the world as they are the centre of knowledge based organizations as well as pure technical industries. Various objectives are as follows: Building a responsive Information Technology infrastructure

 Facilitating and managing business process redesign Developing and managing distributed systems Developing and implementing an information infrastructure Planning and managing communication networks. Improving the effectiveness of software development. Making effective use of the data resource. Recruiting and developing Information System human resources. Aligning the Information System organization with the enterprise. Improving Information System strategic planning

1.4 Different types of Information Systems

For different type of business organizations there are different types of information system. The another thing which causes the difference is different levels of organization. There are four types of information system which are quite important which are Transaction Processing system (TPS), Management Information System (MIS), Decision Support System (DSS) and Executive Information System (EIS).

Despite of these basic information systems there are other information systems also which are as follows:

1. Office Information System - An office information system or OIS, is an information system that uses hardware, software and networks to enhance work flow and facilitate communications among employees. Win an office information system, also described as office automation; employees perform tasks electronically using computers and other electronic devices, instead of manually. With an office information system, for 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. An office information system supports a range of business office activities such as creating and distributing graphics and/or documents, sending messages, scheduling, and accounting. All levels of users from executive management to nonmanagement employees utilize and benefit from the features of an OIS. The software an office information system uses to support these activities include word processing, spreadsheets, databases, presentation graphics, e-mail, Web browsers, Web page authoring, personal information management, and groupware. Office information systems use communications technology such as voice mail, facsimile (fax), videoconferencing, and electronic data interchange (EDI) for the electronic exchange of text, graphics, audio, and video. An office information system also uses a variety of hardware, including computers equipped with modems, video cameras, speakers, and microphones; scanners; and fax machines. 2. Transaction Processing System - A transaction processing system (TPS) is an information system that captures and processes data generated during an organizations day-to-day transactions. A transaction is a business activity such as a deposit, payment, order or reservation. Clerical staff typically perform the activities associated with transaction processing, which include the following: Recording a business activity such as a students registration, a customers order, an employees timecard or a clients payment. Confirming an action or triggering a response, such as printing a students schedule, sending a thank-you note to a customer, generating an employees paycheck or issuing a receipt to a client. Maintaining data, which involves adding new data, changing existing data, or removing unwanted data.

Transaction processing systems were among the first computerized systems developed to process business data a function originally called data processing. Usually, the TPS computerized an existing manual system to allow for faster processing, reduced clerical costs and improved customer service. The first transaction processing systems usually used batch processing. With batch processing, transaction data is collected over a period of time and all transactions are processed later, as a group. As computers became more powerful, system developers built online transaction processing systems. With online transaction processing (OLTP) the computer processes transactions as they are entered. When you register for classes, your school probably uses OLTP. The registration administrative assistant enters your desired schedule and the computer immediately prints your statement of classes. The invoices, however, often are printed using batch processing, meaning all student invoices are printed and mailed at a later date. Today, most transaction processing systems use online transaction processing. Some routine processing tasks such as calculating paychecks or printing invoices, however, are performed more effectively on a batch basis. For these activities, many organizations still use batch processing techniques. Some examples of Transaction Processing System (TPS) are: Billing systems to send invoices to customers. Systems to calculate the weekly and monthly payroll and tax payments. Production and purchasing systems to calculate raw material requirements. Stock control systems to process all movements into, within and out of the business.

3. Management Information Systems - A management information system ("MIS") is mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems and summarise it into a series of management reports. While computers were ideal for routine transaction processing, managers soon realized that the computers capability of performing rapid calculations and data comparisons could produce meaningful information for management. Management information systems thus evolved out of transaction processing systems. A management information system or MIS, is an information system that 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 a

regular basis, a management information system sometimes is called a management reporting system (MRS). Management information systems often are integrated with transaction processing systems. To process a sales order, for example, the transaction processing system records the sale, updates the customers account balance, and makes a deduction from inventory. Using this information, the related management information system can produce reports that recap daily sales activities; list customers with past due account balances; graph slow or fast selling products; and highlight inventory items that need reordering. A management information system focuses on generating information that management and other users need to perform their jobs.MIS reports tend to be used by middle management and operational supervisors. An MIS generates three basic types of information: detailed, summary and exception. Detailed information typically confirms

transaction processing activities. A Detailed Order Report is an example of a detail report. 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. Exception information filters data to report information that is outside of a normal condition. These conditions, called the exception criteria, define the range of what is considered normal activity or status. An example of an exception report is an Inventory Exception Report is an Inventory Exception Report that notifies the purchasing department of items it needs to reorder. Exception reports help managers save time because they do not have to search through a detailed report for exceptions. Instead, an exception report brings exceptions to the managers attention in an easily identifiable form. Exception reports thus help them focus on situations that require immediate decisions or actions. 4. Decision Support Systems - Transaction processing and management information systems provide information on a regular basis. Frequently, however, users need information not

provided in these reports to help them make decisions. A sales manager, for example, might need to determine how high to set yearly sales quotas based on increased sales and lowered product costs. Decision support systems help provide information to support such decisions. A decision support system (DSS) is an information system designed to help users reach a decision when a decision-making situation arises. A variety of DSSs exist to help with a range of

decisions. It uses data from internal and/or external sources. Internal sources of data might include sales, manufacturing, inventory, or financial data from an organizations database. Data from external sources could include interest rates, population trends, and costs of new housing construction or raw material pricing. Users of a DSS, often managers, can manipulate the data used in the DSS to help with decisions. Some decision support systems include query language, statistical analysis capabilities, spreadsheets, and graphics that help you extract data and evaluate the results. Some decision support systems also include capabilities that allow you to create a model of the factors affecting a decision. A simple model for determining the best product price, for example, would include factors for the expected sales volume at each price level. With the model, you can ask what-if questions by changing one or more of the factors and viewing the projected results. Many people use application software packages to perform DSS functions. Using spreadsheet software, for example, you can complete simple modeling tasks or what-if scenarios. A special type of DSS, called an executive information system (EIS), is designed to support the information needs of executive management. Information in an EIS is presented in charts and tables that show trends, ratios, and other managerial statistics. Because executives usually focus on strategic issues, EISs rely on external data sources such as the Dow Jones News/Retrieval service or the Internet. These external data sources can provide current information on interest rates, commodity prices, and other leading economic indicators. To store all the necessary decision-making data, DSSs or EISs often use extremely large databases, called data warehouses. A data warehouse stores and manages the data required to analyze historical and current business circumstances. 5. Executive Support Systems - An Executive Support System ("ESS") is designed to help senior management make strategic decisions. It gathers, analyses and summarizes the key internal and external information used in the business. A good way to think about an ESS is to imagine the senior management team in an aircraft cockpit - with the instrument panel showing them the status of all the key business activities. ESS typically involve lots of data analysis and modeling tools such as "what-if" analysis to help strategic decision-making. 6. Integrated Information Systems - With todays sophisticated hardware, software and communications technologies, it often is difficult to classify a system as belonging uniquely to

one of the five information system types discussed. Much of todays application software supports transaction processing and generates management information. Other applications provide transaction processing, management information, and decision support. Although expert systems still operate primarily as separate systems, organizations increasingly are consolidating their information needs into a single, integrated information system. 7. Expert Systems - An expert system is an information system that captures and stores the knowledge of human experts and then imitates human reasoning and decision-making processes for those who have less expertise. Expert systems are composed of two main components: a knowledge base and inference rules. A knowledge base is the combined subject knowledge and experiences of the human experts. The inference rules are a set of logical judgments applied to the knowledge base each time a user describes a situation to the expert system. Although expert systems can help decision-making at any level in an organization, nonmanagement employees are the primary users who utilize them to help with job-related decisions. Expert systems also successfully have resolved such diverse problems as diagnosing illnesses, searching for oil and making soup. Expert systems are one part of an exciting branch of computer science called artificial intelligence. Artificial intelligence (AI) is the application of human intelligence to computers. AI technology can sense your actions and, based on logical assumptions and prior experience, will take the appropriate action to complete the task. AI has a variety of capabilities, including speech recognition, logical reasoning, and creative responses. Experts predict that AI eventually will be incorporated into most computer systems and many individual software applications. Many word processing programs already include speech recognition. 8. Knowledge Management Systems - Knowledge Management Systems ("KMS") exist to help businesses create and share information. These are typically used in a business where employees create new knowledge and expertise - which can then be shared by other people in the organization to create further commercial opportunities. Good examples include firms of lawyers, accountants and management consultants.

KMS are built around systems which allow efficient categorization and distribution of knowledge. For example, the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint presentations, internet pages or whatever. To share the knowledge, a KMS would use group collaboration systems such as an intranet. 9. Office Automation Systems - Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move. Types of functions integrated by office automation systems include: (a.) Electronic Publishing - Electronic publishing systems include word processing and desktop publishing. Word processing software, (e.g., Microsoft Word, Corel Word-Perfect) allows users to create, edit, revise, store, and print documents such as letters, memos, reports, and manuscripts. Desktop publishing software (e.g., Adobe Pagemaker, Corel VENTURA, Microsoft Publisher) enables users to integrate text, images, photographs, and graphics to produce highquality printable output. Desktop publishing software is used on a microcomputer with a mouse, scanner, and printer to create professional-looking publications. These may be newsletters, brochures, magazines, or books. (b.) Electronic Communication - Electronic communication systems include electronic mail (email), voice mail, facsimile (fax), and desktop videoconferencing. (c.) Electronic Mail (d.) Image Processing (e.) Office Management At the heart of these systems is often a local area network (LAN). The LAN allows users to transmit data, voice, mail, and images across the network to any destination, whether that destination is in the local office on the LAN, or in another country or continent, through a connecting network. An OAS makes office work more efficient and increases

productivity.Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing

basic tasks .Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system.[1] Office automation helps in optimizing or automating existing office procedures. The backbone of office automation is a LAN, which allows users to transmit data, mail and even voice across the network. All office functions, including dictation, typing, filing, copying, fax, Telex, microfilm and records management, telephone and telephone switchboard operations, fall into this category. Office automation was a popular term in the 1970s and 1980s as the desktop computer exploded onto the scene. Office automation systems (OAS) are configurations of networked computer hardware and software. A variety of office automation systems are now applied to business and communication functions that used to be performed manually or in multiple locations of a company, such as preparing written communications and strategic planning. In addition, functions that once required coordinating the expertise of outside specialists in typesetting, printing, or electronic recording can now be integrated into the everyday work of an organization, saving both time and money.

1.5 Classification of Systems

Four main types of information system serve different organizational levels: 1. Operational Level Systems: Operational-level systems support operational managers by keeping track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory. 2. Knowledge Level Systems: Knowledge-level systems support the organizations knowledge and data workers. The purpose of knowledge-level systems is to help the business firm integrate new knowledge into the business and to help the organization control the flow of paperwork.

3. Management Level Systems: Management-level systems serve the information systems that support the monitoring, controlling, decision-making, and administrative activities of middle managers. 4. Strategic Level Systems: Strategic-level systems help senior management tackle and address strategic issues and longterm trend, both in the firm and in the external environment. Information systems also serve the major business functions, such as sales and marketing, manufacturing, finance, accounting, and human resources.

1.6 Information System Application Models in Industry

An increase in company size results in an increase in information collection, processing and distribution. Hence it becomes necessary to handle many customer accounts and production records with many more interrelationships. In addition to increased information records, information needs and associated difficulties there arises the problem of delegation of authority and responsibilities.

Basic Information System The basic functions of the company such as production, sales, finance and management functions will not change. However the introduction of an MIS will facilitate fantastic improvement in the information communications network. The objective of developing or improving a management information system can be stated as below: To provide the type of information environment that will integrate the basic operating functions. To provide management with access to information relative to complex activities in decentralized organizations.

Also, as the company grows and becomes more complex much of the basic functions and information needs remain the same. Some of these internal information needs are shown as below:

Accounting Control Plans and budgets Payroll by hourly and salaried groups Inventory of materials, in-process and finished goods

 Sales by product, salesman , customer and Area Purchasing records, vendors, commitments Distribution-Transportation and warehousing Production by product, customer, cost, overruns and backlog Engineering-new products, schedules, equipment, costs Research & Development Financial Information System The financial system is probably the most important single management information system, in the company, and in most companies it is the oldest and the best developed. These systems basically deal with large amounts of data and involve planning in the financial sector. However the budgeting function performed is wholly futuristic. Periodically the management approves a financial plan (the master budget) that assigns responsibility for maintaining incomes, investments and costs within standard limits. These plans are the basis for periodic financial reports and these reports are used by the system for exercising control and for futuristic planning.

The major operating systems of a company along with their respective functions (Shown in figure above) merge or integrate with the Accounting and Financial Information System to facilitate financial reporting and for management information for planning and control. Moreover, the financial system has a very significant impact on other systems when one considers that the ultimate common denominator of many operating decisions is the dollar. Perhaps, Billing (Invoice Preparation) is the most widely used data processing application among financial information systems.

Production/Operation System Model From an operating standpoint, such a system is undoubtedly the most important in a manufacturing company. It crosses all subsystem boundaries and has an effect throughout the company. The production/ Operations system is concerned with information about the physical flow of goods or the production of goods and services. It covers such activities as production planning and control, inventory control and management, purchasing, distribution and transportation.

Because the quantities of data are so large and the timing of information so essential, the production/operations system is the most adaptable to automation and yields the largest benefits in terms of immediate solution of critical and costly problems. Although other applications (eg. decision-making, total system simulation) may offer greater potential, this functional area usually offers immediate pay-offs.

 Sales Analysis Engineering Inventory Control and Production Scheduling Production/Operations Facilities Purchasing Financial Sales and Distribution

Marketing Management Information System The basic areas of the marketing function that lend themselves to improvement through information systems include: Forecasting Market research Advertising Operating and control information

1.7 Applications of Information System

Information System are helpful in providing optimum and accurate information to the business organizations as well as other industrial sectors. An information system (IS) or application landscape is any combination of information technology and people's activities using that technology to support operations, management. In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes. The various application softwares used by Information Systems are: 1. SAP ERP Software - SAP ERP software is an application for businesses in a variety of industries for
use in integrated enterprise resource planning (ERP). Enterprise resource planning refers to the management of a company's resources such as finances, human resources and tangible assets. SAP (Systems, Applications and Products in Data Processing) is the German-based software development and consulting company that manufactures the integrated enterprise resource planning software. The first SAP ERP software program was released in 2003. The initial SAP ERP program bundled the previously separate enterprise resource planning software programs of SAP R/3 Enterprise and SAP Strategic Enterprise Management (SEM) into the same software.

Programs of SAP ERP SAP ERP software uses several modules or programs necessary for a company's integrated enterprise resource planning. SAP ERP software utilizes a separate module for financial resources, for logistics and for human resource management. All modules within the SAP ERP software extract information from the same integrated centralized database and can integrate new data in real time. ERP, which stands for Enterprise Resource Planning, is in a nutshell an application with the goal of coordinating all of a company's activities around an information system. In this case, the information system is under the form of a mega piece of software, an ERP. ERP software offers different modules that match a company's lines of business such as HR, Payroll, Finance and Supply Chain Management.There are different ERP software packages on the market and the most famous ones are provided by these main ERP software companies: Sage software, Oracle-Peoplesoft and SAP.

 Benefits of ERP SAP Before ERPs were implemented, almost every company`s function (accounting, finance, HR, etc..) had its own computer systems. To link all these internal systems, the company had to do a lot of redundant work to maintain data in all systems, which caused entry errors and incoherence between systems. In general, ERPs offer a few

benefits/advantages. The data in ERPs is consistent and coherent. It is updated in realtime in all the different modules that share it. Business processes are optimized as the integrity of the information system is created: one single interface, one single file. ERPs are also multilingual tools in which you can work in different currencies, a very interesting aspect for international companies. The fact that the same information system is used facilitates internal and external communication. ERPs also minimize costs thanks to the synchronization of treatments (processes and procedures, for example) and the minimization of multiple interfaces that are hard to maintain.

SAP ERP includes mainly following solutions: SAP ERP Financials SAP ERP Human Capital Management SAP ERP Operations SAP ERP Corporate Services

1. SAP ERP Financials - The world of finance and accounting is radically changing convergence of accounting standards, greater expectation for transparency, more demand by your line of business partners for clarity. SAP can help with more than 30,000 best-run businesses in over 120 countries running our 45 country specific versions, SAP has enabled companies like yours to thrive in a business environment characterized by intensified competition, uncertain market conditions, and increased regulatory oversight. SAP ERP Financials provides modular applications that enable our customers to tailor SAP solutions to your specific business needs: Core accounting and reporting capabilities Receivables management

 Treasury Shared services These modular solutions help management quickly implement according to their current business needs, showcase quick ROI, and enable them to prepare for the future. SAP ERP Financials, an application of SAP Business Suite, helps deliver greater insight and visibility across organizations. No matter the industry or size of your business, you can implement only the software you need to solve your unique business challenges in your own time and without expensive upgrades. 2. SAP ERP Human Capital Management - SAP ERP Human Capital Management (SAP ERP HCM) is a comprehensive, integrated human resources management solution that delivers unmatched global capability. SAP ERP HCM gives organizations and of all sizes, industries, and regions the tools needed to manage the most important asset: people. The solution provides the framework to help executives, human resources (HR) professionals, and line-of-business (LOB) leaders to: Align objectives to corporate strategy through comprehensive analytics engage employees and identify and retain develop key talent through a robust talent management offering built on a core HCM foundation. Increase efficiency while reducing costs through automation of transactional processes, as well as shared services maintaining a single record of the truth compliant with local and global requirements 3. SAP ERP Operations - To best serve customers, organizations are focusing more on the agility and speed of delivering products and services. The efficiency of the entire operational process chain impacts an organization's ability to serve its customers well. Operational excellence is the ability of an organization to achieve a high level of customer service, while reducing operating costs. An organization can then run its business at the speed of change with more agility, from its suppliers to its customers, no matter which changes occur in the market and in demand.

For many organizations, the SAP ERP Operations solution has become the software backbone that contributes to excellent performance supporting end-to-end operational processes in all key areas: procurement and logistics execution, product development and manufacturing, and sales and service. This excellence is a culmination of SAP's experience over more than 30 years, with thousands of successful customers in more than 25 industries. With SAP ERP Operations, your organization can realize its full efficiency and cost-effectiveness potential. With smoother dayto-day operations, you can maximize your profitability, free up resources and budget so that you can invest more in innovation. Gaining competitive advantage, one can look toward the future, and operate as a best-run business over the long term. With SAP operation organizations can: Automate and streamline operational processes with greater adaptability Increase productivity in your operations with a role-based solution and centralized information Extend collaboration to all value chain partners. Improve operations performance with strategic business insight. 4. SAP ERP Corporate Services - With the SAP ERP Corporate Services solution, your company can manage real estate; enterprise assets; project portfolios; corporate travel; environment, health, and safety compliance; quality; and global trade services more effectively. To learn how SAP ERP Corporate Services can help you realize meaningful business value, read the following information: Real estate management SAP ERP Corporate Services supports the administration of commercial and residential real estate, enabling automation and process control to help you avoid vacancies and reduce the costs associated with real estate development, rentals, and property management. Real estate management is enabled by the SAP Real Estate Management application. Enterprise asset management SAP ERP Corporate Services supports preventive and predictive maintenance, maintenance cost budgeting, maintenance execution, and workclearance management. Project and portfolio management SAP ERP Corporate Services provides a flexible and comprehensive solution for managing a portfolio of projects from strategic portfolio management to project planning, execution, and accounting.

 Travel management SAP ERP Corporate Services helps you reduce costs, streamline travel administration processes, monitor compliance with travel policies, and manage changes in compensation and pricing models from suppliers, global distribution systems, and travel agencies. Travel management is enabled by the SAP Travel Management application. Environment, health, and safety management Helps you implement EHS strategies on a local and global level. The SAP Environment, Health, and Safety Management (SAP EHS Management) application not only empowers you to address regulatory compliance, but also to take an integrated approach to managing operational risks related to environment, health, and safety, and to address the needs of corporate sustainability initiatives. Quality management SAP ERP Corporate Services enables a unified approach to total quality management, delivering efficiencies that result from fewer product returns and improved asset utilization. Global trade services With SAP software, you can secure your global supply chain, connect and communicate with government systems, and promote the use of shared data to streamline cross-border trade and gain sustainable competitive advantage. 2. GDS (Global Distribution System) - The GDS system is used by travel agents and online customers all over the world to book rooms directly to your hotel. Prior to deregulation, airlines owned their own reservation systems with travel agents subscribing to them. Today, the GDS are run by independent companies with airlines and travel agencies as major subscribers. There are only three major GDS providers in the market space: Amadeus, Travelport (the merged Worldspan and Galileo systems), Sabre and Shares. There is one major Regional GDS, Abacus, serving the Asian marketplace and a number of regional players serving single countries,including Travelsky (China), Infini and Axxess (both Japan) and Topas (South Korea). In additional to these "standardized" GDS, some airlines have proprietary versions which they use to run their flight operations. A few examples of this kind of system are Deltamatic (built off the Worldspan platform) and EDS SHARES. SITA Reservations remains the largest neutral multi-host airline reservations system, with over 100 airlines currently managing inventory.

3. EPSS (Electronic Performance Support System) - Electronic performance support systems can help an organization to reduce the cost of training staff while increasing productivity and performance. An EPSS should be considered when workers require knowledge to achieve individual performance in a business environment. It should furthermore be considered when skilled performers are spending a lot of time helping less skilled performers; when new workers must begin to perform immediately and training is impractical, unavailable or constrained; or when employees need to be guided through a complex process or task that cannot be memorized. These situations often occur in certain call centers when agents must perform using complex systems, processes or products. 4. Tivoli Software for IBM

1.8 Advantages of Information System

It helps to provide: Right Information To the right person At the right place At the right time In the right form At the right cost

1.9 Disadvantages of Information System

Information System should take care of: Handling of voluminous data Confirmation of the validity of data & transaction Complex processing of data and multi-dimensional analysis. Quick search and retrieval Mass storage Communication of the information to the user on time Fulfilling the changing needs of the information

1.10 Conclusion
It can be concluded that Information System is indispensable to organizations in making effective decisions for efficient business operations. Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved. Similar to computer science, other disciplines can be seen as both related disciplines and foundation disciplines of Information System. The domain of study of Information System involves the study of theories and practices related to the social and technological phenomena, which determine the development, use and effects of information systems in organizations and society. But, while there may be considerable overlap of the disciplines at the boundaries, the disciplines are still differentiated by the focus, purpose and orientation of their activities. In a broad scope, the term Information Systems (IS) is a scientific field of study that addresses the range of strategic, managerial and operational activities involved in the gathering, processing, storing, distributing and use of information, and its associated technologies, in society and organizations. The term information systems is also used to describe an organizational function that applies IS knowledge in industry, government agencies and not-for-profit organizations. Information Systems often refers to the interaction between algorithmic processes and technology. This interaction can occur within or across organizational boundaries. An information system is not only the technology an organization uses, but also the way in which the organizations interact with the technology and the way in which the technology works with the organizations business processes. Information systems are distinct from information technology (IT) in that an information system has an information technology component that interacts with the processes components.