Charmaine Joy P. Magtangob Prof.

Joanne Faller Antonio

BSIT 3-1 System Analysis and Design

6 Categories of Information System

Information System – are formal, sociotechnical, organizational systems designed to

collect, process, and store and distribute information. In a sociotechnical perspective,
information system is composed by four components: task, people, structure (or roles),
and technology.

 Transaction Processing Systems (TPS) - Every firm needs to process

transactions in order to perform their daily business operations. A transaction
refers to any event or activity that affects the organization. Depending on the
organization’s business, transactions may differ from one organization to
another. In a manufacturing unit, for example, transactions include order entry,
receipt of goods, shipping, etc., while in a bank, transactions include deposits
and withdrawals, cashing of cheques etc. However, some transactions, including
placing orders, billing customers, hiring employees, employee record keeping,
etc., are common to all organizations

Examples of transaction processing systems include;

 Point of Sale Systems – records daily sales

 Payroll systems – processing employees salary, loans management, etc.

 Stock Control systems – keeping track of inventory levels

 Airline booking systems – flights booking management

  Office Automation System (OAS) - is systems that try to improve the efficiency
of employees who need to process data and information. The best example is
the wide range of software systems that exist to improve the productivity of
employees functioning in an office (e.g. Microsoft Office) or systems that allow
personnel to work from home or while on the move. Another good example would
be sales force system which is a ticketing system used to process IT information
in the office and on the go.

Examples of Office Automation Systems include;

 Spreadsheets –. This method is usually very effective assuming that managers know what
the data produced means and how to analyse it correctly.

 Graphs, Charts and Diagrams – these desktop applications are fairly simple to use and
can be very effective as a means of storing and analysing data. They are very useful in
highlighting trends, summarising information and showing comparisons. They are based
on numeric data and are usually a supplement to more detailed reports.
 Document Image Processing – This is a form of electronic filing. A document can be
passed through a scanner, translated into digital form and stored. Barclays Bank uses an
optical disk to store their files, they find this system very valuable because of the amount
of customer letters that they receive and send out. It is important that they keep all of
these letters and so this system is used to do so. An optical disk can store up to 60,000
pages of A4. This also provides greater security, which is important in this industry.

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 Knowledge Management Systems (KMS) - exist to help businesses create and
share various information. These are typically used in industries where
employees create new knowledge and expertise – which can then be shared by
other people in the organisation to create additional commercial opportunities.
Good examples include firms of lawyers, training related businesses,
accountants and management consultants.

Examples of Knowledge work systems include;

 Computer-aided design (CAD) systems: These systems are used for

automating the creation and revision of designs using computers and
graphics software. The CAD software has the capability to provide design
specifications for tooling and manufacturing process. This saves much
time and money while making a manufacturing process.
  Virtual Reality System: These systems have more capabilities than CAD
systems for visualization, rendering and simulation. They make use of
interactive graphics software to build computer-generated simulations
which almost look like real. They can be used in educational, scientific and
business work.

 Financial Workstations: They are used to combine a wide range of data

from internal as well as external sources. This data includes contact
management data, market data and research reports. Financial
workstations help in analysing trading situations and large amount of
financial data within no time. It is also used for portfolio management.

 MIS (Management Information Systems) – Management information systems

are especially developed to support planning, controlling, and decision-making
functions of middle managers. A management information system (MIS) extracts
transaction data from underlying TPSs, compiles them, and produces information
products in the form of reports, displays or responses.

These information products provide information that conforms to decision-making

needs of managers and supervisors. Management information systems use
simple 7/routines like summaries and comparisons which enable managers to
take decisions for which the procedure of reaching at a solution has been
specified in advance.

Generally, the format of reports produced by MIS is pre-specified. A typical MIS

report is a summary report, such as a report on the quarterly sales made by each
sales representative of the organization. Another type of management
information system report is an; for example, exception report that specifies the
exception conditions the sales made by some sales representative is far below
than expected.

Usually, management information systems are used to produce reports on

monthly, quarterly, or yearly basis. However, if managers want to view the daily
or hourly data, MIS enables them to do so. In addition, they provide managers
online access to the current performance as well as past records of the
organization.

Examples of management information systems include;

 Sales management systems – they get input from the point of sale system
  Budgeting systems – gives an overview of how much money is spent
within the organization for the short and long terms.

 Human resource management system – overall welfare of the employees,

staff turnover etc.

 Decision Support Systems (DSS) - is an information system intended to help

users reach a decision when a decision-making situation arises. This system
comprises tools and techniques to help collect relevant information and analyse
the choices and alternatives. DSS usually involves use of complex spread sheet
and databases to create models which will help determine difficult situations and
its possible outcomes.
Decisions in a bank for example enable a manager to analyse the changing
trends in deposits and loans in order to ascertain the yearly targets.
Examples of decision support systems include;

 Financial planning systems – it enables managers to evaluate alternative

ways of achieving goals. The objective is to find the optimal way of
achieving the goal. For example, the net profit for a business is calculated
using the formula Total Sales less (Cost of Goods + Expenses). A
financial planning system will enable senior executives to ask what if
questions and adjust the values for total sales, the cost of goods, etc. to
see the effect of the decision and on the net profit and find the most
optimal way.

 Bank loan management systems – it is used to verify the credit of the loan
applicant and predict the likelihood of the loan being recovered.
  Logistics System

 Executive Support Systems (ESS)

This type of IS was designed to help senior management support the business
and make strategic decisions. It gathers analyses and summarises the key
internal and external information used in the everyday business. It supports an
inventory of all present information assets; projected revenue figures based on
new product sales expectations and reasonable sales figures between one week
and the next. For example, a CEO may require overall sales for the company,
along with sales for every department separately, and general economic data for
the year.

Systems Analysis

It is a process of collecting and interpreting facts, identifying the problems, and

decomposition of a system into its components.
System analysis is conducted for the purpose of studying a system or its parts in order
to identify its objectives. It is a problem solving technique that improves the system and
ensures that all the components of the system work efficiently to accomplish their
purpose.

The 10 Golden Rules of Systems Analysis

 Rule 1: There Always Is a Client

 Rule 2: Your Client Does Not Understand His Own Problem

 Rule 3: The Original Problem Statement is too Specific: You Must Generalize the
Problem to Give it Contextual Integrity
 Rule 4: The Client Does Not Understand the Concept of the Index of Performance

 Rule 5: You are the Analyst, Not the Decision‐Maker

 Rule 6: Meet the Time Deadline and the Cost Budget

 Rule 7: Take a Goal‐Centered Approach to the Problem, Not a Technology‐Centered

or Chronological Approach

 Rule 8: Nonusers Must be Considered in the Analysis and in the Final

Recommendations

 Rule 9: The Universal Computer Model is a Fantasy

 Rule 10: The Role of Decision‐Maker in Public Systems is Often a Confused One

Systems Design

It is a process of planning a new business system or replacing an existing system by

defining its components or modules to satisfy the specific requirements. Before
planning, you need to understand the old system thoroughly and determine how
computers can best be used in order to operate efficiently.
System Design focuses on how to accomplish the objective of the system.
System Analysis and Design (SAD) mainly focuses on −

 Systems
 Processes
 Technology

https://www.guru99.com/mis-types-information-system.html

https://www.managementstudyhq.com/six-major-types-of-information-systems.html

http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html

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