6 Types of Information Systems

Most businesses utilize six different information technology systems, each with functionality that assists in managing a particular
business unit or organizational level.

Because the business environment has a wide range of data requirements, business intelligence technology systems help each
department manage and organize all of their data in a manner that helps unit members meet key objectives.

If the data collected by an IS is relevant and accurate, the organization can use it to streamline tasks, pinpoint inefficiencies, and
enhance customer service.

Successful companies typically employ six different systems to ensure that every aspect of the organization's data is properly
managed and used to improve decision-making and problem-solving.

This allows a company to maintain a competitive edge, find growth opportunities, and keep an accurate audit trail of financial and
transactional data for compliance purposes.
Here is an overview of the six types of information systems and how they work-

1. Transaction Processing Systems

A transaction encompasses all of the purchases and sales of products and services, along with any daily business transactions or
activities required to operate a company.

Quantities and the types of transactions performed vary, depending on the industry and size/scope of the company. Examples of
typical transactions include billing clients, bank deposits, new hire data, inventory counts, or a record of client-customer relationship
management data.

A transaction processing system ensures that all of the contractual, transactional, and customer relationship data is stored in a safe
location and accessible to everyone who needs it. It also assists in the processing of sales order entries, payroll, shipping, sales
management, or other routine transactions needed to maintain operations.

By utilizing a TPS, organizations can have a high level of reliability and accuracy in their user/customer data while minimizing the
potential for human error.

2. Office Automation Systems

An office automation system is a network of various tools, technologies, and people required to conduct clerical and managerial
tasks.
Typical examples of functions performed by an OAS include printing documents, mailing paperwork, mailing, maintaining a company
calendar, and producing reports. Primarily, an office automation system assists in enhancing communication among different
departments so everyone can collaborate to complete a task.
An OAS can integrate with e-mail or word processing applications to ensure all communication data is easily accessible and in one
centralized location. By utilizing an office automation system, businesses can improve communication between workers, streamline
managerial activities, and optimize knowledge management.

3. Knowledge Management Systems

A knowledge management system stores and extracts information to help users enhance their knowledge and optimize
collaboration efforts to complete tasks. Examples of documents found in a knowledge management system include employee
training materials, company policies, and procedures, or answers to customer questions.
A KMS is used by employees, customers, management, and other various stakeholders involved with the organization. It ensures
that technical abilities are integrated throughout the company while providing visuals to help employees make sense of the data they
see.
This information system also provides intuitive access to external information required by workers who need outside knowledge to
complete their roles. For example, a KMS may hold competitor data that helps a sales team member optimize his/her strategy when
pitching to a customer.
Because a KMS shares expertise and provides answers to essential questions, using one can improve communication among team
members and assist everyone in meeting performance goals.

4. Management Information SystemsA management information system uses various transaction data from a
TPS to help middle management optimize planning and decision-making.
It retrieves TPS information, aggregates it, and generates reports to help those at the management level know important details of a
situation. Summaries and comparisons are utilized to allow senior managers to optimize the decision making process to achieve
better results.
Most of the report formats encompass summaries of annual sales data, performance data, or historical records. This provides a
secure and systemized way for managers to meet their targets and oversee business units.

5. Decision Support Systems

A decision support system processes data to assist in management decision-making. It stores and gathers the information required
for management to take the proper actions at the correct time. For example, a bank manager can use a DSS to assess the evolving
loan trends to determine which yearly loan targets to meet.

Decision models are programmed into the IS to analyze and summarize large quantities of information and put it into a visual that
makes it understandable.

Because a DSS is interactive, management can easily add or delete data and ask important questions. This provides the evidence
required for mid-management to make the right choices that will ensure the company meets its targets.

6. Executive Support System

Executive support systems are similar to a DSS but are primarily used by executive leaders and owners to optimize decision-
making.

An expert system helps enterprise leaders find answers to non-routine questions so they can make choices that improve the
company's outlook and performance. Unlike a DSS, an executive support system provides better telecommunication functionality
and a bigger computing functionality.

Graphics software is integrated within an ESS to display data about tax regulations, new competitive startups, internal compliance
issues, and other relevant executive information. This allows leaders to track internal performance, monitor the competition, and
pinpoint growth opportunities.

Systems Development Process

The system development process, also known as the system development life cycle, is a term used in the development of software where a set of
methodical processes, activities, or phases are used to develop and implement a system. With the rapid development and constant evolution of
systems technologies to date, different development processes have been established and tried. Though each of these processes has been developed
with a specific design in mind, we will find that many of them share common tasks and are geared towards the same goal.

Common System Development Steps

A software system seeks to solve a problem. The following steps are common to most development processes and describe the general details of the
steps taken to achieve this. The steps are designed to develop a system characterized by quality and accuracy and one that reflects the client's
requirements.

1. Information Gathering
In this important step, the problems, objectives, and resources needed are outlined. Participating stakeholders such as clients, developers, consultants,
and end users come together and engage in brainstorming. If the software is not brand new there will be less information and data gathering and more
focus on improvements.

2. Analysis
At this point, the end-user requirements have been clearly formulated. Feasibility studies may be carried out to analyze the economic and technical
impacts of the project. Information on competitive products is also collected. Viability of the project is established and the project is broken down into
workable segments.

3. Design
With clearly defined workable segments, the system design is developed. Customer requirements define the different elements of the system. Details
on the functionality, techniques, and logic of the process are formulated.

4. Implementation
This is the actual construction phase of the system. The logical part of the system is formulated and the building of any hardware is accomplished. The
programming language is already decided and the codes are written.
5. Deployment
The logic of the system is completed and ready to be deployed with any accompanying hardware. The customer's needs are vested and various
installation procedures are carried out. The time it takes for the system to actually go live will depend on its complexity. End-user training is organized
to ensure proper use of the system.

6. System Testing
The different workable parts of the system are brought together, making a whole integrated system. Various inputs are collected, analyzed, and fed into
the system. Real users may be employed to carry out testing. The main aim of the testing phase is to ensure that the customer's requirements are met
and overall customer satisfaction achieved. No technical expertise, knowledge of hardware or software are needed. Specialized personnel may be
brought in to conduct more in-depth and robust testing.

Types of Processes
How do we get through all of those steps? There are many processes available. Let's now take a minute or two to review a few of them.

1. Ad-Hoc Development
As the name depicts, this is an unplanned process of systems development. Ad-hoc system development (ASD) normally engages participants with
some level of expertise and familiarity with the problem. It depicts a rather chaotic process and is characterized by constant changes and modifications
as the process develops.

2. The Waterfall Development

Waterfall development is a design process characterized by a system of sequential steps. It's known for its rigidity in following those steps. One
completed step must precede the next. Design results are only realized on the completion of the last step.

3. Iterative Development
The iterative development is a process established due to the problems experienced with the waterfall process in which design results are available
earlier in the process with iteration after each step, thereby providing valuable feedback for the next process step.

4. Exploratory Model
The exploratory model is used in system development projects in which it is impossible for the systems requirements to be fully developed at the
beginning of the system's information-gathering stage. It's a trial and error scenario. Most the system requirements are proposed ideas with a lot of
guesswork, approximations, and speculations. There is a distinct absence of predefined process steps. Authentication

What is SDLC?

SDLC is a process followed for a software project, within a software organization. It consists of a detailed plan describing how to
develop, maintain, replace and alter or enhance specific software. The life cycle defines a methodology for improving the quality of
software and the overall development process.

Stage 1: Planning and Requirement Analysis

Requirement analysis is the most important and fundamental stage in SDLC. It is performed by the senior members of the team
with inputs from the customer, the sales department, market surveys and domain experts in the industry. This information is then
used to plan the basic project approach and to conduct product feasibility study in the economical, operational and technical areas.

Planning for the quality assurance requirements and identification of the risks associated with the project is also done in the
planning stage. The outcome of the technical feasibility study is to define the various technical approaches that can be followed to
implement the project successfully with minimum risks.

Stage 2: Defining Requirements

Once the requirement analysis is done the next step is to clearly define and document the product requirements and get them
approved from the customer or the market analysts. This is done through an SRS (Software Requirement
Specification) document which consists of all the product requirements to be designed and developed during the project life cycle.

Stage 3: Designing the Product Architecture

SRS is the reference for product architects to come out with the best architecture for the product to be developed. Based on the
requirements specified in SRS, usually more than one design approach for the product architecture is proposed and documented
in a DDS - Design Document Specification.
 This DDS is reviewed by all the important stakeholders and based on various parameters as risk assessment, product robustness,
design modularity, budget and time constraints, the best design approach is selected for the product.

A design approach clearly defines all the architectural modules of the product along with its communication and data flow
representation with the external and third party modules (if any). The internal design of all the modules of the proposed
architecture should be clearly defined with the minutest of the details in DDS.

Stage 4: Building or Developing the Product

In this stage of SDLC the actual development starts and the product is built. The programming code is generated as per DDS
during this stage. If the design is performed in a detailed and organized manner, code generation can be accomplished without
much hassle.

Developers must follow the coding guidelines defined by their organization and programming tools like compilers, interpreters,
debuggers, etc. are used to generate the code. Different high level programming languages such as C, C++, Pascal, Java and
PHP are used for coding. The programming language is chosen with respect to the type of software being developed.

Stage 5: Testing the Product

This stage is usually a subset of all the stages as in the modern SDLC models, the testing activities are mostly involved in all the
stages of SDLC. However, this stage refers to the testing only stage of the product where product defects are reported, tracked,
fixed and retested, until the product reaches the quality standards defined in the SRS.

Stage 6: Deployment in the Market and Maintenance

Once the product is tested and ready to be deployed it is released formally in the appropriate market. Sometimes product
deployment happens in stages as per the business strategy of that organization. The product may first be released in a limited
segment and tested in the real business environment (UAT- User acceptance testing).

Then based on the feedback, the product may be released as it is or with suggested enhancements in the targeting market
segment. After the product is released in the market, its maintenance is done for the existing customer base.

A project feasibility study examines all of a project's pertinent aspects, including economic, technical, legal, and scheduling issues to
determine the possibility of the project's successful completion. Prior to commencing the project and investing funds, time, and efforts into it,
managers conduct a feasibility study of the project.

Key elements of a good project feasibility study

In project management, a project feasibility study evaluates the following areas:

 Technical Capability: Is the organization equipped with the necessary technical resources to complete the project
 Budget: Does the organization have the financial resources to carry out the project, and does the cost-benefit analysis justify moving forward?
 Legality: What is the project's legal requirements, and can the company meet them?
 Risk: What are the risks involved in completing this project? Is the risk worth the company's money and time based on the expected benefits?
 Operational feasibility: Does the project, in its intended scope, address the organization's needs through fixing problems and/or seizing opportunities?
 Time: How much time would it take for completion?