Types of Information System

❖ Transaction processing system TPS

❖ Management Information system MIS
❖ Decision support system DSS
❖ Executive support system ESS

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 Types of information system

❖ Every person in the organization is a user of the MIS and each of

them has a specific task and role to play in the organization.
❖ their work and role is divided according to their experience and
knowledge.
❖ They are operational level, knowledge level, management level
and strategic or executive levels.
❖ Every organization need information systems to run their
business and to make a decisions.

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There are two types of Information system

❖ Operational support information system.

❖ Management support information system.

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 Information System
It is Set of interrelated components that collect, process, store and
distribute data and information are called Information System.
It is the Arrangement of people, data, processes, interfaces, networks and
technology that interact to support the day-to-day operations in a
business or support the problem-solving and decision-making are called
Information System.
 Types of information
system

Management Support
Operation support System System

Support of Business Support of Management

decision making
Operation
 Operational Support system

❖ The operational level is concerned with performing day to day

business transactions of the organization.
❖ Examples of users at this level of management include cashiers
at a point of sale, bank tellers, nurses in a hospital, customer
care staff, etc.

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 Transaction Processing system

❖ Transaction Processing System is an operational-level systems that

process the company's business transactions and support the
operations of an enterprises. TPS are used to record day to day
business transactions of the organization. They are used by users at
the operational management level. it records, collects, stores,
modifies and retrieves the data transaction of an enterprises. Payroll
was the first Transaction processing System.
❖ TPS is software for managing data transactions that are done within
or outside the organization.

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 Taxes

Sales
Purchases

Employees
wages TPS

Manufacturing
Order

warehouse
❖Electronic transfer of funds
❖Airline reservation system
❖Bank account processing system
❖Hotel reservation:
❖Cheque Clearance:
❖POS(Point of Sale):
❖Purchase
❖Sale
❖Deposit
❖Withdraw
❖Payroll processing
❖ Sales and order processing
❖Inventory management
❖ Accounts payable and receivable
❖Automated Teller Machines (ATM)
❖Credit Card Authorizations
❖Online Bill Payments
❖Self-Checkout Stations
❖Trading Stocks Over the Internet
❖Other Forms of Electronic Commr
 Steps of processing the Transaction

Query Support Data Entry

❖Document & Report

❖Forms-screen or panels

Output
Data Validation
generation
Error Detection
Error correction

Data processing
Data Storage
and revalidation
OLTP
Batch Processing
 Types of TPS /
TPS Modes

Real –Time Processing

Batch Processing System
 Batch Processing System

Transaction is done in a batch or group is known as a batch processing system. The batch
processing is not done immediately. First, the data is collected and then placed in a group or
batch then the processing is started.
❖Batch processing is the traditional way of processing transactions.
❖ It is a resource saving transaction type that stores data for processing at pre defined
time.
❖The transactions are collected, combined and grouped in batches.

Examples of batch processing systems are:-

1.Payroll system
The salaries of employees can be printed at the end of month by the batch systems. So the
statements can be made easy by using batch systems.
2.Bank statements
At the end of month the bank makes statements for each account holder. So these bank
statements can be made easily by batch systems at the end of month.
❖Credit card transaction, Credit card monthly statement for customer.
❖Loan interest payment remainder message.
 Real-Time Processing System

A transaction that is done immediately without any delay is known as an online

transaction processing system (OLTP). It is also known as a real-time transaction.
Examples of OLTP are:-
Use card for payment
Online transaction,
Air ticket reservation
 OBJECTIVES OF TPS

A transaction that is done immediately without any delay is known as an online

transaction processing system (OLTP). It is also known as a real-time transaction.
Examples of OLTP are:-
Use card for payment
Online transaction,
Air ticket reservation
Objective of TPS
❖ To provide all the information by law ,by management, by organizational
policies .
❖ To efficiently handle high volume of data
❖ To avoid errors due to concurrent operations.
❖ To interface with many IT applications
❖ To maintain privacy and security
❖ Increase labor efficiency.
❖ Increases the competitive advantage
❖ Maintain a high degree of accuracy
❖ To produce timely documents and reports.
❖ To Provides necessary data for tactical and strategic systems

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Advantage of TPS
❖ Fast Performance / response
❖ Time saving , accuracy ,Cost reduction
❖ Enhance effectiveness
❖ Increase customer service
❖ Data integrity
❖ Data hiding , Transparency
❖ Sharing among many users
❖ Larger numbers of transaction can be processed in a shorter time.
❖ Greater Reliability- less human error
❖ Retrieval and sorting.
▪ security

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 Characteristics of TPS

❖ Rapid Response – fasts performance.

❖ Reliability – low failure rate, quick & accurate
❖ Flexibility
❖ Controlled processing
❖ Data integrity
❖ Efficiency
❖ Paperless transaction

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 Real-Time Processing System

A transaction that is done immediately without any delay is known as an online

transaction processing system (OLTP). It is also known as a real-time transaction.
Examples of OLTP are:-
Use card for payment
Online transaction,
Air ticket reservation
 Example of TPS

• #1 Hotel reservation:
• #2 Cheque Clearance:
• #3 POS(Point of Sale):

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• Objective of TPS

❖ to provide all the information by law ,by management, by

organizational policies .
❖ To efficiently handle high volume of data
❖ To avoid errors due to concurrent operations.
❖ To interface with many IT applications
❖ To maintain privacy and security
❖ Increase labor efficiency
❖ Maintain a high degree of accuracy
❖ To produce timely documents and reports.

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Advantage of TPS
❖ Fast Performance / response
❖ Time saving , accuracy ,Cost reduction
❖ Enhance effectiveness
❖ Increase customer service
❖ Data integrity
❖ Data hiding , Transparency
❖ Sharing among many users
❖ Larger numbers of transaction can be processed in a shorter
time of time.
❖ Greater Reliability- less human error
❖ Retrieval and sorting.
▪ security
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Example of Transaction Processing system

❖ Automated Teller Machines (ATM)

❖ Credit Card Authorizations
❖ Online Bill Payments
❖ Self-Checkout Stations
❖ Trading Stocks Over the Internet
❖ Other Forms of Electronic Commerce

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 Characteristics of TPS

❖ Rapid Response – fasts performance.

❖ Reliability – low failure rate, quick & accurate
❖ Flexibility
❖ Controlled processing
❖ Data integrity
❖ Efficiency
❖ Paperless transaction

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 Steps of processing a transaction

❖ Data Entry
❖ Data validation
❖ Data processing and revalidation
❖ Data storage
❖ Output generation- document and reports
❖ Query support

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 Process control systems
Process control systems are the operational support
system. It is also called industrial control system ICS.
process is defined as an operation that uses resources to
transform inputs into outputs.
the term process control refers to the methods of
changing and refining of raw materials. The raw materials
during the process are transferred, measured, mixed,
heated or cooled, filtered, stored or handled in a way so
that the desired output is obtained. It is used to monitor
and control physical processes .it is an important tool that
is implemented in several industries to maintain quality
and improve performance like power generation plants,
chemical processing, food and beverage industry, paper
manufacturing, and oil refining.

Ex:
 Example of PCS

A petroleum refining center uses electronic sensors which are

linked to the computers to continuously monitor chemical
processes.
Examples of control systems in your day-to-day life include an air
conditioner, control of products, weapons system, transportation
systems, power systems, space technology, robotics, and much
more.
 Office Automation System
❖ Office Automation system is an computer based information
system that collect, process, stores and transmit electronic
Messages. Or it performs office transaction or activities at all levels
of the organization which include word processing , electronic
filling, electronic mail, message switching, data storage , data and
voice communications.
❖ Office automation refers to the computer machinery and software
used to digitally create, collect, store, manipulate, and relay office
information needed for accomplishing a basic task.

Example : A school posted it’s class schedules on the internet

when the school updates the schedule, student receive an Email
Notification.
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 Video
Mailing
Conferencing

Computer
Typing
graphics

Scheduling
of meetings Activities Word
and Processing
conferences
of OAS
 Printing
Document
Audio s Word
conferencing processin
g

Desktop
Mailing
Publishing

OAS
Calendar &
VoiceMail
Scheduling

Paint and
Paper
Draw
work
Program
Spread
Sheet
 Knowledge work system

• knowledge work system (KWS) is a specialized Computer system

built to promote the creation of knowledge and technical skills that
are integrated into the business. knowledge work systems is a
user-friendly interface to help users to get the required information
quickly and easily by the help of graphics, analytical,
communications and document management tools.
• It helps to the knowledge workers in creating and new information
and knowledge.

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Knowledge work system

• Knowledge workers are people who hold formal universities

degrees and who are often members of recognized profession
like Engineers, Doctors, Lawyers and Scientist. Their job is
creating the new ideas , information ,knowledge and technical
experts are integrated into the business.
❖ Some examples of knowledge work systems are computer-
aided design (CAD)systems, virtual reality systems, and
financial workstations.

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Knowledge work systems are

computer-aided
design (CAD)systems

virtual reality systems

financial workstations

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 Enterprise Collaboration System (ECS)

❖ Enterprise Collaboration System (ECS) is an information system

used to facilitate, efficient and sharing of documents, resource
sharing and knowledge between teams and individuals in an
enterprise.
❖ ECS tools include the Internet, groupware, various forms of
software, hardware, internal and external networks.
❖ These information systems are used to enhance productivity
and creativity of teams .

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❖ They use a variety of information technologies to help people
work together.
❖ They help to communicate ideas, share resources and
coordinate work as a team.
❖ The team can communicate and coordinate their activities via
electronic mail, discussion forums, video conferencing and
multimedia project.
❖ They require heavy use of internet, intranet and extranet and
collaboration software.

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 E-mail

Calendar and
Paging
scheduling

ECS
tools

Voice
Faxing
Conferencing

Document video
Sharing conferencing
 Office Automation System

❖ An office automation system (OAS) is a collection of various

communication technology and people required to conduct clerical
and managerial tasks. It refers to all tools and methods that are
used to perform office activities or official tasks at every level in
the organization.
❖ It is the process of applying modern machines and technology to
improve information management as well as the overall
performance of an organization.
❖ office transactions and supports official activity

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