Information Technology & MIS-1

Types of Information Systems
Following are the various types of Information Systems:
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Transaction Processing System
Management Information System
Executive Information System
Decision Support System
Expert System
Functional Area Information System
Office Automation System (Personal Productivity Software)
Collaboration System
Customer Relationship System
Electronic Commerce System
Enterprise resource Planning System

Transaction Processing System
• Designed to process day-to-day business event data at
the operational level of the organization.
• Performs repetitive tasks automatically, that occur as
regular part of a business’s day-to-day operations.
• Situated close to the customers and processes large
volumes of data.
• Online processing – Transactions processed as they are
created giving immediate results – Results of questions
answered
• Batch Processing - Processed in batches – Processing of
end-term grade reports.
• Example:
 Grocery store checkout cash register with connection to
network.
 Payroll processing
 Sales and order processing
 Inventory management

Management Information System
• Are organizational information systems which gather data from
multiple data sources to produce scheduled and structured reports
and also ad hoc reports.
• Reports are produced at predefined intervals – daily, weekly or
monthly.
• MIS is meant for midlevel managerial level personnel for effective
decision making.
• This system is designed to produce detailed information to help
manage a firm or a part of a firm.
• Examples:
Inventory management and planning system
Sales forecasting
Financial management and forecasting
Manufacturing planning and scheduling
Advertising and product pricing

Executive Information System
• Provide very high-level, aggregate information to support executive-level
decision making for highest organizational managers.
• Information is provided in a highly aggregated form so that trends and
anomalies can be pointed out.
• EIS provides both textual news stories or non-analytical information (Soft
data) and also facts and numbers (Hard data).
• Processing of EIS data consists of summarizing and graphical interpreting
• Output data of EIS includes summary reports, trends and simulations;
feedback to system operator
• Applications:
Executive level decision making
Long-range and strategic planning
Crisis management
Monitoring of internal and external events
 News retrieval and stock update information system

Decision Support System
• These systems provide analysis tools and access to databases in
order to support quantitative decision making.
• Helps managerial-level personnel solve semistructured problems.
• DSS is designed as an “Interactive” decision tool where as TPS, MIS
and EIS present data in a passive way as a summary of the output.
• Commonly used tool of DSS is Microsoft Excel which provides
“What-If” analyses.
• Example:
Product demand Sales and resource forecasting.
Cost analysis
Linear programmming and decision trees
Simulation
Statistics – Correlation and Regression
Output of DSS is in the form of graphs and textual reports
Feedback is given to the system through user interface

Expert System
• These systems mimic human expert in a particular area and
provide answers or advice by asking a series of questions.
• First knowledge is gathered from the expert and it is compiled.
The processing in an expert system is known as inferencing
 Matching facts and rules,
 Determining the sequence of questions presented to the user and
 Drawing a conclusion.

• Examples:
 Automated system for analyzing bank loan application (Example, IF
personal income is >= Rs.50,000, THEN approve the loan)
 Medical diagnosis,
 Machine configuration,
 automobile diagnosis,
 financial planning,
 software application assistance (Wizards)

Office Automation System
• These systems support a wide range of predefined, dayto-day work related activities of individuals and small
groups.
• People buy these systems “off-the-shelf”.
• People can work individually or work with others using
these systems.
• Example: Microsoft Office - Word processor, Spreadsheet
and PowerPoint
• Assistance provided to the users include
Communication and scheduling
Document preparation
Analyzing and merging data
Consolidating information

Collaboration System
• These systems enable people to communicate, collaborate
and coordinate with each other
• Example:
 Electronic mail system with automated, shared calendar.
 Microsoft’s Exchange/Outlook and Lotus Notes are collaboration
systems that provide people with E-mail, automated calendaring
and online, threaded discussions.
 Videoconferencing and Desktop videoconferencing (fast personal
computer, a small camera, a speaker telephone,
videoconferencing software and video board)
 Groupware – Helps people work together; Example Lotus Notes
 One form of groupware is the Electronic Meeting Systems (EMSs).
Helps group members solve problems and make decisions through
interactive, electronic idea generation, evaluation and voting.

Customer Relationship Management
System
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Customer relationship management (CRM) refers to practices,
strategies and technologies that companies use to manage and
analyze customer interactions and data
The aim of CRM is to improve business relationships with
customers, assisting in customer retention, increase sales and
support interaction between the customers and the business
firm.
CRM compiles information on customers across different
channels such as company's website, telephone, live chat,
direct mail, marketing materials and social media.
CRM collects and compiles information on customers' personal
information, purchase history, buying preferences and
concerns into a single database.
CRM automates marketing and sales force efforts and provides
technologies for undertaking geographic marketing campaigns
based on customers' physical locations.
Example: Siebel’s suite of e-business software products,

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Electronic Commerce
System
Electronic Commerce is the online exchange of goods, services
and money between firms (B2B) and between firms and customers
(B2C).
Other forms of electronic commerce include Business to
Employees (B2E) and Consumer to Consumer (C2C).
EC also involves events leading upto purchase of
products/services and also after sale service.
These systems enable customers to buy goods and services from
a firm’s Web site.
These systems work through Internet and
 Enable consumers to find information about the products
and purchase goods or services.
 Business firms can also exchange , information and
services electronically
Example: www.flipkart.com or www.amazon.com
Before Electronic Commerce, Electronic Data Interchange (EDI)
was in vogue.
EDI refers to the digital or electronic, transmission of business

Enterprise Resource Planning
System
• These systems support and integrate all facets of the business,
including planning, manufacturing, sales, marketing and so on.
• ERP provides a common data warehouse and similar
application interfaces for servicing an entire enterprise.
• ERP applications make accessing information easier (by
providing sharing facility between business activities) by
means of central information repository.
• Example is that inventory information is accessible not only to
inbound logistics and operations but also to accounting and
customer service personnel.
• ERP systems are packaged applications whose vendors include
BAAN, Oracle, PeopleSoft, SAP and J.D. Edwards.
• Example: SAP R/3 (Systems, Applications, and Products in Data
Processing, Release 3)

Functional Area Information
Systems
• Support the activities within a
specific functional area of the firm.
• The functional areas are: Accounting
and Finance, Human Resources,
Marketing and Production and
Operations

Accounting and Finance
• These systems are used for managing,
controlling and auditing the financial
resources of the organisation.
• Examples:
Inventory management
Accounts payable
Expense accounts
Cash management
Payroll processing

Accounting Information
Systems

Finance Information
Systems

Human Resource Management
Information System
• Human resources management information system
(HRMIS) is the computer software that simplifies and
accelerates HR management process and improves its
quality via automation of the basic (routine) objectives
and activities.
• These systems are used for managing, controlling and
auditing the human resources of the organisation.
• Examples:
Recruiting and hiring
Education and training
Benefits management
Employee termination
Workforce planning

Human Resource Management
Information System

Marketing Information
Systems
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A marketing information system (MKIS) is a software program that allows users to compile and 
analyze data in a very easy, organized fashion. 
• MKIS systems help users make decisions about consumer behavior and the marketing mix, 
including products and how they are placed, priced, and promoted. 
• These systems are used for managing new product development, distribution, pricing, promotional 
effectiveness and sales forecasting of the products and services offered by the organisation. 
• Three components of marketing intelligence network:
        1. Continuous monitoring is the procedure by which the changing environment is regularly viewed.
2. Marketing research is used to obtain information on particular marketing issues.
3. Data warehousing involves the retention of all types of relevant company records, as well as the 
information collected through continuous monitoring and marketing research that is kept by the 
organization.
• Examples:
 Market research and analysis
 New product development
 Promotion and advertising
 Pricing and sales analysis
 Product location analysis

Marketing Information
Systems

Marketing Information
Systems
Advantages of Marketing Information Systems:
    1. Organized data collection.
2. A broad perspective.
3. The storage of important data.
4. An avoidance of crises.
5. Coordinated marketing plans.
6. Speed in obtaining sufficient information to make 
decisions.
7. Data amassed and kept over several time periods.
8. The ability to do a cost-benefit analysis.

Production and Operations
• These systems are used for managing, controlling and auditing the production
and operations resources of the organisation.
• Manufacturing
– Design and Engineering
– Master Production Scheduling
– Inventory Control
– Materials Planning
– Manufacturing and Process Control
– Quality Control
• Examples:
Inventory management
Cost and quality tracking
Materials and resource planning
Customer service tracking
Customer problem tracking
Job costing
Resource utilization

Production and Operations

Production and Operations