INFORMATION TECHNOLOGY MANAGEMENT

MBA 637

NAME: ADAJAMES IBIASO ORMSLEY

REG NO: ADP 15/16/H/7043

ASSIGNMENT
Identify and discuss 5 types of information system in an organization

The Five types of Information System are:

1.
2.
3.
4.
5.

Transaction Processing System

Management Information System
Decision Support System
Executive Information System
Expert Systems and Artificial Intelligence

1. Transaction Processing Systems

Transaction Processing Systems (TPS) are systems designed to handle a large
volume of routine, recurring transactions. TPS processes business transaction of the
organization. Transaction can be any activity of the organization. Transactions differ
from organization to organization. For example, take a railway reservation system.
Booking, cancelling, etc are all transactions. Any query made to it is a transaction.
However, there are some transactions, which are common to almost all
organizations. Like employee new employee, maintaining their leave status,
maintaining employees accounts, etc.
Function of TPS
TPS provides high speed and accurate processing of record keeping of basic
operational processes. These include calculation, storage and retrieval.
Some examples of TPS

Payroll systems
Order processing systems
Reservation systems

Stock control systems

Systems for payments and funds transfers

The role of TPS

Produce information for other systems

Cross boundaries (internal and external)
Used by operational personnel + supervisory level
Efficiency oriented

2. Management Information System

These systems assist lower management in problem solving and making decisions.
They use the results of transaction processing and some other information also. It is
a set of information processing functions. It should handle queries as quickly as they
arrive. An important element of MIS is database.
A database is a non-redundant collection of interrelated data items that can be
processed through application programs and available to many users.
Functions of a MIS
MIS are built on the data provided by the TPS
The role of MIS

Based on internal information flows

Support relatively structured decisions
Inflexible and have little analytical capacity
Used by lower and middle managerial levels
Deals with the past and present rather than the future
Efficiency oriented?

3. Decision Support System

A DSS is an interactive computer system that can be used by managers without help
from computer specialists. A DSS provides managers with the necessary information
to make intelligent decisions.
A DSS has three fundamental components:
1. Database management system (DBMS): Stores large amounts of data relevant to
problems the DSS has been designed to tackle.
2. Model-based management system (MBMS): Transforms data from the DBMS into
information that is useful in decision making.
3. Dialog generation and management system (DGMS): Provides a user-friendly
interface between the system and the managers who do not have extensive
computer training.
Functions of a DSS

DSS manipulate and build upon the information from a MIS and/or TPS to generate
insights and new information.
Some examples of DSS

Group Decision Support Systems (GDSS)

Computer Supported Co-operative work (CSCW)
Logistics systems
Financial Planning systems
Spreadsheet Models?

The role of DSS

Support ill- structured or semi-structured decisions

Have analytical and/or modelling capacity
Used by more senior managerial levels
Are concerned with predicting the future
Are effectiveness oriented?

4. Executive Support System

Executive Information Systems are strategic-level information systems that are
found at the top of the Pyramid. They help executives and senior managers analyze
the environment in which the organization operates, to identify long-term trends,
and to plan appropriate courses of action. The information in such systems is often
weakly structured and comes from both internal and external sources. Executive
Information System are designed to be operated directly by executives without the
need for intermediaries and easily tailored to the preferences of the individual using
them.
Functions of an EIS
EIS organizes and presents data and information from both external data sources
and internal MIS or TPS in order to support and extend the inherent capabilities of
senior executives.
Some examples of EIS
Executive Information Systems tend to be highly individualized and are often custom
made for a particular client group; however, a number of off-the-shelf EIS packages
do exist and many enterprise level systems offer a customizable EIS module.
The role of EIS

Are concerned with ease of use

Are concerned with predicting the future
Are effectiveness oriented
Are highly flexible
Support unstructured decisions
Use internal and external data sources
Used only at the most senior management levels

5. Expert Systems and Artificial Intelligence

Expert Systems are computer programs that are derived from a branch of computer
science research called Artificial Intelligence (AI). AI's scientific goal is to understand
intelligence by building computer programs that exhibit intelligent behaviour. It is
concerned with the concepts and methods of symbolic inference, or reasoning, by a
computer, and how the knowledge used to make those inferences will be represented
inside the machine.
Of course, the term intelligence covers many cognitive skills, including the ability to
solve problems, learn, and understand language; AI addresses all of those. But most
progress to date in AI has been made in the area of problem solving -- concepts and
methods for building programs that reason about problems rather than calculate
solution. Building an expert system is known as knowledge engineering and its
practitioners are called knowledge engineers.
The knowledge engineer must choose one or more forms in which to represent the
required knowledge as symbol patterns in the memory of the computer -- that is, he
(or she) must choose a knowledge representation. He must also ensure that the
computer can use the knowledge efficiently by selecting from a handful of reasoning
methods.