Task II (14-12-2010)

What are the principle types of information systems that support information activities in the organization?

Answer :

Types of information systems :
Two categories depending upon their focus on the kind of activities in a business enterprise

1. Operation support system

    - Focus on the operations of the enterprise.

    - Objective is to improve the operational efficiency.

    - Use internal data primarily-For lower level of managers.

    - Classified into the following categories :

      a). Transaction Processing System  
       b). Process Control System
       c). Enterprise Collaboration System
         
a). Transaction Processing System 
  -Focus on the recording and processing of economic events (transactions).
  -It processes transactions in two ways batch and real-time (or online).
  -It encompasses the entire gamut of daily routines of the enterprise including financial  accounting, inventory control, payroll, sales order processing system.
  -Transaction can be internal or external.

b). Process Control System
  -Monitors & control physical process
 

c). Enterprise Collaboration System

  -Enhance team and workgroup communication and productivity, and include applications that are sometimes called office automation system.

It facilitates the following activities:

• Producing outgoing documents (using text processors)-storage & retrieval of documents (using document management system) 
• transmission of messages (using message communication systems) 
• scheduling and meeting management (using video conferencing)

2. Management support systems

    -Information System application focus on providing information and support for effective decision making by managers.
    -Classified into following categories :

      a)Management Information System

      b)Decision Support System
      c)Executive Support System

a). Management Information System

  -Aims at meeting the information needs of managers, particularly with regard to the current and past operations of the enterprise.
  -Offers summary and exception reports on the operations of the enterprise and are also called as operations support systems.

b). Decision Support System

  -Gives direct computer support to managers during the decision making process.

  -It has a user friendly interface.

  -Flexibility of use in various unexpected decision situation.

  -Component of Decision Support System :

• Database management system (DBMS): a piece of software that controls, manages, and maintains internal & external data. 
• Model management system: a system that stores and processes the models that
  managers use to make decisions.
• Support tools: tools that help users to interact and interface with a decision support system.

c) Executive Support System  

1. Top managers do not have the time to study and analyze large volume of data. They need an IS that will analyze the data & present it in elegant manner so they can have quick & effective decisions. 
2. The system that deliver high level information in a friendly way is called EIS.
3. An EIS consists of tools & techniques, such as color graphics, touch screens, voice activated commands, and distribute large volumes of data quickly and effectively.
4. Provides critical information from both internal and external sources to easy-to-use displays to manager.
5. The managers get tailored made formats they prefer.6.Focus more on delivery of information by top managers than generation of information

Applications of EIS 

• Executive Briefing
• Personalized Analysis
• Exceptions Reporting
• Model based analysis