Information systems

They are systems formed through coordinated function of people, equipment, procedures, data and other recourse to provide uniform, reliable, accurate information. In effect, an organizational system is tied together with its information elements by the information system.

Examples of information systems are;

Transaction processing system (TPS)

It falls in the low-level management, it support day to day business operating activities (transactions) which is the most important objective of the business. A computer based TPS focuses on the operating level of the business and deals with data from internal sources. The management information produced by TPS usually consist of detail reports of daily transaction (such as items sold or all accounting transaction that have been recorded in various ledgers and registers) or future transactions (such as list of items to be ordered). Typical examples of such systems would be Airline Reservation Systems, Banking Systems, or the Accounting System of almost any large company

 

A TPS operates only within one functional area of business i.e. accounting and finance, production, marketing and sales, and research and development each has its own TPS. Database management systems (DBMS) were designed to solve the problems involved with sharing computer-based files among the different functional areas of the business hence all the areas are able to communicate.

Transaction Processing Systems are mostly unknown to the world of personal computers, today, many small companies, non-commercial organizations, and even private individuals are discovering applications that can benefit from a Transaction Processing System.

The main problems addressed by Transaction Processing Systems are:

  • the need to handle hundreds, even thousands of simultaneous Users
  • the need to allow many Users to work on the same set of data, with immediate updating
  • the need to handle errors in a safe and consistent manner

Normal time-sharing systems are usually incapable of handling these problems because of the great number of Users. Spawning a unique process for each User having his own copy of all the data simply creates too much overhead for the Operating System.

The World Wide Web easily reaches large numbers of simultaneous Users. Consequently, Web Servers internally work very similar to traditional Transaction Processing Systems, with the exception that they lack database access and state information pertaining to the individual Users.

Transaction Systems handle errors in a safe and consistent manner, but there are certain errors that can not be avoided (e.g. Network errors or Database deadlocks) so a way must exist to handle them when they occur. It is not possible to simply abort a current process. The consequences to a database left in an inconsistent state could render the entire system unusable.

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Management information system (MIS)

Falls in the middle level management also called information-reporting system. They provide middle level management with reports that summarize and categorize information derived from all databases i.e. outputs of TPS are its main components for management to spot trends and to get the overview of the current business activities as well as monitor and control operational level activities.

The scope of the report and characteristics of their information vary according to their purpose. I.e.  the reports can be periodical ( such as income statements and balance sheets), on demand or event driven and ...

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