Types of Information System (Types of CBIS)

1. MIS (Management Information System.

2. TPS (Transaction Processing System.

3. DSS (Decision Support Systems.

4. EIS (Executive Information Systems

5. ES (Expert Systems)

6. OAS (Office Automation System)

TPS (Transaction Processing System)

• TPS (Transaction Processing System) is an information system that manipulates data , from business transactions. Transaction include events such as sales, purchases, deposits, withdrawals, refunds and payments. TPS performs routines and repetitive tasks.

Example: When an organization sells something to a customer on credit, data about the customer, about product, about salespersons etc. must be stored and processed.

• Definition:“ TPS is the computerised system that

perform and record the daily routine transaction necessary to conduct a business.”

“TPS is a type of information system that collects, stores, modifies and retrieves transaction of an organization.”

Examples of important TPS

• Payroll Processing• Order Processing• Inventory System• Invoicing System (Price catalogues)• Accounts receivable systems• Purchasing systems• Accounts payable systems• General ledger systems.

General areas where TPS is used

• ATM

• Airlines Reservation

• E-Payroll Processing

• Any ticket reservation.

Types of Transaction Processing 1. Batch transaction processing: In this information is gathered but not

processed immediately. Processing may be done on daily, weekly or monthly basis.Example: invoice or cheque processing in a bank.

2. OLTP (Online transaction processing) or Real time transaction processing:

Here transaction is processed immediately and operator has access to online database.

In other words input device is directly linked to the TPS and data are processed as soon as it is entered into the system.

Example: Withdrawal from an ATM.

Enter data

Validate data

Process data

Generate Output

Process Inquiries

Steps in Processing a Transaction

Advantages (Features) of TPS

• Fast Performance• Continuously Availability• Ease of Use• Database availability• Data hiding• Modular growth• Sharing among many users• Data integrity

Disadvantages of TPS

• Chance of double booking

• Processing schedule is predetermined

• Problem in sorting the transactions

• No possibility of error correction.

MANAGEMENT INFORMAION SYSTEM (MIS)

Meaning: MIS or Management Information System, are used to manage the data created within organization for providing information, to support the operations and to ease the management analysis and decision making functions in an organizations.

In other words, “The information system developed to provide accurate, timely and relevant information that helps managers in effective decision making are known as Management Information System.

Examples of MIS:

1.Personnel Information Systems

2.Marketing Information Systems

3.Sales Information Systems.

4. Production and Operations Information Systems.

Primary users of MIS are middle and top management.

MIS is used after TPS as shown in diag.

Transaction data TPS MIS

Summary Reports

Exception Reports

Input sources of MIS

• Plan or Policies: It contains different types of strategies and financial plan to achieve the goal.

• Transaction Processing System : It contains information from every transactions like-Payroll,Inventory Control, Order Processing and accounts etc.

• External Sources: Such as Annual reports, Financial statements of competitors and general news items.

Output Source of MIS

• 1.Scheduled Reports: Management can take report periodically such as daily, weekly, and monthly basis.

• 2.Summary Report: Here MIS provide Key activities such as previous day critical activities at the beginning of each day.

• 3.Demand report: Here MIS provide information on demand or request of managers.

• 4. Exception Report: Sometimes MIS takes the decision on the basis of available information and automatically produced the report when a situation is unusual or requires management action urgently.

Objectives of MIS

• 1.Helpful in decision making• 2. Provide planning and control tools• 3. Provide right information to the right

manager at the right time.• 4. Create the process of communication• 5. Provide complete system• 6. Maintenance of centralised data• 7.Less processing time

• 8. Helpful to managers to compare results

• 9. Tabular and graphical reports.

• 10. Easy to access data

MIS Characteristics orWhat quality should be in ideal MIS• 1. Flexibility• 2.Reliability• 3. Simplicity• 4. Economical• 5. Helpfulness• 6. Consistency• 7. Management – oriented• 8. Management – directed

• 9. Integrated

• 10. Common data flows

• 11. Heavy planning element

• 12. Sub-system concept

• 13. Common data base

• 14. Computerised

• 15. Exception based

• 16. Relevance

• 17. Brevity

• 18. Accuracy

Problems of MIS (Limitations)

• Highly sensitive• Not qualitative• Not perfect substitute• Not flexible• Not universal • Ignores the non-quantitative factors• Not more effective in special

circumstances.