Information Systems and ERP Systems: A Comprehensive Analysis

Desklib provides past papers and solved assignments for students. This report explores information systems and ERP.

MANAGING INFORMATION AND
TECHNOLOGY
0

Table of Contents
Introduction................................................................................................................................1
Information System....................................................................................................................2
Stages of Information System................................................................................................2
Types of the Information System...........................................................................................3
1. Transactional Processing System (TPS)......................................................................3
2. Management Information System (MIS).....................................................................4
3. Decision Support System (DSS).................................................................................5
4. Executive Information System (EIS)...........................................................................6
ERP Systems..............................................................................................................................7
Types of the Deployment options for the ERP systems.........................................................7
ERP system Business Values.................................................................................................8
ERP System Qualifying.........................................................................................................8
Benefits of the ERP systems..................................................................................................8
Issues with the ERP System...................................................................................................8
Challenges faced by ERP System........................................................................................10
Conclusion and Recommendations..........................................................................................11
References................................................................................................................................12
1

List of Figures
Figure 1: Information System....................................................................................................3
Figure 2: Stages of the information system................................................................................3
Figure 3: Pyramid of different types of information system......................................................4
Figure 4: Transactional processing system................................................................................5
Figure 5: Management information system...............................................................................6
Figure 6: Decision support system.............................................................................................7
Figure 7: Executive information system....................................................................................8
Figure 8: Pie chart shows the age of the ERP system..............................................................10
Figure 9: Pie chart showing the implementation of the outcomes...........................................10
List of Tables
Table 1: Table showing the Functions of the Transactional Processing System.......................4
Table 3: Table showing the Functions of the management information system........................5
Table 4: Table showing the Functions of the Decision Support System...................................6
Table 5: Table showing the Functions of the executive information System............................7
2

Introduction
This essay is about the information system is nothing but the system used for processing,
collecting, dissemination, analyzing the information. In terms of the sociotechnical
perspective, the information system is the system which is composed of the four main
components that are a task, roles or the structures, people and the technology. There are
generally four types of information system like TPS (transactional processing system), MIS
(management information system), DSS (Decision support system), EIS (executive
information system). We will also see the information about the ERP system which stands
for“Enterprise Resource Planning”. It is generally referred to the software and the system
packages which are used by the organization for managing the day to day business. The
principle of ERP is the central collection of the information or data for the wide distribution.
For implementing the ERP system there are generally five major processes like the first stage
is the planning of the structure, the second stage comes the assessment of process, the third
stage comes the data clean-up and the data compilation, testing, and the education comes in
the stage fourth and the last and the final stage of the ERP system is nothing but the
evaluation and the usage.
The aim of the essay is to find the types of information system along with it proper
information about the ERP system and also mentioning its benefits and issues with the ERP
system too.
3

Information System
The information system is the system used for processing, collecting, dissemination,
analyzing the information. In terms of the sociotechnical perspective, the information system
is the system which is composed of the four main components that are the task, roles or the
structures, people and the technology (Chris, 2019).
Figure 1: Information System
Stages of Information System
The main stages of the information system are as follows:
1. Collecting data
2. Processing
3. Analyzing
4. Dissemination
5. Use
4

Figure 2: Stages of the information system
Types of the Information System
There are generally four types of information system like TPS (transactional processing
system), MIS (management information system), DSS (Decision support system), EIS
(executive information system). The brief description of the different types of an information
system are as follows:
Figure 3: Pyramid of different types of information system
1. Transactional Processing System (TPS)
The transactional processing system is the operational type level system which is at
the bottom of the pyramid as shown in the above-mentioned figure. This types of
information system are directly operated by the front line staff or the shop floor
workers. The data generally obtained by semi-automated or the automated tracking of
the low-level activities and also the basic transactions.
Functions of the Transactional Processing System
5

Table 1: Table showing the Functions of the Transactional Processing System
Inputs Processing Outputs
Transactional
Events
Calculation
Validation
Updating
Sorting
Merging
Listing
Summary reports?
Lists
Action Report
Details reports
Examples of the Transactional Processing System
Shown below are some of the examples of the TPS:
 Systems used for the stock controls
 Reservation systems
 The system used for order processing
 Payroll system
 The system used for funds and payments transfers
Roles of the Transactional Processing System
Shown below are some of the roles of the TPS:
 Efficiency oriented
 Used by supervisory level + the operational personnel
 Cross boundaries (externals and the internals)
 Generate information for some other systems
Figure 4: Transactional processing system
2. Management Information System (MIS)
The management information system is the management type level system which is in
the middle of the pyramid as shown in the above-mentioned figure (Badewi, 2016).
This types of information system are directly operated by the middle manager for help
ensuring the proper running of the organization.
Functions of the Management Information System
Table 2: Table showing the Functions of the management information system
Inputs Processing Outputs
Structured Data
Internal Files
Summarizing
Merging
Summary reports
Details reports
6

Internal Transactions Sorting Action Report
Examples of the Management Information System
Shown below are some of the examples of the MIS:
 Systems used for management reporting (MRS)
 Personnel system (HRM)
 Budgeting system
 A system used for the sales management
 The system used for inventory control
Roles of the Management Information System
Shown below are some of the roles of the MIS:
 Efficiency oriented?
 It is based on the internal information flows
 Deals with the present and the past rather with the future.
Figure 5: Management information system
(Source: Topper-guides, 2018)
3. Decision Support System (DSS)
The decision support system is the tactical type level system which is at the upper
level of the MIS of the pyramid as shown in the above-mentioned figure. This types
of information system are directly operated by the senior manager.
Functions of the Decision Support System
Table 3: Table showing the Functions of the Decision Support System
Inputs Processing Outputs
7

External Information?
Internal Files
Internal Transactions
Summarizing
Simulation
Modelling
Analysing
Summary reports
Plots / Graph
Forecasts
Examples of the Decision Support System
Shown below are some of the examples of the DSS:
 Systems used for the group decision support
 Logistics system
 A system used for financial planning
 Spreadsheet model
Roles of the Decision Support System
Shown below are some of the roles of the DSS:
 Efficiency oriented?
 DSS concerned with future prediction
 Used by the senior managerial level
Figure 6: Decision support system
(Source: mscisbolouereifidi, 2015)
4. Executive Information System (EIS)
The executive information system is the strategic type level system which is at the top
of the pyramid as shown in the above-mentioned figure. This types of information
system are directly operated by the executives and also by the senior manager (Shatat,
2015). The data generally obtained by semi-automated or the automated tracking of
the low-level activities and also the basic transactions.
Functions of the Executive Information System
Table 4: Table showing the Functions of the executive information System
Inputs Processing Outputs
8

Pre-defined models
Internal files
External data
Drilling down
Summarizing
Simulation
Summary reports
Plots / Graph
Forecasts
Examples of the Executive Information System
Shown below are some of the examples of the EIS:
 Systems used for the client's group
 Reservation systems
 The system used for EIS customizable module
Roles of the Executive Information System
Shown below are some of the roles of the EIS:
 EIS concerned with future prediction
 Highly flexible
 EIS concerned with the ease of the use
Figure 7: Executive information system
(Source: tutorialspoint.com, 2019)
ERP Systems
The full form of the ERP is “Enterprise Resource Planning”. It is generally referred to the
software and the system packages which are used by the organization for managing the day to
day business. The principle of ERP is the central collection of the information or data for the
wide distribution. For implementing the ERP system there are generally five major processes
like the first stage is the planning of the structure, the second stage comes to the assessment
of process, the third stage comes the data clean-up and the data compilation, testing, and the
education comes in the stage fourth and the last and the final stage of the ERP system is
9

nothing but the evaluation and the usage (Shen et al., 2016). The correct ERP system helps in
collecting and storing the data into one centralized location from the areas like the:
 eCommerce
 POS (point of sale)
 Supply chain management
 Management of inventory
 Management of warehouse
 Business intelligence
 Management of production
 Customer relationship management
 Accounting and finance
 Human resources
Types of the Deployment options for the ERP systems
There are generally two types of the deployments for the ERP systems which is available for
the business today they are as follows:
1. On-premises
2. Cloud-Based
ERP system Business Values
 Reduced the risk
 Business insight improved
 Operational cost is very low
 Enhanced the collaboration
 Improved the efficiency
 Consistent infrastructure
 The rates of user adoption are very high
 Operational cost and the management cost is low (Sumner, 2018)
ERP System Qualifying
For the software system to come in the categories of the ERP system, it is essential that it
provides the business with a large collection of the functionalities which must be supported
by the following features:
 Flexibility
 Widespread
 Openness and the modularity
 Worldwide focus
 Best business process
Benefits of the ERP systems
 ERP gives the employees the data and the tools they just required to be successful
 ERP system helps for increasing the productivity amongst the team
 It makes the process easier for the team to collaborate with third-party vendors and
each other too.
 It gives the single point of the truth for the company or the organization.
 ERP system helps the streamline and automate tedious task and to redundant process.
 An ERP information system is very convenient and efficient.
 This will reduce the cost by decreasing the paperwork, reduced the duplication of the
testing, will improve the safety (Kilic, 2015).
10

 The ERP information system will provide accurate, complete and up to date
information about the system.
 The ERP information system will enhance the security and privacy of the system’s
data.
Issues with the ERP System
Every system has some advantage along with the disadvantage too. ERP system also has
some issues and disadvantage. Shown below are some of the issues with the ERP system:
 The main issues with the ERP system are that the cost of the ERP system is high.
Figure 8: Pie chart shows the age of the ERP system
(Source: Service, 2019)
 When we try to contact the vendor the research phases end.
Figure 9: Pie chart showing the implementation of the outcomes
(Source: Oracle.com, 2019)
11