Analysis of Different Information Systems in Business Operations

This report provides a comprehensive overview of different types of information systems used in a business context. It categorizes information systems based on management levels (operational, tactical, and strategic) and details the functionalities of Transaction Processing Systems (TPS), Management Information Systems (MIS), and Decision Support Systems (DSS). The report explains how these systems support day-to-day operations, monitor performance, and aid in decision-making. It further discusses the integration of these stand-alone systems and provides real-world examples, such as airline booking systems, sales management systems, and financial planning systems. The report also addresses the challenges associated with the implementation of information systems, including changes in power structures, employee training, and the reliance on quantifiable data. The conclusion emphasizes the importance of these systems in gaining a competitive advantage by providing accurate client information and improving customer service.

Different types of information
systems

Table of Contents
INTRODUCTION...........................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
The combination of hardware, software and telecommunication networks are termed as
information system that people develop and used to gather, create and distribute useful data .In
order to produce information an information system is a group of components . Rather than on
external it focuses on internal. The resources for shared or process information are included in
information system .As a part of the system the people are been considered as without them the
correct operation of the system will not be there. The different type of information system are
thee that can be used in a business .In order to carry put operations people use information
technology. In a form of social memory information system represent data and process. The
human decision making and action is been supported by information system.
This essay will represent the different type of information technologies that can be used
by the organization to gain the accurate information about customers, rivals and targeted
customers. Further more the integration of various stand -alone information system will be
discussed in this report by provided suitable examples. This report will also present the
challenges to the deployment of information system.
Aim
The aim of this essay is to present the different type of information system and how more
correct information can be produced about clients, rivals companies. By making use of these
different types of information system in a business the better decisions can be made in the
organization and this will help the companies to gain competitive advantage from rival
companies.
Objective
 To analyse the different type of information system
 To develop the accurate and targeted information about customers, rivals by making use
of information system
 To enhance the decision-making process by making use of different information
technology
 To gain competitive advantage from competitors by using these technologies in business.
Three different types of information system
Operational management level - In the organization the operational level deals with performing
of day to day business transactions. For an instance the users at this level of management

includes nurses in a hospital, customers care staff etc. The structure decisions are made by users
at this level. This implies that while making decisions they have defined rules that guides or
assists them. For an instance if the item in a store are sell on credit and set limit is there on
borrowing as they have a credit policy. It is been decided by the sales person whether to give
credit to customer or not which is based on the current credit information from the system.
Tactical management level- By middle level managers, head of departments, supervisors etc this
level if organization is dominated. At the operational management level the users mainly oversee
the activities of the users. The semi-structured decisions are been made by tactical users. On set
guidelines and judgement calls the decision are partly based. For an instance the limit of credit
and history of customer payment can be checked by tactical managers and for a particular
customer they may decide to make an exemption to raise the limit of credit. The partly structure
decision are been made as the existing information are been used by tactical manager in order to
recognize a history of payments that will be beneficial for the organization and an allowed
increases percentage.

Illustration 1: Different types of information system
(Source:Types of information system, 2017)

Strategic management level – In an organization it is the most senior level. The unstructured
decision are been made by the users at this level. With the long-term planning of the organization
senior level mangers are concerned. From tactical managers the information is been used by
them. And while making unstructured decisions the external data is been used by them to guide
them.
Transaction processing system (TPS)- In the organization the day to day transaction are been
recorded by TPS. At the operational management they are been used by the users. The routine
questions can be answered by the TPS. The detailed information is been produced by the TPS.
For an instance when the loans are been given by the banks need that the company a person
works must a memorandum of understanding with the bank. If the employers has MoU with the
bank applies for a loan,the submitted documents are being verified by operational staff. The loan
application is being processed of the requirement are met. In case the requirements are not met
the client is advised to meet the tactical management staff in order to sign MoU. Some examples
of TPS can be airline booking system , stock control system etc.
Management information system(MIS) – In order to monitor the current status of the
performance of organization it is been used by tactical managers. From a TPS the output is being
as a input for MIS. With routine algorithms the MIS system analyses the input. The
algorithms such as aggregate, compare, and summarize are being used in order to produce result
of reports that can be sued by tactical managers to monitor, control and depict future
performance. For an instance The trends of the products can be analysed by getting input from a
point of sale system..From this one can find out what products are performing well and the
products that are not performing well. The future inventory orders can be made from this
information .For well performing products the orders can be increase and for the not performing
well the order of products can be reduced.
Some more examples for MIS are sales management system, human resource management
system etc.
The semi-structured decisions are the responsibility of tactical mangers. In order
to make the structured decision MIS system gives the information and they make judgement calls
based on the experience of the tactical managers.

Decision-support system – In order to make non-routine decisions, decisions support systems are
been used by senior management. From internal system that is from transaction processing
system and management information system the input is been used by them. The solutions to the
problems that are unique and different are been provided by decision support system. In order to
give solutions for the problems the sophisticated mathematical models and statistical techniques
are been used by decision-support system. Some of the example of decision support system are
financial planning system. In this the alternative ways been given to the managers to achieve the
goals. The optimal way is been used to achieve the goals. For an instance the by using the
formula total sales less the net profit for a business is calculated. Similarly, the decision support
system can also be used ion bank loan management systems. The credit of the loans applicant
can be verified and the likelihood of the loan being recovered can be predicted.
Integration of various stand-alone information system
The tracking and processing of transaction is been handled by the TPS system. For
an instance in an airline booking System in which the booking, cancellation etc are all
transactions. In the sales and marketing system TPS can be used. For an instance the records and
total purchase transaction can be done automatically by s store sale system and also a packing list
will also be printed. By making use of this the customer services will improve and the data if
customers will also be maintained. It can also be used in manufacturing and production
system .For an instance in this sample of products can be measured from a system in factors and
from that information can be get. These samples can then be analysed. It can also be used in
human resource management in this the human resource system can use it in training and skills,
tracking application etc. The output from the TPS are been used as input in the MIS. For an
example in the ales management system by making use of MIS the input can be received from
the point of sale system. More efficient and productive decision can be made by the managers by
making use management information system. From a range of sources the information is polled
in a single database and in a logical format the information is presented. In depth analysis on
operational issues is been made by MIS that can assist the manager to make effective decision.
The data that is been gathered by the transaction processing system is been used by management
information system. This data is been used to develop reports that will help the managers to
make decisions in response to the issues. The reports that is been created by this information
system are ad-hoc reports, summary and exception. This is done to enhance the efficiency of

managerial activity. Decision support system gives information, models or tolls the managers
that will help them to make decisions. For an instance by using spreadsheets and database crating
what if models.
An example of TPS will be online air ticket booking system in which the schedule of flight ,
their favourite sit and the seat available list is been updated by the system and the system
removes the selected seat by the traveller. The bill and copy of a ticket is then being generated by
this system. On real-time and batch processing TPS can be based. Example of MIS system it can
be used by the managers to find the potential effect on schedules of shipping if monthly sales are
doubled. In order to conduct analysis of what-if ad-hoc it can be used. In DSS, the
predetermined or ad-hoc reports are been used by the manger and owners to support the planning
of operation and problem-resolution decisions. The interface, a dashboards etc can be sued by
manager to conduct analysis. For an instance the graphic might be presented by a dashboard
which shows the number of products that is been manufactured on a specific line.
Challenges faced due to information system
Within the organization a lot of things are been changed due to implementation of
MIS. The power structure is changed, the way the people work is changed. In the implementation
process this change cause problems. The implementation of MIS involves migration of
information system from controlled environment of design and development to real environment.
In the controlled environment the information system work well but it fails to deliver in real
environment. The tailoring and customization of the system is needed in it. In the MIS creation
the degree of involvement of employees is a major challenge that is faced. In the TPS the effects
on employees will be there due to changing nature of work. On quantifiable data a decision-
support system majorly relied. It is not so easy to evaluate intangible or indefinable data. An
issue can be faced if there is a lack of technology knowledge in users. The main challenge that is
been faced in information system in business is that all this system are not so cheaper and a
money need to be invested in it. The employees need to be given training regarding use of this
information system which in turn need will need money.
CONCLUSION
Thus summing up the above report it can be concluded that information system
can be used in order to get correct information or data about the client and provide them with
better and advanced services in comparison with rival business. Today more and companies are

making use of information technology in order to give customers with better services and gain
more customer satisfaction. The effective decision can be made by them by making use of
TPS,MIS and DSS information technology in the business. The day to transactions are been
recorded by TPS and it is been used by users at operational management level . The MIS are
used to monitor the current status of the performance of organization it is been used by tactical
managers. The non-routine decision are made senior manager by making use of DSS.
It is recommended that information system such as MIS , TPS and DSS can be
used in the business in order to be competitive and enhance the decision that is made in the
organization. The artificial intelligence techniques can also be used in business as it will help to
recognize the patterns in large data set. The various companies are making use of this technique
to identify data. For an instance in order to suggest products that customers will buy companies
can use artificial intelligence.

REFERENCES
Books and journals
Brown, S.A., Venkatesh, V. and Goyal, S., 2014. Expectation Confirmation in Information
Systems Research: A Test of Six Competing Models. Mis Quarterly, 38(3).
Davies, R.S., Dean, D.L. and Ball, N., 2013. Flipping the classroom and instructional technology
integration in a college-level information systems spreadsheet course. Educational
Technology Research and Development, 61(4), pp.563-580.
Geiger, D. and Schader, M., 2014. Personalized task recommendation in crowdsourcing
information systems—Current state of the art. Decision Support Systems, 65, pp.3-16.
Gorla, N. and Somers, T.M., 2014. The impact of IT outsourcing on information systems
success. Information & Management, 51(3), pp.320-335.
Hashem, I.A.T. and Khan, S.U., 2015. The rise of “big data” on cloud computing: Review and
open research issues. Information Systems, 47, pp.98-115.
Kim, Y. and Lee, J.S., 2014. DBCURE-MR: an efficient density-based clustering algorithm for
large data using MapReduce. Information Systems, 42, pp.15-35.
Petter, S., DeLone, W. and McLean, E.R., 2013. Information systems success: The quest for the
independent variables. Journal of Management Information Systems, 29(4), pp.7-62.
Tsang, E.W., 2014. Case studies and generalization in information systems research: A critical
realist perspective. The Journal of Strategic Information Systems, 23(2), pp.174-186.
Venkatesh, V., Brown, S.A. and Bala, H., 2013. Bridging the qualitative-quantitative divide:
Guidelines for conducting mixed methods research in information systems. MIS
quarterly, 37(1).
Whittington, R., 2014. Information systems strategy and strategy-as-practice: a joint agenda. The
Journal of Strategic Information Systems, 23(1), pp.87-91.
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