TYPES OF SYSTEM

PRESENTATION BY
Shweta kalwania
CONTENT
INTRODUCTION TO SYSTEM
TYPES OF SYSTEM

1) TRANSACTION PROCESSING SYSTEM

2) MANAGEMENT INFORMATION SYSTEM
3) DECISION SUPPORT SYSTEM
4) EXECUTIVE SUPPORT SYSTEM
5) FUNCTIONAL SYSTEM
6) INTEGRATED SYSTEM
7) BUSINESS EXPERT SYSTEM
INTRODUCTION TO SYSTEM
 WHAT IS BUSINESS INFORMATION SYSTEM?
It is the use of information technology, people and business processes to
record, store and process data for the purpose of producing information
that is useful to the decision makers in making day to day decisions for the
company.

 WHAT IS THE NEED?

A typical organisation is divided into different levels, the information
requirements for users at each level is different.
TYPES OF SYSTEM
TYPES OF SYSTEM
1) TRANSACTION PROCESSING SYSTEM
2) MANAGEMENT INFORMATION SYSTEM
3) DECISION SUPPORT SYSTEM
4) EXECUTIVE SUPPORT SYSTEM
5) FUNCTIONAL SYSTEM
6) INTEGRATED SYSTEM
7) BUSINESS ECPERT SYSTEM
1. TRANSACTION PROCESSING
SYSTEM (TPS)
• TPS is a type of information system that collects, stores, modifies, retrieves
the data transaction of an organisation.
• Record day to day transaction
• Used by user of operational managerial level
• Seeks time and cost efficiency
• Also known as DATA PROCESSING SYSTEM
FEATURES OF TPS
Rapid Response

Fast respond to customer

Reliability

A good TPS must be reliable

Inflexibility

Must work same for every transaction.

Controlled processing

Access at any time

PROCESS OF TPS
TPS uses data to produce data
EXAMPLES OF TPS
• Point of Sale Systems – Point of Sale Systems 
records daily sales
• Payroll systems –
processing employees salary, loans management, etc.
• Stock Control systems –
keeping track of inventory levels
• Airline booking systems –
flights booking management
2. MANAGEMENT INFORMATION
SYSTEM (MIS)
• A management information system is an information system used for
decision making, and for the coordination, control, analysis, and visualization
of information in an organization.
• The study of management information systems examines people, processes
and technology in an organizational context.
• The ultimate goal
MIS is to - increase the value and profits of the business.
• Assist managers in the process of decision making
PROCESS OF MIS
 ADVANTAGES OF MIS
• Improve an organization's operational efficiency, add value to existing products,
engender innovation and new product development, and help managers make
better decisions.
• Companies are able to identify their strengths and weaknesses
• help a company improve its business processes and operations.
• Acting as a communication and planning tool.
• The availability of customer data and feedback can help the company to align its
business processes according to the needs of its customers.
• MIS can help a company gain a competitive advantage.
• MIS reports can help with decision-making as well as reduce downtime for
actionable items.
DISADVANTAGES OF MIS
MIS system advantages heavily outweigh the disadvantages:
• Retrieval and dissemination is dependant on technology hardware and
software.
• Potential for inaccurate information.
3. DECISION SUPPORT SYSTEM (DSS)
• A DSS is a computer-based information system that supports business or
organizational decision-making activities.
• A DSS is a collection of integrated software applications and hardware that
form the backbone of an organization’s decision making process and help to
make decisions, which may be rapidly changing and not easily specified in
advance.
• DSS lets users to analyse massive reams of data and compile information
OBJECTIVES OF DSS
• Increase the effectiveness of the managers decision- making process.
• Supports the manager in the decision-making process but does not replace it.
• Improve the directors effectiveness of decision making
ADVANTAGES AND DISADVANTAGES
OF DSS
ADVANTAGES OF DSS DISADVANTAGES OF DSS
• Time saving • Assumption of relevance
• Enhances effectiveness • Information overload
4. EXECUTIVE SUPPORT SYSTEM(ESS)
• An Executive information system (EIS), also known as an Executive support
system (ESS), is a type of management support system that facilitates and
supports senior executive information and decision-making needs.

• It provides easy access to internal and external information relevant to

organizational goals. It is commonly considered a specialized form of
decision support system (DSS).
COMPONENTS OF ESS
• Hardware

• Software

• User interface

• Telecommunications
ADVANTAGES OF ESS
• Easy for upper-level executives to use, extensive computer experience is not
required in operations
• Provides strong drill-down capabilities to better analyze the given information.
• Information that is provided is better understood
• EIS provides timely delivery of information. Management can make decisions
promptly.
• Improves tracking information
• Offers efficiency to decision maker
DISADVANTAGES OF ESS
• System dependent
• Limited functionality, by design
• Information overload for some managers
• Benefits hard to quantify
• High implementation costs
• System may become slow, large, and hard to manage
• Need good internal processes for data management
• May lead to less reliable and less secure data
• Excessive cost for small company
 ROLE OF ESS IN :
• Manufacturing: Manufacturing is the transformation of raw materials into finished
goods for sale, or intermediate processes involving the production or finishing of
semi-manufactures.
• Marketing: To assist marketing executives in making effective marketing decisions,
an EIS can be applied. EIS provides sales forecasting, which can allow the market
executive to compare sales forecast with past sales. EIS also offers an approach to
product price, which is found in venture analysis.
• Financial: An EIS integrates planning or budgeting with control of performance
reporting, and it can be extremely helpful to finance executives. EIS focuses on
financial performance accountability, and recognizes the importance of cost
standards and flexible budgeting in developing the quality of information provided for
all executive levels.
5. FUNCTIONAL SYSTEM (FS)
• Functional Information System is based on the various business functions
such as Production, Marketing, Finance and Personnel etc.
• These departments or functions are known as functional areas of business.
Each functional area requires applications to perform all information
processing related to the function.
• The popular functional areas of the business organization are:
Financial Information System

Marketing Information System

Production/Marketing Information System

Human Resource Information System

CHARACTERISTICS OF FS
• Many small changes in a large database.

• Systematic record (Mostly numerical)

• Routine action and updating.

• Data Preparation is a large And important effort.

6. INTEGRATED SYSTEM (IS)
• Integrated system is an array of multiple information sets linked together in
an organized way.
• Information sets are groups of similar items often collected together.
• Organized means that there is a well-defined plan for collecting and linking
information sets.
• In the multiservice agency an lS would link information across different
services and would integrate information across agencies for a given
participant.
• This information allows provider based managers of care to make decisions
that improve the quality and limit the total costs of chronic care.
• The integrated information system is consisting from such modules as
administration,
• Management of the preparation process for the exam, conducting practical
skills assessment,
• Forum, webinar, searching module and reporting system.
• Combination of several sub-systems
7. BUSINESS EXPERT SYSTEM
• A Business Expert System (BES) is a knowledge based information system,
which is based on artificial intelligence.

• BES provides decision support to managers in the form of advice from an

expert in a specific problem area such as medical, engineering and business.

• A Business Expert System has been designed to provide expert advice to the
business executive.
• The information provided by this system helps the executives in decision-
making.
• A good decision leads the organization on the path of growth.