 An Information System (IS) is a collection of

interrelated components that collect, process,

store, and provide as output the information
needed to complete a business task.

 Every IS deals with three components:

◦ Data
◦ Information
◦ Data flows
◦ Processing Logics
 Data are raw facts that describe people, objects
and events in organization (e.g. name, age,
customer’s account number). Data is used in an IS
to produce information.
 Information is data organized in a form that human
can interpret
 Data flows are group of data that move and flow
through a system. They include a description of the
sources and destinations for each data flow
 Processing logic describes the steps that
transform the data and events that trigger these
steps.
Data, Data Flow And Processing Logics
 As far as organizations perform many different
types of activity, they require several different
types of information systems to support all of
information needs. The information systems found
in most businesses include
◦ Transaction processing systems
◦ Management information systems
◦ Executive information systems
◦ Decision support systems
◦ Expert systems
◦ Communication support systems
◦ Office support systems
 Transaction processing systems (TPS) capture and
record information about the transactions that affect
the organization. A transaction occurs each time a sale
is made, supplies are ordered, an interest payment is
made. Usually these transactions create credit or debit
entries in accounting ledgers. This kind of ISs were
among the first to be automated by computers. The
modern TPS use state-of-the-art technology, for
instance, in the form of on-line TPS.
 Management information systems (MIS) are systems
that take information captured by TPS and produce
reports that management needs for planning and
controlling the business. MIS are possible because the
information has been captured by the TPS and placed in
organizational databases.
 Executive information systems (EIS) provide information for
executives to use in strategic planning. Some of the information
comes from the organizational databases, but much of the
information comes from external sources – news about competitors,
stock market reports, economic forecasts, and so on.

 Decision support systems (DSS) allow a user to explore the impact

of available options or decisions. Whereas an MIS produce reports,
DSS provide an interactive environment in which decision makers
can quickly manipulate data and models of business operations. A
DSS has three parts. The first part is composed of a database
(which may be extracted from TPS or MIS). The second part
consists of mathematical or graphical models of business processes.
The third part is made up of a user interface (or dialogue module)
that provides a way for the decision makers to communicate with
the DSS. An EIS is a DSS that allows senior management to
explore data starting at a high level of aggregation and selectively
drill down into specific areas where more detailed information and
analysis are required.
 Expert systems (ES) replicate the decision-making process rather
than manipulating information. If-then-else rules or other
knowledge representation forms describe the way a real expert
would approach situations in a specific domain of problems.
Typically, users communicate with an ES through an interactive
dialogue. The ES asks questions (which an expert would ask) and the
end user supplies the answers. Those answers are then used to
determine which rules apply, and the ES provides a recommendation
based on the rules.

 Communication support systems (CSS) allow employees to

communicate with each other and with customers and suppliers.
Communication support now includes e-mail, fax, Internet access,
and video conferencing.

 Office support systems (OSS) help employees create and share

documents, including reports, proposals, and memos. OSS also help
to maintain information about work schedule and meetings.
 Maintainability
 Dependability
 Efficiency
 Usability
 Production Sub System: It is concerned with
decision making activities related to production and
services with predefined specifications and
standards.
 Material Management System: It is concerned
with the control of material in such a manner which
ensures maximum return on working capital.
 Financial Management System: It is concerned
with proper utilization of funds. The funds must be
utilized in purchasing a proper mix of various types of
assets.
 Personnel Management System: It deals with the people
at work and also with planning of man power, recruitment,
selection procedure placement, orientation and training session
of employee.

 Marketing Management: It is concerned with handling and

transportation of goods from the point of production to the
point of consumption. Thus filling the gap in between consumer
and producer.

 Real Time and Distributed Systems: A system is a real-

time system when it can support the execution of applications
with time constraints on that execution. Where as A distributed
system consists of multiple autonomous computers that
communicate through a computer network. The computers interact
with each other in order to achieve a common goal.
 Manual systems
◦ Use paper + pencil technology
◦ Overall objective has to be found manually e.g.
Auditing

 CBIS
◦ Information system that rely on computer hardware
and software for processing and disseminating
information. CBIS can only exist if there is a manual
system.
 System Models are used to understand and
represent systems. System Models are
generated during logical design phase.

◦ System Analysts: These are the People involved in System

Modeling.

◦ System Users: These are the People who validate Models.

◦ Project Manager: These are the People who ensures that

the model meets standards.