types, purposes and applications of information systems
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Types, Purposes and Applications of Information Systems
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Hardware +software +people +procedures + data = Information System
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Information System
• Generic reference to a computer based system
that provides data processing capabilities for
department or, perhaps, an entire company;
information that people need to make better,
more informed decisions.
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• Data processing capability
system’s capability to handle and process data.
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Types of Information Systems
1. Data processing systems
2. Management information systems
3. Decision support systems
4. Executive information systems
5. Expert systems
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1. Data Processing Systems (DP)
• are concerned with transaction handling and
record-keeping,
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• data are entered and stored in a file format,
and stored files are updated during routine
processing.
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• Periodic outputs include action documents
(invoices) and scheduled reports, primarily for
operational-level managers.
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Drawback of Data Processing Systems
• Inflexible
• cannot accommodate data processing or information needs that are not already built into system
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2. Management Information Systems (MIS)
• Method, a function, an approach, a process,
an organization, a system, and a subsystem.
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• An MIS is an integrated structure of databases
and information flow that optimizes the
collection, transfer, and presentation of
information throughout the multilevel
organization
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The MIS versus DP System
• The integrated database of an MIS enables
greater flexibility in meeting the information
needs of management than the traditional file
environment of DP systems.
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• An MIS integrates the information flow
between functional areas where DP systems
tend to support a single functional area.
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• An MIS caters to the information needs of all
levels of management where DP systems focus
on operational-level support.
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• Management’s information needs are
supported on a more timely basis with an MIS
(on-line inquiry capability) than with DP
system (usually scheduled reports).
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Characteristics of Management Information Systems
• supports the data processing functions of transaction handling and record keeping.
• uses an integrated database and supports a variety of functional areas.
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• Provides operational, tactical and strategic-level managers with easy access to timely but, for the most part, structured information.
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• is somewhat flexible and can be adapted to meet changing information needs of organization
• provides envelop of system security that limits access to authorized personnel.
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3. Decision Support Systems
• Decision support system (DSS) are interactive
information systems that rely on an integrated
set of user-friendly hardware and software
tools to produce and present information
targeted to support management in the
decision making process.
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• A decision support system can help close the
information gap and allow managers to
improve the quality of their decisions.
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• To do this, DSS data support system hardware
and software employ the latest technological
innovations.
Ex. (color graphics and database management
system) planning and forecasting models,
user- oriented 4GLs, and even artificial
intelligence.
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The DSS versus MIS
• management information systems are oriented to supporting decisions that involved structured problems,
• In contrast, decision support systems are design to support decision-making processes involving semistructured and unstructured problems
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• an MIS is designed and created to support a specific application (accounting, inventory control) or a set of applications
• a DSS is a set of decision support tools that can be adapted to any decision environment.
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Characteristics of Decision Support Systems
• A DSS makes general-purpose models, simulation capabilities, and other analytical tools available to the decision maker.
• A DSS can be readily adapted to meet the information requirements of any decision environment.
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The DSS Tool Box
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4. Executive Information Systems (EIS)