Information Systems

Information System Types

Information System Types

Transaction Processing Systems (TPS)

Office Automation Systems (OAS)

• CMS: Content Management Systems.
• GSS: Group Support Systems

KWS: Knowledge Work Systems

• DMS: Document Management Systems

MIS: Management Information Systems

DSS: Decision Support Systems

• ES: Expert Systems
• EIS: Executive Information Systems
• ESS: Executive Support Systems
Information System Types

Transaction Processing Systems (TPS)

• Transaction processing systems collect and process data generated
by business transactions, such as: sales orders, payments, invoices
or sales opportunities. The fact of introducing a transactional
processing systems brings the automation of certain tasks.
• TPSs are used by operational employees
• Also known as Data Processing Systems, because this is the main
task performed by these systems. The data generated by these
systems is later used by other Information Systems.
• A TPS supports the collection and usage of data to perform day to
day operations, but does not perform any action to turn data into
information.
Information System Types

Transaction Processing Systems (TPS) (cont.)

• Historically, the first corporate information systems to be introduced have
been TPSs, because are easy to build and deliver a lot of value in terms of
increased efficiency and cost reduction.
• Also, TPSs are the first set of systems to be incroduced in small businesses:
The first obvious value in a business environment is to support day to day
activities.
• They are often used to collect data that is easily accessible at the time of
the transaction, even if it is not directly related to it. At a later stage, this
data will be used for purposes other than the transaction itself. Ex. Postal
code of the customer at IKEA cash register
• One of the key aspects when evaluating a TPS is robustness. If a TPS fails,
the business operations are seriously affected. Performance is also an
important aspect to consider, slow systems might have an impact on sales,
operations or brand image.
Information System Types

Transaction Processing Systems Examples

• Supermarket cash register, which reads the articles purchased using barcode
technology or RFID, calculates total amount, taxes, ...
• Access control system, for example, reading fingerprints in a gym
• Send and receive emails or text messages
• Produce sales orders
• Calculate payroll according to the activity performed by an employee
• Warehouse management, registering material receipts and deliveries
• Prepare quotes, invoices
• Register payments
• Registering website visits and other measures
• University virtual campus
• Example: https://www.youtube.com/watch?v=Qa0gRHw66XM
Information System Types

Office Automation Systems

• Office automation systems have the purpose to support administrative work in an
office environment.
• A typical OAS manages documents and provides the functionality of text processing,
spreadsheet management, electronic publishing, email, calendar management,
messaging, ...
• Content Management Systems are often used to produce and manage content that
is then shared via website or other electronic means.
• Group support systems are often used to process, interpret and share information
for a group of individuals, so team work is possible also in remote environments.
Group support systems are collaborative tools such as wikis, blogs, corporate social
networks, project management tools, ...

• Example: TRELLO (private example)

Information System Types

Knowledge Work Systems

• KWSs have the purpose to collect, store and disseminate knowledge within the
organisation.
• Education and training platforms are often included in the KWS packages, to ensure
that employees can acquire new skills as their role requires.
• Company’s procedures, manuals, rules, internal notes, ... Are usually provided to
employees using these systems.
• KWSs are also used to provide information to other parties that have an interest in
the company’s activities, such as shareholders or auditors.
• Employees and other parties access the system via the Intranet, with their own user
and password, the system ensures that they only access information that is relevant
to them.

• Example: https://www.youtube.com/watch?v=YPx5qkW9rfQ
Information System Types

Management Information Systems

• MISs complement transactional systems by delivering information that is required to
conduct business operations.
• Most commonly used by middle management to plan, supervise and control business
operations.
• MISs take data generated by Transactional Processing systems and transform it into
information, which is visualized in the form of reports or graphs.
• The main focus is put in controlling the corporate operations: if the expected outcome has
happened or there have been deviations.
• Usually, Key Performance Indicators are incorporated: the measures that the company has
chosen as most relevant to monitor the state of the operations. These KPIs are used to
build dashboards that deliver the most relevant information in real time.

• Example: https://www.youtube.com/watch?v=_nmCY3gFXLo
 Management Information System (MIS)

TPS Ficheros MIS MIS

Sales
Customer Management Sales data
Oders System

Unit costs data

Production MRP System MIS Reporting

Product changes
data

Accounting
Accounting management
system Costs data Management
Information System Types

Decision Support Systems (DSS)

• DSSs are focused on delivering information to support decision-making
• Used by senior management, middle management and staff alike, the information is
delivered as required for each role.
• DSSs are usually focused on the future, it incorporates analytical and modelling
tools. It uses algorithms and mathematical analysis to resolve business problems.
• It delivers a solution to a particular situation. The execution of this decision can be
automatic or left in the hands of a person who takes the final decision.
• Its future evolution is towards smart systems and Artificial Intelligence (AI) applied to
decision making
• Executive Support Systems are a subgroup of DSSs. These systems deliver critical
information visualized in a simple way that can help senior management take
strategic decisions. They usually include complex sets of indicators and simulation
tools that allow users to have a better knowledge of complex situations
Information System Types

Decision Support Systems Examples

• Production planning systems such as MRPs (Manufacturing Resource Planning).
These systems use known customer orders, stock values, and the necessary
materials to build a product and produce replenishment orders and a detailed
plan of what to produce and how to do it.
• Logistics planning systems. Given the list of customers to serve, fleet of vehicles,
and geographical information, the most efficient routes are proposed to the
drivers.
• Workforce planning systems, taking into account available staff, holidays, and
customer requirements, the system delivers as an output a detailed schedule for
employees
• Executive Support Systems: https://www.youtube.com/watch?v=crKSHhQYa3M
• Decision Support Systems: https://www.youtube.com/watch?v=Ut4GzjKabMc
DSS example:

Boat details file

(speed, capacity, etc.))

Distances between
ports file Analytic Models
database

Fuel consumption
file

Historic fleet
costs file Suggested route

Port usage costs

file
IS types and organizational hierarchy

Senior Management
• Scenarios, simulation (ESS / EIS)
• Complex data visualization

Knowledge Management
• Soport decision-making (DSS)
• Business Intelligence (BI)  B. Analytics (BA)
• Dynamic reporting/dashboards (BI)
Control, coordination and supervision
• Basic reporting (MIS)
Information • Document management (CMS)
• Knowledge Management (KMS)
• Intranets / Collaboration tools (office)

Data
Transactional Processing Systems (TPS)
In-class exercise

Exercise
•Gather in groups and choose a spokesperson. Each group will do the following tasks:

1-Discuss within your group to which type of information system belong the two IS
assigned to each group (next slide)

2-Provide an example of a Transaction Processing System that you have used in the
last two weeks
In-class exercise

Exercise
•GROUP 1
•A wiki in which customer care personnel record the questions that are frequently asked by customers and document correct answers to
those questions.
•In a train station, the system that reads your transport card and opens the gate if your ticket is valid

•GROUP 2
•A system that allows you to purchase products online (typical shopping cart on a website)
•A system in an insurance company that generates a report with the number of claims per month gruped by type of incident and amount
claimed.

• GROUP 3
•A Hospital system that uses the database of nurses, their set of skills and planned holidays to build the work schedule
•An application within an ERP system that creates a report of sales per product and geography

•GROUP 4
•A corporate chat system (similar to whatsapp) in which employees can communicate directly.
•A PDA application in which a transport company employee can list the deliveries of the day and record that a package has been successfully
delivered.

•GROUP 5
• An application in which engineers can share product designs with team members and check the changes introduced in the last version.
• A virtual office area of a water company, i which customers can download their invoices and report service issues.