AE 23 IT APPLICATION TOOLS IN BUSINESS (PRE – FINAL).

NAME: NIÑA MAE O. DIAZ BSA -1A Date submitted: April 24- 2021

Questions

All types of information system used in business.

Here are the following types of information system used in business

Executive Support System

Decision Support System
Management Information System
Transaction Processing System

QUESTIONS:

DISCUSS THE DIFFERENT TYPES OF INFORMATION SYSTEM. DETERMINE IF IT USED BY THE ENTIRE
ORGANIZATION OR JUST A SPECIFIC DEPARTMENT. DETERMINE ALSO AS TO WHAT MANAGEMENT
LEVEL IT IS BEING USED, SOME ARE BEING USED BY ALL LEVELS OF MANAGEMENT, TOP, MIDDLE AND
BOTTOM LEVELS.

Information system is an academic study of technologies with special regard to information and
complementary network that help to manage business process success also to support organization and
analysis of data that has the function of converting pure facts into useful knowledge that can used in an
enterprise to make decision.( According to the research Information system, an integrated set of
components for collecting, storing, and processing data and for providing information, knowledge, and
digital products. Business firms and other organizations rely on information systems to carry out and
manage their operations, interact with their customers and suppliers, and compete in the marketplace.)

This also fulfills the main business tasks, such as sales and distribution, development and manufacturing,
financial and accounting, and human resources. A traditional organization, for each functional sector,
has organizational, management and strategic processes. In general, for example, the sales feature has
an operating sales mechanism for registering regular sales figures and processing orders. A monitoring
system monitors monthly revenue figures by sales area and informs on areas where the number of sales
exceeds or is below anticipated.
 Information systems are categorized according to organizational levels, data mode, retrieval, system
goals and type of service rendered. In this junction here are the following or the different types of
information system;

Executive Support System- are developed to allow managers to have access to internal and
external knowledge relating to decision-making and other management obligations. Reported the
results of a review of the usage of executive support systems, including basic devices, characteristics and
strategic effects of the use of this technology by managers of large companies. In addition, interviews
have been carried out between the commercial product suppliers of executive support systems and data
derived from the interviews will be tabled. Executive Support System users click on any icon displayed
on the ESS screen and enter report criteria to view individual predefined reports and graphs. Reports are
based on companywide and functional department data, such as sales, scheduling and cost accounting.
The Executive Support System is used by the Entire Organization because it facilitates access to
information and supports executive management in the decision-taking process. It is used by all level
managements in order to make Strategic changes designed to improve the organization's long-term
success.

Decision Support System (DSS): The decision support system is an integrated information system
which provides information and models for the management of data in a semi-structured and
unstructured way of making decisions. The Decision Support System consists of methods and
procedures that assist with the collection and analysis of relevant facts, and is far more concerned in the
development of Decision Support System than a Management Information System by end users. It
enables the use of pre-defined or ad hoc reports by small business managers and owners as an assist for
preparing and resolving problems. Decision Support System offers users answers to basic questions as a
way of assessing the potential effect of a decision prior to implementation. Responses to questions may
be a summarized report, for example a quarterly sales report on merchandise revenue. To carry out an
audit, company owners and administrators use a dashboard to pick a specific graph of a main success
metric, which tracks progress against a specific target. Yes, it is used by the entire organization because
of the statistical models to include summary statistics, exceptions, patterns and trends. A structure of
assistance for decisions assists in making decisions but does not actually decide for oneself. The policy
makers collect valuable information in order to detect and address challenges and to take decisions,
using raw data, documentation and personal experience, and/or business models. This system can be
primarily used by mid- to upper-level management.

Next is Management Information System (MIS) is intended to use a transaction processing

system to collect relative raw data and transform them in a concise manner for the manager, typically in
the format of a report. It reports tending to be used by middle management and operational
supervisors. Management Information System produces several various categories of reports. A review
report, a request Report, ad hoc reports and an exemption report are some of the reports.
Example, Sales management systems, Human resource management system. Management Information
System determined and used by the entire Organization and it used in the Middle of Management.
Management Information System used by the entire organization because it relies on an industry-
specific management information system, or MIS, to get current and historical operational performance
data, such as sales and inventories data and can create pre scheduled reports, which company
management can use in strategic, tactical and operational planning and operations. Lastly it can be used
in the middle of management to ensure that Managers gain access to the organizational data through
the MIS, which provides them with the appropriate reports where we can see the product sales
percentage if it increases or decreases.

Transaction Processing System (TPS): - Transaction Processing System is a system of records that
processes data from business transactions Their goals are to provide a transaction for the upgrade and
report generation, for storage. The trade is carried out in two ways: batching and sorting online. For
example, Bill method, payroll system, inventory system TPS information systems can be based on real-
time or batch processing, and can help business owners meet demand without acquiring additional
personnel. Transaction Processing system can be determined and used by the entire organization
because it makes the user or customer reliable and accurate during transactions. In companies, the use
of TPS reduces the number of errors during data transfers to a minimum. it Provide a data validity,
compatibility and security execution environment. They also guarantee rapid response time and high
transaction performance. Functions in management systems. Transaction Processing System determines
as the Operational Level where the transaction processing system is a computerized system that carries
out and tracks the day-to-day business routine transactions. Examples include entry of purchase orders,
hotel booking processes, payrolls, retention of employee’s records, and delivery and the decision to
grant credit to a customer, for instance, is made by a lower-level supervisor. All that must be
determined is whether the customer meets the criteria.