Business

Information
Systems
Information System
(Lesson 2)
 Business Information Systems

Types of Information System

 Information systems may be divided into two
categories of systems that support an
organization’s day-to-day business activities and
systems that support managerial decision making.
 Business Information Systems

Types of Information System

 Operational Information Systems (OIS)
- generally concerned with process control,
transaction processing and communications.

 Management Support Systems (MSS)

- concerned with providing support to managerial
decision making.
 Business Information Systems

Types of Information System

 Business Information Systems

Types of Information System

 TPS

- a system that processes the various transactions

of an organization
 Business Information Systems

Types of Information System

 MIS
- a branch of Management that involves the development,
maintenance and understanding of Computer Information Systems
from a business perspective. It is composed of procedures. A business
has many procedures, the four common procedures are the following:

Payroll Personnel
Accounting Inventory
 Business Information Systems

Types of Information System

 DSS

- is a tool or process whose utility is related to its ability to

support decision-making in the real world situation and not
to provide the solution itself by representing a system
involving those real-world variables (physical, economic and
social) and their interrelationships.

Internal
•What-if analysis?
Information Decision Making •Goal Seeking
•Problem Solving
•Taking Risk
External
 Business Information Systems

Types of Information System

 OAS

- involves the planned application of integrated information

handling tools and methods to improve the productivity of
people in office operations. Although the handling of
information by office people is the focus of this new technology,
other aspects of the office will be affected.

Office automation will impact industry and government

organizations in very significant ways with both COST
DISPLACEMENT and VALUE-ADDED results.
 Business Information Systems

Types of Information System

 ESS

- An enterprise management information system

encompasses the information flows in an entire
organization.
 Business Information Systems

Types of Information System

The applications of ESS for MIS fall into five
categories:
1. localized applications
- Internal applications of the company
2. interdepartmental applications
3. business process redesign
4. business network redesign
5. business scope redefinition
 Business Information Systems

Types of Information System

The applications of ESS for MIS fall into five categories:
1. localized applications
2. interdepartmental applications
- integrate the activities of different departments into a
single business system that produces appropriate
coordinated responses to the enterprise's environment.
3. business process redesign
4. business network redesign
5. business scope redefinition
 Business Information Systems

Types of Information System

The applications of ESS for MIS fall into five categories:
1. localized applications
2. interdepartmental applications
3. business process redesign
- requires the nature of business processes to be
redesigned as the information system development
progresses; it becomes a vehicle for change and
improvement.
4. business network redesign
5. business scope redefinition
 Business Information Systems

Types of Information System

The applications of ESS for MIS fall into five categories:
1. localized applications
2. interdepartmental applications
3. business process redesign
4. business network redesign
- concerns itself with how multiple enterprises work
together; consideration is given as to how information is
structured and handled as it crosses organizational
boundaries.
5. business scope redefinition
 Business Information Systems

Types of Information System

The applications of ESS for MIS fall into five
categories:
1. localized applications
2. interdepartmental applications
3. business process redesign
4. business network redesign
5. business scope redefinition
- consists of applications that change the nature
of the business.
 Business Information Systems

Role of Information System in an

Organization
Information system are transforming business and
the concrete manifestation is the wide used of cell
phones and wireless telecommunications devices, a
tremendous shift toward online news and
information, booming e-commerce and Internet
advertising, and new federal security and accounting
laws that address issues raised by the exponential
growth of digital information. The Internet has also
drastically reduced the costs of businesses operating
in a global scale.
 Business Information Systems

Role of Information System in an

Organization
Information systems are essential for conducting
day-to-day as well as achieving strategic business
objectives. Some firms would be non-existent
without information systems. Some service
industries, such as finance, insurance, and real estate
industries, could not operate without information
systems. The ability of a firm to use IT is becoming
intertwined with the firm’s ability to implement
corporate strategic plan (long-term).
 Business Information Systems

Role of Information System in an

Organization
Hardware

Business
Strategic Software Data Management
Objectives
Business
Processes

Business Information
Firm System Telecommunication