Types of IS

Integration and Automation of

Business Functions
• Globalization and the global economy have been
a mixed blessing to businesses.
• On one hand, companies have access to wider
markets and consumer segments; on the other
hand, they now have to face more competitors in
the market, some of whom have a local
advantage.
• The companies with that advantage have to stay
ahead of the curve by improving their internal
business operations and keeping costs low so
that they can produce their goods more
efficiently and compete more effectively.
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• Over the past few decades, there has been a lot
of research conducted on how a company can
achieve success in business.
• The universal agreement among the experts is
that technology is a very powerful factor in
enabling businesses to become more efficient.
• Companies have access to state-of-the-art
applications that allow managers to effectively
monitor and control their internal operations,
which increase operational efficiency and reduce
operating costs.
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• Lack of interconnectivity is a major barrier to companies integrating
their systems.
• For years now, most companies have had a fairly efficient internal
network to connect all their systems, applications, and databases,
although business partners were forced to deploy very expensive
virtual private networks (VPNs) or point-to-point network
connections to connect partner systems.
• Ever since the Internet became available for use by private
enterprise and individuals, the connectivity problem has been
effectively solved.
• Network providers are addressing various associated issues such
as reliability, performance, and security, and those factors won’t
prevent a company from using the Internet to work with its partners.
 Classification of IS
Information Systems

Operations
Management
Support System
Support System

Transaction Office Management Decision Executive

processing Process control automation support information
systems information
systems systems systems systems systems
1. Operations support systems process data generated by business
operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and
support needed for effective decision making by managers
Major categories are
i) Management Information System
ii) Decision Support Systems
iii) Executive Information System
Operations Support System
i) Transaction processing systems

Process business exchanges

Maintain records about the exchanges
Handle routine, yet critical, tasks
Perform simple calculations

ii) Process control systems monitor and control

industrial processes.

iii) Office automation systems automate office

procedures and enhance office communications and
productivity.
2. Management support systems
provide information and support
needed for effective decision making
by managers
Major categories are:

Management information systems

Routine information for routine decisions
Operational efficiency
Use transaction data as main input
Databases integrate MIS in different
functional areas
II) Decision Support System
Interactive support for non-routine decisions or
problems
End-users are more involved in creating a DSS
than an MIS

iii) Executive information systems

provide critical information tailored to the
information needs of executives
Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems
that provides expert advice and act as expert
consultants to the users
b) End user computing systems support the direct,
hands on use of computers by end users for
operational and managerial applications
c) Business information systems support the
operational and managerial applications of the
basic business functions of a firm
d) Strategic information systems provide a firm which
strategic products, services, and capabilities for
competitive advantage