Information system in business Introduction Types of information
Information system in business �Introduction �Types of information system �Transaction processing system �Meaning of TPS �Characteristics of TPS
Introduction An information system is a combination of hardware, software and telecommunication systems, which can support business operations to increase productivity and help managers make decisions .
The activity of converting data into information is called a process. An information system contains FIVE main components the hardware, software, data, process and human, as shown below:
Types of information system Transaction processing system Management information system Executive information system Decision support system Office information system Expert system
Transaction processing system ● Better known as TPS and is one of the first systems to be automated. ● Can access and record information about all transactions related to the organisation. ● Transactions occur whenever there exist activities involving sales order processing, accounts receivable, accounts payable, inventory and ordering as well as payroll. ● The output from this transaction is the account statement, which is used to generate financial reports. ● TPS now uses the latest technology which uses the Ecommerce concept. This is a new challenge in the field of transaction processing which begins to shift to the on-line transaction processing system
Characteristics of transaction processing system 1. A TPS records internal and external transaction for a company. It is a repository of data that is frequently accessed by other system. 2. A TPS performs routine, repetitive task. It is mostly used by lower level managers to make operational decisions. 3. Transaction can be recorded in batch mode or inline. In batch mode, the files are updated periodically; in online mode, each transaction is recorded as it occurs. 4. There are six steps in processing a transaction. They are data entry, data validation, data processing and revalidation, storage, output generation, and query support.
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