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 a set of interrelated components that collect, process,
store and distribute information to support decision making
and control in an organization.
Information system is mainly concerned with three activities:
Why Do People Need Information?

Ń Individuals - Entertainment and enlightenment

Ń Businesses - Decision making, problem solving

and control

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Information systems are categorized based upon
the organizational level the correspond.

Classified as:
1. TPS (Transaction Processing System)
2. DSS (Decision Support System)
3. MIS (Management Information System)
4. ESS (Executive support system)
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  based upon the levels of operation in an
organization.
Categorized as:
1. Operational level system (TPS)
2. Management level system(MIS & DSS)
3. Strategic level system(ESS)
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1.Manufacturing & Production system

2.Sales & Marketing System
3. Financing & Accounting system
4. Human Resource System
  
Systems that supply data to operate, monitor and control the
production process, as purchasing, receiving, shipping,
process control, robotics, inventory systems, scheduling,
engineering, operations, quality control, resource
management etc.

e.g.:
A system in a factory that:
gets information from measuring samples of products
does statistical analysis of samples
shows when operators should take corrective action
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Systems that support the sales and marketing function by

facilitating the movement of goods and services from producers
to customers, as sales support - keep customer records, follow-up
telemarketing - use phone for selling, order processing - process
orders, produce invoices, supply data for sales analysis and
inventory control, point-of-sale - capture sales data at cash
register often by scanner, customer credit authorisation - advise
on credit to be allowed to customer.

Example:
A Store's Sales System would:
Y automatically record and total purchase transactions and prints
out a packing list
Y improve customer service
Y maintain customer data
   

Systems that maintain records concerning the flow of funds

in the firm and produce financial statements, such as
balance sheets and income statements. e.g. for Budgeting;
General Ledger; Billing: Cost Accounting, Accounts
Receivable / Payable; Funds Management Systems, Payroll.

They were among the earliest systems to be

computerised, like financial systems: cash management,
loan management, check processing, securities trading.

Example:
Visa's Credit Card payment system.
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Systems that deal with recruitment, placement,

performance evaluation, compensation, and
career development of the firm's employees.

Examples: personnel record keeping, applicant

tracking, positions, training and skills, benefits.
 

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Helps strategic management staff (often senior managers)
make decisions by providing information, models, or
analysis tools. For support of semistructured and
unstructured decisions (structured decisions can be
automated). Used for analytical work, rather than general
office support.
Features:
  are flexible, adaptable and quick.
  user controls inputs and outputs
  support the decision process and often are sophisticated
modelling tools so managers can make simulations and
predictions.
  inputs are aggregate data, and they produce projections.
Example:
  job for a DSS would be a 5 year operating plan.
  
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Y Condenses and converts TPS data into

information for monitoring performance and
managing an organisation.
Y Transactions recorded in a TPS are analyzed and
reported by an MIS.
Y They have large quantities of input data and they
produce summary reports as output. Used by
middle managers. An example is an annual
budgeting system.
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Y Also known as an Executive Support System (ESS), it
provides executives information in a readily accessible,
interactive format. They are a form of MIS intended for
top-level executive use. An EIS/ESS usually allows
summary over the entire organisation and also allows
drilling down to specific levels of detail. They also use data
produced by the ground-level TPS so the executives can
gain an overview of the entire organisation.
Y Used by top level (strategic) management. They are
designed to the individual. They let the CEO of an
organisation tie in to all levels of the organisation. They are
very expensive to run and require extensive staff support
to operate.

  
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Y OAS provides individuals effective ways to process personal and
organisational data, perform calculations, and create documents.
e.g. word processing, spreadsheets, file managers, personal
calendars, presentation packages
Y They are used for increasing personal productivity and reducing
"paper warfare". OAS software tools are often integrated (e.g.
Word processor can import a graph from a spreadsheet) and
designed for easy operation.
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Y Ñ : helps people work together by

sharing information in many different forms
Teleconferencing (including audioconferencing, computer
conferencing, videoconferencing), electronic mail, voice mail, fax
Y V
&  helps teams work together by providing
access to team data, structuring communication, and making it
easier to schedule meetings. For sharing information, controlling
work flows, communication/integration of work
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rWS are used by technical staff. rWS uses

modeling functions to convert design
specifications into graphical designs.

They may include,

Computer-aided design (CAD)
Computer-aided manufacture (CAM).
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Expert systems are computer application programs

that take the knowledge of one or more human experts in
a field and computerize it so that it is readily available for
use. The human experts do not need to be physically
present to accomplish a specialized project or task. Expert
systems are only designed to be ³expert´ in a very narrow
and specific task or subject field. They contain the acquired
expert knowledge and try to imitate the expert¶s evaluation
processes to offer a conclusion. An advantage of an expert
system is that it may include the knowledge of many
experts in one specific field.
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Y Expert systems imitate human experts in many different fields of

expertise. Such systems contain rules (such as decision tables)
that help a human answer expert questions.
Y This is a classic example of how —
 can affect people:
imagine you are an expert rock identifier and people from around
the world treat you like a living national treasure because of your
brilliant ability to identify rocks. One day, a system is built that
contains all the rules you intuitively use to make your rock
identification decisions. By answering a few simple questions
presented by the expert system, a human can identify a rock just
as well as you can.
Y Expert systems are built with decision-making rules, and they can
ask humans a series of questions to narrow down the correct
answer. One early and influential expert system was MYCIN, a
disease diagnosis system.
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Y The computer can store far more information
than a human.

Y The computer does not 'forget', make silly

mistakes or get drunk when it is most needed.

Y Data can be kept up-to-date.

Y The expert system is always available 24 hours a

day and will never 'retire'.

Y The system can be used at a distance over a

network.
 Expert systems usually contain two components: a
knowledge base and an inference engine program, enabling
it to suggest conclusions. The knowledge base is
programmed in an IF ... THEN logical rules structure. Such
a structure is a series of IF conditions that, if met, THEN a
specific result may be concluded.
An example would be:
 the animal is a bird
Y it does not fly
Y it swims
Y it is black and white
|* it is a penguin
Y The expert system rules out options with each question
until there remains an option with high probability. The
rules and questions, of course, are provided by expert
humans in the first place