Basic concepts of Information Systems

Information system refers to a Computer based system that provides information to the management of organisation between enabled them to make decisions. In simple terms, an information system helps management in decision making.

Information system is not simply about computers, it is about how businesses can make the best use of Computer technology to provide the information needed to achieve their goals. In the same way as your own lives and qualities and unique to you, each organisation has different goals and requirements any successful implementation of information system requires a Thoreau understanding of the business issues involved, as well as the different technologies that are available.

Businesses make use of information system so that accurate and up-to-date information will be available when it is required. Since it is not always possible to predict what information will be needed at some future date, most organisations use computers to record and store the details of their business transactions. When a query arises, or a standard business report must be produced, this raw data can be retrieved and manipulated to produce the required information.


Information infrastructure
Information infrastructure consists of group of interrelated components such as physical devices, services and Management which works collectively to carry out input processing output storage and control actions in order to convert data into information products that can be used to support forecasting, planning,  control, coordination, decision making and operation activities in organisation.

The information infrastructure consists of following five basic resources:- 
Peoples: people resources including users, developers of an information system and the persons who operate and maintain the system such as managers and technical support staff.

Hardware: hardware resources include computers and other tangible items such as printers channels etc.

Software: software resources referred to computer programs known as software and associated instruction manuals.

Communication: communication resources include networks and the hardware and software needed to support them.

Data: data resources cover the data that an organisation has access to such as computer databases and paper files.


Types of information systems
Within any single business organisation, executive at different levels in the management hierarchy have very different information requirements and different types of Information systems have evolved to meet their needs.

A common approach to examining the types of Information systems used within organisations, tips to categorise information system applications by the rules they play at various levels in the organisational structure. This is known as the vertical approach.

In this case the organisation is viewed as a management pyramid with four levels:
1. At lowest level, non management staff attendance to rotine baby business transactions such as selling goods and issuing receipts for payment.

2. Operational management is responsible for monitoring the transactions that are occurring, and dealing with any problems that may arise.

3. Tactical management decides on budgets, set targets, identify strengths and develop short term plans for the business.

4. At the top of the pyramid, strategic management is responsible for defining the long-term goals of the company, and how it intense to position itself within its particular industry.

These levels of Management generate different types of information systems. System analysis develop different categories of information system to meet the various business needs.

The various types of information systems are:-

Transaction processing system (TPS)
TPS became operational in 1960. It is software system that is generally used for transactions processing and record keeping. Transaction processing system is also known as electronic data processing. This collects, stores, modifies and retrieves the data transactions of an organisation. It is widely used in the field of Accounting, Order Processing, Finance, Marketing, Sales and Human resources.

It uses computers in recording organising, classifying, manipulating and summarising data and transactions. Process data resulting from business transactions, update operational databases, and produces business documents.

The important features of transactional processing system are its fast performance, continuous availability, ease of use, data integrity and modular growth. Examples for Automatic teller machine (ATM), Airline Reservation System and Ticket net.

Office automation system (OAS)
Office automation system is a software system that is generally used to digitally create, gather, store, transmit and manipulate office information required to accomplish desired task. Office automated system became operational in 1960 to 1970.

Office automation system is focus on communication in which local area network is used to transmit data, voice, mail and images across the network. The main functions of office automated system include electronic communication, electronic publishing, office management and electronic collaboration.

Office automation system is used for documents, schedules, emails, conference and communications. Its facilities the various activities such as:-
1. Producing outgoing documents (using text processors).
2. Storage and retrieval of documents (using document management system).
3. Transmission of messages (using message communication systems).
4. Scheduling a meeting management (using video conferencing systems).

The important features of office automatic system are increased productivity, better communication facilities, less storage space, fast access, integrated software and paperless office. Examples are document management system (such as word processing, spreadsheet, desktop publishing and image processing), office support system and message handling system.


Management information system
Management information system became operational in late 1970s. It is focused on information. It is a Computer based system that provides information to managers of it organisation to make strategic, operational and tactical planning. It is also known as the computer based information and decision system.

Management information system produces suitable and detailed reports on operations in an accurate, consistent and timely manner for every level of management in an organisation. The concept of management information system is to provide the right information to the right people at the right time. It assembles, process, stores, retrieves, evaluation and disseminates information.


Decision support system (DSS)
Decision support system became operational in late 1970s. It is focus on decision support. It is Computer based system that is generally used to support decision making in organisation.

Decision support systems gathers massive raw data from wide range of sources, analyse data and compile information that can be used to make better decisions. The main objective of decision support system is to improve their effectiveness of the managers decision making process.

The main features of decision support system are easily adaptable, great flexibility, time-saving, high level of interactivity, ease of use, user controlled inputs/outputs, extendibility, adaptability, enhanced effectiveness, cost reduction, ease of development, interpersonal communication, automated manager process and sophisticated modelling tools. It is widely used in the field of business management, agricultural production, analysing cost, verifying load credit and medical diagnosis.


Executive support system (ESS)
Executive support system became operational in 1980s. It is focused on decision support for top management. It is also known as the executive information system.

Executive support system is also a Computer based system that provides executive level reports for senior executive to support decision-making needs in organisation. It provides easy and quick access to both internal and external information relevant to organisational objectives. It is widely used in the field of, marketing and financial analysis. 



Expert system (ES)
Expert system became operational in late 1980s. It is focused on consultation. It acts as an expert consultant to end user. Expert system is also known as knowledge based system (KBS). Vidyadhar knowledge on specific topics from experts and served information requires and knowledge level of the organisation.

Expert system is widely used in the field of scientific and engineering design, properly integration of new knowledge within business. It can be used by management and non management personnel in order to solve a particular problem. It helps in training new employees in an organisation, reducing human errors and monitoring routine tasks.

Expert system combines the knowledge of several experts and makes available this knowledge to one or more people at different locations. Examples are CAD/CAM system, Forecasting of financial development, Market predictions, Diagnostic maintenance system, Credit application advisor, Investment workstations and Virtual reality system.


Artificial intelligence (AI)
Artificial intelligence became operational in 1990s. It is focused on self learning on thinking systems. Expert systems are type of artificial intelligence. It is computer system that takes the characteristics of human intelligence. 

Artificial intelligence includes hardware, software, data, people, procedure, knowledge to develop computer system that demonstrates the characteristics of intelligence. The main feature of artificial intelligence are self learning, handle complex situations, react quickly and correctly to a new situation, understand visual images, creative and imaginative. Examples are robotics, expert system and neural networks.

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