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Computer-Based Information Systems


All large organizations have computer-based information systems:

  1. Some systems record routine activities called transactions.
    1. Employees hired
    2. Materials purchased
    3. Products produced
  2. Some systems also use these recorded events to help managerial planning and control.
  3. Systems can be supportive of one another through input and output of information.


Types of Computer Information Systems

There are four basic types of computer-based information Systems:

  1. Transaction Processing Systems (TPS)
    1. Record day-to-day transactions such as customer orders, bills, inventory.
    2. Helps supervisors by generating databases needed for other information Systems.
    3. Examples: recording customer orders, bills, inventory levels, and production output.
  2. Management Information Systems (MIS)
    1. Summarizes the detailed data of the transaction processing system.
    2. Produces standard reports for middle-level managers.
    3. Examples: Production schedule and budget summaries.
  3. Decision Support Systems (DSS)
    1. Draws on the detailed data of the transaction processing system.
    2. Provides a flexible tool for middle-level managers for analysis.
    3. Examples: Analyzing the effects of events such as strikes, rising interest rates, etc.
  4. Executive Support Systems (ESS)
    1. Presents information in a very highly summarized form.
    2. Combines the internal data from TPS and MIS with external data.
    3. Helps top-level managers oversee operations and develop strategic plans.
    4. Examples:  Introducing new products, starting a company wide cost control program, etc.


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