Information Systems: - Operations Support Systems - Management Support Systems

Chapter: THREE Lecture: Eight
INFORMATION SYSTEMS
This lecture will cover following topic:

Classifications of Information Systems
•Operations Support Systems
•Management Support Systems
CLASSIFICATIONS OF INFORMATION SYSTEMS
Managers at different levels in an organization

make different kinds of decisions (operational,
tactical and strategic), so that the kinds of
information necessary to support their decisions
are also different.
Accordingly, different types of information system
are designed to meet the various information
needs of managers.
Information system performs important
operational and managerial support roles in
business and other organizations.
Therefore, several types of information system can
be classified conceptually as either operations or
management support system.
Transaction
Processing System
Operation
Support Process Control
System
System
Office Automation
System
Information
system
Management
Information system
Management
Support Decision Support
System
System
Executive
Information system
OPERATION SUPPORT SYSTEM

Information systems have always been needed to
process data generated by and used in business
operations. Such operations support system
(OSS) produces a variety of information products
for internal and external use. However, they do
not emphasize producing the specific information
products that can be used by managers. Further
processing by management support system is
usually required. The role of a business firm’s
operations support system is to -
•Efficiently process business transactions
•Control industrial process
•Support office communications and
productivity, and
•Update corporate database

Transaction Processing System
A transaction processing system is a
computerized system that performs, records and
processes the daily routine internal and external
transaction in an organization. Their primary
purpose is to record, process, validate, and store
transactions that place in the various functional
areas of a business for further retrieval and use.
According to Laudon and Laudon,

“Transaction processing system is a
computerized system that performs and
records the daily routine transaction
necessary to conduct the business; they serve
the operational level of the organization.”

Transaction Processing System
Transaction can be internal and external and
transaction processing system produces a variety of
information products for internal and external use.
When a department orders office supplies from the
purchasing department, an internal transaction
occurs; when a customer places an order for a product,
an external transaction occurs.

Transaction processing systems process transaction in
two basic ways. In Batch Processing, transaction data
is accumulated over a period of time and processed
periodically. In Real-time (or Online) Processing, data
is processed immediately after a transaction occurs. A
transaction processing system supports these tasks by
imposing a set of rules and guidelines that specify how

Process Control System
Operation support system makes routine
decisions that control operational processes.
Examples are automatic inventory reorder
decisions and production control decisions. This
includes a category of information system called
process control system (PCS), in which
decisions adjusting a physical production
process are automatically made by computers.
For example, petroleum refineries and the
assembly lines of automated factories use such
system. They monitor a physical process, capture
and process data detected by sensors, and make
real time adjustments to a process.

Office Automation System
Another major role of operations support system is the
transformation of traditional manual office methods
and paper communications media.

Office automation system (OAS) collects, process,

store, and transmit information in the form of
electronic office communications.
These automated
systems rely on text processing,
telecommunications and other information system
technologies to enhance office communications and
productivity. - James O’Brien

This system supports the automation of various

managerial and clerical activities. The primary goals of
office automation are to enhance communication in the
workplace and increase the efficiency and productivity
of knowledge workers and clerical workers.
MANAGEMENT SUPPORT SYSTEM

When information system focuses on providing
information and support for effective decision making
by managers, they can be called management
support system (MSS). MSS support the decision-
making needs of strategic management, tactical
(middle) management, and operating (supervisory)
management. Providing information and support for
management decision-making by all levels of
management (from top executives to middle
managers to supervisors) is a complex task.
Conceptually, several major types of information
system are needed to support a variety of managerial
end user responsibilities:
•Management Information system
•Decision Support System
•Executive Information system

Management Information system
•Management Information system (MIS) is the
most common form of management support
system.
•They provide managerial end users with

information products that support much of their

day-to-day decision-making needs.
•MIS provide a variety of reports and displays to

management.
•The content of these information products is

specified in advance by managers so that they
contain information that managers need.

Management Information system
•MIS retrieve information about internal

operations from databases that have been updated
by transaction processing system.
•They also obtain data about the business

environment from external sources.
•Information products provided to managers

include displays and reports that can be furnished
(1) on demand (2) periodically, according to a
predetermined schedule, or (3) whenever
exceptional conditions occur.

Decision Support System
Decision support system (DSS) is computerized
systems that provide managers with internal and
external data and decision-making models that
facilitate semi-structured decision-making. – Gupta
Decision support systems are interactive, computer-
based information system that uses decision models

and specialized databases to assist the decision-
making process of managerial end users. – O’Brien
DSS help managers make decisions that are semi
structured, unique, or rapidly changing, and not easily
specified in advance. DSS have to be responsive enough to
run several times a day in order to correspond to changing
conditions. While DSS use internal information from TPS
and MIS, they often bring in information from external
sources, such as current stock prices of competitors.

Executive Information system
Senior managers use a category of information
system called executive information system (EIS)
to make decision.
“Information system at the strategic level of an
organization designed to address unstructured
decision making through advanced
graphics and
communication.” –Laudon and Laudon

Top executives get the information they need from
many sources, including letters, memos, periodicals,
and reports produced manually as well as by
computer system. Other sources of executive
information are meetings, telephone calls, and social
activities. Thus, much of a top executive’s
information comes from non-computer sources

Executive Information system
ESS designed to meet the information needs to top

management engaged in long-range planning, crisis
management, and other strategic decisions.
Strategic decisions are unique, non-repetitive, and
future-oriented decisions, which
address long-term
issues such as emerging markets, merger and
acquisition strategies, new-product development, and
investment strategies.
Such system assists in the making of decisions that
require an in-depth understanding of the firm and of
the industry in which the firm operates.

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Chapter: THREE Lecture: Eight

This lecture will cover following topic:

Managers at different levels in an organization

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

According to Laudon and Laudon,

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

Office automation system (OAS) collects, process,

This system supports the automation of various

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

•They provide managerial end users with

•MIS provide a variety of reports and displays to

•The content of these information products is

CLASSIFICATIONS OF INFORMATION SYSTEMS

•MIS retrieve information about internal

•They also obtain data about the business

•Information products provided to managers

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

CLASSIFICATIONS OF INFORMATION SYSTEMS

ESS designed to meet the information needs to top

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