BUSINESS INFORMATION SYSTEM

1)         List and explain four (4) major types of information system in organization. (20 marks)

Successful organizations no matter large or small will used available and good technologies to manage business activities and assist in decisions making. They use the information systems to collect data and process it due to the needs of the analyst, manager or business owner. Businesses operate more efficiently by using varied information systems to interact with customers and partners, curtail costs and generate revenues.

a)         Transaction Processing Systems

A Transaction Processing Systems (TPS) is the computer system — both hardware and software — that hosts the transaction programs. The software parts of a TPS usually are structured in a special way. TPS is to complete the data collection, storage, processing and the output as product for the core operations of a business. TPS information systems collect data from user inputs and then generate outputs based on the data collected.

An example of TPS system could be an online movie ticket booking system. In such a system, people select their schedule and favorite seats (the input), and the system updates the seats available list, purchase those selected by the customer  (the processing). The system then generates a bill and a copy of the ticket (the output). TPS information systems can be based on real-time or batch processing, and can help businessman full fill customer request without any additional staff or cost.

b)                  Customer Relationship Management Systems (CRM)

Business owners use customer relationship systems to synchronize sales and marketing efforts. CRM systems accumulate and track customer activities, including how people purchase the product, product damage and customer inquiries. The capabilities of typically CRM information systems allow customers to interact with companies for service or product feedback and solving the problem. Businesses may also use CRM systems internally as a component of their collaboration strategies. As such, CRM information systems allow business partners to interact with each other as they develop ideas and products. Collaboration can occur in real time even when business partners are in remote locations.

As example: going back to the previous, purchasing movie ticket online. customer may load their complaint or compliment online for the feedback, to improve their service. they may prepare a web page for customer feedback. from there they will know what is customer need and they may improve everything.

c)                  Management information systems (MIS)

Management information systems (MIS) are methods of using technology to help organizations better manage people and make decisions. Managers use management information systems to gather and analyze information about various aspects of the organization, such as personnel, sales, inventory, production or other applicable factors. Management information systems can be used to evaluate the performance of the organization as a whole, certain departments or even individuals. Other management systems, such as supply chain management and project management, are often included under the label of management information systems.

Tool for Managers

In many companies, management information systems are used to create reports on things such as sales, revenue and production. These reports are provided at regular intervals to managers at all levels to help them evaluate their companies' performance. By comparing daily, weekly or monthly reports to previous reports, managers are able to spot trends, such as revenue growth or reduction.