The main kinds of information systems in business are described briefly

below:
Information
System

Description

Executive
Support
Systems

An Executive Support System ("ESS") is designed to help senior

management make strategic decisions. It gathers, analyses and
summarizes the key internal and external information used in the
business.
A good way to think about an ESS is to imagine the senior
management team in an aircraft cockpit - with the instrument panel
showing them the status of all the key business activities. ESS
typically involve lots of data analysis and modeling tools such as
"what-if" analysis to help strategic decision-making.

Management
Information
Systems

A management information system ("MIS") is mainly concerned with

internal sources of information. MIS usually take data from the
transaction processing systems (see below) and summaries it into a
series of management reports.
MIS reports tend to be used by middle management and operational
supervisors.

DecisionSupport
Systems

Decision-support systems ("DSS") are specifically designed to help

management make decisions in situations where there is uncertainty
about the possible outcomes of those decisions. DSS comprise tools
and techniques to help gather relevant information and analyze the
options and alternatives. DSS often involves use of complex
spreadsheet and databases to create "what-if" models.

Knowledge
Management
Systems

Knowledge Management Systems ("KMS") exist to help businesses

create and share information. These are typically used in a business
where employees create new knowledge and expertise - which can
then be shared by other people in the organization to create further
commercial opportunities. Good examples include firms of lawyers,
accountants and management consultants.
KMS are built around systems which allow efficient categorisation and
distribution of knowledge. For example, the knowledge itself might
be contained in word processing documents, spreadsheets,
PowerPoint presentations. internet pages or whatever. To share the
knowledge, a KMS would use group collaboration systems such as an
intranet.

Transaction
Processing
Systems

As the name implies, Transaction Processing Systems ("TPS") are

designed to process routine transactions efficiently and accurately. A
business will have several (sometimes many) TPS; for example:
- Billing systems to send invoices to customers
- Systems to calculate the weekly and monthly payroll and tax
payments
- Production and purchasing systems to calculate raw material
requirements
- Stock control systems to process all movements into, within and out
of the business

Office
Automation
Systems

Office Automation Systems are systems that try to improve the

productivity of employees who need to process data and information.
Perhaps the best example is the wide range of software systems that
exist to improve the productivity of employees working in an office
(e.g. Microsoft Office XP) or systems that allow employees to work
from home or whilst on the move.

Notes on information systems supporting the major business functions: sales

and marketing, manufacturing and production, finance and accounting, and
human resources.
At each level of the organization, information systems support the major functional
areas of the business. Sales and marketing systems help the firm identify customers
for the firms products or services, develop products and services to meet
customers needs, promote the products and services, sell the products and
services, and provide ongoing customer support. Manufacturing and production
systems deal with the planning, development, and production of products or
services, and control the flow of production. Finance and accounting systems keep
track of the firms financial assets and fund flows. Human resources systems
maintain employee records; track employee skills, job performance, and training;
and support planning for employee compensation and career development.

What are the characteristics of transaction processing systems? What role do

they play in a business?
Transaction processing systems (TPS) are computerized systems that perform and
record the daily routine transactions necessary to conduct the business; they serve
the organizations operational level. The principal purpose of systems at this level
is to answer routine questions and to track the flow of transactions through the
organization.
At the operational level, tasks, resources, and goals are predefined and highly
structured.
Managers need TPS to monitor the status of internal operations and the firms
relations with the external environment.
TPS are also major producers of information for the other types of systems.
Transaction processing systems are often so central to a business that TPS failure
for a few hours can lead to a firms demise and perhaps that of other firms linked
to it.
Examples of transaction processing systems for a university include a registration
system, student transcript system, curriculum class control systems, and an alumni
benefactor system.
4. What are the characteristics of MIS? How do MIS differ from TPS? From
DSS?
Middle management needs systems to help with monitoring, controlling, decisionmaking, and administrative activities.
MIS provide middle managers with reports on the organizations current
performance. This information is used to monitor and control the business and
predict future performance.
3

 MIS summarize and report the companys basic operations using data supplied by
TPSs. The basic transaction data from TPS are compressed and usually presented
in reports that are produced on a regular schedule.
MIS serve managers primarily interested in weekly, monthly, and yearly results,
although some MIS enable managers to drill down to see daily or hourly data if
required.
MIS generally provide answers to routine questions that have been specified in
advance and have a predefined procedure for answering them.
MIS systems generally are not flexible and have little analytical capability.
Most MIS use simple routines, such as summaries and comparisons, as opposed
to sophisticated mathematical models or statistical techniques.
Examples include sales and profit per customer and per region, relocation
summary and analysis, inventory control, capital investment analysis, and even a
report on students who were here in the autumn but did not to return in the spring.
MIS differs from TPS in that MIS deals with summarized and compressed data
from the TPS and sometimes analysis of that summarized data. While MIS have an
internal orientation, DSS will often use data from external sources, as well as data
from TPS and MIS. DSS supports right now analysis rather than the long-term
structured analysis of MIS. MIS are generally not flexible and provide little
analytical capabilities. In contrast, DSS are designed for analytical
purposes and are flexible.

What are the characteristics of DSS? How do they differ from those of ESS?
Decision-support systems (DSS) support nonroutine decision making for middle
managers.
4

 DSS provide sophisticated analytical models and data analysis tools to support
semistructured and unstructured decision-making activities.
DSS use data from TPS, MIS, and external sources, provide more analytical
power than other systems, combine data, and are interactive.
DSS focus on problems that are unique and rapidly changing, for which the
procedure for arriving at a solution may not be fully predefined in advance.
DSS use a variety of models to analyze data, or they condense large amounts of
data in a form in which decision makers can analyze them. Typically, they
provide the ability to do what if analysis.
DSS use data from TPS, MIS, and external sources, provide more analytical
power than other systems, combine data, and are interactive.
DSS are designed so that users can work with them directly; these systems
explicitly include user-friendly software.
Executive support systems help senior managers address strategic issues and longterm trends, both in the firm and in the external environment.
ESS address nonroutine decisions requiring judgment, evaluation, and insight
because there is no agreed-on procedure for arriving at a solution.
ESS provide a generalized computing and communications capacity that can be
applied to a changing array of problems.
ESS are designed to incorporate data about external events, such as new tax laws
or competitors, but they also draw summarized information from information
from internal MIS and DSS.
DSS filter, compress, and track critical data, displaying the data of greatest
importance to senior managers.
ESS may be less analytical than DSS with less use of models such as linear
programming or forecasting. However, they often rely on external data and rely
5

heavily on graphics.
6. Describe the relationship between TPS, MIS, DSS, and ESS. The various
types of systems in the organization exchange data with one another. TPS
are typically a major source of data for other systems, especially MIS and DSS.
TPS are operational-level systems that collect transaction data. Examples of these
are payroll or order processing that track the flow of the daily routine transactions
that are necessary to conduct business. TPS provide data that are required by MIS
and DSS, although these systems may also use other data. DSS not only use data
from TPS but also from MIS. MIS rely heavily on data from TPS. ESS are
primarily a recipient of data from lower- level systems. They obtain most of their
internal data from MIS and DSS.
Describe alternative ways of organizing the information systems function in a
Business.
There are alternative ways of organizing the IT function within a firm.
A very small company will not have a formal information systems group.
Large companies will have a separate information systems department, which
may be organized along several different lines, depending on the nature and
interests of the firm.
Decentralized arrangement where each functional area of the business has its own
information systems department, overseen by a corporate CIO.
The information systems function may be run as a separate department similar to
the other functional departments.
Very large firms with multiple divisions and product lines may choose to have an
information systems department for each division reporting to a high-level central
information systems group and CIO.
6

Prototyping:
Introduction
Prototypes are experimental and incomplete designs which are cheaply and fast
developed. Prototyping is an integral part of user-centred design and the usability
engineering lifecycle because it enables designers to try out their ideas with users
and to gather feedback. The main purpose of prototyping is to involve the users in
testing design ideas and get their feedback in the early stage of development, thus
to reduce the time and cost. It provides an efficient and effective way to refine and
optimise interfaces through discussion, exploration, testing and iterative revision.
Early evaluation can be based on faster and cheaper prototypes before the start of a
full-scale implementation. The prototypes can be changed many times until a better
understanding of the user interface design has been achieved with the joint efforts
of both the designers and the users.
Sketches and paper prototypes
Sketching techniques, a kind of visual brainstorming, can be useful for exploring
all kinds of design ideas. After producing initial sketches the best ideas can be
further developed by constructing cardboard representations of the design, which
can be evaluated with users. This can then be followed by developing scenarios,
software or video prototypes The type of mock-up depends on how advanced the
idea is. It may be quicker and cheaper to use paper-and-pencil forms at early
stages, whereas computer-based prototypes may be important in later stages for
exploring and demonstrating interaction and design consistency. Paper prototyping
is a method of usability testing that is useful for Web sites, Web applications, and
conventional software. Here's how it works: You first decide on the tasks that you'd
7

like the user to accomplish. Next, you make screen shots and/or hand-sketched
drafts of the windows, menus, dialog boxes, pages, popup messages, etc. that are
needed to perform those tasks. Then you conduct a usability test by having one or
two developers play the role of "computer," manipulating the pieces of paper to
simulate how the interface would behave. Users are given realistic tasks to perform
by interacting directly with the prototype -- they "click" by touching the prototype
buttons or links and "type" by writing their data in the prototype's edit fields.
(Using transparency or removable tape prevents the prototype from being written
on directly.) A facilitator (usually someone trained in usability) conducts the
session while other members of the development team observe and take notes. The
"computer" does not explain how the interface is supposed to work, but merely
simulates what the interface would do. In this manner, you can identify which
parts of the interface are self-explanatory and which parts are confusing.
Because the prototype is all on paper, you can modify it very easily to fix
the problems you find.
Storyboarding
Storyboards originate from the film industry, where a series of panels roughly
depicts snapshots
from an intended film sequence in order to get the idea about the eventual scene.
Storyboarding is a graphical depiction of the outward appearance of the intended
system without accompanying system functionality. It provides snapshots of the
interface at particular points in the interaction so that the users can determine
quickly if the design is heading in the right direction. Storyboards do not require
much in terms of computing power to construct, in fact, they can be mocked up
without the aid of computers. However, modern graphical drawing packages make
it possible to create storyboards with the aid of a computer instead of by hand. It is
8

also possible to provide crude but effective animation by automated sequencing

through a series of snapshots
Computer-based simulation
Higher fidelity prototypes simulate or animate some but not all features of the
intended system.
There are three approaches to limit prototype functionality.
Vertical prototyping
Vertical prototyping cuts down on the number of features, so that the result is a
narrow system that includes in-depth functionality, buy only for a few selected
features. Vertical prototypes allow users to perform and test some real tasks.
Horizontal prototyping
Horizontal prototyping reduces the level of functionality so that the result is a
surface layer that includes the entire user interface to a full-featured system
without underlying functionality. Horizontal prototypes allow users to feel the
entire interface, even though they can not perform
any real tasks. The main advantages of horizontal prototypes are that they can be
implemented fast with the use of prototyping and screen design tools, and they can
be used to assess the interface as a whole.
Scenario
Scenario reduces both the number of features and the level of functionality. It can
simulate the user interface as long as the user follows a previously planned path,
i.e., a user can use a specific set of computer facilities to achieve a specific
outcome under specified circumstances. Scenarios can be easy and cheap to build,
and to be used during early evaluation of a user interface design to get user
9

feedback without the expense of constructing a running prototype. It can also be

used for user testing if they are developed with slightly more detail than a pure
narrative.
Rapid Prototyping
In rapid prototyping interactive prototypes are developed which can be quickly
replaced or changed in line with design feedback. This feedback may be derived
from colleagues or users as they work with the prototype to accomplish set tasks.
Various techniques may be used for rapid development
Dynamic high-level language development
Database programming
Visual programming is an inherent part of most prototype development systems
Prototyping in the software process
Evolutionary prototyping
This is an approach to system development where an initial prototype is produced
and refined through a number of stages to the final system. It is used for systems
where the specification cannot be developed in advance and is based on techniques
which allow rapid system iterations. Advantages include accelerated delivery of the
system and user engagement with the system.
Throw-away prototyping
A prototype which is usually a practical implementation of the system is produced
to help discover requirements problems and then discarded. The techniques of
Rapid Prototyping can be used. The system is then developed using some other
development process. Customers and end-users should resist the temptation to turn
the throw-away prototyping into a delivered system that is put into use.
10

There is an important difference between the objectives of evolutionary and throwaway programming:
The objective of evolutionary prototyping is to deliver a working system to endusers.
The objective of throw-away prototyping is to validate or derive the system
requirements.
Incremental development
The system is developed and delivered in increments after establishing an overall
architecture. The requirements and specifications for each increment may be
developed. Users may experiment with delivered increments while others are being
developed and so these can serve as a form of prototype system.

11