Chapter 4 - Information systems

Question 1

Transaction processing system (TPS)

Answer 1

Records all the daily transactions of the organisation and summarises them so they can be reported on a routine basis.
Transaction processing systems are used mainly by operational managers to make basic decisions

Question 2

Management information systems (MIS)

Answer 2

Converts data from TPS into information for tactical managers. This information will be designed to help them monitor performance, maintain co-ordination and provide background information for the operations.
MIS will be used for both historic and current analysis of business performance, as well as to make predictions about future

Question 3

Decision support systems (DSS)

Answer 3

is a computer system that helps decision-makers deal with semi or unstructured decisions, where there is a high level of uncertainty, or unknown factors that may affect the decision.
The DSS draws on both internal information (from TPS) and external information (about the market, economic growth, etc).
DSS will be tailor-made to the requirements of the organisation

Question 4

Expert systems (ES)

Answer 4

hold specialist knowledge and allow non-experts to interrogate the system for information, advice and recommended decision.
This is not part of the normal hierarchy of information systems and will be used by employees at all levels of the organisation.