System Types by Activity

Question 1

Purposes of IT systems

Answer 1

1) operational systems - support day-to-day activities of business
A) Often known as transaction processing systems (TPS)

B)Operational
systems process non-financial transactions (placing orders for goods, accepting an order from a customer, etc.) and financial transactions (billing a customer, receiving payment from a customer, paying employees for services rendered)

C) Financial transactions generate debit an credit entries into accounts

D)Accounting systems are transaction processing systems

Question 2

Management Information Systems (MISs)

Answer 2

Systems designed to support routine management problems based primarily on data from transaction processing systems (TPS)

A) Support management of daily operations - taking planning information data and compare it to actual results in periodic management reports

Question 3

Accounting information systems (AIS)

Answer 3

Take financial data from transaction processing systems and use it to produce financial statements and control reports - AIS are subset of MIS *****

Question 4

Decision support systems (DSSs)

Answer 4

Provide information to mid and upper lvl managers to assist them in managing routine problems and in long-range planning

• DSSs unlike MISs frequently include external data in addition to summarized info from TPS

Data -driven Das - process large amounts of data to find relationships and patterns;;;;;Data warehousing and data mining systems are common examples of data-driven DSSs. While these terms are discussed in the lesson on system types by data structure, under the heading “Knowledge Management” they are also important to data-driven DSSs.

Model-driven DSS – Feed data into a previously constructed model to predict outcomes. For example, if a company increases its product price, by how much will demand for the product decrease?

Executive support systems (ESSs) or strategic support systems (SSSs) – A subset of DSS especially designed for forecasting and making long-range, strategic decisions; thus, these systems have a greater emphasis on external data

Question 5

Knowledge work systems

Answer 5

Facilitate the work activities of professional level employees by providing information relevant to their day-to-day activities
1. Usually exist separately from operational systems, but can be integrated.
2.
Office automation systems (OASs) – Provide similar support to clerical-level employees.
a. Include many of the typical programs found on personal computers: word processing, spreadsheets, end-user databases, etc.