Definition of: information system
A business application of the computer. It is made up of the database, application programs and manual and machine procedures. It also encompasses the computer systems that do the processing.
Processing the Data
The database stores the subjects of the business (master files) and its activities (transaction files). The application programs provide the data entry, updating, query and report processing.
The Procedures
The manual procedures document how data are obtained for input and how the system's output is distributed. Machine procedures instruct the computer how to perform scheduled activities, in which the output of one program is automatically fed into another.
Transaction Processing
The daily work is the online, interactive processing of the business transactions and updating of customer, inventory and vendor files (master files).
Batch Processing
At the end of the day or other period, programs print reports and update files that were not updated on a daily basis. Periodically, files must be updated for routine maintenance such as adding and deleting employees and making changes to product descriptions.See transaction processing.
Types of Information System
Types of Information System
| Categories of Information System | Characteristices |
Transaction Processing System | Substitutes computer-based processing for manual procedures. Deals with well-structured processes. Includes record keeping applications. |
Management information system | Provides input to be used in the managerial decision process. Deals with supporting well structured decision situations. Typical information requirements can be anticipated. |
Decision support system | Provides information to managers who must make judgements about particular situations. Supports decision-makers in situations that are not well structured. |
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