Unit II
Transaction Processing information system, Office Automation System (OAS)-
Knowledge workers System(KWS); MIS; Information system for managers,
Intelligence information system–Decision Support system- Executive information
systems
2.1 Transaction Processing System (TPS)
Transaction Processing System (TPS): Meaning
A Transaction Processing System (TPS) is a computer-based system that records, processes,
stores, and retrieves the daily routine transactions of an organization.
Simple Definition:
“A TPS is an information system that handles the day-to-day, repetitive transactions of a
business accurately and efficiently.”
Key Points about TPS
Transactions: A transaction is any business event that generates data to be recorded e.g.,
sales, payments, orders, deposits.
Routine & Repetitive: TPS deals with high-volume, repetitive tasks.
Accuracy & Speed: Must process transactions quickly and without errors.
Data Source for Other Systems: Data from TPS is used by higher-level systems like
MIS, DSS, and EIS.
Examples:
o Billing systems (generating electricity or phone bills)
o ATM transactions
o Payroll processing
o Inventory management
Characteristics of TPS
High Volume: Handles large amounts of data.
Reliability: Must be reliable and secure.
Consistency: Must ensure data accuracy and integrity.
Timeliness: Must process transactions immediately or in batches.
In short:
A TPS is like the backbone of an organization’s information flow — it keeps daily operations
running smoothly by recording every transaction accurately.
Definition:
A TPS handles the day-to-day routine transactions of an organization. It collects, stores,
modifies, and retrieves the data about an organization’s basic operations.
Examples:
Billing systems
Payroll systems
Order processing
Inventory tracking
Features:
High speed & accuracy
Large volumes of repetitive tasks
Records routine transactions
2.2 Office Automation System (OAS)
Definition:
An OAS uses computers and software to digitize, create, store, and share information to make
office work more efficient. It helps employees work better with documents and communication.
Examples:
Word processors (MS Word)
Spreadsheets (Excel)
Email systems (Outlook)
Video conferencing (Zoom)
Document management systems
Goal:
Improve communication
Automate clerical tasks
Reduce paperwork
2.3 Knowledge Work System (KWS)
Definition:
A KWS supports knowledge workers (like engineers, architects, scientists) in creating new
knowledge and ensuring it is integrated into the organization.
Examples:
CAD (Computer-Aided Design)
Virtual Reality design tools
Research databases
Simulation software
Goal:
Help professionals create & share knowledge
Support technical & design tasks
2.4 Management Information System (MIS)
Definition:
An MIS provides regular, structured information to managers to help with planning,
controlling, and decision-making.
Examples:
Sales management systems
Budgeting systems
Production planning reports
Features:
Summarizes data from TPS
Provides routine reports (daily, weekly, monthly)
Focuses on middle management needs
Information System for Managers
This is a general term — it usually means any system (like MIS, DSS, EIS) that provides
relevant, timely, and accurate information to managers to help them plan, organize, and
control operations.
2.5 Intelligence Information System
This term can mean:
Environmental scanning systems that collect information about competitors, markets,
regulations, trends, etc.
Provides external data to support strategic decisions.
Examples:
Market research databases
Business intelligence tools
2.6 Decision Support System (DSS)
Definition:
A DSS helps managers make non-routine, complex decisions. It provides tools for analyzing
data, making projections, and testing scenarios.
Examples:
What-if analysis tools
Data modeling tools
Financial forecasting
Features:
Supports semi-structured or unstructured decisions
Interactive & flexible
Often includes what-if & sensitivity analysis
2.7 Executive Information System (EIS)
Definition:
An EIS provides top executives with easy access to internal and external information that is
relevant to strategic goals. It often uses dashboards with graphs, summaries, and drill-down
features.
Examples:
Dashboards showing key performance indicators (KPIs)
Trend analysis reports
Competitor performance summaries
Features:
Highly summarized
User-friendly & visual
Supports strategic decision-making
Summary Table
System Purpose User Level
TPS Daily transactions Operational
OAS Office tasks automation Clerical staff
KWS Support knowledge creation Knowledge workers
MIS Routine info for planning & control Middle managers
DSS Support complex decisions Senior/middle managers
EIS Summarized info for strategy Top executives
Intelligence Info System External trends & environment Top/strategic planners
