Characteristics of TPS (Transaction Processing System) o Rapid processing o Standardization o Reliability o Controlled Access Transaction Processing Modes o On-line

e Transaction Processing o Batch Processing Principal Transaction Processing Subsystems in a Firm o Sales o Accounts Payable o Production o Billing o Inventory Maintenance o Accounts Receivable o Purchasing o Payroll o Shipping o General Ledger o Receiving General Elements of Transaction Processing o Data Capture/Collection o Data Validation/Editing o Transaction-Dependent Processing Steps Classification Calculation Sorting Summarization Data Retrieval o Database Maintenance Classification of Outputs Provided by TPS o Transaction Documents Action Documents Information Documents o Query Responses and Reports Transaction Logs Detail Reports Error (Edit) Reports Summary Reports Characteristics of MRS (Management Reporting System) o They are usually developed by information system professionals, rather than by end-users, over an extended period of time. o These systems are built for situations in which information requirements are reasonably well-known and expected to remain relatively stable. o They do not directly support the decision making process as a search for alternate solution to be implemented. o They are oriented towards reporting on the past and present rather than projecting the future. o They have limited analytic capabilities. o Reports on internal company operations were given focus. Types of MRSs Reports o Scheduled (Periodic) Reports Reports which are furnished on a regular basis depending on the decision-making needs. o Exception Reports Reports that are produced only during out-of-bounds conditions. o Demand (Ad-Hoc) Reports Reports or screen outputs produced as needed with the flexibility given to the user. o Predictive Reports Reports that rely on historical data. o Summary Reports Reports that summarizes the information from various sources. Information System for Business Function o Principal Business Functions Marketing and Sales Production Accounting and Finance Human Resource Domain of Marketing Information System

Marketing Information Systems supports the decision making regarding the marketing mix, expressed also called as 4 Ps What PRODUCTS (Goods and Services) should we offer? At what PLACE should we offer our products; that is, what should our distribution channels be? What PROMOTION (Sales and Advertising) should be conducted? What should be the PRICE of our products (with mark-ups, discounts and other terms of sale)? Marketing Mix o Product Subsystems provides the information about the firms products. o Place Subsystem provides the information about the firms distribution network. o Promotional Subsystem provides the information about the firms advertising and personal selling activities. o Price Subsystem supports pricing decisions which also contains industry prices. o Sales Forecasting supports marketing plan; area where any quantitative methods employed must be tempered with human insight and experience. Structure of Manufacturing Information Systems o Product Design and Engineering Widely supported by computer-aided design (CAD) and computer-aided engineering (CAE) systems. o Production Scheduling Heart of the manufacturing information system o Quality Control Relies on data collected on the shop floor by the sensors embedded in the process control systems o Facilities Planning, Product Costing, Logistics, and Inventory Subsystems Higher-level decision making supported by manufacturing information systems. Accounting and Financial Information Systems o Essential Functions Financial Forecasting and Planning Financial Control Funds Management Internal Auditing Human Resources Information Systems o Supports the human resources function of an organization with information o Ensure the appropriate degree of access to a great variety of internal stakeholders o Databases could be maintained by the transaction processing systems, which include Employee Information System Applicant Tracking Subsystem Position Tracking Skills Inventory Maintenance Benefits Maintenance o The information subsystems of HRIS reflect the flow of human resources through the firm, from planning and recruitment to termination. o A sophisticated HRIS includes the following subsystems Human Resource Planning Recruitment and Workforce Management Compensation and Benefits Government Reporting and Labour Relations Support Integrating Functional Systems for Superior Organizational Performance o Functional Information Systems rarely stand alone o Information Technology can also help a firm integrate its operations with those of its suppliers and customers.