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Lesson 1. The World of the Modern Systems Analyst INSY 55: System Analysis and Design
dayto-day tasks, while others can help managers make better decisions, spot marketplace trends,
and reveal patterns that might be hidden in stored data.

1.2.1 Transaction Processing System (TPS)

TPS is an IS application that captures and records information about the transactions that
affect the organization.
It can respond to business transactions such as orders, time cards, or payments; or initiate
transactions such as invoice, paychecks or receipts.
It can also respond to both external events such as processing orders from customers and
internal events such as generating production orders for the shop floor.
The design tends to focus on factors such as response time, throughput (volume of
transactions), accuracy, consistency and service.
Examples: airline reservations, bank deposits and withdrawals, course registration, hotel
check-in/check-out, order processing and payroll and inventory procurement.

1.2.2 Management Information System (MIS)

MIS is an IS application that takes information captured by transaction processing systems
and produces reports that management needs for planning and control.

It provides for management-oriented reporting. These reports are usually generated on a
predetermined schedule and appear in a prearranged format. It is normally produced from a shared
database that stores data from many sources, including TPS.
It can present detailed information, summary information and exception information.

o Detailed Information – is used for operations management as well as regulatory
requirements (as imposed by the government).
o Summary Information – consolidates raw data to quickly indicate trends and
possible problems.
o Exception Information – filters data to report exceptions to some rule or criteria
(such as reporting only those products that are low in inventory)

Examples: budget forecasting and analysis, financial reporting, inventory reporting, production
scheduling, schedule of classes and sales reporting.

1.2.3 Decision Support System (DSS)
DSS is an IS application that supports systems that allow a user to explore the impact of
available options or decisions.
It provides its users with decision-oriented information whenever a decision-making
situation arises. When applied to executive managers, these systems are sometimes called
executive information systems (EIS).
A DSS does not typically make decisions or solve problems – people do. It is concerned
with providing useful information to support the decision process. In particular, decision support
systems are usually designed to support unstructured decisions, that is, those decision-making
situations that cannot be predicted.
It provides the decision makers with tools to access the data and analyze it to make a
decision.
In general, a DSS provides one or more of the following types of support to the decision
maker: o Identification of problems or decision-making opportunities (similar to exception
reporting).

Mr. John Mark L. Dula