Information Systems Management Review for OA

Transaction Processing Systems (TPS)

This system is used on an Operational Level. It records data from daily operations throughout the entire organization. The TPS keeps track of elementary activities and transactions (i.e. sales, receipts, cash deposits, payroll, credit decisions, etc.).

When an investment company employee is responsible for processing a payment for regular investments, the TPS is used.

A cashier at a retail store being responsible for recording daily sales, processing payments, and issuing receipts is another situation where a TPS would be used.

Management Information Systems (MIS)

This system is used on a Management Level, as the name implies. This system is used by middle management to provide them with reports on the organization’s current performance (i.e. how much inventory was used this quarter, comparisons, summaries, financial trends/ budgets etc.). This information is used to monitor and control the business and predict future performance. MIS summarizes the company’s basic operations using the TPS data.

A manager of a global retail shoe store noticed sales of their products declined in a specific region of the country, the MIS would be used to help the manager understand why.

MIS would also be used when a supervisor must create a report showing categorized expenses and how they compare to previous time periods.

Enterprise Systems (ERP Systems/ ES)

Used by firms to integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and Human Resources into a single software system.

The Porter Model

Helps firms identify competitive forces and suggests generic strategies to combat these external influences but doesn’t provide specific strategies nor does it provide a methodology to achieve a competitive advantage.

Business Value Chain Model

Highlights specific activities that add value to a firm’s products/ services and where competitive strategies can best be applied to have the biggest impact. This helps enhance the firm’s competitive advantage.