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For this paper I was asked to define an information system and types of information systems, Provide three examples of information systems used in real life and tell us what type of information systems they are and how are they related to the learning objectives for this module. I have picked three examples of information systems in real life applications, they are: Pandora radio (decision support system), cashier register (transaction processing system) and Facebook (office automation system). Information system are vital to knowledge management, they provide a simple system to ensure the success of not only businesses, but national defense as well.
* Define an information system and types of information systems An information system is the interaction between people, processes, data and technology. Information systems are also any combination of information technology and peoples activity that support operations, management and decision making. Let’s now look at the three different types of information systems that I will use for my real life examples.
Transaction Processing System:
TPS stands for Transaction Processing System, and is the most well-known example. TPS is best recognized by any type of system that utilizes bank card processing. Any time a person pays for goods or services via their bank card, the transaction is sent to the bank. The bank in turn either approves or denies this transaction. The key point to notice in this type of system is that it guarantees that either the transaction completely succeeds or completely fails. This type of system is used in many types of systems though, and not just limited to financial transactions. (Mills, Kevin (June 30, 2011) IT Collaborate: Information Systems used in Modern Business. Retrieved January 7, 2013 from http://www.itcollaborate.com/71/information-systems-used-in-modern-business/)
Decision Support System:
In its most simple form, the DSS can be found in many types of automatic text completion systems. One of the most popular forms of this system is Google Suggest. Google Suggest is a type of auto complete feature that completes your search phrase based on the majority of searches it has based on what has already been entered by the user. . (Mills, Kevin (June 30, 2011) IT Collaborate: Information Systems used in Modern Business. Retrieved January 7, 2013 from http://www.itcollaborate.com/71/information-systems-used-in-modern-business/)
Office Automation System:
Office automation systems can take many forms, but their primary function remains the same throughout, and that is to facilitate information exchange between people in an organization. Some of these systems may include word processors, spreadsheets, email clients, file sharing systems, databases, etc. The main benefit behind this type of technology is that the more freely that information flows around an office, the more productive the environment is. With the increase in production, the organization can raise its profits considerably as the efficiency of data exchange increases, allowing a decrease in the time it takes to deliver the product to the customer. (Mills, Kevin (June 30, 2011) IT Collaborate: Information Systems used in Modern Business. Retrieved January 7, 2013 from http://www.itcollaborate.com/71/information-systems-used-in-modern-business/)
* Provide three examples of information systems used in real life and tell us what type of information systems they are Pandora radio is a decision support system and I will explain why. The decision support system uses an auto complete feature like we learned earlier, it memorizes what you have previously searched or looked at. Pandora radio has a like button and a do not like button so the user can filter out what he or she likes/dislikes. The application remembers the genre and artists the user has previously liked to create the ultimate playlist. This decision support system has created a more efficient way of listening to music, no more stopping and hitting the next button.
The Cash register is the ultimate transaction processing system. It creates a simple bond between consumer and supplier, in turn creating a fast and effective way of purchasing goods. Like the definition above, this transaction processing system guarantees a “no or go” scenario that is easy to understand. This system creates a simple transaction log that is easy for operators, management and owners to gather information. Facebook is an online database that provides information to every user on a continual basis. Facebook is always updating within seconds of a user posting information and how does this coincide with the office automation system? The information from Facebook gives the users a constant information flow, thus increasing data that can be dispersed efficiently.
* How is this related to the learning objectives of this module? The objectives of this module where to define the key principles of knowledge management define the different types of information systems and be able to differentiate between data, knowledge and information. When you break down the information systems that I have covered, you can see data, information and knowledge.
Facebook is a database that disperses information and knowledge, a cash register stockpiles information by creating transaction receipts for future knowledge of store purchases and Pandora uses knowledge to remember what the user has previously “like” or disliked” to create a positive environment. So with these examples, you have the three main ingredients of knowledge management. Without data, information and knowledge, we can’t continue to create more efficient information systems for years to come.
Mills, Kevin (June 30, 2011) IT Collaborate: Information Systems used in Modern Business. Retrieved January 7, 2013 from http://www.itcollaborate.com/71/information-systems-used-in-modern-business/