How do the information systems improve the operation of the business?
Transaction processing system
Transaction processing system – is a system created with a purpose of answering questions about transactions and recording transaction activity. This system can give information about specific payments and the status of the inventory. It produces online and physical reports to help managers work with company transactions. This system improves the operation of the company by providing a quick answer to transaction questions.
Management information system
Management information system – is a system designed for middle management to show the current performance of the company. By using this information, managers can predict the possible future performance of the organization. This system provides a summary of the data given by the transaction system. It improves the workflow of the company by providing feedback on its actions and letting the organization choose what to do next.
Decision-support system – a system that helps solve problems that can change on the fly. Business analysts use these systems to analyze data gained from transaction processing systems, management information systems, and external sources. This system improves the company operations by analyzing possible outcomes of various decisions by using a large amount of data.
How do the information systems support decision-making?
These systems support decision-making in different ways. TPS can provide the needed information when dealing with payroll. It can track all the money that already has been paid to the employee, as well as all the information related to those transactions. So when an employee asks for a raise, the manager can look at the number of hours worked and the pay received for them to make a decision on whether to raise it or not.
MIS can be used to make decisions about the future actions of the company. For example, a new pricing strategy can be analyzed by using sales information from the MIS.
A DDS can help to make many types of decisions. Most of them deal with gaining the most profit from operations. For example, to make a decision which delivery route to take to save money while keeping time.