--- title: "Define IS and its types" subject: "Information System" chapter: 1 key: "semester_8/information_system:define-information-system-types" source: https://www.bctengineer.com/q/semester_8/information_system/define-information-system-types site: BCT Engineering --- # Define IS and its types Information System · Chapter 1: Information Systems - Asked in: 2074 Bhadra, 2+6 marks; 2070 Bhadra, 2+6 marks; 2072 Asoj, 5 marks; 2071 Bhadra, 4 marks (asked 4 times) - Video: [Types of Information Systems (TPS, MIS, and DSS)](https://www.youtube.com/watch?v=nQ4Q3iN7TMM) — Our Kaleidoscope Journey - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/define-information-system-types - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-1 ## Question What is an Information System? Explain the different types of information systems used in an organization (that support business operations and managerial decision making). ## Short answer An information system is an organized combination of people, hardware, software, data, networks and procedures that collects, processes and distributes information. Types include TPS for daily transactions, MIS for structured reports, DSS for semi-structured decisions, ESS for executive dashboards, OAS/KWS for office and knowledge work, expert systems, and enterprise systems like ERP. ## Answer An **Information System (IS)** is an organised combination of people, hardware, software, data, networks and procedures that collects, processes, stores and distributes information to support operations, management and decision making in an organization. #### Types of information systems Information systems are grouped by the organizational level and the function they serve. ```text /\ /ESS\ Strategic level (top mgmt) /------\ / DSS/MIS\ Management level /----------\ / TPS \ Operational level ---------------- ``` 1. **Transaction Processing System (TPS)** - records and processes daily routine transactions (sales, payroll, billing, ATM withdrawals). It serves operational staff, and its output feeds other systems. Example: a bank's deposit and withdrawal system. 2. **Office Automation / Knowledge Work System (OAS/KWS)** - supports clerical and knowledge workers with word processing, email, scheduling and design tools (e.g. CAD). 3. **Management Information System (MIS)** - summarises TPS data into regular, structured reports (monthly sales, inventory status) for middle managers to monitor and control. 4. **Decision Support System (DSS)** - interactive system with models and data analysis tools that helps managers solve semi-structured problems, using "what-if" analysis. Example: a pricing model. 5. **Executive Support System (ESS)** - gives senior executives a quick, summarised, graphical view of internal and external data (dashboards, trends) for strategic, unstructured decisions. 6. **Expert System / Knowledge-based System** - captures expert knowledge as rules to give advice in a narrow area (e.g. loan approval, medical diagnosis). 7. **Enterprise systems (ERP, CRM, SCM)** - integrate business processes across departments and partners on a common database. #### Support for business operations and decisions - Operations: TPS, OAS, ERP automate routine work with speed and accuracy. - Management decisions: MIS, DSS, ESS and expert systems provide information, models and advice at the right level. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which system records daily routine transactions such as payroll and ATM withdrawals and feeds other systems? A. Decision Support System B. Executive Support System C. Transaction Processing System D. Expert System Answer: C. TPS works at the operational level and its output becomes input to higher-level systems. (Key point: TPS role) 2. How does an MIS relate to the TPS? A. It summarises TPS data into regular structured reports for middle managers B. It replaces the TPS for clerical staff C. It gives executives unstructured external trend views D. It stores expert rules for diagnosis Answer: A. MIS takes TPS data and produces periodic reports such as monthly sales for monitoring and control. (Key point: MIS vs TPS) 3. A manager tests different prices in a model to see likely profit. Which system is this? A. Management Information System B. Transaction Processing System C. Office Automation System D. Decision Support System Answer: D. DSS uses models and what-if analysis for semi-structured problems. (Key point: DSS what-if) 4. Which pairing of system and level is correct? A. ESS - operational level for clerks B. ESS - strategic level for top management C. TPS - strategic level for directors D. MIS - operational level for supervisors Answer: B. ESS gives senior executives summarised internal and external data for strategic, unstructured decisions. 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