Define and compare transaction-processing, operations information systems, and decision support systems. How do these types of MIS relate to each other? Provide an example of when each type of MIS would be most applicable.

Question

What will be an ideal response?

Answer 1

Transaction-processing is an MIS design to handle large volumes of routine, recurring transactions. This MIS is most suited to programmed activities, such as capturing inventory data through a grocery checkout scanner or processing weekly payroll.

Operations information systems gather comprehensive data, organize them, and summarize them in a form that is valuable. It is most used for handling nonroutine coordinating, controlling, and decision-making tasks. Operations information systems often access the data gathered by transaction-processing systems, for example, a system that compiles transaction data into a report that assesses productivity or cost performance.

Decision support systems go beyond operations information to give managers the ability to model scenarios and manipulate information to make better nonprogrammed decisions. For example, a system might model how customers and competitors would respond to a price cut to help managers decide on pricing evolution.