Characteristics of Management Information System and Transaction Processing Systems

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Answer to Question 1

Introduction

Organizations whether profit oriented or not are becoming increasingly dependent on computerised information systems in carrying out their day-to-day activities. A proper application of this process of business digitalization is helping improve customer experience and reducing long-term cost of running businesses and other organizations.

A management information system (MIS), according to Shelly, Cashman and Vermaat, (2008) is an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress. Because it generates reports on a regular basis, a management information system sometimes is called a management reporting system (MRS). Any system that helps managers and other professionals to plan, control, and make decisions is a management information system (Oz, 2009).

The transaction processing system (TPS) on the other hand are the most widely used information systems. They are predominantly used to record data collected at the boundaries of organizations or at the point where the organization transacts business with other parties as well as other internal information. Examples of TPS are Point-of Sale (POS) machines, automatic teller machines, and purchase order systems (E. OZ, 2009). These systems are used at the operational levels of an organization.

This exercise explores what management information systems are, their major characteristics and the differences and/or similarities between MIS and TPS.

Characteristics of Management Information Systems (MIS)

From the information provided by experts such as Laudon and Laudon, 2012; Elly Oz, 2009, Marakas and O’br...

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...v.org/ftp/arxiv/papers/1308/1308.1797.pdf

O’brien, J. A., & Marakas, G. M. (2011). Management Information Systems (10th ed.). New York: McGraw-Hill/Irwin.

Oz, E. (2009): Management Information Systems. (6th ed.) Thomson Course Technology

Parlak, M., (n.d). Management Informatıon System. Retrieved From Dokuz Eylül University Website: http://kisi.deu.edu.tr//mehmetali.ilgin/MANAGEMENT_INFORMATION_SYSTEM_MAY4.ppt

Pearlson, K. E., & Sauders, C. S. (2010). Managing & Using Information Systems: A Strategic Approach (4th ed.). Hoboken: John Wiley & Sons, Inc.

Thakur, D. (n.d). Different Characteristics of MIS. Retrieved from eComputer Notes Website: http://ecomputernotes.com/mis/what-is-mis/explain-the-different-characteristics-of-mis

Valacich, J., & Schneider, C. (2012). Information Systems Today: Managing in the Digital World. New York: Pearson Education Limited.

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