Table of Contents
Abstract 3
Transaction Processing System 4
Figure 1. Transaction Processing System 5
Management Information System 6
Decision Support System 6
Expert System 8
Electronic commerce system 8
References: 9

Abstract

This is a proposal of the different types of information systems that would work well for a small business that is being considered by a partner that has limited experience with information systems or technology. The types of information systems that will be discussed in this proposal are the Transaction Processing Systems (TPS), Management Information Systems (MIS), Decisions Support (DSS), Expert Systems and Electronic Commerce Systems. This proposal will also briefly discuss their benefits and drawbacks.

Transaction Processing System

A transaction processing system (TPS) is a type of information system that is used to collect, store, modify, and retrieve data from the transactions resulting from the day to day operations of an organization or business. In a business environment, transactions like sales, ordering of products or supplies, and information about customers and suppliers are good examples of information collected by a transaction processing system. One of the benefits of integrating the use of a TPS within a business is that all the business transactions data collected is readily available for the business owner. This type of information system offers the capability to generate sales, expenses and payroll reports. These reports can be very useful for the business owner/manager when reviewing the assessing the performance and productivity of the business. (Transaction processing system. 2012)
One drawback of the transaction processing systems is that in the vent of a failure or breakdown of the system, this could potentially disrupt or even stop the business operations altogether. This is especially thru for those businesses that relay or depend solely on a TPS to process their daily operations. Below is an example of a Transaction Processing System: (Transaction processing system. 2012)
Figure 1. Transaction Processing System

Karen Collins. 2009. Transaction Processing System. Retrieved from http://www.web-books.com/eLibrary/NC/B0/B66/125MB66.html

Management Information System

A management information system (MIS) is intended to provide the business owner with information about the business that will enable the business owner or manager to efficiently and effectively manage the business. (Management Information System (MIS), 2012) Some of the advantages of having a management information system within a business are:

Businesses can effectively highlight their strengths and weaknesses, enabling them to improve and streamline their operations
It provides valuable information about the customers that the business owner can use in order to align their business processes according to the needs of the customers. This is possible thanks to the customer feedback inputs related to the products and or services offered by the business. (Management Information System (MIS), 2012)

Decision Support System

A decision support system (DSS) is a computer based application designed to collect, store and analyzes business data and presents it so that a business owner, a manger can make intelligent and informed business decisions more easily. A DSS collects data in the course of the daily operations of a business. (DSS, 2012) Some examples of the types of information a decision support system is able to gather and generate reports of would be:
• Comparative sales figures between different periods •Projected revenue figures based on new product sales and past sales trends

All of this information can then be used to generate reports in the form of graphics that will enable the user to easily understand it and ultimately will help the business owner to make informed business decisions. A decision support system can be tailored or designed to address the specific and