Distinguish between the following: Transaction Processing System and Management Information System.
CS Professional · Information Technology and Systems Audit · PYQS · December 2017
Distinguish between the following: Transaction Processing System and Management Information System.
Answer & Explanation:
Transaction Processing System (TPS) Transaction Processing Systems are designed to process routine transactions effectively and accurately. They are important operations support systems that record and process data from business transactions. TPS processes transactions in two basic ways: Batch processing: Transaction data is accumulated over a period and processed periodically. Real-time (or online) processing: Data is processed immediately after a transaction occurs. For example, point-of-sale (POS) systems transmit sales data electronically for immediate or nightly processing. Bank accounting software capturing money inflow/outflow and reconciliation is another example. Management Information System (MIS) Management Information System is an organized approach to study the information needs of an organization's management at every level for making operational, tactical, and strategic decisions. Its objective is to design and implement procedures that provide suitably detailed, accurate, consistent, and timely reports. MIS primarily uses internal information sources, summarizing data from transaction processing systems into management reports, typically used by middle management and operational supervisors. MIS facilitates decision-making by supplying up-to-date and accurate information to the right people, on time, and in a usable form. The basic elements of MIS are: Management: The process of planning, organizing, initiating, and controlling work based on information provided by MIS. Information: Processed data. System: Components that work together to achieve goals.
Topics: Information Systems
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