ACCA BT Syllabus C. Business Functions, Regulation and Technology - Different Systems - Notes ^{6 / 7}

Information systems and technologies have become vital components of successful businesses and organisations.

An information system is an organised combination of people, hardware, software, communications networks and data resources that collects, transforms and disseminates information in an organisation.

Information systems provide an organisation with support for business operations, managerial decision making and strategic advantage.

Electronic data processing, transaction processing system and management information system

• Until the 1960s, the role of information systems was simple transaction processing, record-keeping, accounting and other electronic data processing (EDP) applications or transaction processing system (TPS).

• Then, another role was added, as the concept of management information systems (MIS) was conceived.

• This new role focused on providing managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes.

Decision support systems

• By 1970s, it was evident that the prespecified information products produced by such management information systems were not adequately meeting many of the decision-making needs of management.

• So the concept of decision support systems (DSS) was born.

• The new role for information systems was to provide managerial end users with ad hoc and interactive support of their decision-making processes.  

  This support would be tailored to the unique decision-making styles of managers as they confronted specific types of problems in the real world.

Executive information systems, expert support systems and knowledge-based systems

• In the 1980s, several new roles for information systems appeared.  

  It became evident that most top executives did not directly use either the reports of information reporting systems or the mathematical analytical modeling capabilities of DSS, so the concept of executive information systems (EIS) was developed.

• These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the formats they prefer.

• Expert support systems (ESS) and other knowledge-based systems forged a new role for information systems.  

  Today, expert systems can serve consultants to users by providing expert advice in limited subject.

• Finally, the rapid growth of the Internet, intranets, extranets in the 1990s has dramatically changed the capabilities of information systems in business.  

  Such global internet work is revolutionising and supporting business operations and management of different enterprises.