Foundation of electronic commerce and information system

Information Systems

Information systems (IS ) are computer and communications hardware and software assortments used to supply information rather than be used for other purposes like , for example , control machines . This term is usually also used interchangeably with information technology (Christ Link n .d . A simpler definition states that Information systems are systems that use information technology to capture , transmit , store retrieve , manipulate , or display information (Stile , n .d . As it is clear , Information systems are mostly viewed as mere tools that enable a business to better perform its functions . Only recently

however Information Systems have become more than just a tool and a set of machines streamlining a business . They have become the business itself Same way as a business is dealt like an entity in legal terms , it can be safely said that Information Systems are what that entity truly is in the current era . Information Systems these days present an alternate reality , a different world and society in which employees are replaced with user accounts and perform tasks `online

There are several types of Information Systems . The differences between them are so slight that even a seasoned user at times is confused as to how to categorise one . Apart form this , the rapidly blurring boundaries between such system , their enterprise wide integration and the current move towards more enterprise orient solutions have made the task of identifying and categorising them ever more complex

Information Systems is thus a general term used to mean one or any of the many sub categories of such systems currently used in businesses These could range from a top notch Executive Information System to a basic level Transaction Processing system . A few of the more common ones along with their explanations and differences when compared to others are given below

Transaction Processing Systems (TPS : A Transaction Processing System (TPS ) is a type of information system that collects , stores , modifies and retrieves the transactions of an organization . A transaction , in computing terms , is an event that generates or modifies data that is eventually stored in an information system . There are two types of Transaction Processing Systems namely Batch processing in which a bulk of transactions are processed at intervals (daily , weekly , monthly etc and Real Time where transactions are processed as they are conducted Batch processing allows for cheaper investments but Real Time processing allows for more informed decisions as the data is always updated Salient features of a Transaction Processing System include

Rapid Response : fast performance with a rapid response time is critical Businesses cannot afford to have customers waiting for a TPS to respond the turnaround time from the input of the transaction to the production for the output must be a few seconds or less

Reliability : many organisations rely heavily on their TPS a breakdown will disrupt operations or even stop the business . For a TPS to be effective its failure rate must be very low . If a TPS does fail , then quick and accurate recovery must be possible . This makes...