Saturday, November 20, 2010

Why IT is being used?

Why IT is being used?
You can’t think about a world with out IT today. IT has become part and participle
with everybody’s life today. There are thousands of reasons about why people use
computers to fulfill their requirements in many life aspects.
Basically we can have Information Systems which is a major part in IT.
Types Of Information Systems
An information system is a set of hardware, software, data, people, and procedures
that work together to pro duce information. A procedure is an instruction, or set of
instructions, a user follows to accomplish an activity. An information system supports
daily, short- term, and long -range activities of users in a company. Information
systems generally fall into one of five categories: office information systems,
transaction processing systems, management information systems, decision support
systems, and expert systems. The following sections present each type of
information system.

Office Information Systems
An office information system (OIS pronounced oh-eye -ess) increases employee
productivity and assists with communications among employees. In an OIS,
employees perform tasks using computers and other electronic devices, instead of
manually. Some people describe an OIS as office automation.
Just about every type of business or organization uses some form of OIS. For
example, a school might post its class schedules on the Internet. When the school
updates the schedule, students receive an e-mail notification. In a manual system,
the school would photocopy the schedule and mail it to each student’s house.
An OTS supports many office activities. With an OIS, you can create and distribute
graphics and documents, send messages, schedule appointments, browse the Web,
and publish Web pages. All levels of users utilize and benefit from the features of an

An OIS uses many common soft ware products to support its activities. Typical
software in an OIS includes word processing, spread sheet, database, presentation
graphics, e -mail, Web browser, Web page authoring, personal information
management, and groupware. To send text, graphics, audio, and video to others, an
OIS uses communications technology such as voice mail, fax, videoconferencing,
and electronic data interchange (EDI).
In an OIS, computers have modems, video cameras, speakers, and microphones.
Scanners, fax machines, digital cameras, and Web - enabled devices such as cellular
telephones are other types of hardware often found in an OIS.
Transaction Processing Systems
A transaction processin g system (TPS) captures and processes data from day-to-day
business activities. When you use an automated teller machine to withdraw cash,
you are using a TPS. Examples of transactions are deposits, payments, orders, and
reservations. In a company, clerical staff typically perform the activities associated
with a TPS, which include the following:
1. Recording a business activity such as a student’s registration, a customer’s order,
an employee’s time card, or a car owner’s payment
2. Confirming an action or causing a response, such as printing a student’s schedule,
sending a thank-you note to a customer, printing an employee’s paycheck, or issuing
a receipt to a car owner.
3. Maintaining data, which involves adding new data, changing exist ing data, or
removing unwanted data
Transaction processing systems were among the first computerized systems that
processed business data. Many people initially referred to the functions of a TPS as
data processing. The first TPSs computerized an existing manual system. The intent
of these TPSs was to process faster, reduce clerical costs, and improve customer
The first TPSs mostly used batch processing. With batch processing, the computer
collects data over time and processes all transactions later, as a group. As
computers became more powerful, system developers created online transaction
processing systems. With online transaction processing (OLTP), the computer
processes each transaction as it is entered.
When you register for classes, your school probably uses OLTP. The registration
clerk enters your desired schedule. The computer immediately prints your statement
of classes. The invoices often are printed using batch processing. That is, the
computer prints and mails all student invoices at a later date.
Today, most transaction processing systems use OLTP. For some routine processing
tasks, they also use batch processing. Many organizations use batch processing to
calculate paychecks and print invoices.

Management Information Systems
A management information system (MIS pronounced em-eye ess) generates
accurate, timely, and organized information, so managers and other users can make
decisions, solve problems, supervise activities, and track progress. Management
information systems evolved from transaction processing systems. Managers
realized the computer had more potential than just supporting a TPS. Its capability of
quick computing and data comparisons could pro duce meaningful information for
MISs often are integrated with transaction processing systems. To process a sales
order, the TPS records the sale, updates the customer’s account balance, and
reduces the inventory count. Using this information, the related MIS can produce
reports that recap daily sales activities; summarize weekly and monthly sales
activities; list customers with past due account balances; graph slow- or fast-selling
products; and highlight inventory items that need reordering. An MIS focuses on
creating information that managers and other users need to perform their jobs.
An MIS creates three basic types of information: detailed, summary, and exception. A
detailed report usually lists just transactions. For example, a Detailed Order Reportlists 
orders taken during a given period. A summary report consolidates data, so you
can review it quickly and easily. A summary report usually has totals, tables, or
An exception report identifies data outside of a normal condition. These conditions,
called the exception criteria, define the1 activity or status range. For example, an
Inventory Exception report notifies the purchasing department of items it needs to
Exception reports save managers time. Instead of searching through a detailed
report, managers simply review the exception report. These reports help managers
focu s on situations that require immediate decisions or actions.
Decision Support Systems
A decision support system (DSS) helps you analyze data and make decisions. Often,
a TPS or MIS does not generate the type of report a manager needs to make a
decision. Different managers need various types of information. A marketing
manager might need to know how much he or she has spent on Internet advertising
in the past three months. Whereas an office manager might need to know how many
pads of paper were used.
A variety of DSSs exist. Some are company specific and used by managers. Others
are available to everyone on the Web. Programs that analyze data, such as those in
a DSS, sometimes are called online analytical processing (OLAP) applications.
Because they summarize information, these applications process many records at a
time. This is different from OLTP applications, which process individual records at
one time and typically use relational databases.
Some OLAP applications are called MOLAP because they use multidimensional
databases. Those that use relational databases are known as ROLAP. Others blend
two database types. These hybrid OLAPs may use a ROLAP as the back end and a
MOLAP as the front end.
A DSS uses data from internal and external sources. Internal sources of data might
include sales, manufacturing, inventory, or financial data from a company’s database.
Data from external sources could include interest rates, population trends, costs of
new housing construction, or raw material pricing.
Some DSSs have their own query languages, statistical analysis, spreadsheets, and
graphics that help you retrieve data and analyze the results. Some also allow you to
create a model of the factors affecting a decision. A product manager might need to
decide on a price for a new product. A simple model for finding the best price would
include factors for the expected sales volume at various price levels. The model
allows you to ask what-if questions and view the expected results.
Instead of buying a DSS, many people use their application software to perform DSS
functions. With Microsoft Excel, for example, you can model data and create what-if
Expert Systems
An expert system captures and stores the knowledge of human experts and then
imitates human reasoning and decision making.
Expert systems consist of two main components: a knowledge base and inference
rules. A knowledge base is the combined subject knowledge and experiences of the
human experts. The inference rules are a set of logical judgments that are applied to
the knowledge base each time a user describes a situation to the expert system.
Expert systems help all levels of users make decisions. Non management employees
use them to help with job-related decisions. Expert systems also successfully have
resolved such diverse problems as diagnosing illnesses, searching for oil, and
making soup.
These are only few examples but with the time the importance of IT will grow. No
matter in which field you are but IT will be a compulsory for everybody.


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