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components of an information system

Poor level of service
The level of service support in manual systems is often inferior. Customers like to know immediately if goods are not in stock , when goods not in stock will be arriving , when they can expect an order to arrive , what there current status is regarding payments and so on. This level of information support is difficult to achieve with a manual system. (Wilkinson, 1986).

Poor response
Virtually every thing takes longer to do with a manual system. When orders are taken, the order entry department might have to contact receivable department for credit check before a can be validated. To day many computerized order-entry operations are connected to a centralized database and when a customer telephones, credit status can be verified immediately (Mehler, 1992).

As technologies such as computers and communications become available to handle the transaction processing workload, MIS departments responded to it in different ways. Some organizations simply look their manual systems and coded them directly into the computer. Thus, all of the bugs in their manual systems were inherited by their computer systems. Other organization realized that technology can change the way people work, thus they re –thought their transactions processing system before automating them.

Today, inexpensive computer and communications devices are setting up two new challenges to transaction processing: using the TPS as a competitive weapon and getting better information more quickly to the right people