IS Value - Transactional/Commerce Information System

A type of Business Information system (IS) is a transaction processing system. This IS collects and stores transactional data such as purchases made in a brick and mortar store or online. Transaction data has high value for a company to help them make crucial decisions. This system contains many different parts/processes such as Input, Processing, Output, and Feedback. Data is inputted into the system when a transaction is first initiated. For example, a customer adds items to the cart and places the order. The coded data is collected by the business such as what is purchased, where it’s going, and what shipping was picked. This information is necessary, so the company can move inventory efficiently without error. Processing the collected data tells a company such as Amazon how often a customer makes a purchase, what and when they are buying items. Trends in purchasing such as when people log in to Amazon and purchase can be determined with processed data. Trends are important because it shows what is popular and the business needs to stock up on and vice versa. The output of the system is when the transaction is complete, information is collected, and the order is final. For example, a delivery confirmation to the customer from the merchant. This is important to minimize claims of undelivered packages. The feedback of the system can be in form report with transactional data that can be delivered to multiple parties. One report can be an order confirmation sent to the customer with their transactional details. Another report can be delivered to a manager with how many sales were made, how much money was made, etc.