How does MIS differ from a transaction processing system? Information systems have become very important assets for many organizations in modern times. For an organization to become more effective, efficient and competitive, companies use these information systems such as management information system and transaction processing system. According to Laudon & Laudon, 2014, every company has systems to support different groups or levels of management and a system output is another system input, For a clear distinction between transaction processing system and management information system it is necessary to consider the following, Users and Input Sources The transaction processing system generates data at the operational level and makes information available that is used heavily by the management information system. A transaction processing system collects and stores data about transactions and sometimes controls decisions made as part of the transaction by Valacich and Christoph Schneider (Information Systems Today: Managing in the Digital World (6th Edition). The constituency of or...