Types of
Information Systems
The type of
information system that a user uses depends on their level in an organization.
Management
Information Systems is one out of several information systems that are used in
business. To better understand Management Information Systems, let’s look at
the different types of information systems available in business.
The following
diagram shows the three major levels of users in an organization and the type
of information system that they use.
1. Transaction
Processing Systems (TPS)
This type of
information system is used to record the day-to-day transactions of a business.
An example of a Transaction Processing System is a Point of Sale (POS) system.
A POS system is used to record the daily sales.
Transaction
Processing Systems. These
systems have been designed to collect, process and store transactions that
occur in the day-to-day operations of a company. The system can also be used to
cancel or modify transactions done in the past if the need arises. One property
of this system that enables them to work effectively is the ability to
accurately record multiple transactions even if the different transactions take
place simultaneously. They are built to be able to handle large volumes of
transactions. Examples include stock control systems, payroll systems, order
processing systems etc.
2. Management
Information Systems (MIS)
Management
Information Systems abbreviated as MIS, are used to guide tactic managers to
make semi-structured decisions. The output from the transaction processing
system is used as input to the MIS system.
Management
Information Systems. These
systems make use of information technology to help managers ensure a smooth and
efficient running of the organization. Information collected by these systems
is structured so that the managers can easily evaluate the company’s current
performance vis-à-vis previous outputs. Some of the common types of Management
Information Systems include process control systems, human resource management
systems, sales and marketing systems, inventory control systems, office
automation systems, enterprise resource planning systems, accounting and
finance systems and management reporting systems.
3. Decision
Support Systems (DSS)
Decision
support systems are used by top level managers to make semi-structured
decisions. The output from the Management Information System is used as input
to the decision support system. DSS systems also get data input from external
sources such as current market forces, competition, etc.
Decision
Support Systems. These
systems help decision makers to make the best decisions by generating
statistical projections from analysed data. Although it does not eliminate the
need for the manager’s judgment, it significantly improves the quality of the
decision by offering forecasts that help determine the best course of action.
These systems compile information from several sources for purposes of aiding
in decision making. Examples of these systems include computer supported
cooperative work, group decision support systems, logistics systems and
financial planning systems.
4. Executive
Information Systems. Also
known as Executive Support System, this
is a tool used for reporting enterprise-wide data to top executives. These
systems provide quick and easy to use reports that are presented in graphical
displays that are easy to compare. They can be taken as specialized decision
support systems because they provide information necessary to help improve the
quality of decisions. Owing to the high expectations from such a system, these
systems need to be highly individualized hence they are usually custom made for
specific clients. They are also customizable to fit the specific needs of the
clients.
No comments:
Post a Comment