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Types of Information Systems

Types of Information Systems

Types of Information Systems:

  1. Transaction Processing Systems

A transaction processing system provides a way to collect, process, store, display modify or cancel transactions. Most of these systems allow multiple transactions to take place simultaneously. The data that this system collects is usually stored in databases which can be used to produce reports such as billing, wages, inventory summaries, manufacturing schedules, or check registers.

  1. Management Information Systems

A management information system is an information system that uses the data collected by the transaction processing system and uses this data to create reports in a way that managers can use it to make routine business decisions in response to problems. Some of the reports that this information system creates are summary, exception and ad hoc reports. All this is done to increase the efficiency of managerial activity.

  1. Decision Support Systems

A decision support system helps make decisions by working and analyzing data that can generate statistical projections and data models. This system gives support rather than replacing a managers judgement while improving the quality of a managers decision. A DSS helps solve problems while using external data.

  1. Expert Systems and Neural Networks

An expert system, also known as a knowledge-based system, is a computer system that is designed to analyze data and produce recommendations, diagnosis and decisions that are controlled. A neutral system uses computers to foster the way a human brain may process information, learn and remember that information.

  1. Information Systems in Organizations

This information system collects, stores and processes data to give an organization real-time useful and accurate information. This information system encompasses data gathering information from the people and machines that collect, process, output and store data. Also in the networks that transmit and receive data and the procedures that govern the way data is handled.

L2: Cyber Security Tutorial In Hindi| Information System | Component of information system​

L2: Cyber Security Tutorial In Hindi| Information System | Component of information system​

Pyramid Diagram of Organizational levels and information requirements:  Understanding the various levels of an organization is essential to understand the information required by the users who operate at their respective levels.

Operational management level: The operational level is concerned with performing day to day business transactions of the organization. Users at this level use make structured decisions. This means that they have defined rules that guide them while making decisions. For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing. All the salesperson needs to decide whether to give credit to a customer or not is based on the current credit information from the system.

Tactical Management Level: This organization level is dominated by middle-level managers, heads of departments, supervisors, etc. The users at this level usually oversee the activities of the users at the operational management level. Tactical users make semi-structured decisions. The decisions are partly based on set guidelines and judgmental calls.

Strategic Management Level: This is the most senior level in an organization. The users at this level make unstructured decisions. Senior level managers are concerned with the long-term planning of the organization. They use information from tactical managers and external data to guide them when making unstructured decisions.

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