Types of Information Systems
An Information System is a group of interrelated components that collect, retrieve, process, store, and distribute information to support decision-making and control in an organisation. However, there is more than just one type of information system.
A business can have formal, informal and computer based information systems( CBIS ). Formal systems are represented on an organizational chart inside the organisation. Informal are based on employees needs and help meet work related problems. CBIS are mainly programmes on the computer
A computer based information system can be one of several different types:
- Transaction Processing System (TPS)
- Management Information System(MIS)
- Decision Support System (DSS)
- Office Automation System (OAS)
Transaction Processing System (TPS): captures and processes data made in the day to day transactions of the business, eg a deposit, a payment or a reservation. A TPS was one of the first computer systems to process data. It allowed allowed for faster processing, reduced clerical costs and improved customer service. It is one of the most mandatory computer based systems in an organisation now, and can be defined as a system which classifies, stores, maintains, updates and retrieves transaction data for record keeping and input into other systems.
Management Information System (MIS): generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress It is sometimes called a Management Reporting System, because it produces regular reports.
Decision Support System (DSS): is an information system designed to help users reach a decision when a decision-making situation arises. Different DSS’s are available for a range different decisions. A DSS may only be a once off need for a particular project/question.
Office Automation System (OAS): Or, an Office Information System is the most rapidly developing information system. It has been developed to facilitate a greater ease of information flow between employees. It supports a range of business office activities such as creating and distributing documents, sending messages, scheduling, and accounting. All levels of users from executive management to non management employees use and benefit from an OAS.
With today’s technological advances we see a lot of information systems that cannot be classified as one type of information system but fall into several of the above categories. Much of today’s application software supports transaction processing and generates management information. Other applications provide transaction processing, management information, and decision support. These systems are known as Integrated Information Systems.