Following on from my groups last post [https://eternalsunshineoftheismind.wordpress.com/2013/02/18/using-i-s-for-decision-making-3/], I will be discussing the different types of IS used in decision making. These vary from Executive Support Systems (ESS), to Decision Support Systems (DSS) and Transaction Processing Systems (TPS).
Executive Support Systems
Executive support systems is a software that allows mainly senior management to turn their organizations data into useful summarized reports, which can help senior management in making strategic decisions. These reports are generally used for easy access to reports from all company levels, including billing, accounting and staffing. Some ESS provides analysis tools that help predict a series of performance outcomes. This type of ESS is useful for management as it provides possible outcomes and quick reference to statistics in order to help in an organizations decision making.
The exact reporting tools of ESS differ depending on the type of industry that it is operating in. For example, Cambridge Systematics has ESS to support the investment planning process for the Ministry of Transportation, which obviously differs greatly from that of Meditech, which is used for health care organizations.
Decision Support Systems
Decision Support Systems (DSS) are another form of Information System used in organisations. DSS are computerized systems that gather and present data from a wide range of sources. The fact that this data is taken from a wide range of sources means that it greatly helps in decision making.
An example of DSS would be if an online book seller wants to begin selling its products internationally. They can first gather data from its own resources, using DSS. This would be useful to see whether the company has the ability to expand its operations, and they can also gather information from external sources, such as industry reports, to see whether there is demand to be met. The DSS will collect and analyse this data, and then present it in such a way that is understandable by humans.
Transaction Processing Systems
Transaction Processing Systems is another type of information system which collects, stores, modifies and retrieves transactions of an organization. The word “transaction” is here used to describe any event that generates or modifies data stored in an IS. An example of a TPS is batch processing. They consist of an invoicing system, payroll systems and a stock control system, and are used to assist operational-level employees in an organisation.