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I hope that after my last three blogs you have a good idea of what an Information System is and how important it is to organisations. Today I will outline some common types of IS. You will be able to differ between each of the IS and understand why/where/when they are used. Enjoy reading it!
In the business environment there is a range of requirements for information. Senior managers need information to help with their corporate planning. Middle management needs more detailed information to help monitor and control business actions. Teams with operational roles need information to help carry out their duties. Thus, companies tend to have several IS operating at the same time.
Executive Support Systems (ESS)
This type of IS was designed to help senior management support the business and make strategic decisions. It gathers, analyses and summarises the key internal and external information used in the everyday business. It supports an inventory of all present information assets; projected revenue figures based on new product sales expectations and reasonable sales figures between one week and the next. For example, a CEO may require overall sales for the company, along with sales for every department separately, and general economic data for the year.
Management Information Systems (MIS)
MIS is mostly concerned with internal sources of information. These systems usually take data from the transaction processing systems and summarise it into a series of management reports. MIS is an information system that generates exact, timely and structured information so managers and other users can make decisions, resolve problems, supervise activities, and track progress. For example, complied data of call volume in a call centre with abandon % and call service levels for every hour, every day and monthly summary.
Decision Support Systems (DSS)
DSS is an information system intended to help users reach a decision when a decision-making situation arises. This system comprises tools and techniques to help collect relevant information and analyse the choices and alternatives. DSS usually involves use of complex spreadsheet and databases to create models which will help determine difficult situations and its possible outcomes.
Knowledge Management Systems (KMS)
KMS exist to help businesses create and share various information. These are typically used in industries where employees create new knowledge and expertise – which can then be shared by other people in the organisation to create additional commercial opportunities. Good examples include firms of lawyers, training related businesses, accountants and management consultants.
Transaction Processing Systems (TPS)
TPS are designed to process repetitive transactions efficiently and accurately. A business will have many (sometimes several) TPS; e.g.: billing systems to send invoices and statements to clients; systems which calculate weekly or monthly payroll and tax payments; stock control systems to route all transactions into, within and out of the business; production and purchasing systems to analyse and calculate all raw material requirements.
Office Automation Systems (OAS)
OAS are systems that try to improve the efficiency of employees who need to process data and information. The best example is the wide range of software systems that exist to improve the productivity of employees functioning in an office (e.g. Microsoft Office XP) or systems that allow personnel to work from home or while on the move. Another good example would be salesforce system which is a ticketing system used to process IT information in the office and on the go.
I hope you don’t feel like the doctor on the picture below … Remember ! It’s important to manage all information smoothly by using the right IS 😀
Next week I will post some more information about specific IS types 🙂 Have a good week!