so far alot has been covered on developing I.S. e.g. advantages, disadvantages, traditional methods, agile methods etc. Also purchasing I.S. benfits, disadvantages etc have been covered. ( obviously as this blog topic is developing and purchasing I.S. lol). but i thought although all the information covered is useful ……should we not look at the different types of information systems that can be developed or purchased ……hence the inspiration for this blog …:)
So we have established that I.S. is extremely important for business today, that is why it is vital to develop or purchase the systems that are going to enhance your business the most. There are a many types of systems out there
- Executive Support System (ESS)
- Knowledge Management System (KMS)
- Transaction Porcessing System(TPS)
- Management Information System (MIS)
- Decision Support Syetem(DSS)
Executive Support System
this kind of system is directed towards senior management.it aids them in making decisions and provides them with relevent data that they require. An ESS can supply the summarized information executives need and yet provide the opportunity to drill down to more detail if necessary. ESS are able to take data form both internal and external sources and condense it down to provide senior management with information they will find useful. ESS rely alot on graphical presentations as this helps executives grasp the information more quickly. it is important that in an every adpting environment that Executive Support Systems are flexible and easy to manipulate.
Knowledge Management System
this is a kind of system that supports the capturing, organising and dissemnation of information. it is essentially a system which allows a business to create and share information. It is very useful in a business enviroment where employees are encouraged to express their ideas and knowledge. A KMS can take information of any form e.g. powerpoint word etc. and share it e.g. on an intranet or on a corporate knowledge directory/repositry. it can be very beneficial in creating new ideas for the business however everyone must be willing to share the information they have.
Transaction Processing System
As the name suggests this system records and processes accuratley and effeciantly daily business transactions. Examples include
- sales order entry
- stock control
This type of system allows managers to track the flow of transactions through the organisation, it also supports operational level employees in an organisation. TPS reduce costs through the automation of paperwork, serve predefined structured goals and decision making. Example: a TPS for payroll processing captures employees payment transactions data (time card). system outputs then include online and hard copy reports for management and employee paychecks.
Management Information System
MIS mainly serves middle management and is concerned with internal sources of information. it provides reports on firms current performance based on data from TPS ( transaction processing system). MIS reports provide answers to routine questions and have a predifined procedure for answering them. For example, an MIS might provide a middle manager with current sales figures, and indicate whether they are on track to meet the months quota.
Decision Support System
these systems are specifically designed to help management with non routine decision making e.g. where there is uncertainty about the possible outcomes of the decision. ( essentially “what- if” analysis.). DSS comprise tools and techniques to help gather relevant information and analyse the options and alternatives. Example : what is the impact on production schedule if sales in december double. These systems often use external information, however also take information from TPS and MIS.
Here is a small summary of the different systems (sorry i know its a bit small)