The Many Different Types of Information System Continued…

10 Mar

Following my last blog, I mentioned I will be discussing in detail Accounting Information Systems, Knowledge Management Systems, and Executive Support Systems. The first of these will be Accouting Information Systems.

1. Accounting Information Systems:

An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including  investors,creditors and tax authorities.

Advantages of an Accounting Information System:

A big advantage of computer-based accounting information systems is that they automate and streamline reporting. Reporting is major tool for organizations to accurately see summarized, timely information used for decision-making and financial reporting. The accounting information system pulls data from the centralized database, processes and transforms it and ultimately generates a summary of that data as information that can now be easily consumed and analyzed by business analysts, managers or other decision makers. These systems must ensure that the reports are timely so that decision-makers are not acting on old, irrelevant information and, rather, able to act quickly and effectively based on report results.


2. Knowledge Management Systems:

Knowledge management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices.

Knowledge-management systems are used to improve the performance of business processes. The fields that most often use knowledge management include: computer science, public health, information systems, business administration, public policy, and library and information sciences, as well as general management. The departments in which knowledge management is used are typically called “Business Strategy,” “Human Resource Management” or “Information Technology.”

Different types of Knowledge Management Systems include:

Expert Systems, Groupware, Document Management Systems, Decision Support Systems, Database Management Systems, and Simulation Systems.


3. Executive Information Systems: 

An executive information system (EIS) is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organisational goals. It is commonly considered a specialized form of decision support systems (DSS).

EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace.

EIS components can typically be classified as:

  • Hardware
  • Software
  • User interface
  • Telecommunications

EIS also has many advantages and disadvantages:

Advantages of EIS

  • Easy for upper-level executives to use, extensive computer experience is not required in operations
  • Provides timely delivery of company summary information
  • Information that is provided is better understood
  • EIS provides timely delivery of information. Management can make decisions made promptly.
  • Improves tracking information
  • Offers efficiency to decision makers

Disadvantages of EIS

  • System dependent
  • Limited functionality, by design
  • Information overload for some managers
  • Benefits hard to quantify
  • High implementation costs
  • System may become slow, large, and hard to manage
  • Need good internal processes for data management
  • May lead to less reliable and less secure data

Again, thanks for reading! My final blog will give a brief outline of information systems’ benefits and drawbacks as whole!


Read more: Definition of Knowledge Management System |


One Response to “The Many Different Types of Information System Continued…”

  1. sad111417672 March 10, 2013 at 10:51 pm #

    Really detailed blog, thanks will be usefull for exam revision 🙂

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