Types of Information Systems

Types of Information Systems
At present, there are four main different types of Information Systems, these are:

  1. Transaction Processing System (TPS)
  2. Management Information System (MIS)
  3. Decision Support System (DSS)
  4. Executive Support System (ESS)

But, there are three levels of management, which uses various types of information system for their effective management in an organization. The organization has four major types of information system. The Executive Support System (ESS) holds the strategic level, Management Information System (MIS) and Decision Support System (DSS) holds management level and transaction Processing System (TPS) holds lower/operational level of an organization.

  1. Transaction Processing System (TPS)
    A TPS is a basic business system, which serves the most elementary day to day activities of an organization. It supports the operational level of the business that supplies data for MIS, EIS etc. It is critical for the survival of an organization. A TPS also collects and stores information about transactions, and controls some aspects of transactions. A transaction is an even of interest to the organization. The word transaction refers to money. Money may be in the form of cash or card.
  2. Management Information System (MIS)
    Management information system provides information to managers of an organization. It is primarily intended for providing information from the data after processing them. The data are generated, collected, recorded, stored, processed, and retrieved after it has been generated by business operations in an organization. It is a system of process that provides the information necessary to manage an organization effective. MIS have large quantities of input data and produces summary report as output. It is used by middle level managers. It should be supportive of the institution’s longer term strategic goals and objectives.
  3. Decision Support System (DSS)
    Decision Support System (DSS) is created to help people to make decisions by providing access to information and analysis tools. A DSS creates mathematical model of the system, which helps in decision making about actions affecting person of organization. A DSS allows users to use different options and find out what the outcomes would be, so that, proper actions can be identified. A DSS depends upon the accuracy of the math involved in creating the model and the ability of the user to accurately interpret the resulting data. DSS is flexible, adaptable and quick.
  4. Executive Support System (ESS)
    It is also known as Executive Information System (EIS). It provides executives information in a readily accessible, interactive format. It is a form of MIS intended for top level executive use. An ESS usually allows summary over the entire organization and also allows drilling down to specific level of detail. It also use data produced by top level management. It is designed to the individual. Thus it allows the CEO of an organization tie in to all levels of the organization. It is very expensive to run and require extensive staff support to operate.

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