Types of Information Systems
Information systems differ in their business needs. Also depending upon different levels in organization information systems differ. Three major information systems are
Transaction processing systems
Management information systems
Decision support systems
Figure 1.2 shows relation of information system to the levels of organization. The information needs are different at different organizational levels. Accordingly the information can be categorized as: strategic information, managerial information and operational information.
Strategic information is the information needed by top most management for decision making. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. This information is not required by the lower levels in the organization. The information systems that provide these kinds of information are known as Decision Support Systems.
Figure 1.2 - Relation of information systems to levels of organization
The second category of information required by the middle management is known as managerial information. The information required at this level is used for making short term decisions and plans for the organization. Information like sales analysis for the past quarter or yearly production details etc. fall under this category. Management information system (MIS) caters to such information needs of the organization. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system.
The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. This kind of information...