This document defines four main types of information systems: executive support systems which gather and analyze internal and external information to help senior management make strategic decisions; decision support systems which help management make decisions under uncertainty by analyzing options; management information systems which summarize transaction data into reports for middle management; and transaction processing systems which efficiently process routine business transactions like billing, payroll, and inventory management.
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Types of Information Systems
This document defines four main types of information systems: executive support systems which gather and analyze internal and external information to help senior management make strategic decisions; decision support systems which help management make decisions under uncertainty by analyzing options; management information systems which summarize transaction data into reports for middle management; and transaction processing systems which efficiently process routine business transactions like billing, payroll, and inventory management.
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TYPES OF INFORMATION SYSTEMS
EXECUTIVE SUPPORT SYSTEMS (ESS) designed to help senior management
make strategic decisions. It gathers, analyses and summarizes the key internal and external information used in the business. It is commonly considered a specialized form of decision support system (DSS). DECISION-SUPPORT SYSTEMS (DSS) specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyse the options and alternatives. DSS often involves use of complex spreadsheet and databases to create "what-if" models. MANAGEMENT INFORMATION SYSTEMS (MIS) mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems and summarizes it into a series of management reports. MIS reports tend to be used by middle management and operational supervisors. TRANSACTION PROCESSING SYSTEMS (TPS) designed to process routine transactions efficiently and accurately. A business will have several (sometimes many) TPS; for example: - Billing systems to send invoices to customers - Systems to calculate the weekly and monthly payroll and tax payments - Production and purchasing systems to calculate raw material requirements - Stock control systems to process all movements into, within and out of the business