MT 300 Introduction of Information Systems

Unit 2 Assignment

03/09/20

Types of information systems

Information systems are categorized depending on the level of the organization, type of data, processing, the objectives of the system and support given. There are four types of information systems and my company has used all of them. The first information system is Transaction Processing System (TPS) which is integrated in a type of business that has numerous transactions over the course of the day. TPS is responsible for recording all business transaction. The main goal of this type of information system is to offer records for transactions recorded in the organization. To summarize it, the transaction processing system is a medium of storage of transactions of an organization as it records everything. The system has two ways of performing the transactions; online transaction processing and Batching Processing (Beynon-Davies, 2016). These two ways of performing transactions under transaction processing system works well in systems kike the payroll and bill.

The second type is Management Information System (MIS). This is a type of system that extracts raw data via the TPS and make it meet the manager’s needs and is presented as a report. Operational supervisors in an organization alongside middle management in companies are most likely to make use of these reports from this information system. As it extracts data through Transaction Processing System it is designated to come up with more reports. It may include a variety of reports, be it the on-demand report or the summary report. A good example of this type of information system is the sales management systems accompanied by the system of Human resource management.

The third type of information system that has also been integrated in the organization is the Decision Support System (DSS) (Kavanagh & Johnson, 2017). This information system functions by provides different tools that deal with data manipulation, models, and manipulation tools that aid in decision making. The decision is made through a situation that is unstructured. The system is interactive, as it has incorporated tools and models to aid in acquiring information that is relevant to the organization. Through this system one can get to analyze other alternatives and option and creating a Decision support system is what the end user prefers rather than the Management information system.

The last type of information system is the Experts system. This type of information systems is important in problem solving and help them managers in diagnosing problems and they apply research based on artificial intelligence. This system is knowledge based, as it uses the information it has on a specific field to act as an expert intermediary of informing others.

Significance of information systems

Business communication systems are improved and made efficient by the information systems. Management deals with collecting and issuance of information. Information systems in the company enable rapid communication between managers and other organizational members. The information systems enable the manager to be efficient in storage of documents and folders that may be having crucial information. In our company this communication system is essential in employee communication as information flows systematically. The system is tuned to note any communication made by an employee, and the change flows to the manager who is tasked with receiving the information and giving feedback as soon as possible.

The company is gaining comoet8itive advantage because business operation management is at its optimum. Companies are run by information from several or rather various departments that need to reach the manager. Integrating information systems will be key in collecting complete updated information recorded in the company, thus giving the manager a conducive platform of managing the company efficiently. Through information systems we have improved our customer service thus giving us an upper and over our competitors. Through feedback obtained from customers, we changed our mode of operation and got unique compared to our competitors by bettering our customer service (Beynon-Davies, 2016). The data we obtain from our sales give as a clue on the customer’s needs and lets the company know what product is going at what rate and at what profit. The information systems offer guidance that makes the company fine tune its operations.

The information gained from these information systems is used in decision making that makes the company take the best direction. The information system deliver every aspect of information our company needs and as it collects this information, it provides a model that enables the company come out with correct decisions (Kavanagh & Johnson, 2017). The information system may be critical in determining other alternatives that will come with a better result at the end. Having a lot of information on a given aspects improves confidence during decision making in a company.

The last advantage the information system gives us is the up to date records the company has. Through having financial records that are up to date, the company avoids having problems during problem finding. The information we get from the systems contain communication records and operational data that is effective in checking specific details of a transaction. We gain an advantage over our competitors as we estimate our costs and make forecasts on what we expect in the future.

References

Beynon-Davies, P. (2016). Information Systems Development: an introduction to information systems engineering. Macmillan International Higher Education.

Kavanagh, M. J., & Johnson, R. D. (Eds.). (2017). Human resource information systems: Basics, applications, and future directions. Sage Publications.