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Table of contents
1.
Introduction
2.
What is Information System?
2.1.
Dimensions of Information Systems
2.1.1.
Organizational Dimension
2.1.2.
Management Dimension
2.1.3.
Technology Dimension
3.
Types of Information System
3.1.
Transaction Processing System(TPS)
3.2.
Management Information System(MIS)
3.3.
Decision Support System(DSS)
3.4.
Expert System(ES)
3.5.
Office Automation System
3.6.
Knowledge Management Systems
4.
Frequently Asked Questions
4.1.
What is an information system?
4.2.
What are the six types of information systems?
4.3.
What are the 5 main components of information system?
5.
Conclusion
Last Updated: Mar 27, 2024

The 6 Main Types of Information System

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Introduction

The Internet originated many information-sharing networks that have fundamentally influenced people’s lives. Over the last several years, a new class of information networks called online social networks (OSN) exploded in popularity. Since the launch of the first recognizable OSN at the end of the 1990s, OSNs such as Facebook, LinkedIn, and Google+ have become popular Internet platforms that connect hundreds of millions of people around the world.

different types of information systems

What is Information System?

An Information System is a set of linked components that handles information. It collects, stores, processes, and delivers them to the correct routes. It breaks down the data into sub-parts for decision-making. These are required to manage loads of information.

These systems are collections of both software and hardware. These help in making decisions by utilizing the information stored.

Dimensions of Information Systems

There are three main dimensions of information systems.

Organizational Dimension

Information systems are vital parts of a company. This dimension includes the following aspects:

  • Culture of an organization
     
  • Standard Business Procedures
     
  • Political interest groups
     
  • Specialties


Management Dimension

Managers in companies face different business challenges. These systems provide the correct tools to win over these challenges. These tools help the managers. They can do the following with these features.

  • Allocate resources
     
  • Monitor the performance
     
  • Coordinate
     
  • Making efficient decisions.


It helps in achieving long-term goals.

Technology Dimension

The managing department uses technology to execute its plans. It consists of software, hardware, networking, and data management. Managers use it as a technique to help them achieve system goals. Processing of data, mode of data, goals, etc. are required to classify the information systems.

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Types of Information System

Different types of information systems include the following.

  • Transaction Processing System
  • Management Information System
  • Decision Support Systems
  • Expert System
  • Office Automation System
  • Knowledge Management Systems


Let us study these types in detail.

Transaction Processing System(TPS)

  1. It collects, modifies, and processes the data of business transactions. It boosts the performance and reliability of the business transactions. It processes large amounts of data in real time and thus offers customer satisfaction.
     
  2. The information gained from this system is detailed. The data acquired is stored to update a storage record. It can store data as a set of records. This is called the store keeping function. This system helps in making reports of the transactions. 
     
  3. The transaction occurs by two methods. These are Online Transaction Processing and Batching Processing.


Examples of TPS include the following.

  1. Hotel reservation systems.
     
  2. Airline booking systems.
     
  3. Employee record management.
     
  4. Bank payroll.

Management Information System(MIS)

  1. This system takes the raw data generated from TPS as its input. It then converts it into a form like a report for the manager. The system compares and summarizes the data and then generates the report. The reports can be summary, ad hoc, reports-on-demand, etc.
     
  2. These reports help the management control and predict the company's future performance. It performs tasks like aggregation and comparisons of the data. So, data analysis and management are at the core of this system.
     
  3. Since MIS is fast in generating these reports which help make decisions. This system helps the management team set and prioritize their goals.


Examples of MIS include the following.

  1. Customer relationship management.
     
  2. Human resource management.
     
  3. Sales management.

Decision Support System(DSS)

  1. DSS is an information system that helps in making decisions. It gathers and computes relevant information.
     
  2. This system provides substitutes and different options to the user. It helps in an efficient decision-making process.
     
  3. This system is interactive. This system is ready with the information and correct tools whenever the manager requires them. And since it is interactive, the management can add or delete some data from the set and then analyze its effect on the output. This helps in efficient decision-making.
     
  4. This system helps the management to visualize the data. It makes the management make efficient decisions fastly.


Examples of DS include the following.

  1. Bank loan management.
     
  2. Online map systems.

Expert System(ES)

  1. Expert System represents the information in a form that is executed by the computer. This system helps in the problem-finding and solving process. It tries to replicate human intelligence to some extent.
     
  2. It is a knowledge-based system.
    • It offers expertise to the management by utilizing gained knowledge.
       
    • It helps the management in identifying and predicting problems.
       
    • It is also used in the problem-solving process.
       
    • Software modules and knowledge base are the two main components of this system. 
       

Examples include CaDet(Cancer Detection Support Tool), etc.

Office Automation System

Office automation systems (OAS) automate scheduling, project tracking, email handling, document management, and other administrative tasks. 

  • It increases productivity at work by minimizing manual labor and fostering collaboration. Additionally, the OAS simplifies data entry, analysis, and customer relationship management. 
     
  • Employees can concentrate on more strategic aspects of their work thanks to improved workflow and streamlined processes, which boosts productivity and lowers operational costs.

Knowledge Management Systems

Knowledge Management Systems (KMS) are software tools that collect, organize, and share knowledge within organizations. 

  • They store information in repositories, support easy search and retrieval, and foster collaboration. 
     
  • KMS captures tacit knowledge, maintains version control, and uses metadata for effective organization. 
     
  • These systems enhance organizational learning, improve decision-making, and boost productivity by promoting knowledge sharing and reducing redundancy. 
     
  • They are crucial in facilitating continuous improvement and innovation across the organization.

Frequently Asked Questions

What is an information system?

An Information System is a set of components that handle data. It collects, store, process, and deliver information to the correct routes. It breaks down the data into sub-parts for decision-making. These are required to manage loads of information.

What are the six types of information systems?

There are six significant types of information systems:
Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision Support Systems (DSS), Executive Information Systems (EIS), Knowledge Management Systems (KMS), and Enterprise Resource Planning (ERP) Systems.

What are the 5 main components of information system?

The five main components of an information system are: Input, Processing, Storage, Output, and Feedback. They work together to collect, process, store, and deliver information for organizational needs.

Conclusion

Without data, no system works. And to manage this, information systems come into play. In this article, we have studied different types of information systems.

For learning more, do read the following curated articles:

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