Define an information system and types of information systems
The information system refers to a collection of hardware, software, data, people and techniques that that are designed to create information that support the short term and long term goals of a given organization. There are three types of information system, these are: transaction processing system, management information system and decision support system.
A transaction processing system is involved in the processing business transaction. Any organizations activity refers to a transaction. Therefore a transaction processing activity refers to an information system that captures and processes data generated as a result of the day-to-day operation of an organization. For example a clerical transaction processing may involve recording new entries, maintaining data as well as processing reports. Transaction processing systems were one of the earliest computerized systems developed to process business data. Its main role was to computerize existing manual systems to allow for faster processing, reduce costs and improve customer service.
The management information system is used to solve problems the lower managerial levels. They are used to generate accurate, timely and organized information to enable managers and other users make decisions, supervise, keep track of projects as well as find solutions to problems. Management information systems generate three types of information which as detailed, summary and exception information.
The decision support systems are systems that enable top management make long term decisions. These systems handle structured as well as semi-structured information. They are mainly used to help users reach a decision when a decision-making has to be made. They utilize data from either the internal or external sources.
Examples of information systems used in real life
An accounting information system is an example of an information system that organizations use to collect, manage, process as well as report its financial data so that be utilized by tax and regulation agencies, auditors, business analysts, accountants as well as managers to meet its financial goals. The use of accountant information systems has been known to promote accuracy and integrity of financial record.
Data warehouse is a database that collects data from different sources. The data is gathered from sources such as transaction sources such as information sources such as retail outlets. The data can then be used for business operations at any given time. Data warehousing facilitate decision support system applications such as trend reports, exception reports and performance trend reports.
Another example of an information support system is a group support system that assists users in making decisions and facilitates group collaboration. Participants make use of computer networks to facilitate group support systems in an integrated way to promote complex decision making.
How this is related to the learning objectives of this module?
Examples of decision support systems. (n.d.). Retrieved 3 20, 2012, from Charles Sturt University: http://www.hsc.csu.edu.au/ipt/dss/3722/dss_examples.htm
Ralph M. Stair, G. R. (2008). Fundamentals of Information Systems. Cengage Learning.
Shelly, C. V. (2000). bisom. Retrieved 3 20, 2012, from TYPES OF INFORMATION SYSTEMS: http://bisom.uncc.edu/courses/info2130/Topics/istypes.htm
Systems Analysis and Design. (n.d.). Retrieved 3 20, 2010, from Freetutes: http://www.freetutes.com/systemanalysis/types-of-information-system.html
