Organizations utilize different types of information systems to take their business decisions for their operations. The hierarchy levels of the organizations in general are operational, knowledge, management, and strategic. Accordingly, three main categories of information systems serve at different organizational levels on hierarchy are:
I. Operational-level systems
II. Management-level systems
III. Strategic-level systems 1. Operational-level systems: Information systems that monitors and support operational managers, keeping track of the elementary activities and business transactions of the organization. E.g.Sales,receipts,cashdeposits, pay roll, credit decisions and flow of materials in a factory.
2. Management-level systems: Information systems that serves the monitoring, controlling, decision-making, and administrative activities of middle managers of the business organization 3. Strategic-level systems: Information systems that support the long-range planning activities of senior management and help senior management tackle and address strategic issues to keep the strategic growth of the business firm.
Major type’s information systems in organizations include
1. Transaction Processing Systems (TPS)
2. Management Information Systems (MIS)
3. Decision-Support Systems (DSS)
4. Executive Support Systems (ESS)
Transaction processing systems function at the operational level of organization. Knowledge work systems help create and integrate new knowledge within the organization. Management information systems provide managers with reports based primarily on data pulled from transaction processing systems, have an internal orientation, and have limited flexibility. .
Decision-support systems function at the management level and provide analytical models and data analysis tools to provide support for semi structured and unstructured decision-making activities. Executive