Types of information systems Prepared By Dinesh Bajracharya

Types of information systems Prepared By: Dinesh Bajracharya Nepal

Why different types of IS? �One IS may not be able to satisfy all the requirements of organization �Organizations have different level of managers, and their information requirements differ from each other �Organizations have different functional units, and their information requirements differ from each other. �IS that is designed and developed for Sales and Marketing may not be of use for Human Resource System

Level of management �Low level �Routine, daily activities, basically related with data collection �Middle level �Handles short term decision making situations �Top level �Handles long term decision making situations

�Around 90% of data is collected in the low level of management. �The collected data (data from external source also) are processed, analyzed in the middle level to make short term decision �Information provided by middle level management and information from different outside sources are used in top level management to make long term decisions.

�Transaction processing system (TPS), is used in low level management to perform daily, routine tasks and activities; tasks related with data �Management Information system (MIS), Decision Support System (DSS) are used in middle level of management. These ISs generate information by processing data collected in low level of management. �Executive Support System or Executive Information System are used in top level of management.

Example, Restaurant �Low level management �Waiters, cooks, counter officer �Waiters take orders; cooks prepare foods checking orders, counter officer makes bill checking order �Middle level Management �Accountant, supervisors �Accountant study the bills, supervisors study the number of customers arriving in the restaurant, take feedbacks from customers, check quality of service; study waiters and cooks performances

�Top level management �Owners, CEO, Director �Top level managers study the reports provided by middle management, makes decision about number of waiters/cooks; price of items served in the restaurant; increasing capacity of restaurant

Functional units of organizations �Sales and marketing �Finding customers, informing customers about products and service, studying methods of informing customers about products/services �At strategic level sales and marketing system monitors sales and market trend �At management level: enables to analyze sales performance, effectiveness of marketing, performance of salesperson �At operational level: enables to find customers, track sales, support customers

�Manufacturing and production �Raw material acquisition; amount of raw materials to store; finding suppliers; making products; calculating supply/demand �At strategic level: deals with long-term manufacturing goals �At management level: monitors manufacturing and production costs and resources �At operational level: controls actions of machine and equipment

�Human Resource �Detailed information about employees; evaluating performance of employees; training employees; contingency management. �At Strategic level: helps to identify type of human resources required �At management level: helps to monitor and analyze recruitment process, training employees �At operational level: helps to track the recruitment and placement of human resources in the firm

�Account and finance �What is the financial status of the organization? How much organization has to take? How much organization has to pay? �At strategic level: enables to establish and forecast long-term investment goads �At management level: helps to control firm’s financial resources �At operational level: helps to track flow of funds