Types of information systems in online environments

Information Systems

Define an Information System and Types of Information Systems

An information system comprises the hardware and software components necessary to create, store, manage, share, and maintain data. The type of information system selected depends on the specific needs of the user or the organization. There are three basic types of information systems: transaction information systems, management information systems, and decision support systems ("Types of Information Systems," n.d.).

Decision support systems are indicated for departments that manage strategic planning. For example, a decision support system can offer methods of computing revenue trends, which might provide the necessary data needed to implement an organizational change ("Types of Information Systems," n.d.). Management information systems comprise systems that deliver information used to make short-term decisions. These decisions might not make a huge impact on organizational culture, as they might at upper levels of management, but middle management sill requires information to support decisions related to whether or not to hire new personnel or alter a marketing strategy. Finally, day-to-day operations in a business depend on transaction support systems. Transaction support systems cover a wide range of needs from inventory management to payroll. For example, a library uses a transaction support system for its patrons when books are checked in and out.

Three Examples of Information Systems Used in Real Life

Medical decision support systems are used at the upper echelon of health care; allowing doctors to make the most informed decisions possible for patients in their care. A medical decision support system can facilitate the otherwise "complex and fuzzy cognitive process" of medical diagnosis (Yan, Jiang, Zheng, Peng & Li, 2006, p. 272). Medical decision support systems, otherwise called clinical decision support systems, can be used to input multiple variables such as patient medical history, patient demographic data, and patient symptoms. The multiple variables can be processed and compared with medical diagnostic methods used by doctors in a number of different areas of specialization. Other input variables possible with the use of medical decision support systems include multimedia input such as MRI imagery data and other results of technological tests.

An example of a management information system is one used by large big box chain stores like Costco and Wal*Mart. Regional managers, for example, need to track sales data, inventory, and payroll for the stores under their jurisdiction. Information like sales data or inventory is only one possible use of management information systems for the big box chain retailer. That information can then be visualized and communicated easily. Sales data can be input into a system with a graphical user interface such as a dashboard, which presents the data in map form, graph form, or other methods that are meaningful in the particular situation. Regional managers can communicate the data with colleagues in remote office locations. The management information system in the retail sector helps the regional manager make decisions or interventions related to the data. Moreover, management data can be updated in real time due to interfacing with intranets or Internet.

Finally, many bars and restaurants use transaction support systems. These are the systems used by servers and floor managers to input orders, tabulate customers' bills, and organize a busy reservations list. Transaction support systems also include ways of preventing employee error, by keeping track of which user is operating the system at any given time. The needs of the bar and restaurant include managing reservations, managing employees, managing sales, and managing inventory. Order processing is more accurate with transaction support systems, which can be used to help reduce errors and thereby improve customer service. Transaction support systems can be easily interfaced with management information systems, especially for corporate restaurant or bar chains. For example, the transaction support system keeps track of total sales in one branch. The total sales data can be sent to head office, and compared with other branches of the chain to determine which branches are doing better than others. Then, the middle management teams can process that data and send that on to the senior management strata for making strategic decisions such as whether and where to open a new restaurant.