Major Systems used in an Organization

Topics: Decision support system, Decision theory, Management Pages: 11 (2076 words) Published: May 27, 2014
Major Systems used in an Organization
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 support systems function at the strategic level, support unstructured decision making, and use advanced graphics and communications. Major type’s information system in a typical organization is shown in below figure along with strategic levels and functional areas.

Transaction processing was one of the first business processes to be computerized and without information systems, recording and processing business transactions would consume huge amounts of an organizations resources. Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. TPS serve the operational level.

The transaction processing systems (TPS) is a computerized system that performs and records the daily routine transactions necessary to the conduct of the business. TPS also involve employees in business processes. Transaction Processing Systems are information systems that process data resulting from the occurrence of business transaction. Every organization has manual and automated transacting processing systems (TPSs), which process the detailed data necessary to update records about the fundamental business operations of the organization. These systems include order entry, inventory control, payrolls, accounts payable, accounts’ receivable, and general ledgers to name a few. The input to these systems includes basic business transactions such as customer orders, purchase orders, receipts, time records, invoices and customer payments. The result of processing business transactions is that the organizations records are updated to reflect the status of the operation at the time of the last process transaction. Automated TPSs consist of all the components of Computer Based Information, including databases, telecommunications, people, procedure, software and hardware devices used to process transactions. The processing activities include data collection, data edit, data correction, data manipulation, data storage and...
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