Information system refers to various information technology systems like computers, software, database, communication systems, the internet, devices, and others used by an organization to collect, transfer, organize, and store data. Bursting with changes, the current business milieu has helped companies implement a varied set of advanced technologies into different processes. These IT applications have introduced automation, efficiency, and timeliness in various business activities.
The introduction of information systems into the business has evoked a chain reaction among different interrelated processes that have only benefited the companies by increasing profits and reducing costs and lead time, among other things. Therefore, it is imperative to understand the growing importance of information systems in companies.
An information system is a group of data sets that ensures that business operates smoothly, embracing change, and helping companies achieve their goal. The dictionary defines an information system as a computer system or set of components for collecting, creating, storing, processing and distributing information. The information system is incomplete without the support of information technology (IT) systems.
An information system is not primarily associated with technology or IT system. Instead, it is related to how technology is used to fulfil the needs of- individuals, groups or organizations. In the digital era that we are in, the importance of information systems is increasing because it standardizes the process of passing, collecting, storing, and accessing information or data for individuals or businesses.
There are different types of information systems that help individuals and companies to use the information to their benefit. In the succeeding part of the article, we will discuss various types of information systems in detail.
Although many information systems offer various benefits, typically, businesses use these five applications in their company. Whichever information system you plan to implement in your business, here are the benefits it will offer:
Now that you know the changes information systems can bring about in an organization, let’s look at the application that yields the power to change the business process- types of information systems.
1. Knowledge Work System
There are different knowledge management systems that an organization implements to ensure a continuous flow of new and updated knowledge into the company and its processes. A knowledge work system (KWS) is one of the knowledge management systems that ease the integration of new information or knowledge into the business process.
Furthermore, KWS also offers support and resources to various knowledge creation techniques, artificial intelligence applications, and group collaboration systems for knowledge sharing, among others. It also uses graphics, visuals, etc., to disseminate new information. Below are some of the applications that work on the core fundamentals of KWS.
2. Management Information System
The management information system provides aid to managers by automating different processes that were initially done manually. Business activities like business performance tracking and analysis, making business decisions, making a business plan, and defining workflow. It also provides feedback to the managers by analyzing the roles and responsibilities.
A management information system is considered a significant application that helps managers immensely. Here are some of the advantages of the information system:
3. Decision Support System
A decision support system is an information system that analyses business data and other information related to the enterprise to offer automation in decision-making or problem-solving. A manager uses it in times of adversities arising during the operation of the business. Generally, the decision support system is used to collect information regarding revenue, sales figures or inventory. It is used across different industries, and the decision support system is a popular information system.
4. Office Automation System
An office automation system is an information system that automates different administrative processes like documenting, recording data, and office transactions, among others. The office automation system is divided into managerial and clerical activities. Here are some of the business activities that are done under this type of information system:
5. Transaction Processing System
The transaction processing system automates the transaction collection, modification, and retrieval process. The peculiar characteristic of this type of information system is that it increases the performance, reliability, and consistency of business transactions. It helps businesses perform daily operations smoothly without hassle.
Once you are well-versed in different types of information systems, understanding their application becomes easy. Therefore, in the last part of the article, we will look into applying information systems.
6. Executive Support System
An Executive Support System or ESS helps top-level executives to plan and control workflow and make business decisions. It is very similar to Management Information System or MIS.
Here are some of the unique characteristics of ESS:
Here are some of the business activities that require the intervention of an information system.
Applying information systems to enterprise resource planning helps automate business administration and planning functions.
Information systems provide a common forum to connect with different parties in supply chain management. Moreover, it makes communication between parties easy and resourceful.
Many information systems, such as CRM, help in realizing customer requirements. Furthermore, other information applications help companies interact with their audience easily and hassle-free.
To understand the use of information technology and its ancillary systems, many business professionals pursue different courses. Emeritus India offers some of the best IT courses in partnership with various Indian and international institutes. So, enroll in our famous IT courses to enhance your career. To use technical knowledge and innovation, explore the Certificate Programme in Digital Transformation and Innovation by IIMI (Indore)
Content Writer, Emeritus Blog Sritoma's tryst with education started during her early years as a teacher. Drawing from her teaching experience, Sritoma understands how students learn and educators teach, which helps her create content for edtech. With an extensive experience in content creation over 6+ years, she has an innate ability to research and convert complex information into reader-friendly content. Sritoma is a creative soul, and during her free hours, she loves turning blank canvases into captivating works of art.
