Name:

Kainat Khalid
Roll no:
117
Class:
AD(IT)3
Subject:
Management information system
Submitted to:
M’am Ayesha

UCP
 Management information system
Question:-1
What are the different types of information
system used in business? Briefly elaborate each.
Ans:-
Information system:
Many organizations works with large amount
of data. Data are basic values or fact and are organized in a database.
Many people think of data as synonymous of information. However,
information actually consists of data that has been organized to help
answers questions and to solve problems. An information system is
defined as the software that helps to organize and analyze data. So, the
purpose of information system is to turn raw data into useful
information that can be used for decision making in an organization

Types of information system

 Transaction processing system
 Management information system
 Customer relationship management
 Executive management system
 Decision support system
 Strategic information system
1-Transaction processing system:
Transactional processing system (TPS) are the basic
business systems that serve the operational level of the organizations.
A transaction processing system is a computerized system that
performs and record daily routine transactions necessary to the
conduct of the business. The most effective transaction system are
stored on hard drives and on cloud storage databases, to ensure that
the information is never lost, data processed through this system
include sales, inventory, manufacturing schedules and billing reports.

2-Management information system:

To make the right business decisions, managers need
the data collected by the transaction processing system. Using this
data, managers can create reports related to billing processes, payroll,
production schedules and purchasing. The information is valuable
because it can help mangers determine areas to waste in business
operations, as well as areas that could be better exploited. For
example, if a sales report indicated sales growth during a specific
season. Managers could ramp up marketing and production to take
advantage of those specific months to maximize revenue.

3-Customer relationship management:

Customer relationship management system help
quantity and quality the customer experience, as it relates to a
business. CRM collect customer behavior such as buying trends, types
of customer inquiries, and customer subscription accounts. Each
customer interaction with a business can provide valuable information
not just about existing customers, but also about prospects that call to
inquiries about a company’s product and services.

4-Executive management system:

An executive information system helps leaders at the
executive level analyze company-wide data to make important
decisions about the direction that a business is headed. Rather than
simply existing as a database, an executive information system offers
very specific information such as graphs, reports, scheduling, cost
accounting, and predictive analysis so that executives can quickly make
decisions without having to dig for more complete data. For example,
with an executive information system in place, the head of a company
could make a proactive decision to shift from a pay-per click marketing
strategy to a local marketing strategy that targets competitors in a
geographical area pricing models. That shift could be triggered by
analysis of the customer behavior that indicates that sales are growing
because customers prefer the company’s lower prices compared to
that of its competitors.

5-Decision support system:

A decision support system is a computer based system
intended for use by a particular manager or usually a group of
managers at any organizational level in making a decision in the process
of solving a semi structured decision. According to heidarkhani,
decision support system are kind of a organizational information
computerize systems that help manager in making decision making that
needs modeling, formulation, calculating, comparing, selecting the best
option or predict the scenarios. Decision support system are specially
designed to help management make decisions in situations where there
is uncertainty about the possible outcomes of those decisions. A
decision support system is computer-based information system that
assists managers in making many complex decisions, such as decisions
needed to solve poorly defined or semi-structured problems.

6-Strategic information system:

Strategic information systems apply information
technology to a firm’s product, services, or business processes to help it
gain a strategic advantage over its competitors. According to belle,
strategic information system are an important special type of
organizational information system is used to secure or sustain
competitive advantages in the market place.