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The six types of information systems and their applications


Introduction to Information Systems

Information system refers to the various information technology systems such as computers, software, databases, communication systems, internet, hardware, etc. that an organization uses to collect, transmit, organize and store data. 

The current business environment, which is full of changes, has helped companies implement a variety of advanced technologies in different operations. 

These IT applications have introduced automation, efficiency and timeliness in various business activities.

The introduction of business information systems triggered a chain reaction between different interrelated processes that benefited businesses only by increasing profits and reducing costs and lead time, among others. Therefore, it is necessary to understand the increasing importance of information systems in companies.

The six types of information systems and their applications

What are information systems and their importance?

An information system is a set of data sets that ensure business runs smoothly, embrace change and help companies achieve their goals. 

The dictionary defines an information system as a computer system or set of components for collecting, creating, storing, processing and distributing information. An information system is incomplete without the support of information technology (IT) systems.

An information system is not fundamentally related to technology or an IT system. Rather, it is about how technology is used to meet the needs of individuals, groups, or organizations. In the digital age we are in, information systems are increasingly important as they set standards for the process of passing, collecting, storing, and accessing information or data to individuals or businesses.

There are different types of information systems that help individuals and businesses use information to their advantage. In the next part of the article, we will discuss different types of information systems in detail.

Six types of information systems and their applications

Although many information systems offer different benefits, companies usually use these five applications in their company. Whatever information system you plan to implement in your business, here are the benefits it will provide:

  • You will stimulate innovation in business activities through research and development.
  • It will enable automation, reducing the steps taken to complete a task.
  • It helps keep hardware, software, data storage, and networking system secure and up-to-date.

Now that you know the changes that information systems can bring about in an organization, let's look at the application that results in the ability to change business processes - types of information systems.

What are the types of information systems?

Read More: 5 components of information systems

1. Cognitive work system

There are different knowledge management systems implemented by the organization to ensure the continuous flow of new and updated knowledge in the company and its operations. 

A knowledge work system (KWS) is a knowledge management system that facilitates the integration of new information or knowledge into the business process.

Furthermore, KWS also provides support and resources for various knowledge creation technologies, artificial intelligence applications, and collaborative knowledge sharing systems, among others. 

They also use graphics, visuals, etc., to spread new information. Here are some of the applications that run on the basic basics of KWS.

  • Designers often use computer-aided design (CAD) systems to automate their design process.
  • Financial workstations are used to analyze huge amounts of financial data with the help of new technologies.
  • Virtual reality systems exist in the scientific, educational, and commercial fields to use graphics and various systems to display data.

2. MIS

MIS provides assistance to managers by automating various processes that were done manually at the beginning. 

Business activities such as tracking and analyzing business performance, making business decisions, developing a business plan, and determining workflow. It also provides feedback to managers by analyzing roles and responsibilities.

MIS is an important application that helps managers greatly. Here are some advantages of the information system:

  • Enhances the efficiency and productivity of the company
  • Provides a clear picture of the organization's performance
  • It adds value to existing products, introduces innovation and improves product development
  • Assists in communication and planning of business operations
  • Helps the organization provide a competitive advantage

3. Decision support system

A decision support system is an information system that analyzes business data and other information about an organization to provide automation in decision making or problem solving. It is used by the manager in times of adversity that arise during the operation of the business. Generally, a decision support system is used to collect information regarding revenue, sales numbers or inventory. 

It is used in various industries, and the decision support system is a common information system.

4. Office automation system

An office automation system is an information system that automates various administrative processes such as documentation, data recording and office transactions, among others. The office automation system is divided into administrative and clerical activities. Some of the business activities that take place under this type of information system are as follows:

  • E-mail
  • voice mail
  • word processing

5. Transaction processing system

A transaction processing system automates the process of collecting, modifying, and retrieving transactions. 

A distinctive feature of this type of information system is that it increases the performance, reliability and consistency of business transactions. It helps companies to perform daily operations smoothly without hassles.

Once you are well acquainted with different types of information systems, it becomes easy to understand the application of these systems. Therefore, in the last part of the article, we will consider the application of information systems.

6. Executive support system

An Executive Support System or ESS helps high-level executives to plan and control the workflow and make business decisions. It is very similar to Management Information System or MIS.

Here are some of the unique characteristics of ESS:

  • It offers great communications, better computing capabilities, and effective presentation options for executives.
  • It enables them to inform through static reports, graphs, and text information on demand.
  • It helps in monitoring performance, tracking competitor strategies, and forecasting future trends, among other things.

How do you apply information systems in business?

Below are some of the business activities that require information system intervention.

Enterprise Resource Planning (ERP)

The application of information systems to ERP helps in automating business management and planning functions.

Supply Chain Management (SCM)

Information systems provide a common forum for communication with different parties in supply chain management. Moreover, it makes communication between the parties easy and resourceful.

Customer Relationship Management (CRM)

Many information systems help in fulfilling customer requirements. Moreover, other information applications help companies to interact with their audience easily and hassle-free.

To understand the use of information technology and the systems attached to it, many business professionals follow various courses. Emeritus India offers some of the best IT courses in partnership with many Indian and International institutes. So, sign up for our popular IT courses to highlight your career.