Question

discuss two main categories of information systems that organisations use

Answer 1

Answer:- An information system is a group of interrelated systems that are designed to collect, store, process and distribute information to support decision making. Computer software connections, hardware, software are all parts of the information system.

Two main categories of information systems that organization use are:-

1) Transaction Processing Systems (TPS)

2) Management Information System (MIS)

1) Transaction Processing Systems (TPS):- Transaction Processing Systems serve at the operational management level and are important for the smooth functioning of the organization. This system records the daily performance of business transactions of the organization. These transactions are stored in a relational database in a pre-formatted manner for future use. Thus TPS is the most frequently used form of an information system because it gives management the flexibility to store data in an organized manner and then retrieve it later.

Examples:- Payroll, sales order entry, shipping, bill system

2) Management Information System (MIS):- Management Information System serves at the tactical level of management. It collects the raw data from the Transaction Processing Systems and converts it usually in the form of reports which are used by the middle-level manager and supervisors. This information allows managers to monitor organizational performance by comparing current performance status and previous outputs. MIS is entirely focused on the internal activities of the organization and not to any external events. Thus the main objectives of MIS are to improve operational efficiency.

Examples:- sales management system, human resource management system.

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