European University of Lefke

Master of Management Information Systems

Homework #2
Categories of Information System

Student: Kazım ATEŞ – 176265

Instructor: Assist. Prof. Dr. Hüseyin S. Mahmutoğlu

 WHY ARE THERE DIFFERENT TYPES OF
INFORMATION SYSTEM?
In the early days of computing, each time an information
system was needed it was 'tailor made' - built as a one-off
solution for a particular problem. However, it soon became
apparent that many of the problems information systems set
out to solve shared certain characteristics. Consequently,
people attempted to try to build a single system that would
solve a whole range of similar problems. However, they soon
realized that in order to do this, it was first necessary to be
able to define how and where the information system would
be used and why it was needed. It was then that the search
for a way to classify information systems accurately began.

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 HOW DO YOU IDENTIFY THE
DIFFERENT TYPES OF INFORMATION
SYSTEM IN AN ORGANIZATION?
The different types of information system that can be found
are identified through a process of classification. Classification
is simply a method by which things can be categorized or
classified together so that they can be treated as if they were
a single unit. There is a long history of classification of things
in the natural world such as plants or animals, however,
Information systems are not part of the 'natural' world; they
are created and acquired by man to deal with particular
tasks and problems.

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 HOW DO YOU IDENTIFY THE
DIFFERENT TYPES OF INFORMATION
SYSTEM IN AN ORGANIZATION?
The classification of information systems into different types is
a useful technique for designing systems and discussing their
application; it not however a fixed definition governed by
some natural law. A 'type' or category of information system
is simply a concept, an abstraction, which has been created as
a way to simplify a complex problem through identifying
areas of commonality between different things. One of the
oldest and most widely used systems for classifying
information systems is known as the pyramid model; this is
described in more detail below.
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 HOW MANY DIFFERENT KINDS OF
INFORMATION SYSTEM ARE THERE?

As can be seen above, there is not a simple answer to this.

Depending on how you create your classification, you can find
almost any number of different types of information system.
However, it is important to remember that different kinds of
systems found in organizations exist to deal with the particular
problems and tasks that are found in organizations.
Consequently, most attempts to classify Information systems
into different types rely on the way in which task and
responsibilities are divided within an organization.

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 HOW MANY DIFFERENT KINDS OF
INFORMATION SYSTEM ARE THERE?

• As most organizations are hierarchical, the way in which the

different classes of information systems are categorized
tends to follow the hierarchy. This is often described as "the
pyramid model" because the way in which the systems are
arranged mirrors the nature of the tasks found at various
different levels in the organization.
• For example, this is a three level pyramid model based on
the type of decisions taken at different levels in the
organization.

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 HOW MANY DIFFERENT KINDS OF
INFORMATION SYSTEM ARE THERE?

Three level pyramid model based on the type of decisions taken at different levels in
the organization 7
 HOW MANY DIFFERENT KINDS OF
INFORMATION SYSTEM ARE THERE?
• Similarly, by changing our criteria to the different types of date /
information / knowledge that are processed at different levels in the
organization, we can create a five level model.

Five level pyramid model based on the processing requirement of different levels 8
in the organization
 WHAT ARE THE MOST COMMON
TYPES OF INFORMATION SYSTEM IN
AN ORGANIZATION?

While there are several different versions of the pyramid

model, the most common is probably a four level model based
on the people who use the systems. Basing the classification on
the people who use the information system means that many
of the other characteristics such as the nature of the task and
informational requirements, are taken into account more or
less automatically.
•

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 WHAT ARE THE MOST COMMON
TYPES OF INFORMATION SYSTEM IN
AN ORGANIZATION?

Four level pyramid model based on the different levels of hierarchy in the
organization
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 WHAT ARE THE MOST COMMON
TYPES OF INFORMATION SYSTEM IN
AN ORGANIZATION?

While there are several different versions of the pyramid

model, the most common is probably a four level model based
on the people who use the systems. Basing the classification on
the people who use the information system means that many
of the other characteristics such as the nature of the task and
informational requirements, are taken into account more or
less automatically.
•

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 A COMPARISON OF DIFFERENT KINDS
OF INFORMATION SYSTEMS

Using the five level pyramid model above, we can

now compare how the information systems in our
model differ from each other.

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 TRANSACTION PROCESSING SYSTEMS
• What is a Transaction Processing System?
Transaction Processing System are operational-level
systems at the bottom of the pyramid. They are usually
operated directly by shop floor workers or front line staff,
which provide the key data required to support the
management of operations. This data is usually obtained
through the automated or semi-automated tracking of low-
level activities and basic transactions.
• Functions of a TPS
TPS are ultimately little more than simple data processing
systems.
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 TRANSACTION PROCESSING SYSTEMS

Functions of a TPS in terms of data processing requirements

Inputs Processing Outputs

Validation
Sorting Lists
Transactions Listing Detail reports
Events Merging Action reports
Updating Summary reports?
Calculation
TRANSACTION PROCESSING SYSTEMS
Some examples of TPS
• Payroll systems
• Order processing systems
• Reservation systems
• Stock control systems
• Systems for payments and funds transfers
The role of TPS
• Produce information for other systems
• Cross boundaries (internal and external)
• Used by operational personnel + supervisory
levels
• Efficiency oriented
MANAGEMENT INFORMATION SYSTEMS
• What is a Management Information System?
• For historical reasons, many of the different types
of Information Systems found in commercial
organizations are referred to as "Management
Information Systems". However, within our pyramid
model, Management Information Systems are
management-level systems that are used by middle
managers to help ensure the smooth running of the
organization in the short to medium term. The
highly structured information provided by these
systems allows managers to evaluate an
organization's performance by comparing current
with previous outputs.
 MANAGEMENT INFORMATION SYSTEMS
• Functions of a MIS
• MIS are built on the data provided by the TPS

Functions of a MIS in terms of data processing requirements

Inputs Processing Outputs

Internal Transactions Sorting Summary reports

Internal Files Merging Action reports
Structured data Summarizing Detailed reports
MANAGEMENT INFORMATION SYSTEMS
Some examples of MIS
Sales management systems
Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)
Personnel (HRM) systems

The role of MIS

Based on internal information flows
Support relatively structured decisions
Inflexible and have little analytical capacity
Used by lower and middle managerial levels
Deals with the past and present rather than the future
Efficiency oriented?
 DECISION SUPPORT SYSTEMS
What is a Decision Support System?

A Decision Support System can be seen as a knowledge

based system, used by senior managers, which
facilitates the creation of knowledge and allow its
integration into the organization. These systems are
often used to analyze existing structured information
and allow managers to project the potential effects of
their decisions into the future. Such systems are usually
interactive and are used to solve ill structured problems.
They offer access to databases, analytical tools, allow
"what if" simulations, and may support the exchange of
information within the organization.
 DECISION SUPPORT SYSTEMS
• Functions of a DSS
• DSS manipulate and build upon the information from a
MIS and/or TPS to generate insights and new
information.

Functions of a DSS in terms of data processing requirements

Inputs Processing Outputs

Modelling
Internal Transactions Summary reports
Simulation
Internal Files Forecasts
Analysis
External Information? Graphs / Plots
Summarizing
 DECISION SUPPORT SYSTEMS
Some examples of DSS
•Group Decision Support Systems (GDSS)
•Computer Supported Co-operative work (CSCW)
•Logistics systems
•Financial Planning systems
•Spreadsheet Models?

The role of DSS

• Support ill- structured or semi-structured decisions
• Have analytical and/or modelling capacity
• Used by more senior managerial levels
• Are concerned with predicting the future
• Are effectiveness oriented?
EXECUTIVE INFORMATION SYSTEMS

What is an EIS?
• Executive Information Systems are strategic-level information
systems that are found at the top of the Pyramid. They help
executives and senior managers analyze the environment in
which the organization operates, to identify long-term trends,
and to plan appropriate courses of action. The information in
such systems is often weakly structured and comes from both
internal and external sources. Executive Information System
are designed to be operated directly by executives without the
need for intermediaries and easily tailored to the preferences
of the individual using them.
 EXECUTIVE INFORMATION SYSTEMS
Functions of an EIS
EIS organizes and presents data and information from both
external data sources and internal MIS or TPS in order to support
and extend the inherent capabilities of senior executives.

Functions of a EIS in terms of data processing requirements

Inputs Processing Outputs

External Data Summarizing Summary reports

Internal Files Simulation Forecasts
Pre-defined models "Drilling Down" Graphs / Plots
 EXECUTIVE INFORMATION SYSTEMS

Some examples of EIS

Executive Information Systems tend to be highly individualized
and are often custom made for a particular client group;
however, a number of off-the-shelf EIS packages do exist and
many enterprise level systems offer a customizable EIS module.

The role of EIS

•Are concerned with ease of use
•Are concerned with predicting the future
•Are effectiveness oriented
•Are highly flexible
•Support unstructured decisions
•Use internal and external data sources
•Used only at the most senior management levels
 OFFICE SUPPORT SYSTEMS
A systems View of an Office
An office is an organizational unit that processes the
information on which the functioning of an organization
depends. Office system is a subsystem of its containing
system– the organization. An office systems contains

• Layout:
• Services
• Infrastructure
• Activities
• Operators
 OFFICE SUPPORT SYSTEMS
This is the PC on the desk top used for word processing,
spreadsheets and through the network for e-mail and intranet
/ internet access. The software used in not specific to the
organisation and its use fits, broadly, into general office
procedures such as writing letters, producing reports,
calculating budgets and communicating with coleagues
(sometimes for work related purposes!). This use of computers
is very different from the application specific, shared use of
computing represented by strategiv information systems and
functional support systems. That said, sometimes the use of
desk top applications becomes the use of desk top
applications becomes quite sophisticated and their use starts
to overlap with other categories of IS usage.