Types and Uses of Information Systems
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ScribdTranslationsClassification of systems
information.
Types and Uses of Information Systems
During the next few years, theInformation Systemsthey will turn three
objectivesbasics within theorganizations:
1. Automation ofprocessesoperational.
2. Provide information that supports the process oftaking of
decisions.
3.
Achieve competitive advantages through its implementation and use.
TheInformation Systemswhat they achieve theautomationofprocesses
operations within aorganization, they are often called Systems
Transactional, since itsfunctionprimordial consists of processing
transactions such as payments, collections, policies, entries, exits, etc. On the other hand
part, the Information Systems that support the decision-making process
they are Decision Support Systems, Systems for Decision Making
Decision ofGroup, Expert SystemsSupport for Decision Making and
Information System for Executives. The third type of system, according to
with its use orobjectivesthat comply, is that of the Strategic Systems, which
are developed in theorganizationsin order to achieve competitive advantages, to
through the use of theinformation technology.
The types and uses of Information Systems are shown in the figure.
The main points are mentioned [Link] of these types of
Information Systems.
Transactional Systems. Their main characteristics are:
• Through these, significant labor savings are usually achieved,
due to the automation of operational tasks ofthe organization.
• They are often the first type of Information Systems that are
it is implemented in organizations. It starts by supporting tasks at the level
operational ofthe organization.
• They are intensive in information input and output; their calculations and processes
They tend to be simple and unsophisticated.
• They have thepropertyto be information gatherers, that is, through
these systems load large databases for their
subsequent exploitation.
• They are easy to justify to theaddressgeneral, since its benefits are
visible and tangible.
Decision Support Systems. The main characteristics of
these are:
• They are usually introduced after the Systems have been implemented.
Most relevant transactions ofthe company, since these last ones
they make up their information platform.
• The information generated supports middle management and the
highadministrationin the decision-making process.
• They tend to be intensive in calculations and scarce in inputs and outputs of
information. Thus, for example, amodelofplanningfinancial requires
little input information generates little output information, but
It can perform many calculations during its process.
• They do not usually save labor. Because of this, the economic justification
for thedevelopmentit is difficult to know about these systems
incomeof theinvestment project.
• They are usually interactive and user-friendly Information Systems, with high
standards ofgraphic designand visual, as they are aimed at the end user.
• They support decision-making that, by its very naturenaturethey are repetitive and
of unstructured decisions that usually do not repeat. For example, a
Purchase System ofMaterialsthat indicates when it should be done
order to the supplier or a System ofSimulationofBusinessesthat supports the
decision to introduce a newproductto themarket.
• These systems can be developed directly by the end user without
the operational participation of analysts and programmers in the area of
computer science.
This type of systems can include theprogrammingfrom theproduction, purchase
ofmaterialscash flow, financial projections,modelsofsimulation
ofbusiness, modelsofinventories, etc.
Strategic Systems. Their main characteristics are:
• Onfunctionprimordial is not to support theautomationof operational processes
to provide information to support decision making.
• They are usually developed in house, that is to say, within theorganization, for what
so they cannot easily adapt to available packages in themarket.
• Typically its shape ofdevelopmentit is based on increments and through its
evolutionwithin the organization. It begins with a process or function in
specifically and from there new ones are addedfunctionsor processes.
• Its role is to achieve advantages that competitors do not have, such as
advantages incostsandservicesdifferentiated with clients andsuppliers. In
In this context, the Strategic Systems are creators of entry barriers.
to the business. For example, the use of ATMs in thebanksin a
Strategic System, as it provides an advantage over abankthat does not possess such
serviceIf abanknew decides to open its doors to the public, it will have to give
thisserviceto have a level similar to that of its competitors.
• They support the process ofinnovationproductsand process within the
companybecause they seek advantages over competitors and a
way of doing it by innovating or creatingproductsand processes.
An example of these Information Systems withinthe companyit could be
a systemMRP(Manufacturing Resource Planning) focused on reducing
substantially reduce waste in the production process, or a Center of
Information that provides all kinds of information; such as situation of
credits, shipments, delivery times, etc. In this context the examples
the previous ones constitute a Strategic Information System if and only if,
they support or shape thestructurecompetitive of thecompany.
Finally, it is important to clarify that some authors consider a fourth type.
of information systems called Personal Information Systems, the
which is focused on increasing theproductivityof its users.
Common questions
Powered by AIInformation systems enable operational efficiency by automating routine tasks and streamlining processes, which reduces labor costs and errors, leading to faster transaction processing and consistent output quality. At the same time, these systems contribute to competitive advantage by supporting strategic decision-making through timely and accurate data analysis, fostering innovation in product and process development, and enabling the delivery of differentiated services or reduced costs, as seen with Strategic Systems like ATMs in banking .
When deciding between developing an in-house strategic information system and purchasing a packaged solution, organizations should consider factors such as the specific requirements and unique processes of the organization, the flexibility and customizability needed, integration capabilities with existing systems, and long-term support and scalability. In-house systems are often better suited for highly tailored applications that provide distinct competitive advantages, but can be costly and time-consuming to develop. Packaged solutions may offer faster implementation and lower upfront costs, but could be less adaptable to unique organizational needs, potentially limiting competitive differentiation .
The primary objectives of implementing Information Systems within organizations are threefold: firstly, to automate operational processes; secondly, to provide information that supports decision-making processes; and thirdly, to achieve competitive advantages through their implementation and use .
Transactional Systems primarily focus on automating operational tasks, achieving significant labor savings, and are generally the first type of Information Systems implemented within organizations. They are characterized by high information input and output but have simple and unsophisticated processes. They are easy to justify to top management due to visible and tangible benefits. In contrast, Decision Support Systems often follow the implementation of Transactional Systems; they support middle and top management decision-making, are intensive in calculations but require minimal information input and output, and are user-friendly. Unlike Transactional Systems, they do not save labor and are harder to justify economically .
Personal Information Systems are focused on increasing the individual productivity of users, whereas Strategic Information Systems aim to create competitive advantages for the organization as a whole. Personal Information Systems facilitate daily tasks and personal efficiencies, while Strategic Information Systems are developed with the overarching goal of restructuring competitive strategies, through innovations and process improvements that differentiate the business from competitors. While both systems aim to enhance productivity, their impacts are felt at different levels of the organization .
Decision Support Systems enhance decision-making capabilities by providing middle and top management with timely, relevant, and comprehensive information that supports analysis and strategic planning. These systems facilitate complex calculations and modeling, allowing managers to evaluate multiple scenarios and outcomes with minimal data input and output. This capability enables informed, evidence-based decision-making, crucial for effective organizational leadership and management .
End-users play a significant role in developing Decision Support Systems, as these systems can often be developed directly by the end-users themselves without needing operational input from analysts or programmers in the IT department. This direct involvement allows end-users to tailor these systems closely to their specific needs, resulting in increased adoption and satisfaction, as the systems are user-friendly and meet the specific requirements of the users they are designed to support .
Transactional Systems contribute to organizational efficiency by automating routine operational tasks, leading to significant labor savings. They handle large volumes of transactions and are intensive in information input and output. These systems simplify data management by collecting vast amounts of data into large databases, which can be further exploited for decision-making and analytical purposes. Their implementation often represents the first step towards modernizing information processing within organizations .
Strategic Information Systems create barriers to entry by providing unique services that require competitors to match in order to compete effectively. For example, the implementation of ATMs by a bank serves as a Strategic System, offering a service advantage that sets a standard competitors must meet. Additionally, Strategic Systems support innovation and product/process improvements, helping a company maintain a competitive edge over others by differentiating in terms of cost and service. These systems are developed internally and evolve by adding new functions, enhancing their role in sustaining competitive advantages .
Organizations may face challenges justifying the economic investment in Decision Support Systems as these systems do not contribute to labor savings. They are costly to develop and maintain, driven by intensive computational needs and user-friendly interfaces rather than direct savings or revenue generation. The benefits of these systems are often intangible, focusing on improved decision-making capabilities rather than immediate financial returns, making it difficult to quantify their impact in traditional economic terms .