Types of IT Systems

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Information systems has been so effective in organization performance. Organization has millions of data, to handle all these effectively without confusion, companies use various information systems to ensure efficiency. This paper is set to analyze the most important types of IT systems that are being used by the organizations.

Transaction Processing System: a computerized system that perform and record the daily routine transactions necessary to conduct the business (Lecture slide 4). It takes in customer transaction information, processes the information, generate a detailed reports and summaries used in making payrolls, order tracking and processing orders. Keeping a track record of your customers’ enhances transparency, eliminates fraud in companies (Pearlson 84) and build confidence in your clients. TPS systems are designed to perform transactions virtually and instantly to ensure that customer data is available to the processor that require it. Also ensure that transactions are processed in the same way each time to maximize efficiency. It ensure that employees who lack the skills and ability to control it cannot influence the transaction process .

Office Automation System: computer systems designed to increase productivity of data workers in the office (Lecture slide 5). It performs the following functions; generation of MS word document, generate presentation from external data, automatically send email to customers in Microsoft outlook, create customer data entry mechanism for MS office documents , maintaining and organizing data stored in MS excel. Due to automation the company achieve a reduction in total wedge payment. With OAS, the management can be sure of obtaining accurate figures from its accounting record, also reduces chances of committing fraud by employees, ensure uniformity and enables management achieve better control of the information. Some of the important methods of automation are discussed below; word processing helps in creation of documents. Desktop publishing helps in producing own content materials for example newsletters and manuals. others are emails, voice charts, fax, audio. Conferencing and video conferencing. Some of the main advantages of OAS are, improved quality of work, better service for customers increases organization's effectiveness.

Management Information system: serves the management by providing report and aces to company data (Lecture slide 7). It is capable of transforming data into information useful for decision making. MIS enhances core competency of an organization that allow them to perform better in a competitive market. With better information in the production process comes the ability to enhance supply chain management including everything from the sourcing of material, the manufacturing and distribution of finished products. Better MIS system enables an enterprise to react more quickly to the environment enabling them to push to out of the competition.

Knowledge Based Systems: capture expertise of human beings who primarily create knowledge and information for the organization. They include researchers, designers, architects and engineers. They have three main roles in an organization namely keeping the organization current in knowledge, serving as internal consultants regarding their areas of knowledge and acting as change agents ,evaluating, initiating and promoting change projects (Pearlson 65). KBS form the backbone of competition, positioning and capabilities for an organization. Major knowledge work applications include CAD systems, virtual reality systems and financial work stations. CADs automate creation of designs using computers and sophisticated graphic software. Virtual reality systems have visualization rendering and stimulation capabilities better than CADs. They use interactive graphic software to create computer generated stimulation that are so close reality that users almost believe they are participating in a real world situation.

Decision Support System is another suitable type of IT system an organization cannot do without. The system combine data and analytic models or data analysis tools to support non-routine decision making for individuals (Lecture slide 8). Majorly used by professionals; staff managers. It offers various benefits including preferences over a decision to save time and cut out some of the problems associated with repeated decision making (Pearlson 81), this allows managers and other decision makers to lean on a system that allows for better efficiency.

Finally the Executive Support System; its designed to address non-routine decision making for senior managers (Lecture slide 11). A good ESS system offer an intuitive way to automatically deliver customized analysis, alerts, reports and prediction. It is able to link data from various source both internal and external to provide the amount and kind of information many executives find useful. This system has the following advantages; filters data for management, improves tracking of information and offers high efficiency to decision makers (Pearlson 65).

In conclusion, all types of information systems offer various solutions to organizations, from the above discussion, we realize that IS strategy is a function of competition, positioning and capabilities for an organization. others offer financial solution, others save on time and others enhance quality of performance. Therefore, each IT system is unique on its own and the choice of each system varies depending on taste and preference of an organization.

Works Cited

Pearlson, Keri E.. Managing and Using Information Systems; A Strategic Approach. River Street, 2001.

October 30, 2023


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