The 6 Most Popular Types of Information Systems and Their Applications

What are Information Systems?

Information systems are collections of multiple information resources to gather, process, store, and disseminate information.

Tools such as laptops, databases, networks, and smartphones are examples of information systems. So yes, as you read this article, you’re employing an information system! Many people rely on various information systems to communicate with friends and family, bank or shop online, or look up information via a search engine.

Companies and organizations employ information systems to communicate and work with their customers and suppliers, manage the organization, perform essential business operations, and roll out and maintain marketing campaigns.

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Six Major Types of Information Systems

Now that we have dealt with the basics let's look at the six primary types of information systems. Although information systems are not limited to this list, typical businesses and organizations have the following six, each system supporting a different organizational level.

For starters, we have the transaction processing systems (TPS) at the operational level. Next are the office automation systems (OAS) and knowledge work systems (KWS), both at the knowledge level. Next, the management level has the management information systems (MIS) and decision support systems (DSS), and we conclude with the executive support systems (ESS) at the strategic level.

Let’s explore the different types of information systems in more depth. If you're interested in advancing your understanding of cybersecurity across these various levels, consider attending cybersecurity certifications to gain specialized knowledge and hands-on experience in protecting information systems at every organizational level.

1. Transaction Processing System (TPS)

Transaction processing is essential to helping businesses perform daily operations. Transactions are any activity or event affecting the company and include deposits, withdrawals, shipping, billing customers, order entry, and order placement. TPS supports these business transactions.

Example

A point-of-sale (POS) system used in retail stores, where each sale is recorded and processed immediately, updating inventory levels and generating a receipt for the customer.

2. Office Automation System (OAS)

OAS comprises computers, communication-related technology, and personnel assigned to perform official tasks. It covers office transactions and supports official activity at every level in the organization, subdivided into managerial and clerical activities.

Office automation systems include the following applications:

• Email: The email application also covers file attachments such as audio, video, and documents.
• Voice Mail: This application records and stores phone messages in the system’s memory, which can be retrieved anytime.
• Word Processing: Word processing covers the creation of documents, including memos, reports, letters, and anything else that’s printable electronically. The created text can be copied, edited, and stored via word processing commands, and it can be checked for grammar and spelling, line and word counting, and headers and footers.

Example

Microsoft Office Suite, where tools like Word, Excel, and Outlook help employees automate tasks such as document creation, data analysis, and email communication, improving overall productivity.

3. Knowledge Work System (KWS)

The KWS is a specialized system that expedites knowledge creation and ensures the business's technical skills and knowledge are correctly applied. The Knowledge Work System aids workers in creating and disseminating new information using graphics, communication, and document management tools.

Example

CAD (Computer-Aided Design) is used by software engineers and architects to design and test structures, enabling knowledge workers to create detailed models and simulations.

4. Management Information System (MIS)

Middle managers handle much of the administrative chores for day-to-day routines and performance monitoring, ensuring that all the work is aligned with the organization's needs. That's why MIS is such a valuable tool. Management Information Systems are designed to help middle managers and supervisors make decisions, plan, and control the workflow. The MIS pulls transactional data from various Transactional Processing Systems, compiles the information, and presents it in reports and displays.

Additionally, these reports can be produced monthly, quarterly, or annually, although MIS can have more immediate reports (e.g., hourly, daily).

Example

An HR management system that generates reports on employee attendance, performance, and payroll, helping managers make informed decisions about workforce management.

5. Decision Support System (DSS)

The DSS is a management-level, interactive, computer-based information system that helps managers make decisions. The Decision Support System gives middle managers the information necessary to make informed, intelligent decisions.

Decision Support Systems use different decision models to analyze or summarize large amounts of data into an easy-to-use form that makes it easier for managers to compare and analyze information. Often, these summaries take the form of charts and tables.

Example

A financial forecasting system that uses data analysis and modeling to assist company executives in making investment decisions by predicting future market trends.

6. Executive Support System (ESS)

The ESS is like the MIS but for executive-level decision-making. Because the decisions involve company-wide matters, the stakes are higher, and they demand more insight and judgment.

The ESS provides greater telecommunication, better computing capabilities, and more efficient display options than the DSS. Executives use ESS to make effective decisions based on summarized internal data taken from DSS, MIS, and external sources. In addition, executive support systems help monitor performances, track competitors, spot opportunities and forecast future trends.

Example

A dashboard system that provides CEOs with a real-time overview of key performance indicators (KPIs) such as sales revenue, market share, and customer satisfaction, enabling high-level decision-making and strategic planning.

What are the Main Applications of Information Technology?

Although the system application descriptions hint at how they are best applied, let’s spell out some of the chief information technology applications.

• Information/Data Storage

Although companies need good information to create better goods and services, they must also have a reliable, cost-effective system to store the information that allows rapid data access when required. In addition, a sound information system helps businesses keep logs of essential activities and store valuable assets such as communication records, revision histories, activity logs, operational data, and other relevant documents.

By organizing information, businesses can understand why problems and roadblocks occur and how to solve them.

• Rolling Out New Products and Services

Although there is an ever-increasing demand for new goods and services, any business that wants to stay competitive needs information to make better decisions and offer better products. Information systems help analyze independent processes and organize the company's work activities. So, an information system allows a business to better understand how it can design, create, and sell people's desired services or products.

• Simplified Decision Making

It’s challenging enough to make decisions, let alone consistently make the exact right decisions. There are no guarantees that an organization’s decisions will work. However, information systems help relieve some of the pain by offering information rapidly and easily.

• Improving Employee Behaviors and Attitudes

Information systems can effectively improve communication between employers and employees. An efficient information system empowers employees by making relevant information more accessible, helping them become part of the decision-making process. This empowerment boosts motivation and increases commitment to the project or assignment.

Here are some broad categories that highlight types of information system applications:

• Communication. Information system applications allow rapid data sharing on a global scale.
• Education. Information systems help make remote learning easier (particularly useful during pandemics) and make people more comfortable with tech advancements such as smartphones, tablets, and other network devices.
• Employment. The advent of information systems has directly resulted in the creation of new positions, such as data analysts and cyber-security experts.
• Finance. Information systems make the transfer of funds more manageable and more secure.
• Healthcare. Thanks to information systems, healthcare providers can access vital medical records faster.
• Security. Information systems make it easier to employ data safeguards to reduce the likelihood of a data breach or malware.

Would You Like a Career in Cyber-Security?

Information drives today’s business world, which means we must keep that data safe. Unfortunately, many elements will readily hack into different information systems and steal or corrupt data, perhaps even shutting down an entire business operation. To protect against such threats, you must equip yourself with the latest knowledge and skills through cyber security training courses. These courses provide essential training to defend against cyber attacks and ensure the security and continuity of business operations.

If you’re interested in pursuing a career as a cybersecurity expert, Simplilearn can get you started on your new career path. The Cyber Security Expert Master’s program equips you with the necessary skills to become an expert in this rapidly growing field. In addition, you will learn comprehensive approaches to protecting your infrastructures, such as securing data and information, running risk analysis and mitigation, architecting cloud-based security, achieving compliance, and much more.

According to Glassdoor, a cybersecurity expert can earn an average of USD 76,774 annually in the United States.  Payscale reports that cyber-security professionals in India can make an average of ₹714,000 annually.

Don’t wait for someone else to jump ahead and take your desired opportunity. Instead, check out our comprehensive cybersecurity courses and get started on an exciting, rewarding, and much-in-demand career!