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Information Systems: Types and Description

An organizational information system is an integrated system of hardware and software, which is used to provide managers with all the information they need, in order to manage the organizations in an effective and efficient manner. These organizational information systems usually have three major resources: technology, people, and information. There are several different types of information systems, and each has its own advantages and disadvantages. Depending upon the unique requirements of the organization a different information system may serve the best purpose. Some of the major factors that affect the choice of an information system are the size of the organization, geographic span of the organization, nature of the business, desired outcome from the installation of the information system, etc.

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Following are some of the information systems that I would consider in the given case:

Enterprise Resource Planning

Enterprise Resource Planning systems integrate all the functional areas of the business, both internal and external. The purpose of this type of information system is to facilitate the flow of information between the different functions of the organization. The advantage of ERP is that it is a very advanced and effective information system, and it delivers very good results. However, a disadvantage, in this case, can be that the installation of an ERP system may be very expensive. However, we can consider installing a downsized version of ERP, which would meet the requirements of our business, yet does not cost prohibitively high.

Management Information System

Management Information Systems produce summarized reports, usually on the basis of summarized transaction data, for instance, the report of total sales to a specific customer. Management Information Systems, however, produce these reports about a single functional area. The advantage of using such systems is that they are very easy to use and understand, and they are very cost-effective, too. However, these systems generate reports regarding a single functional area, which means that they do not cover the entire organization, which is a disadvantage.

Supply Chain Management System

These systems are used to strengthen the supply chain of the organization. They manage the flow of products, information, and services between organizations and their respective suppliers. Such systems are very effective because they add a lot more value to the supply chain activities of the organization, and make it a lot more effective. However, these systems are not very helpful in the matter of operational decision-making. They do not provide the managers with all the information which they need to make the operational level decisions.

Functional Area Information System

Functional Area Information Systems support the activities of a single functional area and generate reports that help the managers in that specific function only. These systems are very effective when the managers need simple and easy-to-understand reports about specific functions. However, since these systems do not generate reports about all the functions in an integrated manner, they do not cover all the areas that the management may need to cover. If the organization desires to manage all the functional areas, several such information systems may need to be installed.

Transaction Processing System

Transaction Processing Systems process transaction data from the business events and generate reports. These reports are helpful for the managers in order to better understand the operations of their companies. These systems are very easy to install, use and understand. Their purpose is not to integrate the different functions of the business; rather they are intended to just help process the transactions of the business. They are quite suitable for the kind of business that is small and does not have many functional units.

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StudyCorgi. (2022, January 16). Information Systems: Types and Description. Retrieved from


StudyCorgi. (2022, January 16). Information Systems: Types and Description.

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"Information Systems: Types and Description." StudyCorgi, 16 Jan. 2022,

1. StudyCorgi. "Information Systems: Types and Description." January 16, 2022.


StudyCorgi. "Information Systems: Types and Description." January 16, 2022.


StudyCorgi. 2022. "Information Systems: Types and Description." January 16, 2022.


StudyCorgi. (2022) 'Information Systems: Types and Description'. 16 January.

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