There are different types of information systems, which serve as support for business management (“Six Major Types of Information Systems”). This paper aims to discuss the distinct types of these systems, to describe the interrelations between them, and to provide positive and negative features. Finally, the conclusion will be made in the context of military service.
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First of all, there are four major types of information systems (ISs):
- transaction processing systems (TPS),
- management information systems (MIS),
- decision-support systems (DSS),
- executive support systems (ESS) (Nordmeyer).
These systems interact with each other on management and strategic levels (Al-Mamary, “The Role of Different Types of Information Systems in Business Organizations: A Review” 1280).
TPS provides support for different financial operations, such as payments, transactions, debiting, and crediting with the real-time update and access. MIS is of high importance since it serves for business planning, and the mistakes of this system can have a negative impact on the company (Al-Mamary, “The Impact of Management Information Systems Adoption in Managerial Decision Making: A Review” 14). DSS is a means of evaluation of the business’ development, and it helps to implement problem-resolution decisions (Nordmeyer). ESS is used to predict long-term trends in the strategic sphere (Nordmeyer).
Also, it is possible to observe several disadvantages of information systems. First of all, the implementation of ISs causes significant expenses. Secondly, it increases unemployment rates because information systems process a vast amount of work which otherwise would be done by people. Thirdly, ISs can be hacked, which would cause numerous adverse consequences.
Concerning military-industrial complex companies, the most efficient means of increasing productivity is the utilization of capacities of individual businesses and centralized management (Batkovskiy et al. 338). Another opportunity for development is the implementation of adaptive management, which allows learning from other business fields with similar objectives (Game et al. 275).
In conclusion, it is possible to state that the major types of information systems and their primary functions were observed. It is evident that they are working reciprocally. In addition, the management problems in the context of military industry were discussed.
Al-Mamary, Yaser Hasan, et al. “The Role of Different Types of Information Systems in Business Organizations: A Review.” International Journal of Research, vol. 1, no. 7, 2014, pp. 1279-1286.
—. “The Impact of Management Information Systems Adoption in Managerial Decision Making: A Review.” Management Information Systems, vol. 8, no. 4, 2013, pp. 10-17.
Batkovskiy, Aleksandr Mikhaylovich, et al. “Management of Utilization and Development of the Production Capacity of the Military-Industrial Complex.” Mediterranean Journal of Social Sciences, vol. 6, no. 5, 2015, pp. 327-339.
Game, Edward T., et al. “Conservation in a Wicked Complex World; Challenges and Solutions.” Conservation Letters, vol. 7, no. 3, 2014, pp. 271-277.
Nordmeyer, Billie. “Types of Information Systems in a Business Organization.” Chron. Web.
“Six Major Types of Information Systems.” Management Study HQ. Web.