Strategic Management: Formulation and Implementation

Types Of Information Systems

To serve the need of different organizational levels, there are four major types of information systems: (1) transaction processing systems, (2) knowledge work and office automation systems,(3) management information systems and decision support systems,(4) and executive support systems. Figure 85 illustrates the hierarchy of information systems.

Until fairly recently, knowledge systems were not include in types of information systems. While, knowledge systems have been the fastestgrowing applications of information technology in the last decade, Kenneth C. Laudon and Jane Price Laudon expanded traditional model and added "knowledge systems".

However, other writers still consider knowledge systems' as one specialized types of decisions support system which deal with tactical issues and support middle level managers.

Figure 86 depicts the role played by the major types of information systems in the organization. It should be noted that each of different kinds of systems may have components that are used by organizational levels and groups other than their main constituencies. The features of these systems are summarized in Table 81.