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What Are Information Systems?

An information system helps companies organize and analyze data, making it possible to answer questions and solve problems. A business information system carries out specific functions in support of operations, including payroll, employee record storage, and credit card processing, among other functions. Information systems can increase efficiency and improve employee productivity. Efficiency is a key factor in business success. A targeted MBA, like Emporia State University’s online MBA with Information Systems Concentration, will give you the skills you need to become an asset in any industry.

Reducing the chance of human error and maximizing efficiency are key ingredients to the success of any organization. In today’s rapidly evolving business environment, a quality information system designed for the organization’s specific needs and objectives, is crucial to an organization’s success. Companies can provide targeted customer service and interaction with suppliers through the use of information systems, which provide real-time data for managers.

Use of Business Information Systems

Efficiency is essential, and information systems are the best way to ensure efficiency. Businesses rely on various types of information systems, including:

  • A transaction processing system (TPS) helps companies with many routine tasks. Transactions, such as the creation of paychecks and purchase orders, are part of day-to-day business operations. Using a transaction processing system requires users to interact with the system in real time. Because of this, users can access current TPS data, such as an account balance, at any time.
  • Industry-specific management information systems (MIS) provide companies with current and past operational performance data, such as sales and inventory data. They also provide prescheduled reports, which company management can use in strategic, tactical and operational planning. Managers may rely on the MIS to conduct ad hoc analyses as well.
  • A decision-support system (DSS) allows business managers and owners to get answers to specific questions in order to evaluate the possible impact of a decision before implementation. The DSS can also measure progress made toward a specific goal.
  • Executive support systems (ESS) contain reports designed to help businesses identify long-term trends for the purpose of strategic planning. System users can click on any icon displayed on the ESS screen and enter criteria for the report they want to view. Chron, the online arm of the Houston Chronicle, explained that report criteria include data pertaining to sales, scheduling, and cost accounting.

In today’s fast-paced business world, customer requirements and preferences are constantly changing. Businesses and organizations that want to remain competitive must embrace innovation and focus on efficiency. Information systems give companies the agility and information they need to do just that.

Learn more about Emporia State University’s online MBA program with Information Systems Concentration.


Chron: Types of Information Systems in a Business Organization

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