In many organizations and business enterprises, information system is also a term which refers to any structured collection of computer-based tools which are used in order to manage data and information in a business organization. Various types of information systems are available: Business Information Systems (BIS), Enterprise Information System (EIS), Customer Relationship Management (CRM), Social Media systems and Web-based applications. Information systems are grouped according to the functions they perform. The most common types of information systems are: Business Information Systems, Enterprise Information Systems, Customer Relationship Management, Social Media systems, Web-based applications and Virtual systems. Each of them has their own advantages and drawbacks.
In order to understand the significance of types of information systems in today’s business environment, it is necessary to take into account the basic functionality of all types of information systems. BIS and EIS are both applied information processing methodologies. Both are complex and quite expensive when compared with simple information processing methods like desktop computer used in most of the small businesses. It is quite common that organizations with high-end technical requirements seek professional advice on the matter before they actually select a technology. A number of types of information systems are used in complex organizations.
Business information systems are designed so that end users can access and process the information which is available in the organization in a simple manner. The major types of information systems used in a small business organization include ERP, Desktop Information System (DISS), PeopleSoft and SQL-Server databases. End users of a small business enterprise can gain access to the database using a standard PC, laptop, web camera or mobile phone. All types of information systems are designed for easy access by end users. This is one of the major advantages of ERP over other types of information systems.
An ERP system helps the users to analyze data and make decisions. Enterprise system helps users to improve their performance. Types of information technology available help users make informed decisions in a cost-effective manner. Efficient organizational structure is an essential requirement of any organization. ERP provides the necessary infrastructure for this. Enterprise system is beneficial for companies involved in manufacturing sector that have sales, marketing, and administrative departments.
Major areas for enhancement in ERP systems are supply chain management, customer relationship management, warehouse management, human resources, sales and marketing, and accounting systems. Large organizations have several types of information systems for enterprise deployment. Major benefits of ERP are: it makes decision-making easier, improves the profitability of the organization, and reduces the cost. Types of information technology used in these systems are: computer systems, data-warehousing, enterprise resource planning, and information management. Computer systems are mostly designed for network application and contain database, scheduling software, and mainframe.
Computer systems use internal information systems for data protection, authorized access, accounting, and internal communication. They also include network applications such as mail, calendaring, and intranet. Network application involves application software installed on routers and personal computers in large organizations. It consists of server, client, and web server. Data warehousing is an external data storage system used by information systems for automatic data collection, reporting, and analysis. It includes structured query language (SQL) for retrieving, managing, and storing data.
Types of information systems support managers to make timely and correct business decisions. ERP types include: strategic, tactical, operational, and financial decision support systems. Tactical and strategic systems use present day analog tools to collect and manage pertinent data from today’s business world. Organizational units such as production, sales, and marketing managers use operational and tactical information systems to make important business decisions.
Types of enterprise collaboration systems include: web enabled customer relationship management, which helps companies keep tabs on their customers, sellers, and employees; electronic customer orders processing; and real time transaction processing, which helps companies respond to the speed and volume of transactions in an efficient manner. Enterprise resource planning (ERP) is a comprehensive management program that includes all types of information systems. All types of ERP programs are designed to improve efficiency and minimize cost in an organization. Some types of ERP are: total supply chain management, human resources, process engineering, distribution, factory automation, and industrial manufacturing.