Uploaded by Elizabeth Heartfelt

essay 1.1

Mabini Extension, Cabanatuan City, Nueva Ecija
Kaila Beatrice R. Magtalas
Masters in Business Administration
Summer 2020-2021
Employing information systems in big companies are necessary nowadays. Information
system is designed to help organizations to collect process, store, and distribute their needed
information across different departments who needed it (Techopedia, 2020). Unlike before,
when computer is still not invented or widely used, people rely on paper, they document
everything on paper, personally deliver important documents, every transaction is on paper.
Now, everything or most things are being digitally managed. In order to go with the current
flow and not to be left behind, organizations have to adapt to these changes. Although
employing information systems is expensive and a huge adjustment will be needed, but in
the long run, there are more benefits gained from it.
Organizations have different kinds of information employed within their organizations
depending on what functionality is needed. As enumerated by Nordmeyer (2019), there are
different types of information systems in a business organization and one of those is the
Transaction Processing System. In this type of system is used for transactions that happen in
the day-to-day business such as making paychecks, or purchasing orders. Organizations can
use this to automatically send their employees their paycheck direct to their ATM without
the owner directly going to the bank and depositing the amount one by one.
Management information system is another type of system used by organizations.
Organizations use this system to record and access historical operational data like sales for
the past years or inventories. By using this system, they are able to easily identify which item
is selling fast at what location for example. The system provides them information vital for
decision making.
The system used by organization to support their operations planning and problem-solving
decisions is called the decision support system. The users of this system are able to acquire
answers to their question and means to evaluate what the possible impact of one decision
may have before it is enacted. The information may be in the form of a data summary report
or usual sales report.
The last system defined by Nordmeyer (2019) is the executive support system. This system
contains predefined report which aid them in identifying the long-term trends in support of
their strategic planning. This system also enables the owner or user to be briefed on the
issues such as market trends and buyer preferences and other issues faced by the
Davoren (2019) added customer relationship management system, business intelligence
systems, and knowledge management systems. In the customer relationship management
systems synchronize the sales and marketing efforts of the organization. They use this
system to accumulate and track customer activities which includes the items they purchase
or their complaints or questions and the product defects.
Business intelligence systems on the other hand provides predictions on future sales
patterns, forecast of sales revenues and others. They collect the data from various data
warehouse and they provide the management with analyses that the organization need.
The last information systems that were discussed was the knowledge management system
which helps the organization to organize data, separate the needed knowledge and
distribute the information across the organization depending on who and what department
needs it. As stated by Davoren (2019) “KMS information systems serve as a central
repository and retain information in a standard format. These systems can help business
owners maintain consistency and enable speedy responses to customer and partner
There are a lot of different information systems available depending on the needs of the
organization. The discussed types are only some of the information systems widely used by
different organization. Some of them use just one, but most of them use multiple. Some
organization create their own information systems to best fit their organization. They
combine different types which makes the distribution of information more efficient.
These information systems make it easier for companies to receive and distribute
information taking note of the fact that there is a significant amount of lag that was
eliminated because of these systems. Without these systems, organization would still rely on
paper to distribute their information and analyzing thousands of data will take a longer time
to finish. With the help of information systems and modern technology, they were able to
make the processes easier and more efficient making it easier for organizations to
understand their customers which translate for better profits for them.
Billie Nordmeyer MBA, M. A. (2019, March 5). Types of information systems in a business
organization. Small Business - Chron.com. https://smallbusiness.chron.com/typesinformation-systems-business-organization-66974.html.
Techopedia. (2020, August 7). What is an Information system? - definition from Techopedia.
Techopedia.com. https://www.techopedia.com/definition/24142/information-system-is.