Types of Information

Systems
Levels of Management

Upper or Top or Strategic Management

Strategic

Middle or Tactical Management

Tactical

Operational
Lower level Management

Three levels of management

Lower or Operational level
Management
 They make structured decisions (Operational decisions).
 Structured decision It’s a predictable decision that can be
made following a well defined set of routine procedures.
 Most decisions at this level require easily defined information
that relates to the current status and activities within the basic
business functions.
 Information is gained from detailed reports which contain
information about routine activities.
 Detailed tasks defined by middle management are carried out by
people at operational level.
Middle or Tactical
Management
 Acquire and arrange the resources (Computers, people etc) to meet the
goals of an organization.
 Define the detailed tasks to be carried out at the operational level.
 Information needed involves review, summarization and analysis of data
to help plan and control operations and implement policy that has been
formulated by upper management.
 Information is usually given to middle managers as summarized reports.
 Deals with semi structured decisions. (Tactical decisions)
 Semi structured decisions that must be made without a base of clearly
defined informational procedures. In most cases a semi structured decision
is complex, requiring detailed analysis and extensive computations.
Upper or Top or Strategic
Management
 Decides on the broad objectives of an
organization.
 Make unstructured decisions. (Strategic
decision).
 Unstructured decisions are the most complex
type of decisions and are rarely based on
predetermined routine procedures. They involve
subjective judgments of the decision maker.
Types of Information Systems

•Transaction processing systems (TPS)

•Management Information Systems (MIS)
•Decision support Systems (DSS)
•Executive Information Systems (EIS)
•Expert Systems (ES)
Transaction Processing
Systems (TPS)
•These systems capture and process data about business
transactions.
•Some times called as data processing systems
•Mostly used at operational level
•Usually creates detailed reports of daily transactions or
future transactions
•Reports generated are useful only to lower level managers
•One functional area of a business consists of an TPS
Management Information
Systems (MIS)
•Provides middle level management with reports that
summarize and categorize information derived from
company databases. (In pre determined format)
•Supplements Transaction processing Systems
•Able to produce detailed information, summary
information, exception information
•Information produced is based on accepted management
or mathematical/statistical models
 Decision Support Systems
(DSS)
•Provides its users with decision oriented information
whenever a decision-making situation arises
•Analyses information already captured by TPS and MIS in
order to support unstructured decision making at top
management level
•Facts
•DSS does not make decisions, it helps some one to
make a decision by providing information
•TPS or MIS does not analyze information they produce
 Executive Information System
(EIS)
Is a DSS which is especially meant for top level management
and specifically support unstructured decision making
Also called Executive Support Systems (ESS)

Information in an EIS are presented in charts and tables that

show trends, ratios and other managerial statistics and is
stored in data warehouses.
Draws data not only from the organization, able to draw
information from outside sources such as news services and
marketing –research databases.
Expert Systems
(ES)
•ES is an information system that captures and stores
the knowledge of human experts and then imitates
human reasoning and decision making processes for
those who have less expertise.
•Captures knowledge expertise of a problem solver or
decision maker and then simulates thinking of that
expertise for those who have less expertise.
•Includes logic and reasoning within there respective
fields
•Emerged from the filed of artificial intelligence (Creating
computer systems that simulate human reasoning and
sensation)