Not only does the incorporation of the information system into an organization add more value to the organization it also gives the organization a competitive edge (Stair, et al, 2009, p. To achieve a successful information system the all the concerned parties, which include the managers, professionals of information systems, and the system users must work together. In addition to this, foreseeing the impact of the information system on the organization and putting the knowledge acquired into good use is crucial in ensuring organizational goals are met and a successful personal career is established. In an information system, the importance of the information achieved is supposed to be as important as the organizational objectives it attains in its decision-making process. Principles of organizational information systems It is suggested that with the use of this kind of support, the decision analysis by the top executives will be enhanced without slowing down the whole process of decision-making (Zhang, 2010, p.2). The second category of support is the facilitation of first and comprehensive analytical decisions. The first category of support is the timely and effective information search, which is used in retrieving crucial internal and external information but the organization’s top executives. The strategic information systems are generally categorized into two, according to the type of support they offer to an organization. This type of information system develops the strategic decision-making abilities of the executives in an organization. Strategic information systems are mainly used in the executive decision-making process. This category of information systems is designed to indicate the effectiveness of an organization against the objectives (Grossman & Livingstone, 2009, p. This is because in analyzing the data, the decision-makers are not always sure of the process to follow, the necessary data required, or the right tools to be used. In terms of semi-structured decisions, the decision-makers mainly make use of decision support systems.
The term traces its roots in the late 1970s when it was used and is still used to equip the decision-makers in an organization with the necessary tools required in modeling and accessing data. Middle-level managers in organizations mainly make use of decision support systems to equip them with crucial data that they will use in making decisions on behalf of the organization. In an organization, different levels of management have different types of information needs and it is the function of the management information systems to tackle these needs, for instance, the information needs of the management in an organization can be tackled by the production of ad hoc reports or schedule reports (Parsons & Oja, 2010, p. The data obtained by the transaction processing system is manipulated to obtain the reports used in decision-making. The management information system is a type of information system that makes use of the data attained by the transaction processing system to produce reports that are useful in the decision-making process of an organizational manager. The stored data in the databases by the Transaction processing systems are used in the production of periodically scheduled reports such as monthly bills (Parsons & Oja, 2010, p. The majority of the transaction processing systems can accommodate numerous transactions simultaneously. The databases are used to store the data attained by the transaction processing systems. In these transactions, a transaction processing system functions by dictating the means of collecting data, processing it, storing it, modifying it, displaying it, and even canceling the transaction. The majority of the operations in an organization involve the use of transactions. A good example of a transaction processing system is ATM cash withdrawal. In the context of information systems, a transaction is defined as the process of exchange between different groups of which, it is recorded and electronically stored in a computer. Categories of information systems Transaction processing systems These four general categories are discussed in the section below. Generally, there are four types of information systems depending on the organizational level they operate in. Information systems are normally grouped according to the tasks they are supposed to accomplish.
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