Types of Organizational information systems Type of system Function Example Functional area IS Supports the activities within a specific processing payroll functional area

System for

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Transaction processing


Processes transaction data from business events

Wal-Mart checkout point-of-

sale terminal

Enterprise resource


Integrates all functional areas of the


Oracle, SAP

Office automation


Supports daily work activities of individuals

and groups

Microsoft Office

Management information System

Produces reports summarized from

transaction data, usually in one functional


Report on total sales for each


Decision support system

Provides access to data and analysis tools

“What-if ” analysis of changes

In budget

Expert system

Mimics human expertise in a particular


area and makes a decision

Credit card approval

Executive dashboard

Presents structured, summarized

information about aspects of business

important to executives

Status of sales by product

Electronic commerce


Enables transactions among organizations

and between organizations and customers

Supply chain

management systems

Manages flows of products, services, and information

connecting among organizations

Wal-Mart Retail Link system

suppliers to Wal-Mart

Five types of information systems

1. Transaction processing system

2. Enterprise resource planning

3. Office automation System

4. Management information system

5. Decision support system

Transaction processing system

To start with, a transaction processing system that is normally referred by the abbreviation TPS, is that type of a certain kind of information system which carries out the function of collecting, storing, altering and to some other extent, retrieving the various transactions of data within the enterprise. Whereby, a transaction is considered any event, which tries to convey the Decisive Test. This is where generation of data occurs or modification done before the act of being stored into an information system. Therefore, the success of business enterprises does depend on the vital processes that do involve transactions. This helps to ensure that orders from customers are hence met in due period, and that the shareholders and the suppliers are settled and hence can make their payments by following proper procedures. Hence, the transaction-processing arena has now grown and become a very important aspect of better commercial management.

Enterprise resource planning

The term enterprise resource planning also summarised as ERP, is that process or aspect which tries to merge all of a firm’s departments, objectives and the various functions, into one existing computer system. This also services every department’s requirements by virtue of being specific. It merges by bringing together persons, software and the crucial hardware, into an effective service and an efficient delivery and production system. This hence generates profit for the firm (Peter, 1992). Even though this idea has the ease to be explained theoretically, its truth has been of a varied nature. Most firms do conglomerate varied systems and processes for meeting their own requirements.

Office automation system

Office automation system does refer to the different machinery of a computer and its software that is utilised to make, make a collection, store, carry out manipulation of data, and finally convey office information required for the purpose of finishing tasks and objectives that are of a basic nature (Peter, 1992). For example, storing data in raw form, transferring electronically, and the prior managing of e-commerce information, does constitute the activities that relates to office automation system

Management information system

The term management information systems, is a set of commands and procedures that carries out the function of collecting, processing, storing and conveying the vital information to the support part of decision making and the control system. Mostly, information systems do appear to be of a formal nature that is only involved in playing the integral task in firms. Although these systems are virtually based on the computer, it is vital to take into note that out-dated software and programs, are the basis of such a foundation. By knowing this, one needs to know the issues they are made to tackle and their solutions (Peter, 1992).

Decision support system

The decision support system is a program of the computer that tends to analyse commercial data and thus conveys it for purpose of making business related decisions with more ease. It is an application that does the task of collecting data in the event of a normal operation of a given business (Humphrey, 1995).


Peter, Thompson (1992). Analogy of computer information systems. London: Oxford publishers. Humphrey, Philips (1995). Technology advancements in e-commerce. Durban:

Kremlin publishers.

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