Sorting Out the Types of Information Systems.

In developing an information systems strategy, companies need to define first how they should approach their information and data needs.  This is important because every information project will depend on the approach of how to handle information systems.  There are many strategy solutions for information systems or management.  But basically, these solutions can be trimmed down to three basic information management strategies. 

First, companies can deploy centralized information systems.  This is ideal for companies that have adequate information technology infrastructure.  It means the hardware requirements for large data needs are in place.  It is also very important for companies opting for centralized information systems to have enough competent personnel that can manage the system.  Information systems management is a very complicated business process that needs enough people support with technical knowledge. 

Second companies can also adopt a distributed information systems strategy.  This means the data solution as well as the hardware requirement of companies can be located in different palaces.  The most common application of this kind of strategy is to create a distinct data center for every business unit of the entire enterprise.  In this way, there is no need for complex centralized IT environment.

Finally, companies can outsource their information systems to third party companies that specialize on information management.  There are many companies that offer this type of service. This is a more economical strategy approach which will be ideal for start up companies.  However, outsourcing has some disadvantages also such as loss of control over the information systems and vulnerability of the company information.

When you are involved in a business, you will need to handle a lot of information. This information goes through different types of people coming from the different sectors of your workplace. Senior managers also need to deal with information in order to move forward with their plans for business. At the same time, middle management requires more detailed information in order to monitor as well as control the different business activities. Because of this, it is necessary to have different types of information systems that operate all at the same time in order to cater to the different needs of the company.

There are several types of information systems that are all in operation at one time in any given organization. At the top of the ladder you will find the executive support system, or the ESS. This type is designed to assist senior management in making sure they create sound strategic decisions. It involves gathering, analyzing as well as summarizing the important internal as well as external information which is essential to the business. The second type is the management information systems, or the MIS. Here, information comes from the internal sources. Usually, management information systems work to take the information straight from the transaction processing system and ends up summarizing into several series of reports.

And after this, you have the decision support system, or the DSS. This type of information system is designed in such a way that it can help management create better choices when it comes to troubling situations that have a wide variety of positive and negative outcomes.