Types of Information Systems (TPS, MIS, and DSS)

Summary

An overview of the three primary types of information systems used in organizations: Transaction Processing Systems (TPS), Management Information Systems (MIS), and Decision Support Systems (DSS), including their functions and levels within a hierarchy.

Highlights

Introduction and Transaction Processing Systems (TPS)00:00:01

TPS focuses on the operational level of an organization, recording daily business transactions like sales or payroll. It exists in two forms: batch processing, which groups transactions, and real-time processing, which provides immediate verification.

Management Information Systems (MIS)00:03:34

MIS serves the tactical, middle-management level. It aggregates data from TPS to generate routine summary and exception reports, assisting managers in operational decision-making.

Enterprise Resource Planning (ERP) and Information Silos00:05:15

To combat information silos—isolated data stores that hinder cross-departmental communication—many organizations adopt ERP systems to integrate programs and unify data across the entire enterprise.

Decision Support Systems (DSS) and Executive Support Systems (ESS)00:06:31

DSS supports senior management in making unique, non-routine, and unstructured decisions using internal and external data. ESS is an extension of this concept designed for the highest executive levels for long-term strategic planning.