Different Types of Information Systems and the Role of ERP in Managing

This article discusses the different types of information systems and how an Enterprise Resource Planning (ERP) system can play a key role in managing business operations. It explains the concept of information systems and their importance in organizations. It also explores the various types of information systems, such as transaction processing systems, decision support systems, executive information systems, and management information systems. Additionally, it provides an in-depth understanding of ERP systems and their benefits in real-life businesses.

Discuss different types of information systems
and how an Enterprise Resource Planning
ERP system can play a key role in managing

Table of Contents
Introduction .....................................................................................................................................1
Main Body...................................................................................................................................1
Conclusion & Recommendations ...................................................................................................5
References........................................................................................................................................7

Introduction
The process of and tools for storage, management, usage as well as gathering of data
along with interaction in an organisation is referred to as information system. Generally, it
involves scrutiny of complementary networks of software and hardware which can be utilised by
organisation and people for collection, filtering, processing, creating along with distribution of
data (Ayağ and Yücekaya, 2019). The competitiveness of firms is dependent on effectual usage
of information system. They can be utilised for tracking, storing, manipulation along with
distribution of information that is gathered from data. An instance can be taken to understand
concept of information system like operational support & enterprise systems involves purchasing
an item within retail store like Tesco, M&S, etc. are liable for generation of more than a cash
register receipt. This also involves automatically sending a restocking order to suitable supplier
who in return might call for taking orders. Within SCM system, suppliers can have access to
inventory database of retailer's over internet through which there will be efficient scheduling as
well as timely delivery of suitable quantities.
The example clearly illustrates flow of money, information and products within complete
process associated with supply chain that is initiated from raw materials and ends with their
distributors & retailers. Enterprise resource planning refers to susceptibility for delivering unified
suite of business applications. This is the modular software system which is being designed for
integrating major functional areas into a merged system. It is being utilised by firms for
streamlining their processes as well as information around firm. This will lead organisation to
have improvised efficiency along with productivity (Bhattacharya, Wamba and Kamdjoug,
2019). The aim and objective of this essay is to furnish in-depth study of information systems in
addition to this different types information systems will also be elaborated. Along with this,
enterprise resource planning systems and there benefits with respect to real-life businesses will
be discussed.
Main Body
Information system refers to integration of software, hardware along with
telecommunications network which people build as well as are utilised for collection, creation as
well as distribution of crucial data within organisational settings (Cheng, 2019). Basically, they
involves interconnected components which works in collaboration for supporting decision-
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making, controlling, analysing, visualisation and decision making in an organisation. There are
different types of information system which are being illustrated in this section, they are as
following: Transaction processing system are utilised by firms for maintaining the records
which are being needed by firm for carrying out their business operations (Cheng, 2019). For an
instance shipping records, sales order entry, payroll, etc. Basically, firms like Microsoft can use
this for periodic report generation within the scheduled way. TPS is being utilised for furnishing
reports as per requirements. On the basis of operations which are being carried out by firm,
transactions will vary. They can be carried out either yearly, quarterly, monthly or even as per
demands on the basis of requirements of firm. TPS is being utilised for recording everyday
business transactions and are used by individuals within operational management levels.
(Source: Types of Information System, 2020)
Decision support system denotes interactive information system which is liable for
rendering models, information and manipulation tools for formulation of decisions within
unstructured and semi-structured situation (Grenci and Hull, 2020). Basically, it involves
techniques and tools which assist within assemblage of significant information as well as
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Illustration 1: Types of Information System

analysing alternatives and options. Bank loan management systems, financial planning system,
etc. are example of DSS. It involves sophisticated data analysis tools that are liable for
supporting as well as assisting essential aspects associated with problem-specified decision-
making. With respect to this, firms can have DSS which utilise data from external sources like
current stock prices for enhancement of decisions which are being formulated. It is normally
used by senior management for making non-routine decisions (Hwang, 2019).
Executive information system denotes computer based systems which assists within
taking decisions at top level of firm. This creates an impact on entire organisation, thus it needs
appropriate sight and judgement. With respect to this, advanced graphic software are being used
for displaying crucial data which is in form of graphs or charts for solving wider range of
problems that are being faced by organisations. For this, management of organisation like Tesco,
Microsoft or SAP might make use of concise internal data from DSS, MIS and data from
external sources related with new competitors within marker or new policies which are being
formulated by government with respect to new market (Kocsis, 2019). They are generally
utilised for monitoring performance, tracking activities which are being conducted by
competitors, identification of opportunities along with forecasting trends.
Management information system is liable for furnishing summaries of routine nature to
management with respect to basic activities of firm. The particular objective behind installation
of MIS within firm is to enhance operational effectiveness in terms of finance, production,
marketing and various other aspects related with this. It is liable for extracting transaction data
from implicit TPS and then compiles it for producing information in terms of responses, displays
or reports. An instance can be taken like exception report is liable for furnishing exceptional
situations in context of sales which are being carried out by peculiar sales representative when it
is far beyond what is being expected.
The different types of information systems have been mentioned above and each have
distinct functions which are being carried out by them (Samiei and Habibi, 2020). Depending
upon the operations conducted by organisation, IS can be utilised as this will aid them within
attainment of organisational goals and objectives within stipulated time frame.
Enterprise resource planning denotes kind of software which are being used by firms for
management of everyday tasks like procurement, risk management, accounting, compliance,
project management along with maintaining supply chain operations associated with this. ERP
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suite comprises of software aids within predicting, formulation of budgets, predictions, reports
and formulation of plans through which financial outcomes can be attained. ERP possess host of
applications which is responsible for managing core business functions within integrated way
which is liable for facilitating broadloom flow of task associated with customer relationship
management, inventory, sales, finance and human resources (Schmidt and Freeze, 2019). ERP
tools acts like unified platform which has ability for streamlining organisational functions. An
ERP suite comprises of distinct enterprise resource planning applications which involves talking
to one another along with sharing of database. Each ERP module emphasise on peculiar business
area and distinct abilities can be combined for meeting needs of an organisation. For an instance
each organisation have different departments logistics, sales, HR or finance for meeting their
needs.
There are distinct kind of enterprise resource planning implementations, that involves
cloud, hybrid and on premises. Cloud ERP is SaaS (Software as a Service) that assist users
within accessing ERP software over a network. The major benefit which can be attained by firm
through its usage are low upfront cost as computing resources can be leased instead of
purchasing and maintaining on premises. It furnishes organisation like Microsoft or Tesco with
smart as well as adaptable solutions with respect to problems that are being faced by them and
provides with built-in machine learning, optimised processes and predictive analytics (Surendra
and Nazir, 2019). This furnish fast, affordable, secured along with reliable solutions which are
being covered with respect to system security to compliance. Hybrid ERP system denotes
integration of cloud and on-premise system as it not only furnish cheap prices but also furnish
reliability with respect to them. This is also referred to as tier-two model due to bimodal merging
of abilities of both of these ERP's. It furnish solid base with respect to on-premise functionality
along with agile cloud applications for addressing both unique existent processes.
On-Premises ERP implies the software which are being installed as well as are
executed within the premises of firm through usage of software instead of remote facilities like
cloud or server farm. Basically, in this applications are being executed when they are under
direct control as well as on servers within their own data centre (Turner, Weickgenannt and
Copeland, 2020). It provides firm with an option for customisation of software with respect to
peculiar needs. Depending on number of synchronous users and size of organisation, on-premise
ERP can be priced under one-time perpetual licence fees along with this it also involves different
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recurring fees related with updates, training and support. This section provides an insight into
enterprise resource planning which enables firms to deliver their operations in an effectual way.
The major benefits which are being furnished by ERP system within real-time scenario
comprises of higher efficiency, ERP software eradicates iterative processes which minimises
need for manual entry of information as well as aids to streamline business processes which
makes it easier as well as efficient for firms within collection of data (Venkatesh, 2019).
Enterprise resource planning software renders managers as well as users to create precise
forecasts. The reason behind this is that information present within ERP is accurate through
which realistic estimates can be formulated. Enterprise resource planning software leads to save
time along with improvisation of productivity. By possessing redundant automated processes
individuals get time for carrying out processing on other crucial tasks & projects. Collaboration
is being provided among different departments within the organisation which aids within
manufacturing operations as well as allows within thorough visibility of various aspects. This
leads them to attain accurate and precise outcomes along with minimised wastage (Ayağ and
Yücekaya, 2019).
Structured enterprise resource planning software allows adding new functions as well as
users through which they can grow while initially executing the solutions which are being
formulated by them over a certain time frame. This denotes the scalability where business is is
ready to continue as well as grow to build. The issues associated with data which is spread
around different databases can be resolved as entire information can be kept within the identical
location. IT implies that firm can have integrated information as different platforms like CRM
can be merged with ERP system that assists within furnishing data accurate, unique and
consistent (Bhattacharya, Wamba and Kamdjoug, 2019). Along with this, the major benefit
provided by this includes is that it aids within decision making by taking into consideration all
the aspects related with this.
Conclusion & Recommendations
From above, it can be concluded that information system refers to flow of information in
system whose objective is to render relevant data to user for gathering, processing of data along
with interaction of information to user of system. This involves gathering of diverse pieces of
equipments which are concerned with dissemination of information. There are different types of
ERP systems and depending upon needs of firm, they can be utilised by them. An example can
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be taken to understand this aspect like multinational firms make use of decision support system
which directly or indirectly depends on other systems for ensuring that effectual decisions are
made by taking into consideration all the aspects of firm. This is liable for making use easy
routines such as compendious along with equivalence that allows management within
formulation of decisions for which procedures associated with reaching a peculiar solutions are
mentioned in advance. Enterprise resource planning aids firms within formulation effectual
decision-making through which they can have higher productivity as well as profitability.
It is recommended that the different industries can opt for cloud ERP as this provides
scalability, flexibility along with on-time availability of services. As per needs of organisation,
they can have storage space which can be extended as well as shrink when they need this. Along
with this by opting for transaction processing system they can maintain their inventory and
ensure that there operations and finances are carried out as per the required standards. In addition
to this, it will lead them to have all the details of what is there in warehouse and when it has to be
filled again before they go out of stock.
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References
Books & Journals
Ayağ, Z. and Yücekaya, A., 2019. A fuzzy ANP-based GRA approach to evaluate ERP
packages. International Journal of Enterprise Information Systems (IJEIS), 15(1),
pp.45-68.
Bhattacharya, M., Wamba, S.F. and Kamdjoug, J.R.K., 2019. Exploring the Determinants of
ERP Adoption Intention: The Case of ERP-Enabled Emergency Service. International
Journal of Technology Diffusion (IJTD), 10(4), pp.58-76.
Cheng, Y.M., 2019. A hybrid model for exploring the antecedents of cloud ERP
continuance. International Journal of Web Information Systems.
Grenci, R.T. and Hull, B.Z., 2020. New dog, old tricks: ERP and the systems development life
cycle. Journal of Information Systems Education, 15(3), p.7.
Hwang, M., 2019. ERP Simulation Games in Asynchronous Online Classes. The e-Journal of
Business Education & Scholarship of Teaching, 13(3), pp.37-45.
Kocsis, D., 2019. A conceptual foundation of design and implementation research in accounting
information systems. International Journal of Accounting Information Systems.
Samiei, E. and Habibi, J., 2020. The Mutual Relation Between Enterprise Resource Planning and
Knowledge Management: A Review. Global Journal of Flexible Systems
Management, 21(1), pp.53-66.
Schmidt, P. and Freeze, R., 2019, January. Enterprise Job Roles and Resistance to ERP Use:
Actual Usage as an Antecedent to ERP Resistance. In Proceedings of the 52nd Hawaii
International Conference on System Sciences.
Surendra, N.C. and Nazir, S., 2019. Creating “informating” systems using Agile development
practices: an action research study. European Journal of Information Systems, 28(5),
pp.549-565.
Turner, L., Weickgenannt, A.B. and Copeland, M.K., 2020. Accounting information systems:
controls and processes. John Wiley & Sons.
Venkatesh, V., 2019. “One-Size-Does-Not-Fit-All”: Teaching MBA Students Different ERP
Implementation Strategies. Journal of Information Systems Education, 19(2), p.2.
Online
Types of Information System. 2020. [Online]. Available through:
<https://examplanning.com/types-of-information-system/>.
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