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Types of information systems used in business sheet
Essay frame

Explain the types of information systems used at different levels of a business organisation.

How to lay out the answer. Follow the frame, then write it in your own words.

  1. 1 · Open in two lines. An information system is people, procedures, data, hardware, software and networks working together to turn data into information for decisions.
  2. 2 · Draw the pyramid. [Diagram: pyramid with TPS at the base (operational), MIS and DSS in the middle (tactical), ESS at the top (strategic)]
  3. 3 · TPS at the operational level. Records routine transactions such as sales, payroll and bookings; the source of data for all other systems.
  4. 4 · MIS and DSS at the middle level.
    • MIS: routine summary and exception reports for control.
    • DSS: interactive what-if models for semi-structured decisions.
  5. 5 · ESS at the top level. Dashboards of key internal and external figures for long-term, unstructured decisions.
  6. 6 · Enterprise systems. ERP links all functions in one database; CRM manages customers; SCM manages suppliers and deliveries.
  7. 7 · Sri Lankan business example. A supermarket chain: tills (TPS), branch sales reports (MIS), new outlet planning (DSS), directors' dashboard (ESS).
  8. 8 · Close in one line. Each level needs information of a different detail and time span, so each uses a different system.

Scoring tip: The pyramid diagram with users and decision types on each level earns quick marks.