Technical – Types of Management Information Systems

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There are many major types of management information systems. There are also several levels of management information systems, each with its own strengths and weaknesses. There is no one type of management information system. Each type has several components, including:

* Level I: Major parts of management information systems are types of decision-making and collections of data. Decision-making is divided into tactical and strategic decisions. Tactical decisions are typically concerned with day-to-day operations, while strategic decisions concern long-term planning and organization strategy. Collection types of data may include inventory and human resources. The information system may require complex programming and may involve a complex interaction between software and hardware.

* Level II: Major components of management information systems are process and information management. Process management deals with the entire cycle of manufacturing or gathering the raw materials, working up the product to the point it is ready to be sold, marketing the product, packaging, and shipping it. Information management deals with how the information is used and what information needs to be available for decision-makers. This usually includes computer systems.

* Level III: The types of management information systems are fairly standard. They include scheduling, manufacturing, sales, customer service, and accounting. These systems need additional programming and are used less often than other types. Types of this level include manufacturing and inventory control, sales and customer service, and financial transactions. All of these types have complex programming that requires frequent updating.

* Level IV: Some types of management information systems are very customized. They are generally more complex and require more programming than other systems. They use complex interactions between hardware and software components. Some examples of this include vehicle tracking systems, freight systems, and supply chain systems. Most of these management systems are used in large companies that need very accurate and up-to-date results.

* Level V: Systems on this level require minimal modification but still require regular updating and tweaking. They are ideal for companies that need to maintain very precise records. Examples of these types of management information systems are real-time intelligence systems and telecommunications systems. They are also used in military applications.

* Level VI: The levels of management information systems continue to expand as the business processes change. In particular, as companies become larger and have more employees, they must develop relationships among employees. This allows employees to share information about business processes and how they affect their own work.

* Level VII: This is a relatively new classification of management information systems. It covers the integration of different types of information technology systems. Some examples include big data systems and digital information management. This system is not well utilized because it does not provide better access to information than the previous levels. However, it is expected to become widely used in the coming years due to its usefulness in improving the decision-making process and increasing productivity.

* Level VIII: These are systems that collect and handle large amounts of data. They are sometimes referred to as “big data collections” or “data silos.” They are most often used for operational purposes, such as business intelligence, customer service, and workforce management. They are excellent for those whose tasks require them to make accurate decisions based on large amounts of data.

* Level IX: This is a subcategory of level VII systems. It is used primarily for improving communication between users and suppliers. This includes establishing relationships among departments that previously did not communicate with one another. Also, this system facilitates sharing internal data. Unlike the previous systems, it supports multi-tiered access control and strategic planning. In general, this subcategory is best applied to businesses that have improved and expanded their business processes.

* Level X: This is a system for managing and tracking information that enhances strategic planning and business effectiveness. It integrates all levels of an organization. The main goal of this subcategory is to establish relationships among the different elements within an organization. This subcategory is ideal for smaller companies with limited resources. It is also suitable for new businesses.

As you can see, many different areas are covered by management information systems. Although some of these areas overlap, some subcategories of these systems are clearly different from each other. Therefore, when you select your information system, you need to take your current needs into account. This will ensure that you choose a solution that fits your business well while allowing you to accomplish the business goals you have set forth. Therefore, when deciding upon the type of management information system to purchase for your organization, you need to consider all possible solutions and consider how they will integrate with your current decision-making processes and business processes.

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