Management information basically manages the five main components which are- Hardware, Software, Data, People and Procedures. There are various types of management information systems that are working for the growth of organizations. The management information helps an organisation to manage it very effectively. The information generated through these systems helps in the operation of various activities related to the five main components named above. Various types of management information systems provide information to managers and various other people at the top level of the management so that they can take proper decisions.
After learning about management information, let us further read about the various types of management information systems which help an organisation:
* Transaction Processing Systems- this system is used by those organisations where large quantities of transactions take place on a recurring basis. Retailers, banks and other financial institutions use this system. Banks use this system to record withdrawals and deposits from accounts and various other recurring transactions too. On the other hand, retailer and chain stores use transaction processing system to record daily sale and purchase of goods. Transaction Processing System is among the various types of management information since 1960s when the mainframe computers were used for the first time.
* Operations Information System- this system gathers data and organises it for assisting the managers to make decisions and control the organisation. This system mostly uses and gathers the comprehensive information from Transaction Processing System and generates information which is useful for the managers. Managers require this system so that they may track sales, accounting, inventory and other performance based information. Managers require this information for better control.
* Decision Support System- among the various types of management information systems, this system is the most important for managers. It provides them with necessary information which they can use themselves (without the help of computer specialists) and take decisions accordingly. This system was developed for the purpose of the following three functions- 1- Database Management System (it stores a large volume of data and helps Decision support system to tackle various problems); 2- Model Based Management System (this part of the decision support system transforms information stored in Database Management System into information which is useful for taking various organisational decisions);and 3- Dialogue generations and Management System (this part is very useful for employees who do not have sufficient computer knowledge and it creates a user friendly interface between computers and employees).
* Expert Systems and Artificial Intelligence- this system among the various other types of management information solves errors and problems which require expertise and experience. It uses human knowledge to explain various solutions like a teacher explains to his students and thereby, resolves those problems. It used a troubleshooting system to explain the various probable and plausible solutions.
Apart from understanding the various types of management information you must also know that the information generated from the above systems can be used to predict the future prospects and plans of the organisation.