The Strategic Level of Information Systems: Executive Support System (ESS)

Last, but not least we come to the top of the Information System pyramid, the Strategic Level.  In this level we have the Executive Support System, or ESS.  This level is also known as the Executive Information System (EIS).  As the name suggests, it is generally utilized by senior managers and executives.  This system allows executives to analyze the organization and discover long-term trends and plan the direction of the company accordingly.  These systems have the capability of being tailored to both the company as well as the executive using it.

As with the DSS system, the ESS system takes data from TPS and MIS systems and organizes it according to how the executive requests.  Along with this organizational data, the ESS system can pull data from outside sources and even other models.  This information is summarized and presented in forms such as reports, forecasts and also graphs – much like the DSS system, but in more detail.  Where “boxed” systems are available, most are tailored to the organization and individual depending on the information available and needed.

 

ESS systems are about forecasting the future direction of the organization and are very flexible and easy to use.  A large portion of the time, senior executives need systems they are comfortable using when looking to view the company position and identify future trends.  These ESS systems are perfect for just this thing.  This is always good news for the senior executive's assistant!

 

Part 2 - The Managerial Level of Information Systems: Decision Support Systems (DSS)

Now, we will review the second type of Managerial Level of information system, the Decision Support system or DSS.  DSS is a knowledge based system generally used by upper management to provide information to used within the company.  It reviews current data and analyzes it to assist managers in projecting possible results from decisions they might make.

These systems are very interactive and are used to solve problems or even run simulations by using information gleaned from TPS and/or MIS systems.  In some cases they could possibly use information from competing organizations or various vendors.  They take all the data to give information for proposed projects or analysis by means of reports, forecasts and even graphs.  Some possible examples of DSS systems are logistical systems or financial planning systems.

 

DSS systems are frequently used to back up projected paths that might not be the most sound as they have the ability to analyze data and make models.  Their primary focus is with predicting trends and outcomes.  For companies who are on the cutting edge of new products or new markets this would be a very important information system to utilize.

Part 1 - The Managerial Level of Information Systems: Management Information Systems (MIS)

As there are two types of systems in the managerial level of information systems, this particular entry will review the more common of the two systems, the Management Information System or (MIS).  MIS systems are typically utilized by middle-managers in the facilitation of less intensive projects.  The information is reviewed to determine how well the organization is performing as compared to previous reports.

In addition to data pulled from standard organizational data, the final data is built from information that has been input into TPS systems as discussed in a previous blog.  All of this information is pulled together and sorted, depending on what type of information is needed, and then summarized into different types of output reports.  These reports can be informational or directional depending on the request.  Some examples of MIS systems might be systems to do with sales, inventory control, budgeting and even personnel systems.

Even though MIS systems have a fairly wide variety of areas in which they deal with, they can be inflexible and are not able to analyze like the DSS systems which we will review next.  The information handled by MIS systems is from past and current performance based on information retrieved from within the company.  Basically, MIS systems are great at telling you where you are and where you have been, but not necessarily where you are going.
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The Operational Level of Information Systems: Transaction Processing System (TPS)

A transaction Processing System or TPS is at the lower level of the pyramid model are generally data processing systems utilized by operational staff.  Occasionally supervisory staff will also operate these systems, but generally the operational staff are those that are on the front line of the day-to-day business operations. 

Utilizing TPS systems, staff input data such as customer or vendor transactions, data such as sales or coupons, pricing, mark-ups or depending on the organization, events and time-frames.  Some examples of how TPS systems can be used is in processing payroll, customer orders, reserving rooms or even payment of invoices.  This resulting data can be sorted, merged, calculated, or reported depending on what information is needed.  The information can be compiled into simple lists or detailed reports. 

This basic information is important for the rest of the company and is used for the purpose of providing information to upper level management to see how an organization is performing.  The efficiency of the structure can also be determined by the data gleaned.  TPS systems are very valuable in tracking multiple areas of organizations and are used by the majority of companies today in some form or fashion.  There are many options to choose from, just be sure to do the research to see which one is the best for you.

The Three Levels of Information Systems: A basic comparison

The different types of information systems are divided and classified according to their level in the organization and can be visualized in that of a pyramid model (see illustration).  Each system level focuses on the type of data and how it is to be used within the organization.  Starting with this entry and the next four, these levels will be briefly discussed as to their basic function, some examples of systems and their possible role within the system level.  The levels that will be discussed are, from bottom to top, the Operational level, Managerial level and Strategic level.

The base of the pyramid, the Operational level, the information a system is a Transactional Processing System (TPS) generally focused on data processing and is used by lower level employees as well as some supervisory levels.  At the middle of the pyramid is the Managerial (Tactical) level system which is comprised of Management Information Systems (MIS) and Decision Support Systems (DSS).  These generally focus on gleaning information for short term to medium term projects by evaluating the organizations performance.  Lastly, at the top of the pyramid, the Strategic levels use Executive Support Systems (ESS) and can also be termed Executive Information Systems (EIS).  These are executive and senior management level systems that allow for the analyzation of how the organization is operating giving the users to evaluate the past performance and plan for the future.

The next four entries will go into more detail in each type of system.  Most organizations today utilize at least one of the types of information systems that will be discussed.  You may already recognize some that you use in your current position or even be familiar with others that are also being used.  If you are not currently using any of these, then perhaps you will recognize a need for such a system within your organization.  With thorough research, you will be able to find the system that is best suited to the needs of your organization.  Hopefully the basic information contained within this blog series will assist you in your search.