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Information systems are structured combinations of people, procedures, data, software, hardware, and networks that work together to collect, process, store, and distribute information to support decision-making, coordination, control, analysis, and visualization in organizations. Over time, several models of information systems have been developed to explain how information flows within an organization and how it supports various managerial levels and functions. One of the most widely used models is the Transaction Processing System. This model focuses on recording and processing routine, day-to-day business transactions such as sales, purchases, payroll, inventory control, and billing. Transaction Processing Systems operate at the operational level of management and emphasize speed, accuracy, reliability, and efficiency. They form the foundation of other information systems because the data generated by them is used by higher-level systems. Another important model is the Management Information System. This system uses data collected from transaction processing systems and summarizes it into meaningful reports for middle-level management. Management Information Systems focus on structured decision-making and provide periodic reports, such as weekly sales summaries, monthly production reports, and budget statements. The primary objective of this model is to help managers plan, control, and monitor organizational performance. It emphasizes internal data, standardized procedures, and routine reporting formats. Decision Support Systems represent another major model of information systems. These systems are designed to assist managers in making semi-structured and unstructured decisions. Unlike Management Information Systems, Decision Support Systems are interactive and flexible. They combine data, analytical models, and user-friendly software to allow managers to explore different scenarios, perform “what-if” analyses, and evaluate alternative courses of action. Decision Support Systems are especially useful in complex decision-making situations such as forecasting, resource allocation, pricing strategies, and investment analysis. Executive Information Systems, also known as ____ ______ ___ _____ ____ _______ ____ _____ __________ ________ __________ ______.
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