What are 3 levels of information systems?

levels of information

Levels of Information:- Information is processed form of data i.e. data that have been processed and shaped into a form that is meaningful to its users is known as information.

Davis and Olson have defined information as “ Data that has been processed into a from that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions”.

Information is derived from data. For example, volume of the room is the information which can be derived from the data by using the formula

                     Volume=length x Breadth x Height

It is the main activity of the computer to process data produce useful information.

There are three levels of information systems:

  1. Strategic information
  2. Tactical information
  3. Operational information

 

  1. Strategic information

This level of information is needed for long range planning policies and deciding the business should take.

Strategic information is used by the top management to make plans for the organization and to ensure that the business objectives are organization and to ensure that the business objectives are achieved with the help of a system called Executive Support System.

For example, information like population growth would be of interest to the top management which is responsible for determining long range goals.

Strategic information is concerned with long term organization planning and is helpful in taking decisions that are unstructured and are made less frequently.

Strategic information is concerned with long term organization planning and is helpful in taking decisions that are unstructured and are made less frequently.

Strategic information may be used by managers to find sources of funds for carrying planned future projects. Another application of strategic information could be a decision taken to move to a new market.

 

  1. Tactical information

Tactical information is used in making short rang decisions to run the business efficiently.

For example, sales analysis, annual financial statements are used for short range planning i.e. for months rather than years.

Tactical information is used by the middle management for ensuring that the resources are used for allocating resources and establishing controls in order to excute or implement the plans made by top level management.

Tactical information is usually used for the decision making at middle management level with the help of a system called decision Support System.

 

  1. Operational information

Operational information is required for short term daily operations of a business organization.

It includes the information related to day to day details of the business. For example, daily absent information of employees and current stock available for sales.

Operational information is used by lower level management\mangers to ensure that assigned tasks are planned and carried out properly in the business organization.

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