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AbstractThis paper examines Information Systems (IS) within the context of the modern organization and the wider environment. It first describes their types, applications, and the environmental implications of their widespread use and also discusses the specific functions and users of various IS, including Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision Support Systems (DSS), Executive Information Systems (EIS), Expert Systems (ES), and Office Automation Systems (OAS). In addition, it classifies IS into operational-level, management-level, and strategic-level systems to explain their significance in facilitating day-to-day operations, supporting managerial decision-making, and informing strategic planning processes. Finally, it examines the environmental impact of IS, particularly the challenges posed by energy consumption, electronic waste (e-waste), resource depletion, and carbon emissions associated with the life cycle of information and communication technology products and services. Solutions to these challenges focus on sustainable practices in the development, deployment, and disposal of IS.

Keywords: Information Systems, Environmental Impact, Organizational Efficiency, Decision Support Systems.

What is an Information System (IS)?An Information System (IS) is an organized system for the collection, organization, storage, and communication of information (Stair et al., 2015). More precisely, it is the study of complementary networks that people and organizations use to collect, filter, process, create, and distribute data (Salama & Bachr, 2019). A complete IS includes four key components—people, processes, data, and technology (Al-Shammari, 2009). People are the end-users who interact with the information system. Processes are the methods and procedures that describe how data is processed and used in the system. Data consists of the raw data captured by the system, which is processed into useful information. Technology refers to the hardware and software used to capture, store, process, and disseminate information. These components work together to help organizations achieve their objectives by providing managers and other decision-makers with precise, timely, and relevant information.

Why Learn about IS?In today’s modern, digital era, IS are essential in nearly all aspects of society and business operations, from managing day-to-day transactions to informing strategic decisions. Understanding IS enables one to grasp how society in general and organizations in particular use technology to achieve desirable outcomes. Learning about IS also gives people more knowledge to interact with and use data effectively, which can help them in decision-making processes. A good understanding of IS means one has a sense of how data can be transformed into valuable information and insight. For someone interested in strategic planning or making operational improvements, knowing about IS means being firmly grounded in the reality of today’s technologically-driven world (Stair et al., 2015).

IS knowledge helps individuals understand how technology can create competitive advantages. Because it assists in automating operations and improving decision-making, IS can help businesses differentiate themselves in the marketplace. As technology advances, an understanding of IS helps people remain adaptable and fluent in the use of new technologies as well as in the marketplace of ideas. IS also bridges the gap between business and technology, incorporating principles from fields such as management, operations, and computer science. This interdisciplinary nature makes IS knowledge valuable for understanding how different parts of an organization can integrate and function cohesively.

Practically speaking, knowledge about the field of information systems also offers diverse career opportunities. From systems analysis and design to IT project management, understanding IS principles is crucial for anyone pursuing a career in technology or any field where technology plays a critical role.

6 Major Types of IS: Who Uses Them and HowTransaction Processing Systems (TPS)Transaction Processing Systems (TPS) serve as the operational backbone for a wide array of organizations, by streamlining the execution of daily transactions that include sales, receipts, deposits, payroll, and inventory management among others (Rainer et al., 2020). These systems are engineered for both speed and reliability, so as to support the smooth operation of an organization's day-to-day activities. Because they can automate routine tasks, TPS improve operational efficiency and free up human resources to focus on some of the more complicated tasks and decision-making processes.

In the retail sector, both small stores and multinational chains rely on TPS to manage everything from sales transactions to inventory levels, and customer data. The technology underpinning cash registers, point-of-sale (POS) systems, and online checkout systems exemplifies TPS in action, facilitating swift and accurate transaction processing. Similarly, financial institutions such as banks and financial services companies depend on TPS for the processing of deposits, withdrawals, transfers, and payments. The operation of automated teller machines (ATMs), online banking platforms, and credit card processing systems are all contingent on the robust capabilities of TPS (Rainer et al., 2020).

Manufacturing companies leverage TPS to keep track of orders, monitor inventory, manage procurement processes, and oversee production schedules, in support of the efficient movement of materials and products through the supply chain. In the realm of healthcare, TPS are indispensable for managing patient records, processing billing information, and handling insurance claims, thereby guaranteeing that healthcare operations proceed without a hitch. Government agencies also benefit from TPS, utilizing them for a range of functions including tax collection, license renewals, and the disbursement of benefits.

The use of TPS across these various sectors underscores their versatility and critical role in the operational efficiency of modern organizations. TPS aids in the maintenance of accuracy and security of data as it assists in handling sales transactions, financial processing, inventory management, payroll systems, order processing, and record-keeping. In doing so, it also supports regulatory compliance and improves service delivery, thus contributing to customer satisfaction and the effectiveness of organizational operations. The automation of routine transactions thanks to TPS helps organizations to allocate their human resources to more strategic tasks (Stair et al., 2015).

Management Information Systems (MIS)Management Information Systems (MIS) aid modern organizations by synthesizing data to generate reports in support of management tasks. These systems are tailored to produce a spectrum of reports, from routine operational summaries to intricate analyses aimed at facilitating strategic decisions. MIS are very instrumental for middle managers, as they help them to monitor, control, and optimize business processes within their domain of responsibility (Rainer et al., 2020).

Middle managers across various departments and sectors rely on MIS to navigate the complexities of organizational operations. These individuals, responsible for bridging the gap between the strategic directives set by upper management and the operational activities carried out by front-line employees, use MIS to gather actionable insights. Whether it's in finance, operations, marketing, human resources, or production, MIS provide the necessary tools to assess performance, identify trends, and make informed decisions (Kavanagh & Johnson, 2017). In finance, for example, MIS help managers track budget allocations, monitor spending, and forecast future financial needs, to protect the organization's financial health and stability. Operations managers use MIS to streamline processes, manage supply chains, and enhance efficiency, thereby improving productivity and reducing costs. In marketing, MIS enable the analysis of market trends, customer behaviors, and campaign effectiveness, facilitating the development of targeted marketing strategies. Human resources managers like to use MIS to track employee performance, manage recruitment processes, and develop training programs.

MIS are also beneficial in strategic planning and problem-solving. As they can give detailed analyses and create predictive models, MIS allow managers to anticipate challenges, identify opportunities, and devise strategies for growth and improvement. They assist in the simulation of various scenarios, which in turn helps managers evaluate the potential outcomes of different decisions and choose the path that best aligns with the organization's goals. Moreover, MIS can improve communication and collaboration within the organization by creating a centralized platform for sharing information, so that all managers are working with the same data and aligning their efforts towards common objectives (Kavanagh & Johnson, 2017). Decision Support Systems (DSS)DSS are interactive, software-based systems that provide support in decision-making processes, especially in situations where problems are not well-structured and solutions are not readily apparent. These systems are engineered to assist managers across various levels by offering advanced analytical tools and modeling techniques. DSS are adept at handling complex data sets, enabling the analysis and simulation of different scenarios, which can help in forecasting outcomes and assessing the impact of various decisions (Rainer et al., 2020).

The users of DSS span a wide range, from mid-level management to top executives, essentially anyone involved in the decision-making process who faces complex problems without clear-cut solutions. For instance, a marketing manager might use a DSS to evaluate the potential impact of different advertising campaigns based on historical sales data and market research. Similarly, a supply chain manager might employ a DSS to optimize inventory levels by analyzing patterns of demand and supplier performance.

DSS facilitate a collaborative decision-making process by allowing the integration of data from various sources and enabling the sharing of insights and forecasts. They support the evaluation of alternatives and the exploration of future scenarios, helping managers to make more informed, data-driven decisions (Rainer et al., 2020).

Executive Information Systems (EIS)EIS, on the other hand, are tailored for senior executives and are designed to provide a holistic view of an organization's performance through dashboards and data visualizations. These systems aggregate data from across the organization to present high-level metrics and key performance indicators (KPIs) that are critical for strategic planning and decision-making. EIS focus on the future, incorporating trend analysis, drill-down capabilities, and forecasting tools to assist executives in navigating the strategic direction of the organization (Kavanagh & Johnson, 2017). Senior executives, including CEOs, CFOs, and other C-suite leaders, use EIS to stay informed about the organization's performance and to identify opportunities and challenges. For example, a CEO might use an EIS to monitor overall company performance against strategic goals, drilling down into specific areas like revenue growth, operational costs, and market share. This at-a-glance view enables executives to quickly assess the health of the organization, make strategic decisions, and allocate resources effectively.

EIS are instrumental in supporting the strategic decision-making process at the highest levels of management. They provide executives with the tools to analyze trends, monitor critical metrics, and forecast future performance, all of which are essential for guiding the organization towards its long-term objectives (Stair et al., 2015).

Expert Systems (ES)Expert Systems are a form of artificial intelligence that simulates the judgment and behavior of a human or an organization that has expert knowledge and experience in a particular field. These systems are developed by integrating the knowledge of experts into a set of rules that guide decision-making processes, offering advice or recommendations accordingly. They are particularly beneficial in fields that require a high degree of specialized knowledge, such as medical diagnosis, where an ES can assist doctors by providing second opinions and diagnosing based on symptoms and medical data (Rainer et al., 2020).

In engineering, ES can optimize design processes and troubleshoot issues by applying the deep, specialized knowledge embedded within them. In finance, they aid in investment decisions, risk assessment, and fraud detection by analyzing vast amounts of financial data against known patterns and rules. The core advantage of ES lies in their ability to provide consistent, high-quality advice and to make knowledge accessible to non-experts, thereby amplifying the decision-making capabilities within organizations.

Users of Expert Systems include professionals seeking to augment their expertise with deep, domain-specific knowledge and insights. These systems are designed to extend the cognitive capabilities of individuals in complex decision-making scenarios, so that decisions are informed by a comprehensive understanding of the subject matter, even when direct human expert involvement is not feasible (Kavanagh & Johnson, 2017). Office Automation Systems (OAS)Office Automation Systems focus on improving the efficiency of office tasks and workflows. OAS encompass a broad range of software and hardware solutions designed to automate and optimize administrative duties, thereby reducing manual labor and streamlining operations. These systems facilitate a variety of office functions, including document management, scheduling, email communications, and data management (Stair et al., 2015).

Through the automating of routine tasks, OAS free up employees to focus on more strategic and creative work, enhancing productivity and reducing the likelihood of errors. For example, document management systems make sure that files are stored systematically, making retrieval easy and efficient. Similarly, scheduling systems automate appointment and meeting planning, while email management systems help organize communications, so that information flows smoothly within and outside the organization (Rainer et al., 2020).

OAS are used across all levels of an organization, from entry-level employees to senior executives, aiding in the efficient execution of daily tasks. The universal applicability of OAS makes them an indispensable part of modern office environments, facilitating seamless operations and communication.

Information System ApplicationsIS applications can be categorized into three distinct types based on the level of operations they support within an organization: operational-level systems, management-level systems, and strategic-level systems. Each type can support the organization's hierarchy and decision-making processes, from day-to-day operations to long-term strategic planning.

Operational-Level SystemsOperational-level systems are designed to support transactional and day-to-day operational activities within an organization. These systems manage and automate routine tasks, facilitating the efficient execution of short-term processes that are essential for the smooth functioning of various departments. For example, in the context of a manufacturing company, operational-level systems might include order tracking systems, inventory control systems, and assembly line scheduling systems. In retail, they encompass point-of-sale (POS) systems and customer relationship management (CRM) systems that handle sales transactions and customer interactions (Rainer et al., 2020).

The primary users of operational-level systems are frontline employees and supervisors who require real-time data to perform their duties effectively. These systems are characterized by their high volume of transactions, which are typically simple and repetitive. The goal of operational-level systems is to increase efficiency, ensure accuracy in transactions, and provide a foundation for higher-level decision-making processes.

Management-Level SystemsManagement-level systems are intended to serve the informational needs of middle managers and department heads, providing them with tools to monitor, control, and plan the operations under their purview. These systems aggregate data from operational-level systems and apply analytical processes to support tactical decision-making. Management-level systems include Management Information Systems (MIS), which generate reports on the organization's current performance, and Decision Support Systems (DSS), which offer analytical tools and modeling capabilities to assist in solving more complex problems.

The focus of management-level systems is on the medium term, facilitating resource allocation, performance analysis, and operational planning. They help managers identify issues, analyze trends, and make informed decisions to optimize departmental performance and align with organizational objectives (Rainer et al., 2020).

Strategic-Level SystemsStrategic-level systems are designed to support senior management and executives in the formulation of long-term strategies and organizational goals. These systems provide a high-level view of the organization's performance and its environment, offering insights into long-term trends, opportunities, and threats. Executive Information Systems (EIS) and strategic planning systems fall into this category, providing dashboards and visualization tools that summarize key performance indicators (KPIs), financial metrics, and market data (Rainer et al., 2020).

Strategic-level systems enable top executives to perform long-range planning, make strategic decisions, and assess the potential impact of those decisions on the organization's future. They are characterized by their ability to integrate internal and external data, facilitating a comprehensive analysis of the organization's strategic positioning.

Negative Effects on the EnvironmentIS can have negative impacts on the environment. These impacts are primarily due to the energy consumption, resource use, and waste associated with the lifecycle of information and communication technology (ICT) products and services. Understanding these environmental challenges is essential for developing more sustainable practices and technologies.

One of the most significant environmental impacts of information systems is the energy consumed by the devices and infrastructure that support them, including servers, data centers, and network devices. Data centers, in particular, are intensive energy consumers due to the need to power and cool a large number of servers 24/7. The global digital ecosystem's energy demand contributes to the consumption of fossil fuels, resulting in greenhouse gas (GHG) emissions that drive climate change (Olah et al., 2020).

The rapid pace of technological advancement and the consequent obsolescence of electronic devices contribute to a significant amount of electronic waste, or e-waste. This includes discarded computers, smartphones, tablets, and other electronic components that are integral to information systems. E-waste often contains hazardous materials, such as lead, mercury, and cadmium, which can leach into the soil and water, posing health risks to humans and wildlife. Proper disposal and recycling of e-waste remain significant challenges (Rainer et al., 2020).

The manufacturing of electronic devices and infrastructure for information systems requires a substantial amount of non-renewable resources, including precious metals like gold, silver, and platinum, as well as rare earth elements. The extraction and processing of these materials have environmental impacts, including habitat destruction, water pollution, and the depletion of finite resources. Plus, electronic devices and systems generate heat, which can contribute to the urban heat island effect in densely populated areas. This increases the demand for cooling energy in buildings and affects local ecosystems and biodiversity (Olah et al., 2020).

Addressing the environmental impact of information systems involves adopting more sustainable practices, such as improving energy efficiency in data centers, extending the lifespan of electronic devices, and enhancing recycling and waste management processes. Developing more energy-efficient computing technologies, promoting the use of renewable energy sources, and encouraging responsible consumption and e-waste recycling are important steps toward reducing the negative environmental impacts of information systems.

ConclusionIn conclusion, IS cater to specific operational, managerial, or strategic needs. The classification into operational-level systems, management-level systems, and strategic-level systems reveals the hierarchical importance of IS in facilitating day-to-day transactions, tactical management, and long-term strategic planning. However, some consideration should be given to the environmental repercussions of IS, characterized by significant energy consumption, e-waste generation, resource depletion, and carbon emissions, pose substantial challenges. These negative impacts can be addressed by sustainable practices in the development, deployment, and disposal of IS.

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