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Use of Information System in Business:

Information systems perform three vital roles in any type of organization.They support business operations, guide managerial decision-making, and provide strategic and competitive advantage to the organization. Information requirements differ and depend on the various levels in the organization. Both information and organizational hierarchy are related to each other. Diagram depicts the relationship between information and organizational hierarchy.

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Information at various organization level

Under the hierarchical classification of an organization, there are three levels namely, the operational, tactical, and strategic levels. The nature of decisions made differ from one level to another. Therefore, the information requirements also differ from one level to another.

At the operational level, a large quantity of data needs to be processed. This data is usually generated by business transactions with the customers, suppliers, etc.


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