Transactional Level in Information System

A company is consisted into many levels based on the working area and its role. Its level is mostly distinguished by operational and managerial level. In managerial level, their role is to make a decision based on the data that has been processed in operational level and becomes useful information for management. More specific, the company is consisted in transactional, operational, tactical and strategic level. In these levels information is transferred, analyzed and used to make a decision. However, in the big companies where they have an hundred of employee, they need an information system to manage the information and information technology as an infrastructure to make information system work in a company.

A modern company that has been computerized its information system may use transactional information system, management information system, decision support system and executive information system. Transactional information system is in the lowest level where executive information system is used by the top management in a company. These information systems help company to collect, gather, analyze and report the information from lowest level to the highest. The information is processed by computer and the software. The quality and accuracy of the information is depended on transactional level because that is the place where the raw data is being input and later will be used for important decision making. However, a company or management may not give a good attention to appreciate the employee that working in this level and this will affect the quality and accuracy of information that will be used for decision making in management or executive level.

Employee in transactional level may have a low education level and easily bored by inputting data everyday. That is one of the main problems that occur in transactional level. This is management responsibility to solve these problems because the information that comes from the database should be accurate and reliable. Management should provide the better incentive mechanism and understand what they need by communicating with theme more intense. This explain how communication is needed among the management and operational level even a modern company now actively using computers as a medium of any company activities.

After we understand how important data is collected in transactional level now another important aspect in information system is in decision support system, the information system that helps the management to take the best decision for company performance. DSS is classified into 5 classes such as a model-driven DSS, a communication-driven DSS, a data-driven DSS, a document-driven DSS, and knowledge-driven DSS. Those classes provide management particular information needed for decision making activities done by management.

The information system and information technology is a backbone for a modern company because they enable company to use information efficiently and effectively. A company should see them as an investment that in a long-term will give a sustainable competitive advantage to compete in business world today. It also indicates why company now begin to open the Chief Information Officer position as the one who responsible of information process and support management in decision making activities.

Reference
Indrajit. Richardus Eko. Manajemen Sistem Informasi dan Teknologi Informasi. E-Book.