Information systems for businesses

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Introduction

Organizations strive to be market leaders in their particular industries.  The factors that may affect the competitiveness of business include the inflationary pressures and recession which hinder the organization from achieving its set goals and objectives.  For an organization to counteract such factors and achieve its goals and objectives, it has to adopt the information systems within the firm.  The information system is significant to an organization because it allows it to make adequate use of the required data, reduce workload and also assist it in complying with the rules and regulations that which are significant for an organization. Some organizations have been found that they are not in the position to manage their information and data since they are using the manual way of managing such information and data. However, with the adoption of the information system, organizations can be in the position to make and utilize comprehensive and sophisticated databases that will, in turn, see the organization being competitive in the market.  Information systems are significant to the organization because it can store, update and even analyze the information which allows the firm to solve the problems which are pertinent to the organization (Ardagna, 2012, P.56). Furthermore, the information system is also crucial because it can integrate various sources from either inside and outside the organization and thus ensure that the organization manages its internal and external opportunities and threats. Furthermore, it is through the information system that the organization will be in the position to make important decisions that assist it efficiently make its long-term strategic plans.  Through the information system, the organization will be in the position to formulate the strategic plans and make appropriate decisions for the prosperity of the organization. The paper investigates the role of information system in organizations, different types of information systems that an organization can adopt and how the integration of various systems can produce more accurate and targeted information regarding the customers, suppliers and competitors.

An organization information system refers to any system for the collection, organization, storage and the communication the information within and outside the organization.  Ideally, information system refers to the networks which are used by the organization to collect, filter, and process and undertake data distribution. The aim of an organization information system is to manage and business operations which in turn results in the proper decision making. Different types of information systems which are adopted by the organization are important because it assists the employees and the management to carry out their organizational activities in a well-coordinated manner (Rivard et.al, 2009, P.83). The types of information system adopted by an organization are significant for ensuring the collaboration and also come up with changes that will improve the operations of the organization. Furthermore, it is through the information system that the organization will be in the position to organize and operate its activities in a systemic way and thus achieve the goals and objectives.

Aims and Objectives

  • To identify and discuss different types of the systems of an organization
  • To discuss the significance of the information systems in the organization
  • To identify and discuss the importance of integrating different types of information within the organization.

Types of Organizational Information System

Organizational information systems consist of the interrelated components which are used for collection, processing, storage and distribution of information to support the decision-making and ensure the control of business operations. It is the organizational and management solutions which are brought about by well-coordinated technology for managing operations within and outside the organization (Sarngadharan & Minimol, 2010, P.32). An information system is important because it interrelates with the data system to produce better results in the company.  Because it is a form of communication system, the data presented and managed through such a system is accurate and up to date.

Furthermore, it can be a semi-formal language which is important for supporting the human decisions and also the actions. There are different types of information systems which can be used by an organization. They include the decision support systems, the transaction processing systems, executive information systems, the decision support systems, the management information systems and the transaction processing systems. These various types of systems are used by an organization to support various levels of management and the activities found in such levels of management as depicted by the diagram below (Ardagna, 2012, P.79).

These types of information are important for the organization because it enables it to effectively undertake its activities in various levels.

The Transaction Processing Systems

Transaction information system refers to the operational systems which are found at the bottom of the pyramid. These systems are usually operated by the front line staff. The systems are important to them because they provide significant data which are required for supporting and managing the data at such levels.  The system obtains the data through the semi-automated or the automated tracking of low-level information and activities.  They are simple systems which are used for management of the information at the lowest levels of the management.  The main roles of the transaction information system in an organization include the validation of data (Salazar & Sawyer, 2007, P.67).

The TPS allow the organization to validate data in the lower level management of the organization. Furthermore, the TPS also enables the sorting of information in the lower level management of the organization which then allows it to list the activities and how such activities are performed and maintained in such levels of management.  The TPS can also enable the organization to merge the activities found in the lower level management to produce good results for the betterment of the organization (Oz, 2000, P. 88).  It is through the TPS that an organization will be in the position to calculate and update the operations found in the lower level management.  This, in turn, will allow the team to summarize and present the reports.  The examples of the transactions processing systems found in the organization include the:

  • Payroll systems which are used for managing the worker’s payroll
  • Order processing systems which are used for managing the orders within the company
  • Stock control system which is used for managing the organizational stock
  • Systems for fund transfers and payments that manages the payment of organization goods and services.

Management Information System

Management information systems refer to the information systems which are found at the middle level of the organization.  This type of information system is used by the middle-level managers to undertake the activities found in that level smoothly.  When an organization has highly structured information system on the middle level, it is in the position to evaluate the organization’s performance through the comparison of the previous outputs with the current organizational output. They management information system are used by the middle-level managers to undertake the internal transactions by effectively sorting the files and summarizing the reports found in such files.  Furthermore, the MIS are important to the organization because they assist in the structuring of the information and ensuring that the information found in the organization’s middle level is up to date (Oz, 2000, P. 102). Through the MIS, the middle-level managers are in the position to organize the business transactions to produce a well-coordinated plan. The plan ensures that the organization gets the information from the employees found in the organization’s middle level and turn make quality decisions that will improve the company.  The detailed reports that are achieved through the use of MIS are significant for ensuring that the organization gets well equipped and coordinated managers who will add value to the organization. The examples of systems regarding the MIS include:

  • Sales management system which is used for collecting, recording and controlling information relating to the organization’s sales transactions.
  • Inventory control systems is a type of information system which is used for controlling the organization’s inventory and the activities relating to the control systems.
  • Management reporting systems are used by the middle level management to collect and report information which is aimed at improving the overall decision making.
  • Personnel (HRM) systems are systems which are used for making sure that the organization has the right personnel, record and manage the information relating to the organizational employees (Sarngadharan & Minimol, 2010, P. 46).

The MIS is significant because it ensures that the organization has smooth internal information flow and thus business activities of the organization are significantly improved.  The MIS is also significant to the organization because it supports the making of relatively structured decisions.  They can be used by both the lower and middle-level managers while making the decisions to improve the organization.  Since the MIS are efficiency oriented, they can be used to improve the efficiency within the organization and thus the timely provision of goods and services to the customers is guaranteed.

Decision Support System

Decision support system refers to the organization’s knowledge based systems which are used by the senior level managers.  The decisions support system is significant to the organization because it facilitates the creation of knowledge and enables the integration of such knowledge into the organization. The organization often utilize the DSS to analyze the existing structured information and enable the managers in the projection of the potential effects of the decisions they make into the future growth of the organization.  The DSS are important and are used for the provision of solutions to the structured problems.  The DSS can be used by the organization to access the databases and can also be used as analytic tools which answer the “if” questions of the organization (Tozer, 1999, P.78).  The organization can use them to simulate the answers to such kind of questions and also used for exchanging important information within the organization. The DSS is important for such transactions as internal transactions and managing of external information.  Examples of the DSS used by the organization include the:

  • Group decision support systems (GDSS)
  • Computer supported co-operative work (CSCW)
  • Logistics systems
  • Financial planning systems
  • Spreadsheet models.

By utilizing the DSS, the organization can be in the position to support both the semi-structured and also the structured decisions (Sarngadharan & Minimol, 2010, P.71). They can also be used by the organization for modeling capacity and undertake the analytical work.  Through the DSS, the senior level managers can be in the position to provide solutions to pertinent problems with the organization.

Executive Information Systems

These are the strategic-level information systems which are normally found at the organization’s top level.  This type of information system assist the senior level managers and executives in the analysis of the organizational environment and thus lead to the identification of long-term trends and eventually come up with the appropriate course of actions. The type of information system comes from both the external and internal sources. They are majorly designed to be executed directly by the executives without necessarily requiring the assistance of the intermediaries which are tailored for the quality improve the goods and services offered by the organization (Sarngadharan & Minimol, 2010, P.59). The EIS are used for supporting and extending the inherent capabilities of the senior level executives. It is known that the IES tend to be highly individualized and often establish to target particular groups of the organization’s clients.  They are important because they can be used by the organization to predict the future and produce highly flexible decisions which address the organizations problems.

Importance of Integrating Different Types of Information Systems by an Organization

When the organization integrates the different types of the information systems, it will be in the position to improve the overall organizational performance. The integration of various information systems is important to the organization it offers various advantages to the users ranging from the bottom level staff to the top level executives Tozer, 1999, P.123). Furthermore, the integration also enables the organization to provide quality goods and services to the clients.  Additionally, the decisions made by the organization can also be greatly improved if the company integrates the information systems in all the levels of the organization.

The integration of the decision support systems, the transaction processing systems, executive information systems, the decision support systems, the management information systems and the transaction processing systems enables the organization to acquire more accurate and targeted information regarding the suppliers, customers, markets, clients and the competitors.

Through the integrated information system, the organization will be in the position to get the data regarding the number of customers consuming the organization’s goods and services. It can also enable it to have accurate data regarding the customer response on how to improve the quality of the goods offered by the organization. Thus, the company will utilize such information to improve the services offered and eventually gain a competitive advantage in the market.

The integration of information is also important because it allows it to collect and analyze the information regarding the strategies used by the competitors in the market and thus strategize on how best it can offer quality goods and services for counteracting such competition. The data collecting from the market is significant because it enables the organization to have up to date information regarding the gap in the market and thus fill such a gap.

An integrated information system is important to the organization because it supports the business processes and operations. For example, in a hotel that has integrated information system, the hotel will be in the position to check the customer feedbacks regarding the ins and also check outs (Rivard et.al, 2009). These processes are carried out through integrated information system and thus make work easier, unlike a company that uses traditional methods. Furthermore, the integrated information system can allow the customers to make bookings on the website of the organization.

The integrated information system in the organization is also significant because it enables the employees and managers of the organization make well-informed decisions.  This is achieved because the information system has the ability and capability to analyze the data which has been collected from both the internal and external sources of useful information which are significant to the employees and managers to make decisions (Stahl, 2004, P.87). Decision making is crucial to the organization and forms an integral part of management and thus integrated information system will enable the company to make informed decisions with grounded evidence. It is known that decisions are better made when the accurate information is available.

Furthermore, with the use of integrated information systems, the organization will be in the position to better understand the suppliers. The system will enable the organization to collect data regarding various suppliers and what such suppliers provide to the company. Additionally, it also allows for the prompt payment of the suppliers, and this improves the relationship between the suppliers and the company.

Conclusion and Recommendations

Conclusion

Conclusively, information system refers to any system for the collection, organization, storage and the communication the information within and outside the organization.  Ideally, information system refers to the networks which are used by the organization to collect, filter, and process and undertake data distribution. Through the information system, the organization will be in the position to formulate the strategic plans and make appropriate decisions for the prosperity of the organization (Salazar & Sawyer, 2007, P.104). Information systems are significant to the organization because it can store, update and even analyze the information which allows the firm to solve the problems which are pertinent to the organization.  Furthermore, the information system is also crucial because it can integrate various sources from either inside and outside the organization and thus ensure that the organization manages its internal and external opportunities and threats.

There are different types of information systems which can be used by an organization. They include the decision support systems, the transaction processing systems, executive information systems, the decision support systems, the management information systems and the transaction processing systems. The decision support system is used by the organization to make informed decisions. They assist both the senior level managers and the executives.  It provides and analyzes significant data that is used for improving the organs of the decisions within the company.  Furthermore, the management information system enables the company to collect and analyze data for proper decision making. Furthermore, the MIS are important to the organization because they assist in the structuring of the information and ensuring that the information found in the organization’s middle level is up to date. Through the MIS, the middle-level managers are in the position to organize the business transactions to produce a well-coordinated plan. The transaction processing system enables the organization to smoothly undertake the lower level transactions (Oz, 2000, P.91). The executive information systems are used for supporting and extending the inherent capabilities of the senior level executives. It is known that the IES tend to be highly individualized and often establish to target particular groups of the organization’s clients. When the organization integrates various types of the information system, its performance improves. An integrated information system is important for ensuring that the organization acquires important data regarding the customers and how they can best be served by the company.

Integrated information system allows the company to have accurate and targeted data regarding the suppliers, competitors, and the market environments. This will, in turn, enable the organization to make a well informed decision which is geared towards the performance improvement. Decision making is crucial to the organization and forms an integral part of management and thus integrated information system will enable the company to make informed decisions with grounded evidence. It is known that decisions are better made when the accurate information is available.

Recommendations

For an organization which aspires to its strategic goals and objectives, it should be in the position to adopt information system within the organization. An information system is important because it allows the organization has accurate and well-informed data. The data can then be utilized for making proper decisions in the organization that will improve performance and allow the organization to realize growth and expansion. The organization can implement the following recommendations for successful adoption of the information system.

  • The organization should ensure that it has well information employees regarding the information system. It can achieve this by training all the employees the importance of information system and how to use them.
  • The organization should have proper functioning tools such as the computers, and power is also needed.
  • The top level managers should support the introduction an information system into the organization as they are major decision makers in the organization.
  • The organization also has to install the internet in all the departments of the organization to allow it successfully have integrated information systems in all the departments of the company.

Did you like this sample?
  1. Alter, S. (2002). Information systems: Foundation of e-business. Upper Saddle River, NJ: Prentice Hall.
  2. Ardagna, C. A. (2012). Business system management and engineering: From open issues to applications. Berlin: Springer.
  3. Oz, E. (2000). Management information systems. Cambridge, MA: Course Technology.
  4. Rivard, F., Abou-Harb, G., & Meret, P. (2009). The Transverse Information System: New Solutions for Is and Business Performance. ISTE.
  5. Salazar, A., & Sawyer, S. (2007). Handbook of information technology in organizations and electronic markets. New Jersey: World Scientific.
  6. Sarngadharan, M., & Minimol, M. (2010). Management Information System. Himalaya Pub. House.
  7. Stahl, B. C. (2004). Responsible management of information systems. Hershey PA: Idea Group Pub.
  8. Tozer, G. (1999). Metadata Management for Information Control and Business Success. Artech House.
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