Types of Information Systems Used Within Business Organisations
Verified
Added on  2023/01/11
|10
|2522
|37
AI Summary
This report evaluates the different types of information systems used within business organisations, assesses how these are integrated within businesses, and analyzes the challenges faced in their incorporation.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Essay--2000words---- you will find in the brief the topic of subject
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................4 Types of Information Systems Used Within Business Organisations.........................................4 Integration of Information Systems within Business Organisations...........................................6 Challenges to Deployment of Information Systems within Business Organisations..................7 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Information systems are digitally designed sociotechnical, formal, organisational systems that are specifically designed with the intention to record, process, store and share data. Informationsystemsusedwithinbusinessorganisationsaremadeupofvariousinternal integrated components that all function together with the intention to monitor, record, store and analyse the operational data of the business organisation in order to improve its overall performance, efficiency, productivity and profitability in the consumer markets and to provide it with a sustained competitive advantage against the business’s competitors within the operational industries (Beck and et.al., 2017). Such digital information systems can enhance the operations and functions of business organisation in various ways such as dynamic management of their operations, effective interactions with their suppliers, stakeholders and customers, improving the efficiency of the various operations of the business organisation etc. Information systems can also improve upon the inter organisational supply chain operations of business organisations through real time dynamic monitoring of the operations by the business’s management and administration. Due to their wide ranging applications within business industries, business organisations can also make use of information systems in order to effectively manage their human resource operations, mass market to the consumers effectively within consumer markets andprocesstheirfinancialfunctions(DeLoneandMcLean,2016).Suchwideranging applications of information systems within business organisations effectively contributes towards informationsystemsincreasingtheoperationalperformance,efficiency,productivityand profitability of the business and providing them with a competitive advantage against their competitors within operational industries. The main aim of this report is to evaluate the different types of information systems used within business organisations, assess how these are integrated within businesses and to analyse the challenges faced, in relation to the incorporation of information systems within business organisations in the world.
MAIN BODY Types of Information Systems Used Within Business Organisations Therearevarioustypesofinformationsystemsthatareusedwithinbusiness organisations. Information systems within businesses are categorised in a pyramid form on the basis of the business’s operational levels at which these are used and the data needs of the business organisation. Figure1: Pyramid Categorising Different Types of Information Systems TransactionalProcessingSystems(TPS):TransactionalProcessingtypesofinformation systems are primarily used by employees or workers with in a business organisation, with the intention to improve and enhance their daily operations. This is why these information systems occupy the lower tier of the pyramid categorising types of information systems. TPS are traditionally used for operational record keeping purposes, as these are effectively able to store, record and share daily operational data of business organisations. After the TPS has recorded the daily operational data of the business organisation, it is able to process it and generate output in the form of reports, which can be used by the business’s management. Examples of TPS are sales order entry systems, payroll systems etc.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Management Information Systems (MIS):These are information systems that are traditionally used by the managers of a business to enhance their operational efficiency, and hence occupy the second tier of the pyramid categorisation. MIS are effectively able to enhance a business’s managerial operations as they are effectively able to monitor the various operational processes and functions of a business organisation dynamically in real time so that the management of the business organisation can identify operational processes which are operating with decreased performance or efficiency and address them (Pearlson, Saunders and Galletta, 2019). MIS take in as their input the raw data reports generated by TPS systems in order to further process them and generate valuable output based on the requirements of the business manager, in the form of aggregated summaries, reports, which are used by managers to implement operational changes. Examples of MIS include: HRM systems, Sales management systems etc. Decision Support Systems (DSS):Such information systems are used by the senior managers within business organisations and hence occupy the third tier of the pyramid categorisation. These are used by senior managers to enhance their decision making operations within the business. DSS take in as their input the output reports generated by the MIS and TPS information systems and further process them in order to generate valuable output depending on the needs and requirements of the senior managers. These are highly interactive information systems which include operational tools and models to manipulate operational data, used by senior managers of a business to enhance their decision making operations. DSS are also capable of identifying alternative strategies and options for the business’s decision making operations. Examples of DSS include bank loan systems, financial planning systems etc. Executive Information Systems (EIS):These information systems are used by the leadership and executives of a business organisation and hence is placed at the top of the pyramid categorisation (Abbasi, Sarker and Chiang, 2016). These are knowledge based systems used to analyse the external and internal environment of a business with the intention to gain insights into consumer and market trends in order to improve the productivity and profitability of the business organisation. Enterprise Resource Planning (ERP):These are management information systems used in businesses to manage the various operational processes and functions of the business such as finance, manufacturing, supply chain etc., These are able to dynamically monitor, record, store,
analyse and share operational data of various operational processes of business in order to improve the overall performance and efficiency of the business organisation. These consist of individual modules all designed to overlook the operations of a single operational process, capable of communicating with one another to improve the overall operations of the business. Integration of Information Systems within Business Organisations Enterprise Resource Planning (ERP) information system is a stand-alone information system that is itself capable of overlooking and managing all the distinct operations and functions of a business organisation, all on its own. ERP systems are used within the business organisation Tesco as these make use of specific individual modules that are specifically designed with the intention to oversee the operations of a single operational process of the business such as finance, marketing, supply chain, distribution, warehousing etc. All these separate individual modules monitor, collect and store the operational data of their specifically assigned business operations (Legner and et.al., 2017). This data is collected and stored within a central database within Tesco, which all operational modules of the Tesco’s ERP system can access at any time for their storage operations. This central database of the ERP system within Tesco also allows for its various separate operational ERP modules to communicate with each other through the central database in order to facilitate effective data sharing between the separate ERP modules. Each ERP module stores the operational data of its own designated operational process within the central database, with all other ERP modules capable of accessing thisdatafortheirownindividualoperationsandfunctionsinordertoimprovethe communications between the various operational processes of Tesco such as finance, marketing, warehousing, distribution or manufacturing and enhance their operational performance and efficiency. For example, when a Tesco customers engages in financial transaction with the retail business organisation, the ERP system stores this order information within its central database. The financial information with which the consumer paid for the goods and services are relayed to the financial modules, which Tesco’s finance department can access in order to process the financial transaction. The order information is communicated to the manufacturing modules of the ERP system, which the Tesco’s manufacturing department has access to, so that they can begin the manufacturing of the customer order. Once the order has been manufactured all details
are further communicated to the warehousing module of the Tesco’s ERP system, containing information about where the order has been stored amongst the Tesco’s warehouses. This information along with the delivery instructions provided by the customer, which is stored in the central database is further shared to the distribution modules of the Tesco’s ERP system, which its distribution department has access to (Sun, Strang and Firmin, 2017). The distribution department can make use of this information to effectively deliver to order to Tesco’s customers in an efficient and effective manner, so that Tesco can effectively satisfy their needs and requirements and gain their long term loyalty. In this way, ERP system within Tesco facilitates and improves the operations of various individual processes of Tesco and enhances the inter organisational communications with Tesco. Challenges to Deployment of Information Systems within Business Organisations There are several challenges to the effective and widespread deployment, incorporation and adoption of information systems within business organisations. The major challenges are as follows: Lack of Knowledge:As information systems come in various types and forms, one of the biggest challenges towards their effective deployment within business organisations relates to the lack of technical knowledge amongst the business organisation’s management and leadership in relation to which exact information system would be the most appropriate for their specific needs and requirements within their business organisation (Bourgeois, D.T., 2018). As the choices of information systems available to these business organisations is large, a lack of knowledge of the various information systems poses as a big challenge towards their effective deployment. Business Strategy:Another major challenge towards the effective deployment of information systems within business organisation relates to lack of effective business strategy in the use of informationsystemswithinthebusinessorganisation.Businesseswhoincorporatethe information systems into the operations and functions of their business organisation but fail to create an effective business strategy that combines the information systems with their operational objectives and goals, fail to make effective use of the information systems and the immense benefits that these provide towards effective achievement of the goals and objectives within the business strategy.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Data Security and Privacy:A major challenge towards effective deployment of information systems within business organisations relate to their data privacy and security. As these systems collect and store huge amounts of confidential and sensitive operational, financial and consumer data, business find it a challenge to store this data securely within their internal servers (Appelbaum and et.al., 2017). If this operational data is accidentally leaked or hacked into, it can immensely negative impact on the operations of the business in addition to legal litigations. CONCLUSION Based on thefindingsof the report,itcan effectivelybe concludedthat use of information systems within business organisations, has an immensely positive impact on their operational performance, efficiency, productivity and profitability in the consumer markets. Information systems also help provide business organisations with a sustained competitive advantagewithinthe operationalindustriesagainsttheir perceivedcompetitorstofurther enhance their operations and success. Various types of information systems can be used and integrated within business organisations on the basis of the specific needs and requirements of the business organisation respectively. This report initially outlines the aims to be achieved by the report and introduces the concept of information systems. Then the report evaluates the different types of information systems that are currently used within business organisations, categorising them on the basis of their operational levels at which they are made use of by the business’s employees. The report then assesses the incorporation and integration of such information systems within business organisations by making use of examples. Further the report examines the various challenges that are present towards the effective deployment of information systems within business organisations and recommends how the use of such information systems within business organisations can be further improved. Though information systems already provide businesses with numerous advantages, their incorporation and deployment within business organisations can still be further improved. Business organisations that have integrated new information systems within their organisations arerecommendedtocreateadedicatedinformationtechnologydepartmentwithintheir organisational structure, who would be responsible of overlooking and maintaining all the operations of the information systems, in order to facilitate maximum use and productivity of
information systems within the business organisations. The businesses incorporating information systems within their operations are also recommended to train and develop all their employees to makeeffectiveuseofsuchinformationsystemsinordertoimprovetheiroperational performance and efficiency.
REFERENCES Books and Journals Abbasi, A., Sarker, S. and Chiang, R.H., 2016. Big data research in information systems: Toward an inclusive research agenda.Journal of the Association for Information Systems.17(2). p.3. Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise systems on managerial accounting.International Journal of Accounting Information Systems.25. pp.29-44. Beck, R. and et.al., 2017. Blockchain technology in business and information systems research. Bourgeois, D.T., 2018. Information systems for business and beyond. DeLone, W.H. and McLean, E.R., 2016. Information systems success measurement. Foundations and Trends® in Information Systems.2(1). pp.1-116. Legner, C. and et.al., 2017. Digitalization: opportunity and challenge for the business and information systems engineering community.Business & information systems engineering.59(4). pp.301-308. Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2019.Managing and using information systems: A strategic approach. John Wiley & Sons. Sun, Z., Strang, K. and Firmin, S., 2017. Business analytics-based enterprise information systems.Journal of Computer Information Systems.57(2). pp.169-178.