Role of Information System in Organizational Management

This report focuses on the role and importance of information system in organizational management. It analyzes the impact of information system on organizational change, management, and competitive advantage. It also discusses the strategies and policies to address potential threats and vulnerabilities. Additionally, it provides insights on ethical and social considerations for strategic issues.

Running head: ROLE OF INFORMATION SYSTEM
Role of Information System
Name of student
Name of university
Author note

1ROLE OF INFORMATION SYSTEM
Executive Summary
Information system plays highly significant role in increasing the overall efficiency of an
organization. Moreover, information system increases the chances of gaining competitive
advantage of the organization by bringing and implementing new technologies. In this regard
it is also to be mentioned that an organization can be highly affected as a result of increasing
transparency and efficiency within the organizational scenario. The report hence will focus
on the various aspects along with the ethical and social consideration of the framework.

2ROLE OF INFORMATION SYSTEM
Table of Contents
Introduction................................................................................................................................4
Impact of Information System on Organizations.......................................................................4
Role of Information System on Organizational Change........................................................4
Impact of Information System on Business Managerial Roles..............................................5
Role of Information System on Competitive Advantage.......................................................6
Process used to Analyze Strategic Issues...................................................................................7
Information Security Policies and Controls to Address Potential Threats and Vulnerabilities. 9
Indiscipline amongst the Employees:.....................................................................................9
Carelessness of the Employees:.............................................................................................9
Using Mobile Devices or personal Systems to share Information:......................................10
Global Perspectives for Strategy..............................................................................................10
Ethical and Social Considerations for Strategic Issues............................................................10
Assessment of Organization’s Strengths and Limitations.......................................................11
SWOT..................................................................................................................................12
Strength:...........................................................................................................................12
Weakness:........................................................................................................................12
Opportunities:...................................................................................................................12
Threats:.............................................................................................................................13
PEST....................................................................................................................................13
Political:...........................................................................................................................13
Economic:........................................................................................................................13

3ROLE OF INFORMATION SYSTEM
Social:...............................................................................................................................14
Technological:..................................................................................................................14
Conclusion................................................................................................................................14
Reference..................................................................................................................................15

4ROLE OF INFORMATION SYSTEM
Introduction
In the present context it has been monitored that in order to gain competitive
advantages and ensure continuous growth the organizations need to keep up with the
technological advances that are taking place in the organizational fronts. In addition to this it
has also been noticed that the organizations that have effectively and efficiently implemented
information technology have been successful in managing their production in a more cost
effective manner along with being more productive while using less number of workforce
(Laudon & Laudon, 2016). In this regard, it can be said that by implementing information
system the organizations are able to work with more efficiency along with gaining
competitive advantages. The report hence will focus on the role as well as importance of
information system in the process of organizational management. In addition to this, the
report will also focus on the strategies and polices that are to taken up by adopting
information system in an organizational scenario.
Impact of Information System on Organizations
It can be monitored that by implementing an effective information system an
organization is able to establish efficient frameworks and strategies in order to increase
efficiency of the organization along with maintaining the leadership and harmonious
organizational management (Bajdor & Grabara, 2014). Moreover, it is also to be monitored
that by adopting information system in a more effective manner the organizations are able to
bring necessary changes in the organizational environment. In this regard, the impacts of
information system on organizational change, management as well as competitive advantages
are to be analyzed.

5ROLE OF INFORMATION SYSTEM
Role of Information System on Organizational Change
Information system plays an important role the organizational management. In this
regard it can also be mentioned that the by employing the information system an organization
will be able to understand the necessities of change within the organization. It also to be
mentioned that organization will be able to identify the factors that are affecting the
performance of the employees (Isberg et al., 2013). Hence by employing information system
it can be said that the managers of an organization will be able to implement direct feedback
system in order to obtain feedbacks from thee consumers. In addition to this, it can be said
that the information system enables an organization to substitute the products and services
according to the demands and needs of the customers. It is also to be mentioned that by
taking help from the information system organizations are able to increase productivity by
making technological advancements. In addition to this it is also to be mentioned that the
information system is also helpful in increasing organizational communication. It can be
understood that in order to bring organizational change, communication amongst the
employees and managers is highly important (Demir & Krajewski, 2013). Information system
hence not only helps in conveying the aims and goals of the management to the employees,
but it also helps the organization to understand the views and feedbacks of the employees
regarding the change process.
Impact of Information System on Business Managerial Roles
It has been noticed that information system creates great impact on the overall
management of the organization. It is to be noticed that the managerial functions have
effectively taken up the frameworks of information technology. In this regard it can be said
that the by adopting the information technology the management of an organization will be
able to identify the diverse needs of the organization. It has been noticed that the

6ROLE OF INFORMATION SYSTEM
organizations that have adopted management information system have been successful in
identifying the diverse needs by implementing analysis system, query and modelling system
(Höhn et al., 2014). In addition to this, it can also be noticed that the organizations that
employ information technology are becoming capable of effective and successful in the
process of decision making. In this regard, it is also to be mentioned management information
system is helpful in performing day to day planning, clerical transaction and scheduling
organizational activities. In addition to this it is also to be noticed that the management
information system is also highly effective in managing the overall production as well as
finance and marketing strategies that are effective for the organization. Moreover, it is also to
be monitored that the information technology is highly effective in bringing affectivity to the
organization functions and the overall system.
Role of Information System on Competitive Advantage
It can easily be understood that information system is to be regarded as highly
efficient in maintaining organizational affectivity and overall functioning. Along with the
process of globalization and increasing technological advancement it has been noticed that
information technology has taken highly significant role in running an organization in an
effective manner. In addition to this it can be noticed that by implementing the frameworks of
information technology an organization is able to not only function inn an effective manner,
but also gain competitive advantage over other organizations (Klukas, Chen & Pape,). By
employing the technological advancement an organization is able to outperform its rivals. In
addition to this, it has also been noticed that the process of implementing technological
advancements within an organizational scenario companies becomes capable of analyzing the
demands of the consumers along with the situation of the present market. In addition to this

7ROLE OF INFORMATION SYSTEM
information system is also plays significant role providing future strategies that can be
helpful in gaining competitive advantage over other organizations.
In this regard it is also to be mentioned that by adopting information system the
organizations will be able to implement the functions and benefits of leadership in a more
cost effective way (Shelestov et al., 2013). Many of the organizations are using information
system in their supply chain management in order to obtain direct responses from the
customers by incorporating an efficient response system.
Process used to Analyze Strategic Issues
Management information system plays an important role in the overall functioning of the
organization. It is to be mentioned that the management information system is used by the
organizations in order to ensure efficient mode of data collection. Information system helps
the process of collection of data from various sources in an effective manner (Liu, Liang &
Wang, 2016). Moreover, it has been monitored that within an organizational scenario
management information system is not only helpful in gathering relevant information for the
organization but it is helpful in fulfilling the needs of information of the individual
employees. Hence, the role of management information system can be analyzed in the
following manner;
i. In order to satisfy the needs of information of both the organization as well as the
individual employees the management information system employs multiple methods
such as analysis system, query system and decision support system.
ii. The management information system also plays an effective role in organizational
operation along with the management control frameworks (Li, Hsieh & Rai, 2013). In
addition to this it is also to be noticed that the management control system is also
helpful in deciding the strategic planning that is necessary for the organization. In

8ROLE OF INFORMATION SYSTEM
addition to this, it has been noticed that the organization is also helpful in clerical
works of the organization along with the transactional activities. It has been noticed
that by implementing the management information system the organizations are able
to efficiently analyze the data along with the analyzing the queries.
iii. The management information system is highly effective and helpful in enabling the
junior management in the process of organizational planning. To elaborate it
furthermore it can be said that the junior managers of an organization can avail the
benefits of the management information system in the process of planning and
deciding effective strategies for the organizational growth and change (Kamprath,
2013). In addition to this, it has also been monitored that the management information
system is helpful in the process of scheduling and controlling multiple activities in an
organizational environment.
iv. In addition to the regular planning and scheduling programs management information
system is also effective in deciding short term planning, overall business functioning
along with target setting and controlling (Tahri, Hakdaoui, & Maanan, 2015).
Moreover, the management information system is also plays significant roles in
strategic planning, long term goal setting a generating overall business plans.
v. One of the most important aspect of management information system is the process of
information generation. It is to be monitored that the organizations implement
management information system in order to gather and utilize information in an
effective manner (Castronova, Goodall, & Ercan, 2013). It is to be noticed that the
information system is not only helpful in gathering and providing information, but it
is also important in the process of problem identification. As the system effectively
gathers information pertinent to the organization, it also is able to identify the problem

9ROLE OF INFORMATION SYSTEM
sections. Moreover, the system is also helpful in identifying possible and effective
solutions for the organization.
Hence, it can be understood that the management information system plays an
effective role in the overall operation, management and administration of an organization.
Information Security Policies and Controls to Address Potential Threats
and Vulnerabilities
For an organization that is aiming at maintaining its long term sustenance it is
noticeable that the organization needs to take up effective policies in order to secure the
strategies and plans that organization is adopting. It is to be understood that the organization
needs to identify the possible threats that the organizations might face.
Indiscipline amongst the Employees:
It is to be noticed that the reasons of security lapses and failure to use the information
system information system in an effective manner are the results of indiscipline amongst the
employees of the organization. Many a times it is noticed that the employees are faltering to
maintain the discipline off the employees (Ferguson & Lonstein, 2013). As a result of this the
employees are misusing the information and data of the organization for their personal
benefits. This can create serious threats of data piracy for the organization.
Carelessness of the Employees:
Lack of seriousness and sense of responsibility hampers an organization to a great
extent. In this regard it is to be mentioned that the organization needs to take up effective
strategies and measures in order to reduce the practices of carelessness. It has been noticed
that as a result of the carelessness and manhandling of the information system framework. In
addition to this, it is to be noticed that the employees who have less expertise in handling the

10ROLE OF INFORMATION SYSTEM
system are often incapable of maintaining the security of the information system (Kushniruk
et al., 2013). As a result of these carelessness and inefficiencies the companies that are using
information system are prone to risks of information theft. In this regard it is to be mentioned
that the organization needs to employ proper training programs and workshops in order to
increase the knowledge and efficiency of the employees regarding the information system.
Using Mobile Devices or personal Systems to share Information:
Another important factor that is to be regarded as affecting the information system of
an organization is the usage of mobiles and other personal devices in order to share that and
information of the organization. Many a times it has been noticed that these devices are
vulnerable to security lapses and virus attacks. As a result of these many a times the
organizations face severe consequences and incidents of data theft.
Global Perspectives for Strategy
In order to analyze the effectiveness of the information system it can be noticed that
the global perspectives of the information system is also to be analyzed. It has been noticed
that Woolworths has implemented information system in the in the process of organizational
transaction (Turel, 2015). In this regard it can be understood that the organization will be able
to increase the growth along with increasing the economic growth of the country. As the
company is marinating business with foreign investors along with international suppliers, it
can be understood that the foreign direct investment of the country is also being influenced.
Ethical and Social Considerations for Strategic Issues
It has been noticed that by using information system it can be monitored that the
organizations are able to gather and utilize information in an effective manner. In addition to
this, it is also to be noticed that the information system plays effective roles in organizational
planning and implementing effective strategies. However, it is also to be noticed that as a

11ROLE OF INFORMATION SYSTEM
result of inefficient usage of the information system can create significant risks for the
organization. It is noticed that due to the inefficient usage of the information system the risks
of vulnerability increases to a great extent (Argyris, 2017). In this regard it is also to be
mentioned that the inefficient and careless usage of the information system aggravates the
chances of security threats as well as risks of increasing vulnerability of the information. It is
to be noticed that in order to ensure security of the information and organizational planning,
the management of the organizations need to abide by the ethical rules and regulations of the
information system. The primary importance should be given to the limiting unethical
practices and accessing official information from personal devices (Kuperman et al., 2013).
In addition to this it can be monitored that the organizations that information system need to
abide by the policy of information communication technology. In addition to this it is also to
be mentioned that the organizations adopting and implementing the information system are
also required to information system ethics and security in order to avoid the possibilities of
information theft and other unethical practices (Argyris, 2017). In addition to this it is also to
be mentioned that the companies need to be aware of the chances of piracy of not only
information, but also of the ideas and organizational strategies. In this regard it is also it is
also to be mentioned that of the biggest threats that the organizations might face is the
infringement of the copyrights. Many of the companies face severe consequences as a result
of copyright infringement.
Assessment of Organization’s Strengths and Limitations
In order to analyze the effectiveness of the information system within an
organizational scenario it can be mentioned that the framework is not only helpful in order to
bring organizational change but it is also effective in generating effective strategies in order
to increasing effectiveness of the organization. In this regard it is also to be mentioned that
the by implementing strategies of information system organizations are able to implement

12ROLE OF INFORMATION SYSTEM
multiple frameworks within the organization (Saaty & Kearns, 2014). In this regard, example
of Woolworths can be taken as an organization that is aiming at implementing ERP within
the organization. It is to be mentioned that being one of the largest multinational
organizations of the country, Woolworths has already implemented ERP framework in
multiple segments of organizational planning and strategies. In the present scenario the
organization is aiming at implementing ERP in the process of supply chain management. To
explain it furthermore it can be said that the organization is aiming at take up ERP in order to
introduce automation in the process of placing orders for the raw materials (Argyris, 2017).
In addition to this, it has been noticed that Woolworths is also aiming at increasing
transparency and efficiency in the process of maintain details of the employees. In this regard
a detailed analysis of the strengths and weaknesses of the system that is to be adopted by the
organization is to be done.
SWOT
Strength:
It is to be monitored that in order to maintain the continuous growth and long term
sustenance of the organization the information system as well as the ERP framework plays an
important role. By implementing the ERP framework an organization will be able to increase
the overall efficiency of the organization (Saaty & Kearns, 2014). Moreover, it can be said
that the ERP framework is highly effective in establishing a long term vision of the
organization.
Weakness:
One of the major weakness of the organization is the lack of understanding of the
technologies. It is to be noticed that the employees of the organization most of the cases lack
the sense of understanding regarding the new technologies (Kuperman et al., 2013). It is also
to be mentioned that the organization may face restrains from the end of the employees

13ROLE OF INFORMATION SYSTEM
regarding the changes in the functionality and strategies that will be brought as a result of
implementation of ERP.
Opportunities:
By implementing ERP framework the organization will be able to implement the
supply chain management in a more effective manner. In this regard it is also to be mentioned
that the process of implementing ERP will ensure more effective and efficient maintenance of
the entire process (Argyris, 2017). The ERP system will help the organizational workflow to
a great extent.
Threats:
One of the major threats of implementing ERP in the organizational framework,
especially in the supply chain management is the threats of data and information piracy
(Kuperman et al., 2013). In addition to this, it is also to be noticed that the presence of high
competition and usage of high technologies by the competitors can pose as threats to
Woolworths.
In this regard it is also to be mentioned that the external factors and implementation of
the information system as well as the ERP framework within the organizational scenario. A
PEST analysis is to be done in order to understand the potential external influences.
PEST
Political:
It is to be noticed that by implementing information system within the organizational
scenario, risks of leakage of personal information of the employees as well as the
stakeholders of the organization increase to a great extent (Turel, 2015). Hence, the local as
well as the state government play important role in generating effective rules and regulations
to ensure safety of information.

14ROLE OF INFORMATION SYSTEM
Economic:
It is to be noticed that by implanting information system within the organizational
scenario it is to be noticed that along with the economic growth of the organization, the
economy of the country (Kuperman et al., 2013).
Social:
Implementation of information system can create impact of the society as well. It can
be understood that by using information system the organization will be able to perform the
works more efficiently and by using lesser workforce. As a result it can create a crisis
regarding less employment.
Technological:
Technological advancement is another key factor that will create significant impact on
the information system framework.
Conclusion
To conclude, it can be said that the information system is highly significant and
important in increasing the efficiency and sustenance of the organization. One of the major
technological advancement that the organizations are presently adopting is the usage of
information system. It has been noticed that the by employing the frameworks of
information system the companies are bale to not only make technological advancement but
also have been able to maintain cost effectiveness in the entire procedure.

15ROLE OF INFORMATION SYSTEM
Reference
Argyris, C. (2017). Integrating the Individual and the Organization. Routledge.
Bajdor, P., & Grabara, I. (2014). The Role of Information System Flows in Fulfilling
Customers’ Individual Orders. Journal of Studies in Social Sciences, 7(2).
Castronova, A. M., Goodall, J. L., & Ercan, M. B. (2013). Integrated modeling within a
hydrologic information system: an OpenMI based approach. Environmental Modelling &
Software, 39, 263-273.
Demir, I., & Krajewski, W. F. (2013). Towards an integrated flood information system:
centralized data access, analysis, and visualization. Environmental Modelling & Software,
50, 77-84.
Ferguson, D. L., & Lonstein, T. C. (2013). U.S. Patent No. 8,588,733. Washington, DC: U.S.
Patent and Trademark Office.
Höhn, J., Lehtonen, E., Rasi, S., & Rintala, J. (2014). A Geographical Information System
(GIS) based methodology for determination of potential biomasses and sites for biogas
plants in southern Finland. Applied Energy, 113, 1-10.
Isberg, V., Vroling, B., van der Kant, R., Li, K., Vriend, G., & Gloriam, D. (2013).
GPCRDB: an information system for G protein-coupled receptors. Nucleic acids research,
42(D1), D422-D425.
Kamprath, R. A. (2013). U.S. Patent Application No. 13/284,872.
Klukas, C., Chen, D., & Pape, J. M. (2014). IAP: an open-source information system for
high-throughput plant phenotyping. Plant physiology, pp-113.

16ROLE OF INFORMATION SYSTEM
Kuperman, G. J., Gardner, R. M., & Pryor, T. A. (2013). HELP: a dynamic hospital
information system. Springer Science & Business Media.
Kushniruk, A. W., Bates, D. W., Bainbridge, M., Househ, M. S., & Borycki, E. M. (2013).
National efforts to improve health information system safety in Canada, the United States
of America and England. International journal of medical informatics, 82(5), e149-e160.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Li, X., Hsieh, J. P. A., & Rai, A. (2013). Motivational differences across post-acceptance
information system usage behaviors: An investigation in the business intelligence systems
context. Information systems research, 24(3), 659-682.
Liu, D., Liang, D., & Wang, C. (2016). A novel three-way decision model based on
incomplete information system. Knowledge-Based Systems, 91, 32-45.
Saaty, T. L., & Kearns, K. P. (2014). Analytical planning: The organization of system (Vol.
7). Elsevier.
Shelestov, A. Y., Kravchenko, A. N., Skakun, S. V., Voloshin, S. V., & Kussul, N. N. (2013).
Geospatial information system for agricultural monitoring. Cybernetics and Systems
Analysis, 49(1), 124-132.
Tahri, M., Hakdaoui, M., & Maanan, M. (2015). The evaluation of solar farm locations
applying Geographic Information System and Multi-Criteria Decision-Making methods:
Case study in southern Morocco. Renewable and Sustainable Energy Reviews, 51, 1354-
1362.

17ROLE OF INFORMATION SYSTEM
Turel, O. (2015). Quitting the use of a habituated hedonic information system: a theoretical
model and empirical examination of Facebook users. European Journal of Information
Systems, 24(4), 431-446.