Information Systems in Business Organizations

This assignment examines the crucial role various types of information systems play within businesses. It delves into how management information systems (MIS) and decision support systems (DSS) aid managers in making informed decisions. The assignment also discusses the use of internet, intranets, and extranets for business communication and collaboration. Furthermore, it explores the competitive advantages gained through strategic information systems and addresses common challenges faced by organizations in implementing and managing these systems effectively.

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INFORMATION SYSTEMS: ANIMAL AFTER HOUR SERVICES (AAHS)
[Author]
[Professor]
[University]
[City, State]
August 16, y

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Executive Summary
Information technology is now a mandatory requirement for business. Unlike before
when it was an option, it now helps enterprises make informed decisions that facilitate their
growth. This report analyses a case study where a veterinary hospital tries to incorporate
information systems to meet its data needs. Following a thorough research, these systems are
seen as integral elements to the success of the business. In fact, through them, the organization at
hand is seen to acquire various benefits from a competitive edge to a better customer
engagement. Therefore, this paper concludes that a two-part information system, having a
transaction and decision support functions are needed to meet this organization’s objectives.
Keywords: Information systems (IS), business, technology, transaction processing
systems (TPS), decision support systems (DSS)

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Table of Contents
Content Page
Introduction....................................................................................................................................4
Discussion.......................................................................................................................................4
Summary and Recommendation..................................................................................................8
References.......................................................................................................................................9

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Introduction
Information systems (IS) are today used to integrate business with information
technology. In their functions IS collaborate enterprise activities with information modules to
establish effective communication channels. These channels are then used by organizations to
make accurate and timely decisions. Moreover, they facilitate customer engagement where a
mutually beneficial relationship is developed between clients and business. A similar objective is
held by Animal After Hour Services (AAHS), who envisions an IS to facilitate their daily
activities. This system should share data with the staff and customers while maintaining its
integrity. As such, this short report analyses the AAHS case study while providing
recommendations to its IS requirements. In all, a basic structure is followed having the general
discussion of the items in question and later on a recommendation of the system to be used.
Discussion
Types of Information Systems: IS are integrated components that collect, process and
store data to provide variable information (knowledge) for decision making. These business and
IT elements provide organizations the basis for management operations such as those done by
AAHS. IS would be important to AAHS as they would facilitate the interaction of the business
with the customers while increasing its competitive advantage. Now, several types of IS exist
depending on the functions and requirements of business (Zwass 2018). There are transaction
processing systems (TPS) that serve the basic operations of firms including the daily routines and
activities. Office automation systems (OAS) are other examples that are widely used to manage
information more so, through the controls of the managers (Al-Mamary, Shamsuddin & Aziati
2014). Management information system (MIS) on the other hand define the crucial IS that collect

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and process data for business functions. Finally, there are decision support systems (DSS) that
help managers make semi-structural decisions.
AAHS Business and System Problems: Several problems facing AAHS have led the
founder to consider the solutions of IS. These problems although independent in themselves are
linked by the need for information collaboration. As such, the most critical problem is the need
for information management. Nevertheless, in all, AAHS faces the following issues:
1. IS Culture – AAHS lacks a way to manage its data from the point of collection to
delivery to the customers, which undermines its business and functional objectives.
2. Security of information – having the data in place requires a means to securely share
it to all members. In its current state, the business does not have a way to manage this
requirement.
3. Integrating its functions – AAHS wants to share resources with all its branches, staff,
and customers, a function that is currently done using manual means e.g. phone calls.
4. Scaling information – due to its growth AAHS lacks the means to share its resources
more so, data which is ever growing with the number of branches it opens (Lander
2018).
AAHS Information Requirement: The data needed to support the operations of the
business define the information requirements. Through these elements, system analysts also
develop the necessary functional specifications of IS (Alter 2018). In this case, AAHS has the
following requirements; transactions, inventory, and master records (for the employee, vendors,
and customers). Transaction information helps AAHS to identify the most lucrative practices that
give the best return to the business. For instance, dental treatment may give better returns as
compared to other animal treatments. Therefore the business can try to focus on this venture

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which can boost its market edge. A similar outcome is seen with the inventory data as it
facilitates the choice for the best vendors and suppliers based on their returns (Hemmatfar et al.
2010). Finally, master records manage employees and their resources as well as offer insights
into the needs of the customers.
AAHS Specific IS: Two general IS are needed by AAHS; Transaction Processing System
(TPS) and Decision Support Systems (DSS). These systems would not only meet decision
demands of the business but would also fulfill the requirements identified above. In the first
instance, the DSS while integrating office automation and management systems, would collect as
well as process all the information used in the veterinary business. Thereafter, using scenarios
and simulation it would help predict future outcomes thus the management would base their
actions on its factual insights. Furthermore, through past records, as stored in the system, the
company would learn from past experiences (knowledge management) (Asemi, Safari and
Zavareh 2011). Secondly, because the TPS manages all the affiliated resources such as
inventory, sales, and employees, the organization would track its functional activities. Therefore,
efficient practices e.g. the best working hours would be identified. Moreover, the best employees
would be rewarded similarly to the incentives that would be given to returning customers. As
such, these systems would provide the basis for all business actions.
Role of Intranet, Extranet, and the Internet: Computer networks offer new avenues for
communication that are not limited by physical boundaries. AAHS can use these networking
technologies/models to enhance its collaboration and communication. First, the intranet as a
private and restricted network of an organization can be used to facilitate in-house activities. The
management can, therefore, share resources and communicate to its employees (Moussa 2016).
Secondly, the extranet, which serves as the external version of the intranet and is often seen as a

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connection of two or more networks. Thus, AAHS can develop a wider network using virtual
private networks to connect customers and suppliers. This action can facilitate personalized
communication which can improve the company’s customer interaction (Fredman 2018). Finally,
the internet as a global network can increase AAHS digital footprint. Essentially, potential
customers without access to the extranet can communicate to the business through the World
Wide Web.
Change Management: If introduced, an IS would serve as a new component in AAHS
business. While it is a welcome development, it stands as a significant change in the way the
organization’s activities are conducted. As such, it would be challenging to both the management
and employees. However, with proper planning, it can follow a smooth transition. To start with,
AAHS should involve the employees in the implementation process, formally communicating
the new changes. Secondly, the business can assess the feelings of these individuals with regards
to the proposed change. This evaluation would help integrate their suggestions into the final
application thus boost its usability. Thirdly, the management must delegate the different stages of
the change to make the employees feel as if they are part of the development (Stark 2017).
Fourthly, the communication channels must be expanded to mitigate any risks or limitations.
Finally, a firm yet flexible mindset should be used to meet the goals set at the start of the change.
Security and Ethical Issues: IS introduce the security and privacy considerations of
information technology. In general, AAHS system would have to deal with cybersecurity where
intrusions in the forms of identity theft, phishing, and viruses among many others would arise.
Furthermore, based on the user’s awareness these systems would be vulnerable to independent
attacks or losses due to negligence. Ethically, data confidentiality would come into question as
the employees would have access to sensitive data. These people would thus require a good

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moral balance to maintain the integrity of this resource. As a solution to these issues, the
business would have to implement an effective security policy (O’Brien, Marakas and Behl
2018). This policy would dictate the cybersecurity measures used as well as the access
limitations of each stakeholder. Also, facilities such as firewalls, access control, and intrusion
detection system would be used. Finally, the staff would sign bidding agreements to uphold the
customer’s confidentiality or face severe consequences.
Summary and Recommendation
Information systems as a subset of information technology improve business by
providing the basis for factual decisions. Through IS, enterprises can improve profits while
adequately engaging their customers. AAHS is an emerging business whose activities are in need
of an efficient management information system. By employing the functions of IS, AAHS can
improve its competitive advantage, control its inventory and increase its locations collaboration.
Therefore, a two-part information system is proposed having the functionalities of a TPS and a
DSS. This application would serve to enhance the efficiency of AAHS functions by managing
the organization’s data and decisions needs. In all, IS would propel AAHS to the next level by
addressing its data requirements.

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References
Al-Mamary, Y., Shamsuddin, A & Aziati, N. 2014. The Role of Different Types of Information
Systems in Business Organizations: A Review. International Journal of Research, 1(7), pp.333-
338. Available at
https://pdfs.semanticscholar.org/485f/9cfdc60ba6494866a82af81084e31ae21b9e.pdf. Accessed
19 May 2018
Alter, S. 2018. How Effective Managers Use Information Systems. Harvard Business Review.
Available at: https://hbr.org/1976/11/how-effective-managers-use-information-systems.
Accessed 19 May 2018
Asemi, A,. Safari, A & Zavareh, A. 2011. The Role of Management Information System (MIS)
and Decision Support System (DSS) for Manager’s Decision Making Process. International
Journal of Business and Management, 6(7), pp. 167-171. Available at:
http://www.ccsenet.org/journal/index.php/ijbm/article/download/8940/7938. Accessed 19 May
2018
Fredman, J. 2018. Business Uses of the Internet, Intranets & Extranets. Chron. Available at:
http://smallbusiness.chron.com/business-uses-internet-intranets-extranets-62042.html. Accessed
19 May 2018
Hemmatfar, M,. Salehi, M & Bayat, M. 2010. Competitive Advantages and Strategic
Information Systems. International Journal of Business and Management, 5(7). Available at:
https://pdfs.semanticscholar.org/8059/ad51063c06817675194fc9eca751a292d6a0.pdf. Accessed
19 May 2018

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Lander, S. 2018. Common Problems in Management Information Systems. AZ Central.
Available at: https://yourbusiness.azcentral.com/common-problems-management-information-
systems-29126.html. Accessed 19 May 2018
Moussa, M. 2016. Internet, Intranets and Extranets in Organizations: An Integrative Literature
Review. Research gate. Available at:
https://www.researchgate.net/publication/306031154_Internet_Intranets_and_Extranets_in_Orga
nizations_An_Integrative_Literature_Review. Accessed 19 May 2018
O’Brien, J., Marakas, G & Behl, R. 2018. Security and Ethical Challenges. Management
Information Systems. Available at:
http://highered.mheducation.com/sites/007014494x/student_view0/chapter13/index.html.
Accessed 19 May 2018
Stark, P. 2018. 8 Tips to Help Managers and Employees Deal with Organizational Change. Peter
Barron Stark. Available at: https://peterstark.com/managers-employees-organizational-change/.
Accessed 19 May 2018
Zwass, V. 2018. Information system. Available at:
https://www.britannica.com/topic/information-system. Accessed 19 May 2018