Information Systems in Business

This document discusses the importance and benefits of information systems in business. It covers different types of information systems such as Data Processing System, Management Information System, Decision Support System, and Executive Information System. It also explores the role of Enterprise Resource Planning (ERP) in managing day-to-day business activities and improving overall performance.

Information Systems
In Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Informations system in business is one of the most crucial topic in present scenario which
is used within the business organisation for the purpose of conducting any of the work in a
systematic manner. It will be necessary to understand for any of the business organisation that
they must some of the important technologies within their business organisation which can allow
them to perform better in any of the circumstances. In present scenario, the world is all about
information technology where people are required to conduct multiple work but in the best
possible manner. It is said that information technology helps to reduce the overall effort of
manpower but still it allows to accomplish the goals (Bourgeois, 2018). This respective file will
contain useful information related to IT field and its importance within the business organisation.
Various doubts will be cleared that occurs whenever any of the person collect information related
to Enterprise Resource Planning.
There are different aims and objective which has been set during the course of conducting
this respective essay. Mainly there will be focus on several categories of information system and
how it can be effective. On the other side ERP system is being used widely and that has a direct
outcome on overall result of an organisation. In the last part, number of benefits will explained
which company can have just because of ERP system. Also, main target will be to clear that
doubts that how favourable decisions can be obtained if in any of the circumstances, business
uses the system like ERP for their organisation.
MAIN BODY
Information System (IS) is explained as a group of interrelated components which uses
input, processing, storage, output and control action for the purpose of conversion of data into
understandable information. It is crucial in any of the circumstances because it helps to take
some of the effective decision through which chances of occurrence of goals increases
automatically. There are number of categories of IS such as Data Processing System (DPS),
Management Information System (MIS), Decision Support System (DSS) & Executive
Information System (EIS). All of this Information system has its own importance and effect on
business organisation. It is because it helps to obtain desire result which is required by any of the
association. Talking about Data Processing System, it is understood as one of the most effective
Information system technique which simply allows to store data and information. This system is
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also determined as a Transaction Process System as it deals with number of transaction on a
daily basis which allows to keep data and system safe and secure (INFORMATION SYSTEMS -
INTERMEDIATE IIUSING INFORMATION, 2019). In case of business organisation, this
types of work is performed at operational level where work load is comparatively high and it
becomes difficult to manage every single work. The second category of Information system is
Management Information System (MIS) where it is crucial as it help to collect internal as well
as external information. The collected information is further presented in front of manager where
chances of taking positive decision increases automatically. There are benefit as well as
disbenefit of MIS as it is not so flexible in nature and capabilities and on the other side, it allows
to present data in the form of weekly, monthly and yearly basis. When it comes to Decision
Support System, it can be clearly said that each and every work must be performed by taking
proper support where effective decision has been taken by the management. This types of
information system is very effective in nature because it simply gives idea to overview the
performance of an organisation (Veit and et. al., 2014). Also, option is available in it where rules
and regulation of premisses can be placed in the form of decision table which are mainly
developed for decision making process. If all of this work can be managed properly, then
chances automatically increases for proper planning and forecasting. For example: there is a high
probability that DSS will give option to manager where they can review each and every work in
a systematic manner with their output. It can be the way to decide whether decision should be
taken or not and if not what can be the suitable way for effective result. In case of Executive
Information System, this will simply allow the business organisation to plan each and every
work and review the work. The main area which it focuses and target is related with addressing
the unstructured decision & developing the generalised computing and communication
environment. It do not focuses on foxed application or any of the specific capabilities. Also, this
types of system allows to develop the environment where complex information can be developed
in a simplest form with the help of easy to use representation. The graph of complexity is always
shown in the form of simplex to complex (Vom Brocke and Rosemann, 2014). In short, all of
this information system can be used within the business organisation for the purpose of
accomplishing the goals in best possible manner. Also, it gives number of opportunity where
decision can be taken as per the requirement by having proper planning and forecasting.
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Enterprise Resource Planning (ERP), is explained as the system software which directly
allows the association to manage day to day business activity for improving the overall
performance of an organisation. Talking about the area which it mostly manages is accounting,
procurement, project management, risk management and compliance, & supply chain operations.
If in any of the situation, association uses the ERP suites then it increases its creditability for the
company because in that respective condition, option increases for plan, budget, predict, and
report on an organization’s financial results (What Is ERP, 2019). It is necessary to understand
that ERP system is one of the those system software which makes working condition easier and
familiar. In present scenario, using ERP is one of the most crucial thing for business because it
simply allows to improve the overall performance by enabling the flow of data between top to
lower level of management. Also, there are limited opportunity where chances of duplication of
data occurs which is the main reason that most of the organisation like to prefer ERP system for
effective result. There are number of situation where organisation requires to distribute the data
in wider area and in that respective circumstances, ERP system can allow to distribute the data in
very short period of time (Kerr, Troth and Pickering, 2020). Although, it is result oriented but if
in any of the situation the management doesn't uses it in systematic manner then in that
respective situation company might have to suffer and may have to face losses. This types of
system allows the business organisation to make communication become more easier and result
oriented. There are number of organisation which is not able to perform as per the requirement
and in that particular situation they tries to improve their overall performance which can be
easily with the help of ERP. Secondly, it is said that small organisation has to improve their
performance and in that particular situation they can easily allow to implement ERP which will
give them the effective result. This types of system software is not limited but it does have
number of benefit because it can be operated from any party of the world which makes working
condition much easier and faster. There are number of advantage and disadvantages of ERP
(Fichman, Dos Santos and Zheng, 2014). The main advantage is that it can easily cover all of the
needs of department and it can be customised as per the requirement of business organisation.
On this other side, if manufacturing application does not perform any of the work as per the
requirement then problem may arise. Also, there are some of the situation where organisation
requires the software according to their needs and in that respective position, it can be one of the
costly process.
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In case of benefits of ERP in real life business organisation, it is quite easy to express that
it can be one of the system software which can allow companies to accomplish their goals. The
first benefit which organisation like to have in any of the situation is that they try to reduce the
cost and saves money which is very easy within this respective process (Schwade and Schubert,
2017). There is the option available in which company gets the option to improve financial
consolidation. Whenever organisation perform any of the work manually, it seems that chances
of errors increases but when it comes to the case of ERP, organisation will get the opportunity to
set high standard which will automatically improve the results. This types of system software
simply allows the small and medium size industry to improve their performance by conducting
every single work in proper procedure (SYSPRO Defines the Meaning of ERP, 2019). In recent
period of time, there are number of organisation which is not able to perform their work which is
just because of lack of communication but it can be easily improved with the help of
communication among different department. Communication can become easier with the help of
ERP software. The most important area which is required to be focused is that there are number
of occasion where percentage of waste product remains high in business firm, but if company
uses ERP software in best possible manner then automatically they will raise the standard and
profit will also increase (Abbasi, Sarker and Chiang, 2016). This software is not limited up to
here, but there are additional benefit for business organisation such as company gets the
opportunity to reduce the percentage of overall risk by improving the data integrity as well as
financial control. This are some of the most important benefit which people can get if they are
able to utilise ERP system in desire manner.
CONCLUSION
From the above file, it can be concluded that information system is one of the most
effective way to improve the overall performance of an organisation. The scope of business can
be improved easily if they are able to use system software in a best possible manner. There are
different types of information system which organisation can use as per the requirement because
that directly or indirectly gives opportunity to enhance the performance. Even there are number
of circumstances where company is unable to decide the pattern of working style but if they are
able to use Executive Information System, then they will clarify about the complexity of the
work and its nature. On the the other side, ERP is one of the system software which can be really
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beneficial for the company because they will be able to use software for effective result as cost
can be reduce which will impact on improving revenue.
Although there are number of benefits of using different systems but it will be important
for management that whenever they introduce any of the system software in the company, then it
becomes the responsibility to guide so that work can be performed as per the requirement. It is
recommanded to association that proper planning must be done so that proper customisation c be
done work can be performed in a successful manner. It is also important to understand for small
organisation that they must be able to introduce ERV because that will help them to uplift the
standard of a company.
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REFERENCES
Books & 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.
Bourgeois, D. T., 2018. Information systems for business and beyond.
Fichman, R. G., Dos Santos, B. L. and Zheng, Z., 2014. Digital innovation as a fundamental and
powerful concept in the information systems curriculum. MIS quarterly. 38(2). pp.329-
A15.
Kerr, D., Troth, A. and Pickering, A., 2020. The use of role-playing to help students understand
information systems case studies. Journal of Information Systems Education. 14(2). p.6.
Schwade, F. and Schubert, P., 2017. Social collaboration analytics for enterprise collaboration
systems: Providing business intelligence on collaboration activities.
Veit, D. and et. al., 2014. Business models. Business & Information Systems Engineering. 6(1).
pp.45-53.
Vom Brocke, J. and Rosemann, M. eds., 2014. Handbook on business process management 1:
Introduction, methods, and information systems. Springer.
Online
INFORMATION SYSTEMS - INTERMEDIATE IIUSING INFORMATION. 2019. [Online].
Available Through: <http://jhigh.co.uk/Using%20Information/13%20Categories%20of
%20Informaiton%20Systems.html>
What Is ERP. 2019. [Online]. Available Through:
<https://www.oracle.com/in/applications/erp/what-is-erp.html>
SYSPRO Defines the Meaning of ERP. 2019. [Online]. Available
Through:<https://www.syspro.com/product/what-is-erp/>
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