Information Systems in Organisations: Understanding Needs, Comparing Systems, and Generating Management Information

This report explores the role of information systems in various functional areas of organizations, focusing on the railway and multinational industries. It examines the information needs of different departments, compares various types of information systems like DSS, MIS, TPS, and OAS, and investigates current trends like cloud computing, IoT, and big data. The report also evaluates the suitability of different information systems for specific organizational needs and provides alternative methods for solving problems. It concludes by highlighting the importance of information systems in achieving organizational goals and enhancing business opportunities.

Information Systems in Organisations
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Table of Contents
Introduction:...............................................................................................................................................2
LO1 Understand information needs within different functional areas of organizations.........................3
1.1 Evaluate the information needs of the different functional areas of an organization.................3
LO2 Be able to compare information systems........................................................................................6
2.1 Describe different types of information systems.........................................................................6
2.2 Investigate the current trends in using information systems applications to solve business
problems.................................................................................................................................................9
2.3 evaluate the suitability of information systems for different functional areas of an organization
11
LO3 Be able to use information systems to produce management information..................................13
3.1 Use an information system to generate valid, accurate and useful information for a given
problem.................................................................................................................................................13
3.2 Evaluate alternative methods of solving the problem...............................................................15
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18
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Introduction:
An information system is an accumulation of the parts that are putting away, gathering, and preparing
information for the given data, advanced items, and learning. Business associations oversee and bring
out their business task through the Information system. It is a digital system that in work on organization
different area. Here, I have designed the report that contains three sections.
In the first section, I will be discussed the information system needs in the organization different
function area. There will be also explaining the data needs for organization information system. In the
second section, I will be explained the different types of an information system which may be used in
the organization and current trends for the problem-solving. I will be also discussing the most suitable
information system for the organization. In the third section, I will be described problem-solving
methods through the information system and will be given the alternative methods to solve the
organization problem.
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LO1 Understand information needs within different functional areas of
organizations
1.1 Evaluate the information needs of the different functional areas of an
organization
An information system is a collection of the components that are storing, collecting, and processing data
for the given information, digital products, and knowledge. Business organizations manage and carry out
their business operation through the information system. It also helps in communication with their
suppliers, Partner, and customer and also competes in the market with other organization (Zwass, n.d.).
A Business organization runs electronic markets and supply chains which is only possible through the
information system. Here, information systems are explained railway, and multinational organizations
(McDonald's).
Information needs of different business function and their levels
Railway industry:
 Process Control data requirements: It contains the information related Automatic Event, traffic
on the route, and monitoring information. Event occurrence and response time are also needed.
 WIm data requirements: It contains the real time of the location of the railway organization. It
also needs the information related railway load, and path, and their speed during the whole
journey.
 Traffic data requirements: it contains the information related traffic conditions, emergency
response time, predictions of travel time, data analysis, and also maintains other cities traffic. It
offers the path information for the railway which efficient and best. It contains the information
distance with fuel consumption and pollution.
 Online Payment and Vehicle Identification data requirements: In the railway digit information
system need an online process which needs customer details like name, address, source place
and destination place with card details. For the organization, it saves the charge for particular
distance according to railway service. It also recognized the train on the particular path for the
customer journey with the rating system.
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 Advanced Fleet data requirements: It holds the information related freight of railway that can be
helped to manage that route according to their passenger load (Zapata, Arango Serna, and
Andres Gomez, (2013).
Multinational organizations like McDonald's:
 Marketing data requirements: It contains the information related Product, place (supply their
service and improvement of service), Price (according to local and global level) and adverting of
the organization.
 Manufacturing data requirements: It contains product design, scheduling, and their costing
information. It set the product quality according to previous data. It also gives raw-materials,
packaging, and workflow details.
 Accounting and Financial data requirements: It contains Inventory control records, Accounts
receivable records, Payroll records, General ledgers, and Accounts payable records. It manages
all Financial and Accounting details of the organization.
 Human Resource data requirements: It contains the information human resource and their
resource. It needs a partner, supplier, and customer information. Also, need the information of
their workplace and staff.
 Integrating Functional data requirements: It contains information related post-delivery service,
in-time schedule, credit terms, and product design process (joshik, n.d.).
Benefits of information system
Railway industry:
 It increases the Railway capacity and enhances the performance of the organization.
 Information system gives a safe journey and offers a better connection between trains. It also
offered the real-time tracking.
 It increases the job increased opportunities which help to grow in the regional and national
area. It offers high skilled jobs.
 It increases the load capacity for the goods, route availability, and timetable flexibility, the
growth of environment, energy efficiencies, and customer satisfaction.
 It offers a reliable and cost-effective system for passenger and organization (Digital Railway,
2015).
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Multinational organizations like McDonald's:
 It increases the communication between organization and customer. Information system offers
a direct communication that gives more beneficially to the organization.
 It makes the brand value of the organization that helps in the business growth.
 It gives the security of data.
 Information system track organization service and product on the real time base.
 It is boosting the productivity of the organization and reduces the product cost (MacKechnie,
2018).
Variety of information processing options for an information system
An information system is a digital system to handle the organization activities. An organization use
number of information process option to handle organization data.
Railway industry:
 Process Control information processing options
 Advanced Fleet information processing options
 Traffic Information processing options
 Advanced Fleet information processing options
 WIm information processing options
 Online Payment and Vehicle Identification information processing options
Multinational organizations like McDonald's
 Marketing information processing options
 Integrating Functional information processing options
 Human Resource information processing options
 Online Payment information processing options
 Manufacturing information processing options (tutor2u, 2015).
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LO2 Be able to compare information systems
2.1 Describe different types of information systems
Here, I have discussed the various type of information system with data. It is a medium to manage
organization workflow and give flexibility to the organization.
Executive Support System: It is a system that represents the senior management. It works on the internal
and external data during the decisions making and as an outcome, it gives relevant data to the
organization. It offers information executives report that gives the opportunity to drill down. Graphical
presentations are executives the information quickly which offers flexible system. For the data security,
relevance, and accuracy, ESS compress, filter, and track the data and make the availability of data
strategic-level.
Figure 1: information systems
Source: (conceptdraw, n.d.)
Decision support systems (DSS): It is an interactive computer-based information system that works as
MIS system.it is best example information system for bank sector because the manager can analyze the
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deposits and loans according to changing trends. It makes the decision for the organization where
uncertainty about decision outcomes. It uses the database and complex spreadsheet for the decision
making. Tool and techniques of DSS collect the information and give the alternative solution and
operation for the organization (eternalsunshineoftheismind, 2013).
Management Information system: It works with the internal information source. It takes the data from
the transaction processing systems and process, analyzed, and create a summarise series of the report.
This report is used by the organization operational supervisors and middle management. It gives the
answer predefined procedure and routine questions of the organization.it increases the managerial
activity efficiency that gives data security, relevance, and accuracy.
Transaction Processing Systems: Each organization needs the transaction process for their operation.it
tracks every event of the organization. Organization transactions include product order, receipt, and
shipping and also involve bank transaction such as withdrawals, deposits, cheques. It reduces the cost of
paperwork and offers to serve predefined structured for decision making and goals. Transaction
processing systems manage in a number of actions in the organization such as placing orders, hiring
employees, billing customers, employee record keeping.
Office automation system: OAS is a gathering of computers, people, and communication technology to
perform or execute the official task. It is an organization level system that executes office transactions
for the official activities. Clerical (typesetting, preparing written communication, scheduling meetings,
printing, mailing, and calendar keeping) and managerial activities (creating messages and reports,
conferencing, and performance control) are the Official activity. E-mail, electronic filing, and word
processing are an application that is used be OAS. It gives data security, relevance, and accuracy
(eternalsunshineoftheismind, 2013).
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Figure 2: Information System with Data Management
Source: (Cress, 2009)
Components of information systems
Information system contains following components such as
 Database: information system contains data that arranged in the table, documents, and files.
 Hardware: It is a computer-based system which contains computer hardware such as printers,
monitors, keyboard, and processors.
 Network: Through the information system, the organization is connected with their customer.
Information system network connects switch, router, cable and so-on elements to connect each
other.
 Software: Information system software is used to data process, organizes, and analyze.
 Procedures: it is used to explain information system design with during the specific data process
and analyze (Zandbergen, 2014).
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2.2 Investigate the current trends in using information systems applications
to solve business problems
Big data, cloud computing, and IoT (internet of things) are the current trends in the information system
application to solve organization problem. It is developing new paradigms for scene, social and
intelligent informatics.
Cloud computing:
It focuses on distributed information systems that are based on the service models for the IT
Application, service, platforms, and storage. Cloud computing works on the “Pay-as-you-go manner
service” approach. It solved the data storage problem because there are no limits for buy or rent could
to storage the database. It gives a configurable, scalable, and user-friendly to use and developed
compare than the old IT paradigms. When cloud computing is design with IoT then there is designed a
complex adaptive system that is characterized system on nonlinearity, uncertainty, self-organization,
dynamics, and evolvable base problems. It also analyzes the cloud of IoTs systems` network nature and
future.
IoT (Internet of things):
In the information system application, IoT focus on the System to system communication. Systems are
connected through an internet connection in the discrete and continuous manner. It focuses on the
security, finance, social studies, government, product manufacturing and development, and marketing
area problem. On the internet, footprints are available that are collected for the analyzed to serve the
specific purpose. Due to the social network site, data is increased on the internet. Data are
characterized as unstructured, structured, heterogeneous, homogeneous, distributed, and centralized.
IoT gives a real picture of solution a particular domain area so commercial technologies are used for the
flashing and describe the problems.
Big Data:
An information system is digital systems that are used by the human. Big data make a bridge between
human and machine and gives more powerful vision to solve information system issue. It ensures
interoperability and integrity of data. Big data of information system are stored various ways so query
data offers semantic and enhances the integrity of systems during data creation. The information system
has a challenge to gives the Integrating on the heterogeneous data. Information system works on the big
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data trends which collected the multiple sensors and sources in the real-time and design the data
semantically. There are needs to labeling and synchronization for the methodological and technical
development (fayoumi, 2014).
The future trend in the information system:
Function and Technical trend are future trends of the information system. The functional tendencies
specify the new functionalities that will be used by the information system for the organization
management. Supply Chain Management, Data Warehouse, Point of Sales, Supplier Relationship
Management, Customer Relationship Management, Balance scorecard and Product Lifecycle
Management are a domain where used the function trends to solve the problem. M-Commerce, Open
software, and Hosting of Applications Service Providers are the features of the Technical trends. It
provides the network security and the connection between human and organization through the
information system. Internet connection accesses by the Technical trends (Gil Gómez, Arango Serna, and
Oltra Badenes, 2010)..
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2.3 evaluate the suitability of information systems for different functional
areas of an organization
There is a number of the information system. Currently railway and multination organization work on
the Management information system to manage their organization activities. But I have suggested the
organization to use decision support system for their organization because it is an organized collection
of hardware, software, database, and people procedures to make the decision the organization problem
and solved the problem. It offers the flexibility on a large amount of data that collected from a different
source.
Management Information system:
MIS system is an integrated set of subsystems which are organized in the functional area. It gives the
information to the manager which help to takes effective decision and feedback on the organization
daily operations. Its output depends on the transaction processing data. It works on the organization
different area such as Cost & budget, Quality, Inventory, Risk, SWOT, Market, Feedback, Stakeholder,
Report & Dashboard, and Behaviour of product and service. It also manages organization HR
department, financial department, Manufacturing department, and Marketing department. But there
are disadvantage such as
Disadvantage:
 It only works on structured tasks.
 MIS does not allow direct access to organization manager.
 It cannot create new data for the organization.
 It is a person dependent system (Slideplayer, 2016).
Decision support system:
In the organization, Decisions are made every level. These may be a common and routine decision but
valuable for the organization.it offers new tool and technologies to the manager to take out the
decision. For the decision, organization need concrete, up-to-date information and must be awarded for
the information redistribution. DSS system analyzes the problem and then make the decision on the
problem that beneficially for the organization.
Advantage:
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 It improved the decision making speed up and organizational control which increases the
problem-solving speed in the organization.
 It Encourages discovery and exploration of the decision maker.
 It offers interpersonal communication in the organization
 It supports the data manipulation that makes new evidence and approaches to solve the
problem and enhanced the market competitive.
 It supports automate managerial processes that speed up the organization preformation Nijaz,
2014).
Difference between MIS and DSS:
Table 1: Table of Difference between MIS and DSS
S.NO Management Information system Decision support system
1. MIS work on the routine decisions
and structured tasks.
DSS focus on the semi or unstructured tasks that
depend on the managerial judgment.
2. It recognized the information needs It uses tool to make a decision.
3. It focuses on the data storage It focuses on data manipulation.
4. The data manager accesses the
system indirectly.
The system is direct access by the data manager
5. It depends on the system expert. It depends on the managerial judgment.
6. The main stress is on the efficiency. The main emphasis is laid on the effectiveness.
7. The waiting process is allowed during
data access
There are not require the waiting process some
time(Mbaofficial, 2017)
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LO3 Be able to use information systems to produce management
information
3.1 Use an information system to generate valid, accurate and useful
information for a given problem
After the comparative advantage and disadvantage of different type of information system, I have found
that DSS will be beneficial for the organization for order, manage, organize, data manipulation and offer
the security on the database information. It takes the decision to solve the problem in the cost-effective
and timely manner. According to data protection Act, DSS system is effective, Organization would be
able to improve usefulness and accuracy of information. Output quality directed by the quality of inputs,
monitoring process, flexibility during the update which is used by the information system in real-time
processing. Proper Decision Making on the problem solving that enhances accuracy and validity of data.
It will increase the sales in the market and give marketing analysis, sales report, and government
statistics through authentic sources.
Query for Railway Industry
 Online Payment: user buys the ticket the online form the source to destination place. The user
will be paid for cards, net banking, or visa.
 Invoice Data: Organization will be sent the kwonledgthn message for the ticket booking
confirmation. The system will also send the user to the ticket after paying the payment.
 The product on back order: some time, the user will be canceling the tickets due to a personal
reason or other reason. Then organization will cancel their order and pay back the user after
certain charge.
 Sale summary: organization will be calculated their sale according to the monthly, or yearly
base.
Query for Multination Company
 Supplier Address Book: organization will be maintained an address book for their supplier. They
get information of supplier according to their needs and services.
 Product Sale by category: Organization will offer a number of type of service so they manage
their sale according to product category.
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 Purchase Analysis: Organization will be work as a customer for some other organization so they
maintain they're each product purchase. It will be improved organization sale and maintain their
product price in the market.
 Order details: Organization will be managed their order such as order id, customer, employees,
shipping date, order subtotal, tax, shipping address, date of paid, etc. it will be helped to track
the product.
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3.2 Evaluate alternative methods of solving the problem
Here, I have explained alternative methods for the organization problems and also discussed the
information system improvement.
Alternative Methods for the solved organization problem:
1. Multi-user processing: Information system can be allowed to multiple users to access the table
at the same time which is managed by the OCC (Optimistic Concurrency Control). It secures the
form record during the multiple user access at the same time with min limitations and maintains
the data integrity. An information system used Microsoft Dynamics GP and Visual Studio Tools
for multi-user processing with data integrity. Through this, organization handles any error during
the multiple user access and also decided the user restrictions.
2. Batch processing: During the batch process, information system performs set of instruction in
the sequence which runs on the operating system. It uses a batch or script file, or pogrom with
an internal and macro scripting tool. It manages the data management the problem. It needs a
separate program for the process, input, and output. Batch process collected, inputted, proceed
and then given the output the data during a time period. It can be managed the high value of
data in an efficient way (Watts, 2017).
3. Distributed process system: Information system can be work on the distributed processing
system which allows the organization to access the multiple computer systems. It uses storage
quota management approach which decided the database access limit according to the user.
When a user sent a write request on the shared database on the certain computer, then
database identifies the requesting user and calculated the free space on the database for the
write request. There is also used reserve space allocation unit for the calculation of the reserved
space after that performing the user request on the database.
4. Transaction processing: Information system can be used the Transaction processing to handle
the organization Transaction related issue. The organization can be used a software to keep the
track of organization transactions that offers effective and reliable in both case of the
organization is offline or online. High-quality transaction processing software is user-friendly
that tells the organization which formats used by the customer to complete their transactions. It
also helps to understand the behavior of the customer and organization. It is also reduced the
cost of paperwork and offer to maintain easy way organization transaction (Jones, 2017).
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Improvement of information system:
1. Timing: Timing is a major factor of the information system. The system must be sent the
information on time. The timing of information should be improved for the service efficiency
and fast delivery which creates immediate reports for the end users and top level management.
2. Level of complexity and risk: Each organization contains an information system according to their
scope, level of complexity, volume, and technical and executive factors. Organization
information system should be user-friendly which handles by computer literates and the
illiterates person. It must be handle organization complexity and risk.
3. Relevant: Organization information system should be relevant. It should be known the
organization objective and problem. The system must be work according to user requirements
and expectations. The organization should be needed a relevant information system which
improved organization function area efficient and effectiveness (Markgraf, 2018).
4. Accurate: Information system should be accuracy in evaluations technique that plays a major
role in the decision making. System accuracy is also depended on the system efficiency. A wrong
decision affects the organization tactical, operational, and strategic level.
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Conclusion
Here, I have designed a report on the organization information system which plays a major role to
achieve organization goals and offers business opportunity and enhanced the customer base. An
information system is a digital system which helpful for the online and offline business. In the report, I
have explained the information system needs for the railway and multination organization with their
data needs for the information system.
DSS, MIS, TSP, and OSA are the information system which may be used in the organization. Cloud
computing, IOT, and big data is current trends for solving the problem through an information system. I
have suggested for the DSS system for the selected organization because it improved the organization
performs through fast and efficient decision making. I have also explained compare between MIS and
DSS system. In the end, I have discussed the problem-solving method for the organization and also give
an alternative solution.
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