Information Systems in Organizations: A Comprehensive Guide

This comprehensive guide explores the role of information systems in various functional areas of organizations. It delves into different types of information systems, including Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision Support Systems (DSS), and Executive Information Systems (ESS). The guide examines the information needs of different functional areas like operations, marketing, finance, and research & development, and evaluates the suitability of information systems for each area. It also discusses current trends in using information systems to solve business problems and provides examples of how these systems can be implemented to improve operational efficiency and decision-making processes.

Information Systems in
Organization
1

Table of Contents
List of figures.........................................................................................................................................3
Introduction...........................................................................................................................................4
LO1: Understand information needs within different functional areas of organizations......................5
P1.1 Evaluate the information needs of the different functional areas of an organization...............5
LO2 be able to compare Information Systems......................................................................................7
P2.1 Describe different types of Information Systems......................................................................7
P2.2 Investigate the current trends in using Information Systems applications to solve business
problems.........................................................................................................................................12
P2.3 Evaluate the suitability of Information Systems for different functional areas of an
organization?...................................................................................................................................14
LO3 be able to use Information Systems to produce management information.................................16
P 3.1 Use an information system to generate valid, accurate and useful information for a given
problem...........................................................................................................................................16
P3.2 Evaluate alternative methods of solving the problem.............................................................17
Evaluate alternative methods of solving the problem.....................................................................17
Conclusion...........................................................................................................................................20
Reference............................................................................................................................................21
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List of figures
Figure 1: Types of Information system..................................................................................................7
Figure 2: TPS Diagram............................................................................................................................8
Figure 3: MIS Diagram...........................................................................................................................9
Figure 4: DSS Diagram.........................................................................................................................10
Figure 5: ESS Diagrams........................................................................................................................11
Figure 6: Data Warehousing System Diagram.....................................................................................11
Figure 7: MIS System components......................................................................................................18
Figure 8: Decision support system stages............................................................................................19
3

Introduction
Accenture is a worldwide organization accessing and proficient facilities secure that provides
operations services, digital technology, consulting & strategy. To increase the quality and service of
its products, Accenture needs the use of an Information System. Different functional area of
Information System such as operational, Research and Development, financial and marketing are
described in this report. How these functional areas help the company in promoting their services,
managing their funds and develop new products is explained in this report. This project also explains
the various types of the information system, their purpose, functions, and examples that can be
used in our company. While Accenture is a worldwide organization accessing and proficient facilities,
it also suffers some problems. How to reduce or minimize these problems using these information
systems are also discussed here. This project also explains the uses of functional areas of different
information systems.
4

LO1: Understand information needs within different
functional areas of organizations
P1.1 Evaluate the information needs of the different functional areas
of an organization
Accenture is a worldwide organization accessing and proficient facilities secure that provides
operations services, digital technology, consulting & strategy. Through providing matchless facilities
they resolve our client’s hardest challenges. Since 1 September 2009, a coincidence global 500
company, In Dublin, it has been incorporated, Ireland. In 2017, $34.9 billion the company has
reported net revenues, through extra than 425,000 employees portion clients in more than 200
cities in 120 countries. In 2015, in India, the company had around 150,000 staffs, in the US about
48,000, and in the Philippines about 50,000. Accenture’s present customers contain 95 of the
Affluence Worldwide 100 and additional than three-quarters of the Fortune global 500
(Powell.2009).
Under the symbol of ACN, On the New York Accenture is common equality is listed and on 5 July
2011 was added to the S7P 500 index. Accenture company have their own six divisions they are-
 Accenture Technology
 Accenture Digital
 Accenture Strategy
 Accenture Operations
 Accenture Consulting
 Accenture Federal Services
There are four functional areas where the need of information is very huge
1. Operation department
In this department addition of value to some entity is the process of altering inputs into
outputs. As such they determine the extent of customer fulfillment and there are four basic
requirements of the customers right quality, right quantity, right time, and the right place.
The values of goods produced or services rendered increase if these can be provided at a
minimum price. When managing the resources that directly produce the organization
products and services operation department is concerned with the managing. It will go may
wider than these if the resources are generally consisting of material, information, people
and technology (Nyhuis et al.2010).
2. Marketing department
Recognize client’s requirements and services that happen those requirements so advertising
involves of all that a corporation fixes recognize that client’s wants and project products.
Developing a pricing strategy to capture market share while remaining competitive and
determining how the goods and services will be delivered and marketing function also
includes promoting goods and services. Within the marketing functions today social media
marketing is one of the fastest growing sectors in the marketing department (Chen.2011).
3. Finance department
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In this department these are related an accounting, they involve planning for managing a
company’s fund and obtaining planning. Analyse the influence that deriving will have on the
economic comfort of the corporation but Economics director’s strategy for equally long and
short-term financial capital needs. A corporation’s economics section responses query
around the long-term charge of copying assets, the implications of financing decisions for
the long-term health of the business and in what way resources must be elevated (loans vs.
stocks).
4. R & D department
Every organization wants to expand their business in the future by making innovations and
creating new ideas. By innovating the ideas and products, the organization gets a new
competitive advantage. For this innovation, the organization needs an R&D (Research and
Development) department. R&D innovate the products by making ideas and creating new
designs and styles. It also searches for the latest updating of economic and technological trends
that helps an organization to produce their products according to these updates trends.
Whenever Accenture wants to develop a new service or product, Research and Development
functional area is needed to thoroughly study the complete process. In this study, the R&D
department first knows the specification of telecom service, then the cost and timeline for the
production of that service. There are so many advantages of using R&D department. Like
Accenture can examine the products and services produced by them, can evaluate those
services that are already given to the customers to ensure that these services are still functional
or not and if there is a requirement of any changes or up gradation, then Accenture can solve
this by taking help from research and development department.
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LO2 be able to compare Information Systems
P2.1 Describe different types of Information Systems
Figure 1: Types of Information system
1. Transaction processing system (TPS):
In the organization transaction processing systems are used to best ever day to day
corporate businesses. At the operational management level, they are used for users. The key
impartial of a business processing scheme is to response repetitive queries such as-
 Due to John Doe, what is the magnificent?
 Today how printers were sold?
 We have at hand how considerable catalog do?
TPS classification offers responses to the overhead queries in a well-timed method by demo the
daytime today corporate dealings (Carmel et al.2014).
.
 The transaction processing organization is actual comprehensive produced from the data.
 By highly structured are routine and operational managers, they made decisions.
For example, the company requires loans that the bank gives out that, with the bank, an
individual the whole thing for must have a memorandum of understanding (MoU). Verify the
submitted documents of all that the operative staff, if an individual whose company has a MoU
with the bank appeal for a loan. The loan request is processed if they meet the request for the
loan. The client is recommended to see strategic administration operate to see the opportunity
of validation a MoU if they do not meet the necessities.
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Examples of Transaction processing system -
 Stock Control systems- Record levels of track.
 Payroll systems- Salary, loans management, etc of processing employees.
 Airline Booking systems- Flights reservation administration
 Stock Control Systems- Inventory levels of keeping track (Nambia at al)
Figure 2: TPS Diagram
2. Management Information System (MIS):
The administrations of existing presentation position, to display the Management Information
Systems (MIS) are used by strategic directors. To a management information system, the production
since a business processing organization is used as effort.
With routine algorithms, MIS system analyses the involvement that summarizes, compare and
aggregate that premeditated executives use to predict future, control and monitor performance that
the results are produced in detailed.
Example
To examine tendencies of consequences involvement from an opinion of sale system can be used,
those that are not performing well and that are performing well. To construct an upcoming list of
sequence, these materials can be used that is growing guidelines for decrease the instructions of
products that are not executed well and well-performing products (Kistruck.1972).
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Figure 3: MIS Diagram
3. Decision support systems (DSS):
These are defined as the material system whose aim is to supports business or decision-making work
of the organization. It does attend the administration, operation & preparation stages of an
association as well (typically higher & mid-management) and thus helps people to make decisions
about the problems that may be changing rapidly and not easily specified.
Functions-
 The DSS is made to be aimed at the less well structured, under all those specified problems
that the upper-level managers face typically.
 DSS does aim to combine uses of models and analytic technique with traditional data access.
 It precisely focuses on features which make them comparatively easier to be used by a
novice in an interactive mode.
 DSS gives special importance to flexibility and adaptability to allow changes in the
environment and the decision-making approach of the user.
Example-
 It can be built in any theoretical domain like,
 DSS is used widely in business management. An executive dashboard is one of the examples
of such application that helps in decision making.
 Precision agriculture is the application that helps in the case of farm decision making.
 DSS is also used in n forest department where a planning is to be mainly on the area
distribution (Crossland.2017).
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Figure 4: DSS Diagram
4. Executive information system (ESS):
The Executive information system can be defined as a type of management supporting
system that mainly helps and supports senior executive information and decision making when
needed. It also provides an easy access to both internal and external information that is relevant to
organizational goals. Thus, it is commonly considered worldwide as a specialized or upgraded form
of decision support system (DSS). The term Executive information system (EIS) is also known as an
executive support system (ESS).
Function
EIS gives special importance to graphical displays & easy to use user interfaces. Its Main positive
thing is that it offers strong reporting and drill down capabilities. In other words, EIS is enterprise-
wide range DSS that helps the top-level executives to analyze, compare and hence highlight trends in
important variables such that they can monitor precisely on the performance and identify various
opportunities and problems.
In the past years, the term EIS had lost its popularity in favor of business intelligence (with the
reporting, analytics, and digital dashboards) but the present improvement in it has again made it
into the list of known.
Example-
 Widely used in the marketing industry, the EIS provides a sale forecast which allows
the marketing firm to compare the past sale with the forecast.
 It also does financial analysis by focusing on financial performance accountability. It also
keeps a track of various ratios and cash flow.
 It is also used in the manufacturing sector by keeping an updated track of all the raw and
finished product (Fisher et al.1997).
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Figure 5: ESS Diagrams
5. Data Warehouse System (DSS):
A data warehouse system is also known as an enterprise data warehouse (EDW) in a computing
system. It is a system that is used for reporting and analysis of data, hence it is considered as the
core component of business intelligence. A Data warehouse is thus central repositories of series of
data from one or more discrete sources.
Function-
 It adds value to the operational business and their applications, hence act as a coordinator
for customer relationship management (CRM) systems.
 It Makes decision easier and solves queries and makes it easier to write.
 Organize various complex data and delete repetitive data.
 The main function is to provide a single common data model for all data of interest
irrespective of the data's source.
 Reconstruction of the data so that it makes easy sense to the business users.
Example-
 Offline operation is performed as the data in this stage are updated at regular intervals.
 The bottom-up approach, in this method data marts, is first created in such a way that to
provide reporting and analytical capabilities for various other specific business processes.
 The top-down approach is designed basically for a normalized enterprise (Bruckner et
al.2001).
Figure 6: Data Warehousing System Diagram
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P2.2 Investigate the current trends in using Information Systems
applications to solve business problems
Accenture is a global administration consulting and professional services firm that provides
operation services, strategy, consulting, digital, technology and. But there are some problems arise
while providing services. Currently, there are Information systems that help in solving the company’s
problems by making correct decisions, analyzing and visualizing the complex problems. These
information systems are MIS (Management information system), TIS (transaction processing
system), DSS (Decision Support System) and ESS (Executive Support System).
 Transaction processing system: The main problem arises in a company is processing of the
transaction. Definite implementation of transaction processing system is required. This
system includes monitoring and managing of the data transaction. When Accenture
customers make payment on purchasing of respective service, sometimes the transaction
may fail. So, with the help of a transaction processing system, failure of the transaction can
be prevented by rolling back the incompletely executed transaction. Accenture sometimes
also face the problem to manage records in payroll. Payroll is a system that records the
amount of money given to employees. A file is created that has information like name,
address etc. When any changes made in the payroll system, TPS helps in maintaining the
updated data. Benefits of a transaction processing system in the different functional area of
Accenture company are (Weik.2000):
 Handling Operations: Transaction Processing System handles many operations of Accenture
Company simultaneously.
 Manage Finance area: Transaction processing system manages the financial functional area
and daily transactions of Accenture Company.
But there are some issues arise in a transaction processing system like the security of data, data
accuracy, and validation. Data may be biased from TPS using charts and graph. While using the TPS
information system, there may be chances of loss of information. Operations performed by
Accenture can be automated which may affect the employees who are doing these operations
 Decision Support System: Decision support system has positive impacts in different
functional areas of Accenture Company. Accenture company can increase the productivity of
its employees, reduce time in producing services and make correct decisions to obtained
relevant information that can bring profits to the company. Using the DSS information
system, Accenture can also reduce the cost in producing of services by making effective
decisions. Other benefits of DSS that Accenture has are:
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 Improve effectiveness: Accenture can improve the performance quality from DSS
information system that brings more profit to the company.
 Promote learning: Promoting learning means Accenture can develop new concepts
and services by understanding the decision-making situation.
Although there are so many benefits of DSS information system, there are some problems
also.
 Information Overload: Sometimes a decision made by the computer system
may create problems for users as it analyzes the complete problem and the user
does not decide which information is to be considered or which is not.
 Overemphasis on decision making: DSS, sometimes make inaccurate decisions
which can have a negative impact on the performance of the company.
These information systems have positive effects on the progress of the Accenture Company.
Accenture can use these technologies to achieve more profits by improving the efficiency of its
operations. It can create new services according to the requirement of the customers. Using these
information services, Accenture can be able to provide better services to its customers and this will
bring more customer to a company which in turn gives more benefits to the company. Also, there
will be an improvement in decision making without wasting time looking for unnecessary
information.
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P2.3 Evaluate the suitability of Information Systems for different
functional areas of an organization?
The suitability and functions of Information System for different functional areas of the company
are:
Functions of the operational functional area:
 Designing: Designing includes the development of the products which means the different
characteristics and features of the services produced by the company. It is closely connected
with the expectation of the customer because the more good design, the more good
services, and customers want good services.
 Planning: Another function of the operation area is planning that how Accenture will
efficiently use this function and make plans of how to correctly use the available resource.
This feature also helps the company to meet with the changing situation.
 Managing: Team Work is very important for every organization to have successful
operations. It is suitable for Accenture in managing the team including training and
guidance.
 Coordinating: Coordination between the staff and team is necessary to manage the work, so
this function can help Accenture to build coordination.
Functions of Finance functional area:
 Preparing Budget: The main function of the Finance department is to prepare the budget
before showing the actual cost. It is very suitable for Accenture Company because the
company can manage the budget and cost in making of services.
 Managing financial risk: There are many financial risks to the company, so the finance
department manages these risks by using many measures. This function is suitable for the
Accenture company because the company can manage to reduce the cost arises from
financial risk.
 Managing taxes: There are two taxes: direct and indirect. Finance department can manage
the tax of the company by watching the updates in taxes.
Functions of Marketing functional area:
 Promotion: It is important to promote the products in front of people so that they get to
know about the services. This function is very suitable for Accenture Company to promote
and advertise their services to the customer.
 Pricing: Through this function, Accenture can manage the price levels and the use of price
adjustments.
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 Consumer Analysis: It is important to know the needs of customers to increase the selling of
products. This function is suitable for Accenture to communicate and know about the needs
of customers and also to encourage them to purchase their products.
 Distribution: This function can help Accenture company to determine the best methods of
producing and promoting their products and services.
Functions of R&D functional area:
 Innovation: Every organization wants to make innovation in their products and services. This
function is suitable for Accenture Company in developing new services.
 Updating existing products: Accenture company can use Research and Development
organization to evaluate the products on daily basis and check that these services are still
functional or not.
 Research on a new product: When Accenture wants to develop a new service, it can take
help from the R&D department to study the whole project which includes costs and time in
production.
 Quality check: Using this function of R&D functional area, Accenture can check the quality of
its services and products.
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LO3 be able to use Information Systems to produce
management information
P 3.1 Use an information system to generate valid, accurate and
useful information for a given problem
To Implement Information System to drive Operational Excellence CF Industries selects Accenture
CF Industries Holdings will help in NEW YORK, June 14, 2011 (Accenture NYSE: ACN), a universal
head in spreading and compost engineering to execute an info stage and organization to expand
operational excellence and material pass transversely CF businesses corporate.
The original IT system of CF Businesses anticipates that will operate attractiveness and carry progress
over synchronized corporate procedures such as inventory, finance, supply chain management
customer interaction and among others. Through uncomplicated entrance of correct data and
professional material the company also has an impartial of permitting its squad to produce the more
well-timed business conclusion.
Douglas C. Barnard who is known as the vice president of CF industries said once that the new
systems that have self-service approaches towards business information and standardize processes
in functions will surely make the CF Industries a most effective & successful organization. They say
that they have chosen Accenture only because Accenture understands our business objectives &
knowledge of leading industry practices.
Accenture’s work is to provide a system integration and consulting services platform. It would plan,
build and analyze accordingly and deploy SAP software. Its scope of work does include building a
data warehouse for supporting business intelligence. CF Industries then uses the Accenture's
Business Process Model for Chemicals, Accenture Delivery Methods, and thus it Advances Enterprise
Solutions such that it fastens the rate of the implementation and standardization across all over the
organization’s business operations. Accenture work is also to provide the change in management
and project management services for the implementation of ERP.
“We are very committed to helping CF Industries for achieving its only objectives. The lack in all the
functions derived from streamline process and functions helps create a foundation to be the CF
Industries to be the provider of the very first-choice,” said Michael Sweeney one of the senior
executives at Accenture.
CF Industries Holdings, Inc.-
CF Industries Holding, Inc. has its headquarters at Deerfield in Illinois. It is the main holding company
for the very operations of CF Industries, Inc. The company is one of the global leaders for
manufacturer and distributor of nitrogen & phosphate products, serving over the world fulfilling
both agricultural and industrial needs of the customers. The company also operates for various
world-class nitrogen manufacturing complexes in The United States, it also conducts mining
operations for phosphate and manufacture operation in Central Florida. It distributes nutrients from
plants through a complex system of terminals, warehouses, and so associated transportation
equipment located in the United States. This company also owns 50 % interests in Grow How UK
Limited, which is a plant nutrients manufacturer in the United Kingdom. CF Industries also very
timely posts it's investor announcements and apart from that some additional information on the
company’s website and encourages all the who are interested in the company to check there
frequently
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Identified a current problem of your chosen organization and talk about it
Reliability: Some customers do not bear the mistakes done during the transaction. So, TPS systems
are designed in such a way that the system in our company will always remain operational and gives
the reliable result to the customer.
Rapid Processing: Now instant processing is very necessary for every organization but sometimes
there will be a problem in rapid processing during a transaction made in Accenture Company. So,
with the help of TPS, the company can immediately perform the process and always make available
the customer data to the system.
Controlled Access: When the employee does not have proper knowledge of any system or service, it
might create a problem for the company. So TPS restricts and controls the access to such employees
so that their less knowledge does not persuade the transaction process.
Atomicity: Atomicity means either the transaction is done completely or not at all means while
transacting amount. Sometimes, customer faces the problem that the amount gets deducted from
their account but Accenture will not receive it. So, TPS makes sure that the transaction makes sure
that transaction made in an entire way.
Consistency: TPS provides consistency in data during transaction.
Isolation: Sometimes the amount debited from the customer’s account and does not credit in the
company’s account which creates problems for customers and this will affect the profit of our
company. So TPS helps to make a transaction in isolation.
Durability: TPS sometimes fails in ensuring that transactions that are completed cannot be undone.
So, a log system is created that makes a document of all completed transactions.
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P3.2 Evaluate alternative methods of solving the problem.
Evaluate alternative methods of solving the problem.
Accenture is a UK based organization which provides their service in the technology, operations,
digital, strategy, and consulting sector. The organization faced a number of the issue which is
explained above section. The organization faced a communication issue due to a poor network
which also affects the online transaction in the organization. The organization used the TPS to
resolution or minimizing the above problem. Accenture organization can be used the DSS (Decision
Support System) and MIS (Management Information System) as alternative methods to resolve the
solution. The organization can design the computerized base database to store the information
through the MIS system. MIS system provides the solution to with the poor connectivity. It stores
information on the daily based. Through the MIS system, the organization is able to find the missing
data with the proper reason. It also helps to reason poor network connective. Accenture
organization used MIS system as feedback system which takes the feedback from the organization
employs and customer and find out the solution of the current available in the organization IS ( Hai-
long, and Jian-rong2009). Here, I have shown the MIS system components which are used to resolve
the above-explained problems such as
Figure 7: MIS System components
MIS system of the organization gathered the data in the input storage which used as input in the
system. There is a number of operations performed on the input data and create the output as a
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solution of the above-explained the problem. For the data management, MIS system used different
type hardware, software, and operation functions. Without the MIS system, Accenture organization
based the poor network connection which provides the disintegrated and non-reliable system.
Accenture can also use the DSS system to resolve the organization problem. DSS system referred to
as Decision support system that analyzes the problem and makes the operative, effective, and
accurate decisions in the respect of the organization problem. It helps to improve the organization
performance and make market value with a different type of benefits. DSS provides the proper
communication between employs and customer so they faced fewer problems in the organization.
DSS system finds out the organization problem and then analysis the problem with given feedback
and after that, there is make effective decisions to resolve the organization problem.
Figure 8: Decision support system stages
DSS system used four phases to resolve the problem such as
 Intelligence phase finds out required conditions which are helped in the decisions making.
 Design phase plans for design and analyzing plan design that provides the possible solution
above-explained problem.
 In the Choice phase, the organization selected a single design which is suitable for their
requirements.
 The fourth phase is known as the Implementation phase. In this phase, the selected design
implemented in the organization system to resolve the problem (Andreasik, 2018).
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Conclusion
Each organization needs different information system and its uses to improve their performances
and make more profits. There are many benefits of these information systems. The organization
must know about all systems and should know which information system will be suitable for their
company. It is concluded from the whole report that TPS (Transaction Processing System), MIS
(Management Information System) and DSS (Decision Support System) information system are more
suitable for our Accenture company. Because these systems manage and operate the services
provided by the company and makes the correct decision for the company. TPS is suitable for
Accenture Company to reduce the problem arises during the online transaction. It is also concluded
that using the different functionality of an information system can help the company to achieve
better results by promoting and marketing their products. Thus, the overall report concluded that
the information system is very necessary for our company.
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