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1Information SystemsName:CourseProfessor’s nameUniversity nameCity, StateDate of submission
2Executive summaryThis report shows the importance of putting in place an information system for AAHS, acompany that is involved in providing healthcare for animals in Australia. The reports analysesthe importance of information systems to a business in enabling it to have competitive advantagein the market through providing the management with data that enables it them to make betterdecisions. The report also has recommendations on what AAHS should do to protectstakeholders from the negative impacts that come with installing an information system forexample, identity theft.IntroductionAn information system is a software that helps a company in functions of organizing andanalyzing data. It therefore turns raw data into useful data that can be used in decision making bythe management. An information system has three main functions in an organization . These are;they act as a communication system by gathering and distributing information and allowsmanagers to communicate more rapidly(Business knowledge for IT in private wealthmanagement, 2009). This information helps employees collaborate in a structured way. Secondfunction of the information system is in operations management. AAHS can benefit frominformation system because they allow a company to operate more efficiently. Informationprocessed can be used by the company for competitive advantage or to differentiate yourself byoffering better customer service. It also helps in decision making because information given isaccurate and up to date. Other function of information system is that it helps in record keeping bystoring documents , operational data and communication records(Hofkirchner, 2012).
3Types of information systemsTransaction processing system is used to process transactions that result from day to daybusiness operations, for example, purchase orders and paychecks. Another type of informationsystem is the management information system in which business owners rely on reports fromvarious parameters such as inventories and sales data, operational performance data for tactical,strategic and operational planning. The other information system is the Decision Support Systemthat is used by managers and owners to make a decision and know its impact before the decisionis implemented(Smedinghoff, 2008). The other type of information system is the executivesupport system, which helps the managers identify the long term trends for strategic planning.Problems faced by the companyLack of an information system is one of the major problems faced by AAHS, this haslimited the information and records that they can keep in regards to the animals. Anotherproblem is the management of the animals when treating because of the growth that the companyhas had. After treatment of the animals there is the management part of it where the owners aresupposed to be provided with information regarding the animal and regular updates. This is noteasy without an appropriate information system that disseminates information about the animalto the owner. Cost of installing the operating system is yet another problem that the owner faces,there is definitely a huge capital outlay required to set up IT infrastructure across the branches.Also another problem is the security and safety of data that the owner is worried about(Melo-Pinto, Teodorescu and Fukuda, 2003).Information required by the company and how it gives the company competitiveadvantage