Importance of Information System in Business Operations

This report highlights the importance of information system (IS) in business operations and how it supports daily operations within an organization. It discusses the role of IS in decision making, planning, resource utilization, and improving performance. The report also emphasizes the benefits of IS in training and development, knowledge management, and market research. Overall, IS plays a crucial role in gathering, storing, and analyzing data for better decision making and improved performance.

MANAGEMENT
INFORMATION SYSTEM

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Contents
Introduction...........................................................................................................................................1
Importance of information system.........................................................................................................1
Conclusion.............................................................................................................................................3
REFERENCES......................................................................................................................................3

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Introduction
In the era of technology, most of the business operations are being conducted with the help of
information system. Information system is understood by a formal, socio-technical,
organisational system that helps in collection, processing, storing and distribution of
information. IS comprises of four basic components i.e. people, technology, task and
structure (Laudon and Laudon, 2016). Snyder of Hanover deals in the business of snacks and
hence performs different types of operations. In these operations, information system can be
very helpful. This report will highlight the importance of IS and the way in which daily
operations within the organisation can be supported by IS.
Importance of information system
A large amount of information is being generated from different sources and this information
is of higher importance. Traditional ways of managing data is not so worthy and accurate.
Processing of the data is further difficult. In the Snyders of Hanover currently there is use of
manual processes of data collection and spread sheets that helps in accumulating and
reporting data. This has become important for exploiting all the benefits from the resources.
In the areas such as decision making, IS plays a very critical role (Markgraf, 2018). The
decisions that are related to finance can be easily taken with the help of data being
accumulated by IS. This is because these systems are capable of producing the data as per the
requirements of the firm. The profit and loss statements can be easily calculated with the help
of these systems (Hall, 2012). This is because there are several tools and software that are
available in these information system and that enables a company to do calculation fast. This
also reduces the chances of errors due to manual calculations. Data is being given as an input
different variables are used based on which data are processed and hence resulting in
information that is useful.
Systems such as Business Communication systems will support the operations such as
gathering data and then communicating and distributing it with others rapidly. This plays an

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efficient role in building coordination and working in collaboration. E-mail is a perfect
example of such system that documents and stores important information and conversations
that can be used at the time of decision making. This shows that it boosts up the
communicational infrastructure within the company by supporting the conversations with
data (Laudon and Laudon, 2011). It is seen that in the manual information processing,
mistakes can occur easily. These mistakes include overestimation, untimely processing,
irregularity in storing data, data redundancy and many more. With the help of IS, these
problems can be easily solved. IS helps in filtering and analysis data that helps in reaching to
the conclusion. Processing and interpretation of data becomes simple with the help of IS
(Mithas, Ramasubbu and Sambamurthy, 2011).
Operations such as planning become easier with the help of IS. Since exact data about
different resources and processes are available with the Information system hence the cited
firm can make plans about how to use these resources in the long term. Resource planning
ensures that maximum profits can be obtained from the resources. For maximum utilisation
of resources and sustainability also these IS systems can be helpful (Maier and Hadrich,
2011). Along with this information tools such as software can be helpful for predicting the
demand of the company according to which supply can be planned. Information System is
also helpful in monitoring the data based on which decisions can be taken by the company
easily. Information System helps an organisation in analysing the challenges based on the
accurate data, which improves the chances of company to make better decisions.
Organisation of data also becomes easier which helps in improving the ways in decisions are
made and at what speed.
Business operations of Snyders of Hanover are done at several locations at the same time
hence collection and storage of data can be a problem in the manual methods. With the help
of information system and internet facilities, this can be easily done. Since information
system is highly automated hence it reduces the numbers of staffs that are required for
keeping the data. Some of the historical information can also be obtained easily which
suggest the way in which the steps are taken by the company is affecting various parameters
of the company that indicates success. The key indicators in this regards are costs, profits and
sales. Information system ensures that accurate, reliable and up-to-date data is available with
the decision makers at the time of decision making (Mithas, Ramasubbu and Sambamurthy,
2011). In the process of change or in the process where the complexity in operations are very
high these information systems are helpful in documenting each and everything that are going

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on in the process. This is also helpful in improving the performance of the organisation as
information gathered by these systems can be used as a base for the changes that will be
required in the future.
Information System will benefit the cited firm in areas such as training and development as
the data that is collected by the company can be used by the firm to train its employees.
Knowledge management that is highly essential in the modern day context can be easily done
with the help of Information system. It is also helpful in doing market research. This is
because company will be able to maintain all the data that is collected from the research and
hence innovation and all other processes get aligned in the direction of company’s goals and
objectives (Inspired Techs, 2018). Researches on the implementation of the IS system
suggests that such systems facilitates flattening of the hierarchies by enlarging the
information distribution so as empower workers at the lower-levels.
Conclusion
From the above based report, it can be concluded that Information system is very much
essential in the modern day business. It helps in gathering, storage and analysis of data.
Snyders of Hanover can use this information system for making better and accurate decision
as the data that is available with IS are reliable, accurate and with almost no redundancy. This
company can also utilise IS for training of their employees and improve the performance.

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REFERENCES
Hall, J.A., 2012. Accounting information systems. Cengage Learning.
Inspired Techs, 2018. Why Information Systems are so Important to your Businesses.
[Online] Available at: https://www.inspiredtechs.com.au/why-information-systems-are-so-
important/. [Accessed on 14th March 2019]
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems. Upper
Saddle River: Pearson.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Maier, R. and Hadrich, T., 2011. Knowledge management systems. In Encyclopedia of
Knowledge Management, Second Edition (pp. 779-790). IGI Global.
Markgraf, B. 2018. The Three Fundamental Roles of Information Systems in Business.
[Online] Available at: https://yourbusiness.azcentral.com/three-fundamental-roles-
information-systems-business-23383.html. [Accessed on 14th March 2019]
Mithas, S., Ramasubbu, N. and Sambamurthy, V., 2011. How information management
capability influences firm performance. MIS quarterly, 35(1), p.237.
Mithas, S., Ramasubbu, N. and Sambamurthy, V., 2011. How information management
capability influences firm performance. MIS quarterly, 35(1), p.237.