Managing Information Technology: Categories of Information System and Benefits of ERP System in Real-Life Business

This report discusses the categories of information systems and the benefits of ERP system in real-life business. It explores the importance of managing information technology and how it can enhance profits and sales. The report also provides recommendations for effective use of information technology and ERP system.

Managing Information
Technology

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK..........................................................................................................................................................4
CATEGORIES OF INFORMATION SYSTEM.....................................................................................4
ERP SYSTEM.........................................................................................................................................5
BENEFITS OF ERP SYSTEM IN REAL-LIFE BUSINESS..................................................................6
CONCLUSION...........................................................................................................................................7
RECOMMENDATION...............................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Managing information technology refers to a process of managing the resources related to
the information technology as per the organization demands, needs and priorities. It is used to
manage and organize all the business activities and technology within the company to enhance
the profits and sales for the company. It is an activity of making a system technology work that
works better for you. The major importance of this managing information technology is to foster
the creativity in the organization. Therefore, new technology gives the results in smarter way
with fastest processing. It includes various components of the information technology such as
hardware, software, telecommunication, data warehouses etc. it also benefitted by providing the
jobs to the unemployed peoples and which positively affect the economics of the country. This
report is based on the categories of an information technology that helps in managing all the
level of the management and also helps in making the accurate decision in a unique and
innovative way. Hence, it also explains the ERP system that helps in managing, storing,
collecting, and interpreting the resources at a time without any wastage and within a time limit.
Further it shows the benefits if ERP system that will affect the real –life business like Marks &
Spenser. At last give the suggestions that help in using and adopting the information technology
and ERP system very effectively. The aim of making this report is to enhance the knowledge
regarding the information technology and how it will be used in the business enterprise to
enhance the profits and sales for long term. The major objective of making the essay report is to
communicate the proper information regarding the information technology and how it will
manages and collecting the data and turned it into the valuable information(Rohitratana, 2017).
TASK
CATEGORIES OF INFORMATION SYSTEM
Information technology refers to a process of storing, managing, collecting, retrieving
and developing the information. It helps in converting the raw data into the valuable information
that helps in making the decision related to the enhancement of productivity in the business
organization. it includes various types of information technology that helps the different levels of
the management in taking the decision. There are different categories of information technology
that are mentioned below.

 Transaction processing system- This type of system software is used by the low level or
operational level manager that processes the facts and figures which is related to the
business transactions. Their main objective of making and installing this is to update the
records related to the transactions like payroll system, stock system and it is performed in
two ways – online transaction processing or batching processing. Their main task is like
sorting, listing updating and merging the reports as per the demand of the high level
managers. By using this system software manager at operational level decisions could be
taken as a partly nature on the basis of set guidelines and the calls from the superiors. For
example – like an operational manager of a hotel can check all the lists and credit limit of
their customers and by analyzing this they gives the benefits to them(Ilmudeen and Bao,
2018). Decision support system- This system software is used by the senior manager of the
company. they are the top level managers who take decisions about the welfare and
exploring the business to the next level. This decision support system uses the internal
and external system to gain and collect the information so that they will take quick
decisions that fulfill the demands and achieve the objectives of the firm. This system is
used various mathematical models and a statistical techniques to provide a interactive
solutions to the issues that was generate in the company. this system software is used to
gathering the valuable information and facts that create an options and various
alternatives in front of the user like top level manager. It includes financial planning
system and bank loan management system. It provides the solutions and the answers to
the semi-structured and unstructured situations( Avgerou and Walsham, G. 2017). Management information system- It is an important system that was taken by the middle
level manager. It is generally designed to take the raw data from the transaction
processing system and then convert it into valuable information in a very summarized
and short way of reports. It helps in providing the multiple types of reports such as- ad-
hoc reports, summary, on-demand and an exception reports. It involves the various terms
like sales management system and the human resource management system. This system
software has transfer the transaction processing data valuable reports related to the
inventory, production and accounting and then gives it to the managers with a proper
reports of the information(Khalifa and Ali, 2017).

 Executive information system- This type of information system is used by the senior
managers or an executive manager and it is very easy to use so that the managers did not
need any assistance at the time of using it. Executive information system is to do a trend
analysis and drill down capabilities that provides the results in a graphical form of way.
This information system is addresses the unstructured decisions and designs to solves the
particular problem in a creative way. It cannot use high analytical tools models and
analyzing the communication capacity that is applied according the changes occurred into
the problems. It helps in providing the menus, communication, graphics and the local
processing units that helps in solving the specific issue related to the report and
information. It is interconnected with management information system and decision
support system without these two no data can be converted into a valuable
information(Rodkey, Alegeus Technologies. 2020).
ERP SYSTEM
Enterprise resource planning refers to a process of deliver the integrated suite of an
organization application. This application and system software is used by the various
administrative and many businesses operational processes. Its installation is very expensive in
nature and complex to use by a normal person who is not aware of using technology. It covers
wide range of features which is different from vendor to vendor. This application is very useful
to perform the various functions in the organization like human resources, accounting, customer
relationship management, and manufacturing and inventory management. This ERP system
allows an automation within the activities that was performed in the enterprises. This system
helps in streaming the various business operations with an specialized features. Enterprise
resource planning integrates all the functions related to management function like planning,
controlling, directing, developing, selling, and marketing into an one application of single
database. This system software basically helps in the back office to perform the various functions
which is beneficial to earns a profits and increase the profitability of the organization. the major
advantage of this application system is to optimization of business processes within a accurate
cost and time. It also has the capability of transferring the information between all the functions
and categories of a firm. In a long term decision making it can optimize and analyze all the
management related decisions. Use of this system is very difficult. This system software helps in
tracking the cash that was engaged in raw materials, production capacity and a payroll system.

This system software is used as an on-premise and on cloud system. In cloud computing it create
a problem as it only work when the internet connection is active. Many company use
QuickBooks for accounting and the sales force for the customer relation manager. As per the
current demand of the business environment this enterprise resource planning is very useful for
successful performing all the activities. it can helps in robust the venture activities in a very
effective way. it is generally used by the large enterprises as they covers the large amount in
installing so that small business organization cannot afford it. To handle this ystem software they
require a multiple workstations and dedicated and experienced teams for their maintenance and
up gradation. It involves various steps in their implementation process such as need assessment,
ERP system evaluation and selection, data preparation, ERP implementation, prepare for change.
Testing, training and education and last go live and ongoing support. For every organization
manager it is very difficult to decide whether to use ERP system or not. Therefore, the decision
can be based on the financial resources and the employees who are working in the working
place(Ellwart and et. al., 2015).
BENEFITS OF ERP SYSTEM IN REAL-LIFE BUSINESS
Enterprise resources planning are not a part of an asset for many business enterprise. It
helps in smooth running of a business, protecting the information, automation processes and for
understand the information as per the trends. For Marks and Spenser it will present some benefits
related to the ERP system that can be described below.
 Better decision making- The main benefit of enterprise resource planning is to make
promote the use of application while promoting the coordination by using shared data and
common data definitions that was present in the firm. Sharing the data and information
helps in eliminating the time and cost to make better decisions regarding the
enhancement of the company. in Marks & Spenser, use this application tool to make the
decision better by sharing the accurate information while promoting the collaborating
information. It will enhance the revenues of the firms(Kisekka, 2015). Forecasting – The major trump card of the enterprise resource planning is that it helps
the manager to accurately forecast the future by using the tools and resources which is
provided by this application. By using this system software company can make the
estimates very accurately and in a realistic way which enables in effective and efficient

forecasts. If Marks & Spenser use this enterprise resource planning then it helps in
forecasting the future by using various tools and techniques that is given by this system
(Kahle and et. al., 2017). Productivity - This enterprise resources planning helps in saves the time and cost by
effective and efficient productivity and also the enhancement of the productivity. Because
of this system software it is able to work very easily and accurately. Therefore, manager
of the firm also focus on the other important projects which gives higher profits and
income to the organization. in context of Marks & Spenser manager need to install this
application tool to reduce the time and cost with enhancing the productivity and
performance of an employees(Sahoo and et. al., 2016).
CONCLUSION
From the above report it is to be concluded that use of information technology is very
beneficial in current business environment. Information system helps in collecting, storing,
interpreting, analyzing and developing the data automatically. In this the use of enterprise
resource planning helps in reducing and eliminating the cost and time while providing the
valuable information to the manager of the firm. the use of ERP system is very effective as it is
very flexible in nature and in the current environment it is important to be flexible as the
environment is very dynamic in nature. In this if company use standalone system than it is not
fruitful for the business as per the today’s demand of the organization. this report also give the
information related to the benefits of the ERP system which helps the Marks & Spenser to deal
with the complex problems and at the same time it is very cost effective in nature.
RECOMMENDATION
From making this report on managing information technology, it contains lots of
information about the use of system application. For better use this system application, this
project report give some suggestion that helps the user very well. In this if a manager of a
company adopts any system in their business unit then they will provide proper training to their
employees so that they will easily work on them and manages all the resources as well. It also
helps in retaining the workforce for longer period. Nest this report recommends that company

only use this systems application when there is strong financial resources available in the firm. so
that they will increase the profits and sales(Alyousef and et. al., 2017).

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