Information Systems: Enhancing Decision Making in Organizations

This report delves into the crucial relationship between information systems and decision-making within organizations. It emphasizes how information systems, including technologies like ERP and CRM, are essential for providing timely and accurate data, which enables effective decision-making in a dynamic business environment. The report highlights the evolution from paper-based processes to integrated systems, showcasing how modern information systems streamline operations, enhance communication, and facilitate global competitiveness. It explores how Management Information Systems (MIS) support decision-making by providing data-driven insights, scenario analysis capabilities, and trend projections. Furthermore, it examines the practical applications of information systems in various business functions, from operations and finance to marketing and sales. The report also touches upon the future trends of information systems, emphasizing the importance of technical skills and the need for employees who can manage these complex systems to drive organizational growth.

Running head: INFORMATION SYSTEM
Information System
Name of the Student
Name of the University
Author’s Note

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The correlation between the decision making and information system is the main concern
in the information system field. The key goal of the information system is to help in decision
making by giving time based and accurate information that helps them to make the proper
decision in the turbulent environment. Any successful organization relies on the information
system heavily for improving the work to achieve their benefits and goals. Information system
helps to solve the unstructured and structured problems in the environment. The system is
included with the computers, database, facilities of interactive query and people. Information in
any organization is considered as the most essential aspect for effective decision-making.
Because of the significance of the information in the decision-making, the developed systems
have emerged for serving the proper information to the managers to make good decision. The
information system focuses on the utilization of the ICT (Information and Communication
Technology) in managing the organization. Now days, all the organizations are using the ICT for
managing the operation effectively for helping the managers to make proper decision, gaining
the competitive benefits and for facilitating the seamless external and internal communications
with the staffs, partners, customers and the other stakeholders.
The key focus of the organizations is to stay competitive globally by leveraging the
abilities of the modern ICT. The organizations are using the information system for providing the
service and products of the affordable prices, highest quality, help the organizations to enter in
the new market using e-commerce and top related services to the customer. Integration,
collaboration and globalization have become the drivers of the competitive market. For
remaining compet0itive, the organization are investing in the advance information system such
as ERP (Enterprise Resource Planning) software, CRM (Customer Relationship Management)

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software that collaborate and integrates the various functional aspects of the organization and
provide the organization real time data consistently for fast and accurate decision making.
Previously, when any organization received orders from customer, whether this was for
the product purchased or the service requested, the order required for going through the paper
based process and workflow, which was passed with the inbox-to-inbox and various
departments. In this entire process, the purchase order needed to be re-typed as this passed
through multiple different department as this increases the potential error of the human. No
proper status of the account order was there as no official tracking device was there for alerting
every department. For retrieving the information of the order status, the customer or the clients
were directed frequently for contacting the warehouse of the organization for the manual
research.
Now days, the organizations are eliminating the inaccuracy of the paper-based record and
track by implementing the software like ERP system. The information system eliminates the
inefficiencies in the workflow or the process like order monitoring and tracking. Instead of the
standalone system, the information system uses the unified program, which connects the multiple
functional departments like, finance, audit, warehouse, purchasing, planning, manufacturing,
HR, marketing, sales and inventory. While all the departments have the own software module
sets, the software of the information system is integrated in order to make it easy for sharing the
information in the organization. After any department completes the updating process of the
order, this will be routed to the following department automatically in order to make everyone
alerted for any changes.

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Hundreds of businesses have started to participate in the international market as this
provides a change for the organization for larger business prospect and greater revenue. There
are consistent demands from the multiple businesses in the global market. The challenges and
concerns vary by depending on the business size. For the small business, operations, storing and
controlling the information are less complex. When the business grows, the intersecting with the
international market, the information system is used for managing the operations properly
without increasing the employee’s number. The increasing supply chain needs the solution by the
software that is used in some sectors such as:
 Web-based ordering
 Configuration of Product
 Customer relationship management
MIS (Management Information System) helps the organization to make proper and valid
decision by giving them up-to-date and accurate information and by performing the analytic
functions. The organization needs to ensure that the MIS they have chosen are working with the
available information format in the organization and the MIS needs to have the adequate
features. Proper MIS helps in structuring the basic data set that is available from the records and
operations of the organization in the report for presenting the organization with the guidance for
their decision.
Some of the features of the information system in which way it helps the organizations in
their decision-making are:
Information from Operations

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When the organization base the decision on the available data from the MIS, they reflects
the information, which comes from the company’ operations. The MIS takes the data that is
generated by the level of the work and then it organizes into multiple useful formats. The MIS
contain thee investment, sales figures, workforce data and expenses. If the organization need to
know about their profit in the market they needs to make proper decision by using the MIS that
provides the accurate report.
Capability for Running Scenarios
The capability for running the scenarios is the main tool for decision-making. Some of
the MIS have this ability or features in its system while the other tool provides the information
needed to run the scenarios on the application like spreadsheet. The decision made by the
organization is affected by the decision in a particular way. The organization can enter to
maximize the budget for the promotions and minimizes the levels of employees and then they
can see the changes to their revenue, profit and expenses for the various levels of increase or
cuts. MIS has the vital role in making the real time scenarios possible.
Projections for Assisting in Decision Making
Any decision made by the organization results some changes in the project outcomes of
the organization and the organization may need the changes to the strategy of their goals and
business. MIS has the trend analysis that is built in and the system provides information, which
lets the organization carry out this type of analysis. The strategies of typical business include the
projection for the basic operating outcomes. The trend analysis permits the organization for
showing the result that will be in the present circumstances and they will modify after the
organization implements the decision they have taken.

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Implementation and Evaluation
When the organization is making their decision with the particular goals in their mind and
the organization has the documentation from the trend analysis and MIS for supporting the
expectations. MIS provide the organization information and data that is needed for determining
whether the decision made by the organization has the desire impact or whether the organization
should take any corrective action for reaching the goals and objectives. If any particular outcome
is not on the track, the organization use the MIS for evaluating the circumstances and deciding to
take the extra measures if require.
Future of the Information Systems
As the organizations are trying to minimize the cost and enhance the productivity, the
staffs of the organizations are looking to the Information system for helping them grow in the
competitive market. Information system has improved the productivity of the businesses. The
career in the MIS is very idea for those, who are looking for advance and sophisticated
technology in the organizations. As in today’s world, the organizations and businesses need more
technical skills, the organizations are searching for the employees, who can help in operating and
managing the various information system and tools.

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