Information Systems and ERP Systems: Benefits in Real-life Business

This report provides a comprehensive overview of Information Systems (IS) and Enterprise Resource Planning (ERP) systems. It begins by categorizing different types of IS, including Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision Support Systems (DSS), and Online Analytical Processing (OLAP). The report then delves into ERP systems, defining their functionality as integrated management software that streamlines business processes across various departments. It highlights the benefits of ERP systems in real-life business scenarios, such as improved efficiency, data security, enhanced collaboration, and cost control. The report emphasizes the importance of IS and ERP in achieving strategic business objectives, increasing profitability, and gaining a competitive advantage in the market. The document also offers insights into the implementation of various IT solutions, such as MIS, TPS, and DSS, which drive company growth and sustainable development, making it a valuable resource for understanding the role of technology in modern business operations. The report concludes with recommendations for businesses to adopt ERP systems to reduce errors, improve efficiency, and optimize overall performance.

Managing the information and
technology

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Categories of IS............................................................................................................................1
ERP system..................................................................................................................................3
Benefits of ERP system in Real-life business..............................................................................4
CONCLUSION................................................................................................................................5
RECOMMENDATION...................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Information system is information and communication technology which allows the
interaction and communication within organization that supports various business functions. IS
mainly aimed at supporting the operations, management, and decision-making within
organization. This study will present various different types of information system such as
transaction processing system, Management information system, Decision support system, AI
(Artificial intelligence) techniques etc. The report will also provide the role of Enterprise
resource planning system and its benefits in real-life business. It will mainly focus at describing
different types of IT solutions which supports the growth and sustainable development of the
enterprise. The easy will also be describing about the implementation of various IT solutions in
the form of MIS, TPS, DSS system which will derive the company towards the growth and
success and it will result in sustainable development
Moreover, This report is aimed at developing the Information system within the
organization which supports efficiency, productivity and improved business practices in order to
maximise the profitability. The main objectives of this study is entertaining different types of
information system in order to strengthen the strategic business objectives. However, IT plays an
integral part in every industry and helping the companies in achieving the cost effectiveness,
derives the growth in revenue and maintains the competitive advantage in market place.
Although, computerised system maintains the market information and helps the company in
innovating new products in order to sustain for the longer time (Arasu and et.al., 2015). It will
benefit the firm in marketing research and also helps in identifying the needs and requirements of
the users which will support the organization in meeting the successful goals of demands and
supply. In addition to this, the easy is mainly aimed at developing a complete understanding
about TPS, DSS and MIS system. It helps in developing a complete understanding regarding the
use of such system and its benefits in the business.
MAIN BODY
Categories of IS
A commuter information system is composed of people as well as computers that process
or interprets the information. It can be generally referred as a study of systems with a specific
reference to complementary networks of hardware and software which is used by the
organizations in order to filter, collect, distribute and process the data (Fountas and et.al., 2015).
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IS mainly aimed at supporting the operation, management and decision-making which respect to
information and communication technology which provides the way in which people generally
interact with technology in order to proceed the business process. Information system consists of
various different types of systems which are described below:
TPS (Transaction process system)
TPS is mainly used to record data base of the business which allows the organization to
store day to day business transactions. This system is generally used by employees which are
involved in the operational level. The main objectives of TPS is to maintain the information
regarding the day to day operations such as value of the printer which is sold today, cost of the
available inventory, expenses on tea coffee or breakfast, outstanding dues of the creditors etc.
This system records and answers to all day to day expenses and earnings of the firm in timely
manner (Gao and et.al., 2019). So this allows the operation manager in determining the updated
status and also allows them to take the decisions regarding the structure and routine tasks
properly.
Moreover, TPS system involves the collection, modification and retrieval of all
transaction data. Character-sticks of TPS system are as follows:
 Improvising the business performance
 It allows the reliability and consistency in operations of business.
 Efficient retrieval and effective data processing
MIS (Management information system)
Management information system are mainly used for the tactical managers in order to
determine the performance of the business. MIS uses the output from the TPS system in order to
manage the various tasks and activities of business effectively. This system analyses the input
with routine algorithms and then delivers the actual result. MIS aggregate, compares and
summarise the result and deliver the final report which is used by the tactic managers which
allows them to control, monitor and predict the future performance. MIS includes Sales
management system, Budgeting system, Human resource management system etc.
DSS (Decision Support system)
This system allows the senior management to establish the strategies and tactics in order
to improve the comprehensive business performance (Hu and et.al., 2019). This allows the senior
management to take non-routine decisions and this system uses the information from the internal
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as well as external system. DSS is mainly aimed at providing the solutions to the problem
according to the changing situations of the business. DSS uses Sophisticated mathematical
models and statistical techniques in order to provide solutions. Various examples of DSS
includes Financial Planning system, Bank Loan Management system etc.
OLAP (Online Analytical processing)
This is mainly used to analyse the multi-dimensional data which can be used in different
way using multiple dimensions. This system is mainly aimed at providing the answers to ad hoc
queries within the shortest possible time regardless of size of datasets being used (Laudon and
Laudon, 2016). This system has the capabilities to perform complex calculations, trend analysis
and sophisticated data modelling.
ERP system
ERP stands for Enterprise Resource Planning is a management software that combines all the
system of the business into a single system. It allows the organisation to manage all the work of
the office through this software. In ERP software all the functions of the organisation are
integrated into the one complete system and all the processing is done through this system. It
shared database that helps in doing multiple functions used by the different departments of the
business. It is a used for managing the all business processes like sales, purchase, accounting,
Human resource etc. It helps in analyzing the features that it offers to the organisation. It helps in
improving the communication gap between the different departments. It provides an integrated
business processes that helps in providing the real time data using databases that are being
maintained by the database management system. It tracks the activities like proper availability of
cash, raw material and production capacity. It is the application that shares the data to various
departments. ERP also helps in providing the information flow between the different functions
and manages connections with the outside stakeholders of the organisation(Noe and te.al., 2017).
ERP system is the multi-billion dollar industry that provides different components that
supports the various business functions. Earlier this system is used by the large enterprises but
now small enterprises also use it.It is an important tool for the organisation that facilitate all the
error-free business transaction. ERP system is different from the traditional system development.
It runs on a different type of computer hardware and network systems used for providing the
database information to the organisation. It provides multi-platform and multi-facility to the
business for doing its operations. Supports in framing the strategic business activities and ways
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to implement them in the business. It covers all the functional areas of the like manufacturing,
selling and distribution, inventory, payable etc. Performs the core activities and increase
customer service(Kilic, Zaim and Delen, 2015).
It provides complete combination of systems not only in the departments but all under the
same management of the company. Solution that provide better project management. It enhances
the automatic introduction of the latest technologies like Electronic Fund Transfer, Internet,
Intranet etc. Removes most of the business problems like material shortages, productivity,
customer service, cash management etc. It has various business tools like Decision support
system, Executive information system and data mining to enable better decisions. It facilitates
the easy communication between different departments. Companies who are using this software
is Microsoft Dynamics AX, Financial Force ERP, Oracle ERP cloud etc. It helps in improving
the business operations such as information of supplier, contracts, production planning etc. It
brings together the customer management and supply chain management into one system. It
makes the work easy for all the departments in the organisation and also reducing the manual
work of the employees(Fountas and et.al., 2015). It covers end to end processes of the business
activities. In includes different components and modules that are integrated together and helps in
business operations of the organisation.
Benefits of ERP system in Real-life business
It can improve the quality and efficiency of the business. It helps in keeping the
company's internal business operations running smoothly. It can lead to the better outcome that
will benefit the organisation such as in customer service and manufacturing. Supports upper level
management by providing information for taking decision. It makes the organisation operational
activity more flexible and enhancing the business externally and internally. It provides data
security to the company so that the data of the company is not gone out and remain safe. It
provides increased opportunity for collaboration. It provides a collaborative platform that helps
employees in spending more time on content(Nwankpa, 2015).
Reduce paper documents by providing all the work in online format. Improves the
timelines of information by providing daily reports instead of monthly. It has greater accuracy of
information that contains the detail content, better presentations that are satisfactory for the
organisation. Helping in improvement of cost control. It responses in a faster way and follow up
on the customers. Better monitoring and resolve the queries easily. It collects the cash efficiently
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and helps in reduction in delay in payments by customers. It helps in achieving the competitive
advantage by improving the business operations of the organisation. Helps in improving the
supply-demand with other locations and branches in the countries.
It is a unified customer database that are being used by the applicants. Improves the
international operations in other countries by supporting the tax structure, accounting and
languages. Improves the information access in the organisation. This system helps in providing
the functional approach to the business as all the functions are integrated with each other. It
increases the efficiency in doing work. The processes done in this system are all streamlined all
the systems are aligned with each other. It helps in reducing the cost of using several different
applications in a single system. It cost effective and makes the work easy and efficient. It gives
full view of the business from top to bottom level of management for taking decisions in the
business. It integrates the whole data of organisation in one system and provides full security to
the database of the company(Information System, 2018).It reduces error in the organisation so
that each and every department will work effectively and efficiently. Enhances the labor
productivity of the business.It helps in eliminating the different ideas between the data.
CONCLUSION
From the above study, it can be concluded that, Information system helps in improving
the effective productivity and efficiency of operations within the business. The document has
created a complete understanding regarding the use of automated software in the business which
allows the successful development and sustainability of the firm. This report has also assists the
information regarding the use of such software within the organization which also promotes the
customer interaction which allows the company in strengthening customer relationship
management. Thus, all these tools promotes the company towards increased profitability and
hence, it increases t he opportunities for the expansion of the business in global market.
Moreover, it has examined the impact of various tools such as Transaction processing
system, decision support system, management information system etc. which allows the
organization in r educing the human efforts and engage the technology for such time as well as
energy consuming activities.
RECOMMENDATION
Every company should use the enterprise resource planning system in the business. It
helps in reducing errors in the business operations. As if the company is using this system it will
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help in reducing the paper work as well as the improves the efficiency and work is done in
effective manner. It also enhances the labor productivity that helps business in growing in the
future. The cost of running the business is also reduced by using this software as it integrates all
the processes of the company in single system. It also helps in reducing the queries of the
business.
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REFERENCES
Books and Journals
Arasu, A. and et.al., 2015, April. Transaction processing on confidential data using cipherbase.
In 2015 IEEE 31st International Conference on Data Engineering (pp. 435-446). IEEE.
Fountas, S. and et.al., 2015. Farm management information systems: Current situation and
future perspectives. Computers and Electronics in Agriculture, 115, pp.40-50.
Gao, L. and et.al., 2019. Accelerating in-memory transaction processing using general purpose
graphics processing units. Future Generation Computer Systems.
Hu, H. and et.al., 2019. In-memory transaction processing: efficiency and scalability
considerations. Knowledge and Information Systems, pp.1-32.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Noe, R.A. And te.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Kilic, H.S., Zaim, S. and Delen, D., 2015. Selecting “The Best” ERP system for SMEs using a
combination of ANP and PROMETHEE methods. Expert Systems with
Applications. 42(5).pp.2343-2352.
Nwankpa, J.K., 2015. ERP system usage and benefit: A model of antecedents and
outcomes. Computers in Human Behavior.45. pp.335-344.
Online
Information System. 2018. [Online]. Available
through:<https://www.mindmeister.com/37310006/5-types-of-information-systems>
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