Bloomsbury Institute LSBM100 Essay: Information Systems Analysis

This essay examines the critical role of information systems within business organizations, providing a comprehensive overview of their various types, integration methods, and deployment challenges. The essay begins by defining information systems and their importance in recording, processing, storing, and sharing data to enhance operational performance, efficiency, and profitability. It then categorizes different types of information systems, including Transactional Processing Systems (TPS), Management Information Systems (MIS), Decision Support Systems (DSS), Executive Information Systems (EIS), and Enterprise Resource Planning (ERP) systems, explaining their functions and applications at different organizational levels. The essay further analyzes the integration of these systems, using ERP as an example to illustrate how various modules work together to improve communication and streamline operations. Finally, it addresses key challenges to the deployment of information systems, such as lack of knowledge, ineffective business strategies, and data security and privacy concerns, concluding with recommendations for improvement. This essay provides valuable insights into how businesses can leverage information systems to achieve a competitive advantage.

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Types of Information Systems Used Within Business Organisations.........................................4
Integration of Information Systems within Business Organisations...........................................6
Challenges to Deployment of Information Systems within Business Organisations..................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Information systems are digitally designed sociotechnical, formal, organisational systems
that are specifically designed with the intention to record, process, store and share data.
Information systems used within business organisations are made up of various internal
integrated components that all function together with the intention to monitor, record, store and
analyse the operational data of the business organisation in order to improve its overall
performance, efficiency, productivity and profitability in the consumer markets and to provide it
with a sustained competitive advantage against the business’s competitors within the operational
industries (Beck and et.al., 2017). Such digital information systems can enhance the operations
and functions of business organisation in various ways such as dynamic management of their
operations, effective interactions with their suppliers, stakeholders and customers, improving the
efficiency of the various operations of the business organisation etc. Information systems can
also improve upon the inter organisational supply chain operations of business organisations
through real time dynamic monitoring of the operations by the business’s management and
administration. Due to their wide ranging applications within business industries, business
organisations can also make use of information systems in order to effectively manage their
human resource operations, mass market to the consumers effectively within consumer markets
and process their financial functions (DeLone and McLean, 2016). Such wide ranging
applications of information systems within business organisations effectively contributes towards
information systems increasing the operational performance, efficiency, productivity and
profitability of the business and providing them with a competitive advantage against their
competitors within operational industries.
The main aim of this report is to evaluate the different types of information systems used
within business organisations, assess how these are integrated within businesses and to analyse
the challenges faced, in relation to the incorporation of information systems within business
organisations in the world.

MAIN BODY
Types of Information Systems Used Within Business Organisations
There are various types of information systems that are used within business
organisations. Information systems within businesses are categorised in a pyramid form on the
basis of the business’s operational levels at which these are used and the data needs of the
business organisation.
Figure 1: Pyramid Categorising Different Types of Information Systems
Transactional Processing Systems (TPS): Transactional Processing types of information
systems are primarily used by employees or workers with in a business organisation, with the
intention to improve and enhance their daily operations. This is why these information systems
occupy the lower tier of the pyramid categorising types of information systems. TPS are
traditionally used for operational record keeping purposes, as these are effectively able to store,
record and share daily operational data of business organisations. After the TPS has recorded the
daily operational data of the business organisation, it is able to process it and generate output in
the form of reports, which can be used by the business’s management. Examples of TPS are sales
order entry systems, payroll systems etc.

Management Information Systems (MIS): These are information systems that are traditionally
used by the managers of a business to enhance their operational efficiency, and hence occupy the
second tier of the pyramid categorisation. MIS are effectively able to enhance a business’s
managerial operations as they are effectively able to monitor the various operational processes
and functions of a business organisation dynamically in real time so that the management of the
business organisation can identify operational processes which are operating with decreased
performance or efficiency and address them (Pearlson, Saunders and Galletta, 2019). MIS take in
as their input the raw data reports generated by TPS systems in order to further process them and
generate valuable output based on the requirements of the business manager, in the form of
aggregated summaries, reports, which are used by managers to implement operational changes.
Examples of MIS include: HRM systems, Sales management systems etc.
Decision Support Systems (DSS): Such information systems are used by the senior managers
within business organisations and hence occupy the third tier of the pyramid categorisation.
These are used by senior managers to enhance their decision making operations within the
business. DSS take in as their input the output reports generated by the MIS and TPS information
systems and further process them in order to generate valuable output depending on the needs
and requirements of the senior managers. These are highly interactive information systems which
include operational tools and models to manipulate operational data, used by senior managers of
a business to enhance their decision making operations. DSS are also capable of identifying
alternative strategies and options for the business’s decision making operations. Examples of
DSS include bank loan systems, financial planning systems etc.
Executive Information Systems (EIS): These information systems are used by the leadership
and executives of a business organisation and hence is placed at the top of the pyramid
categorisation (Abbasi, Sarker and Chiang, 2016). These are knowledge based systems used to
analyse the external and internal environment of a business with the intention to gain insights
into consumer and market trends in order to improve the productivity and profitability of the
business organisation.
Enterprise Resource Planning (ERP): These are management information systems used in
businesses to manage the various operational processes and functions of the business such as
finance, manufacturing, supply chain etc., These are able to dynamically monitor, record, store,

analyse and share operational data of various operational processes of business in order to
improve the overall performance and efficiency of the business organisation. These consist of
individual modules all designed to overlook the operations of a single operational process,
capable of communicating with one another to improve the overall operations of the business.
Integration of Information Systems within Business Organisations
Enterprise Resource Planning (ERP) information system is a stand-alone information
system that is itself capable of overlooking and managing all the distinct operations and
functions of a business organisation, all on its own. ERP systems are used within the business
organisation Tesco as these make use of specific individual modules that are specifically
designed with the intention to oversee the operations of a single operational process of the
business such as finance, marketing, supply chain, distribution, warehousing etc. All these
separate individual modules monitor, collect and store the operational data of their specifically
assigned business operations (Legner and et.al., 2017). This data is collected and stored within a
central database within Tesco, which all operational modules of the Tesco’s ERP system can
access at any time for their storage operations. This central database of the ERP system within
Tesco also allows for its various separate operational ERP modules to communicate with each
other through the central database in order to facilitate effective data sharing between the
separate ERP modules. Each ERP module stores the operational data of its own designated
operational process within the central database, with all other ERP modules capable of accessing
this data for their own individual operations and functions in order to improve the
communications between the various operational processes of Tesco such as finance, marketing,
warehousing, distribution or manufacturing and enhance their operational performance and
efficiency.
For example, when a Tesco customers engages in financial transaction with the retail
business organisation, the ERP system stores this order information within its central database.
The financial information with which the consumer paid for the goods and services are relayed to
the financial modules, which Tesco’s finance department can access in order to process the
financial transaction. The order information is communicated to the manufacturing modules of
the ERP system, which the Tesco’s manufacturing department has access to, so that they can
begin the manufacturing of the customer order. Once the order has been manufactured all details

are further communicated to the warehousing module of the Tesco’s ERP system, containing
information about where the order has been stored amongst the Tesco’s warehouses. This
information along with the delivery instructions provided by the customer, which is stored in the
central database is further shared to the distribution modules of the Tesco’s ERP system, which
its distribution department has access to (Sun, Strang and Firmin, 2017). The distribution
department can make use of this information to effectively deliver to order to Tesco’s customers
in an efficient and effective manner, so that Tesco can effectively satisfy their needs and
requirements and gain their long term loyalty. In this way, ERP system within Tesco facilitates
and improves the operations of various individual processes of Tesco and enhances the inter
organisational communications with Tesco.
Challenges to Deployment of Information Systems within Business Organisations
There are several challenges to the effective and widespread deployment, incorporation
and adoption of information systems within business organisations. The major challenges are as
follows:
Lack of Knowledge: As information systems come in various types and forms, one of the biggest
challenges towards their effective deployment within business organisations relates to the lack of
technical knowledge amongst the business organisation’s management and leadership in relation
to which exact information system would be the most appropriate for their specific needs and
requirements within their business organisation (Bourgeois, D.T., 2018). As the choices of
information systems available to these business organisations is large, a lack of knowledge of the
various information systems poses as a big challenge towards their effective deployment.
Business Strategy: Another major challenge towards the effective deployment of information
systems within business organisation relates to lack of effective business strategy in the use of
information systems within the business organisation. Businesses who incorporate the
information systems into the operations and functions of their business organisation but fail to
create an effective business strategy that combines the information systems with their operational
objectives and goals, fail to make effective use of the information systems and the immense
benefits that these provide towards effective achievement of the goals and objectives within the
business strategy.

Data Security and Privacy: A major challenge towards effective deployment of information
systems within business organisations relate to their data privacy and security. As these systems
collect and store huge amounts of confidential and sensitive operational, financial and consumer
data, business find it a challenge to store this data securely within their internal servers
(Appelbaum and et.al., 2017). If this operational data is accidentally leaked or hacked into, it can
immensely negative impact on the operations of the business in addition to legal litigations.
CONCLUSION
Based on the findings of the report, it can effectively be concluded that use of
information systems within business organisations, has an immensely positive impact on their
operational performance, efficiency, productivity and profitability in the consumer markets.
Information systems also help provide business organisations with a sustained competitive
advantage within the operational industries against their perceived competitors to further
enhance their operations and success. Various types of information systems can be used and
integrated within business organisations on the basis of the specific needs and requirements of
the business organisation respectively. This report initially outlines the aims to be achieved by
the report and introduces the concept of information systems. Then the report evaluates the
different types of information systems that are currently used within business organisations,
categorising them on the basis of their operational levels at which they are made use of by the
business’s employees. The report then assesses the incorporation and integration of such
information systems within business organisations by making use of examples. Further the report
examines the various challenges that are present towards the effective deployment of information
systems within business organisations and recommends how the use of such information systems
within business organisations can be further improved.
Though information systems already provide businesses with numerous advantages, their
incorporation and deployment within business organisations can still be further improved.
Business organisations that have integrated new information systems within their organisations
are recommended to create a dedicated information technology department within their
organisational structure, who would be responsible of overlooking and maintaining all the
operations of the information systems, in order to facilitate maximum use and productivity of

information systems within the business organisations. The businesses incorporating information
systems within their operations are also recommended to train and develop all their employees to
make effective use of such information systems in order to improve their operational
performance and efficiency.

REFERENCES
Books and Journals
Abbasi, A., Sarker, S. and Chiang, R.H., 2016. Big data research in information systems: Toward
an inclusive research agenda. Journal of the Association for Information Systems. 17(2).
p.3.
Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise systems on
managerial accounting. International Journal of Accounting Information Systems. 25.
pp.29-44.
Beck, R. and et.al., 2017. Blockchain technology in business and information systems research.
Bourgeois, D.T., 2018. Information systems for business and beyond.
DeLone, W.H. and McLean, E.R., 2016. Information systems success measurement.
Foundations and Trends® in Information Systems. 2(1). pp.1-116.
Legner, C. and et.al., 2017. Digitalization: opportunity and challenge for the business and
information systems engineering community. Business & information systems
engineering. 59(4). pp.301-308.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2019. Managing and using information
systems: A strategic approach. John Wiley & Sons.
Sun, Z., Strang, K. and Firmin, S., 2017. Business analytics-based enterprise information
systems. Journal of Computer Information Systems. 57(2). pp.169-178.