LSBM100 - Managing Information and Technology: Systems Report

This report provides a comprehensive overview of managing information and technology within an organization. It begins by introducing the importance of information technology for resource planning and streamlining business functions. The report then delves into various categories of information systems, including office automation systems, transaction processing systems, decision support systems, executive support systems, and business expert systems, detailing their functions and advantages. A significant portion of the report is dedicated to Enterprise Resource Planning (ERP) systems, explaining their modular nature, integration capabilities, and the creation of a central database. The role of ERP systems in managing organization-wide information streams is highlighted, followed by a discussion of the benefits of ERP, such as boosting efficiency, enabling growth, lowering risks, fostering collaboration, and improving supply chain management. The report concludes by emphasizing the key role of information and technology management for organizational success.

Managing
Information and
Technology

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Categories of information systems..........................................................................................................3
ERP systems.............................................................................................................................................4
Benefits of ERP systems...........................................................................................................................5
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Managing information technology means proper use of information technology for
resource planning in an organization (Blackwell, Gardiner and Schoenebeck, 2016). It is
necessary because it streamlines the functions of an enterprise. Its proper management brings out
efficiency and effectiveness in the organization which benefits it in the long-run. In this
assignment, specific focus will be made on appreciation of role of information systems in
business, describing the various information systems. Additionally, demonstration of
understanding of role of information, understanding of systems for effective management and
communication of solutions will be analyzed as a part of this project.
MAIN BODY
Categories of information systems
The types of information systems used by different organizations depending upon their
needs and requirements are as follows-
Office automation system- In this type of system, help is provided for the regular tasks
which are conducted in an office. The information which is derived from this system can be used
for decision-making at the managerial level. The main advantages that this system offers are
increase in speed of work and the digitization of basic-level data for storing for future action.
Using it properly can increase the overall efficiency, effectiveness and productivity of
completing tasks in an enterprise. It integrates the different functions present in a company so
that work can be done effortlessly and cooperation and coordination is maintained. Because of
the benefits offered by it more and more businesses are adopting paperless way of working.
Transaction processing system- This system is needed to ensure smooth functioning in
the organization (Busse, Meinlschmidt and Foerstl, 2017). It aims to capture all the transaction-
related data between the organization and its internal and external customers. It integrates data
with a seamless approach and ensures its safety and keeps a proper record of transactions being
conducted in an enterprise. It is the most widely-used information systems as it provides
management the flexibility of storage of data in a structured manner so that it can be retrieved
later on using a query facility. In this system, reports can be improved using visualization tools
which help the management in better understanding of situations and scenarios.
Decision support systems- This system is needed in an organization so that the senior-
level management can take strategic decisions for the benefit of the organization. They deal with
both types of data available in an enterprise- internal as well as external (Rohitratana, 2017). The
data is then analyzed with a specific focus to take the important decisions in the organization.
Rather than providing structured information this system is designed in order to provide

unstructured information to the users. This helps the management to analyze situations and
circumstances with a “What If” approach to understand the consequences of their decisions as
these systems are built with business dashboard and scenario panel like features. These systems
can be used to create advanced analytics tools.
Executive support system- It is also known as executive information system. It aims to
provide macro-organization like view for senior executives of an enterprise (Evans and Price,
2017). Also it provides a very user-friendly interface for the organizations. It provides timely
tracking and control. It provides steps which can be taken to get ahead of the competition
prevailing in the market. It identifies problems and opportunities so that problems can be solved
and opportunities can be capitalized by the management. Overall, it is very helpful for the
management in different aspects of managing an enterprise and provides the executive support
which is required by them for conducting their managerial functions and tasks.
Business expert system- There is certain business scenarios which require help of
advanced systems which can provide expert solutions. Therefore, here the business expert
systems come into play by effectively and efficiently providing help to the management which
they require for execution of their strategies in such scenarios. This helps them in taking
decisions having impact on enterprise’s operations. Overall, these systems are loaded with the
knowledge of different experts of various fields so that proper guidance may be provided to the
managers before they take a crucial decision. This ensures that the chances of making mistakes
are reduced to a large extent. These systems can take a decision without any human intervention
and this is what makes them special as they make use of artificial intelligence.
ERP systems
Enterprise resource planning or ERP is modular software which is designed to integrate
the various functions present in an enterprise such as production, finance, marketing, HR etc.
into a unified system (Fernandez and Chiambaretto, 2016).
The characteristics offered by these systems are as follows-
Integration of various modules enables users to interact. It facilitates better cooperation
and coordination between the different departments in the organization. For example- In ERP, a
sales order would be shared with the production department so that they have the information
about the product to be made. This means that once the order is shipped the data is recorded and
there are changes in the inventory and once the payment has been received the accounting
module records the revenue.
Creation of a central database is facilitated in which modules record transactions and
other related information. This helps in improving the accuracy of data which leads to facilitation
of reporting and collaboration of data between the departments.

They provide comprehensive integration of processes of a business enterprise. When
seamless integration of these processes is done it automatically raises the level of efficiency,
effectiveness and productivity in the organization. It also saves a lot of time and effort on the part
of managers and thus avoids duplication of efforts in the organization. Thus it is ensured that the
processes remain inter-connected with each other which can raise the efficiency and
effectiveness of the organization itself easily.
ERP systems also offer modularity which makes them different from other business
applications (Hu and Kapucu, 2016). This is so because they handle essential or core business
processes in dedicated modules or sub-functions of other modules. The examples of these
modules can be ERP finance module, human capital management, order management, sales
management and purchasing. Other modules which can be used by enterprises depending upon
their needs and requirements are MRP, inventory management, manufacturing management and
supply chain management.
ERP systems offer creation of a central database which records all the data and
information related with the functions of an enterprise at one place. This enables seamless access
to the data which helps in execution of many tasks in the enterprise. This helps in raising the
overall efficiency, effectiveness and productivity as all the data can be found at one place. This
thereby leads to achievement of the objectives in the organization. The central database also
facilitates ease of access to the data in the company.
ERP systems offer consistent look and feel across the applications. This enables
consistency in the functions of an organization which in turn ensures better decision-making in
the enterprise helping it in the long-run. This leads to uniformity in decision-making by the
management. This is so because consistency leads to adoption of a uniformed approach along the
functions of the organization. This makes it easier for the enterprises to conduct their day-to-day
and regular tasks.
Role of ERP systems in an enterprise-
ERPs play an important role in management and controlling of organization-wide
information streams as they are the central database of important facts and information in an
enterprise (Khan, Flanagan and Lu, 2016). They provide the required efficiency and
effectiveness by seamlessly integrating data which is necessary to facilitate the cooperation and
coordination between various departments of the company. This ensures that the chances of
making errors and mistakes are reduced to a great extent in the organization thus ensuring the
achievement of goals, objectives and targets of the enterprise. This will make sure that the
enterprise benefits from it the long-run as the easy access of information can be provided to the
different departments who require it for conducting their tasks.

Benefits of ERP systems
ERP systems offer various benefits to an organization (Benefits of ERP, 2019). Some of
these benefits are explained below-
Boosting efficiency- The overall efficiency in an organization is boosted to a great extent
by the use of ERP systems. This is so because the data collection is automated which reduces the
chances of errors and mistakes occurring while conducting different tasks in the enterprise. Even
if errors and mistakes are conducted it makes sure that the management can find them out
quickly so that a resolution can be found to them as soon as possible. Also they make it easier to
fix the responsibility and accountability for the work done by various employees in the
organization.
Enables growth- ERP systems act as boosters of growth as seamless integration of data
is facilitated and cooperation and coordination is improved to a great extent. Due to them an
organization can achieve higher growth in the future if its management properly applies and
executes the required strategies. As it facilitates cooperation and coordination productivity of all
segments in an organization can increase steadily (Maetzler, Klucken and Horne, 2016). This
increases the chances of organization attaining success in the future which in turn leads to
growth.
Lowers the risks- ERP systems decrease the risks present in an enterprise’s business by
making sure that better regulatory compliance is done. This means that rules and regulations
framed by the government are adhered to by the business which mitigates their risks of not
following them and then facing penalties. Thus it is quite beneficial for enterprises in this way as
it ensures that rules and regulations are being followed while producing the different types of
products.
Fosters collaboration- ERP systems help in fostering collaboration through improved
data sharing and communication. Therefore, better cooperation and coordination is ensured
between various departments of an enterprise (Pender, Rand and Wesson, 2016). Thus this leads
to better productivity in conducting of tasks and activities in the organization which in turn
enhances its overall effectiveness. Through data sharing and communication, departments can
help in solving each others’ problems and issues which are faced in daily course. Therefore, it is
quite helpful for facilitating integration between departments.
Improvement in supply chain management- ERP software allows for better supply
chain management by tracking the orders given to suppliers and the due date of receiving these
orders (Singh and Crisafulli, 2016). This makes sure that the supply orders are managed properly
and regular tracking is done till the order is received. Also cost of inputs of different suppliers
can be managed at one place. Its integration with the inventory software leads to achievement of
efficiency in enterprise’s operations. Also it prepares a list of suppliers indicating their order

numbers along with them with the due date of making the payment to them. Thus proper
management of supplies is ensured within the organization.
Thus, it can be concluded that ERP systems are very much beneficial in the context of an
organization. They enhance the data collection, organization and dissemination capabilities of a
business. This is so because they ensure that data is collected and recorded properly, organizing
is done properly and it is disseminated widely ensuring its wide reach. Thus provided that these
systems are used in the right context in the processes of an enterprise they will lead to increase in
its profitability level which will help it in making strategies to get ahead of its various
competitors in the future.
CONCLUSION
From the above assignment, it can be concluded that managing information and
technology is a key task in the context of an organization. For this purpose, enterprise resource
planning (ERP) is quite helpful. There are different categories of information systems which can
be used in an enterprise. The systems of ERP have their own characteristics which are helpful for
the organization. Also, there are various benefits which ERP offers to the enterprises which can
be helpful for them in the long-run. Thus ERP is of great value for enterprises because of the
utility it provides by ensuring effective administration and management.

REFERENCES
Books and Journals:
Blackwell, L., Gardiner, E. and Schoenebeck, S., 2016, February. Managing expectations:
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global supply chains: A prerequisite to sustainable supply chain management. Journal of Supply
Chain Management. 53(1). pp.87-113.
Evans, N. and Price, J., 2017. Managing information in law firms: changes and
challenges. Information Research: An International Electronic Journal. 22(1). p.n1.
Fernandez, A.S. and Chiambaretto, P., 2016. Managing tensions related to information in
coopetition. Industrial Marketing Management. 53. pp.66-76.
Hu, Q. and Kapucu, N., 2016. Information communication technology utilization for effective
emergency management networks. Public Management Review. 18(3). pp.323-348.
Khan, K.I.A., Flanagan, R. and Lu, S.L., 2016. Managing information complexity using system
dynamics on construction projects. Construction management and economics. 34(3). pp.192-204.
Maetzler, W., Klucken, J. and Horne, M., 2016. A clinical view on the development of
technology‐based tools in managing Parkinson's disease. Movement Disorders. 31(9). pp.1263-
1271.
Pender, J., Rand, R. H. and Wesson, E., 2016. Managing information in queues: the impact of
giving delayed information to customers. arXiv preprint arXiv:1610.01972.
Rohitratana, K., 2017. The role of Thai values in managing information systems: a case study of
implementing a MRP system. In Information Technology in Context: Studies from the
perspective of developing countries. (pp. 23-39). Routledge.

Singh, J. and Crisafulli, B., 2016. Managing online service recovery: procedures, justice and
customer satisfaction. Journal of Service Theory and Practice.
Online
Benefits of ERP. 2019. [Online]. Available through:< https://solutionsreview.com/enterprise-
resource-planning/the-top-8-best-benefits-of-having-an-erp-system/>