Managing Information and Technology Essay

This essay examines the crucial role of information systems in achieving business success and growth. It delves into various types of information systems, including transaction processing systems, customer relationship management (CRM) systems, business intelligence systems, and knowledge management systems. The essay highlights how these systems integrate to provide more accurate and targeted information about customers, markets, and competitors. It further explores the application of information systems in enhancing decision-making capabilities at strategic, tactical, and operational management levels across different departments like finance, marketing, and human resources. The essay concludes by emphasizing the importance of information systems in improving processing efficiency, communication, risk minimization, reducing information overload, ensuring data security, supporting planning, encouraging decentralization, and fostering coordination. Recommendations for improving information systems include developing technology usage agreements, creating comprehensive technology plans, focusing on product development, integrating stakeholders, and improving processes. The essay supports its arguments with references to relevant books and journals, illustrating the significance of information systems in enabling businesses to gain a competitive edge and achieve their goals.

Managing Information and Technology
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
MAJOR IDEAS ...................................................................................................................................4
CONCLUSION AND RECOMMENDATIONS:.................................................................................8
REFERENCES...................................................................................................................................11
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INTRODUCTION
Managing information and technology consists of the basic functions of management like
staffing, budgeting but it also includes unique functions to such as Software development, change
management, network planning and technology support. It it used by business organisation as it
supports and compliment the operations. It is a discipline in which information and technology
resources of the organisation are managed according to their needs and priorities. The major aim of
Information and technology is to generate value through the use of technology. It needs alignment
of technology with the business strategies (Abdillah, 2014). Where value generation in an
organisation consists a network of relationships between internal and external environment,
technology plays a vital role in improving the whole value chain of the firm. However it needs
business and technology management to be creative, synergistic and cooperative team rather than a
pure mechanistic span of control.
An IT manager is responsible and accountable for current program of IT services. Most IT
programs are formed to educate and develop managers so that they can manage planning, design,
selection, implementation, use and administration of emerging and converging information and
communication technologies in an effective manner. The significance of managing information and
technology is to understand the managing data. If the structure of information does not transfer
properly with each other, it could lead to unreliable data (Davenport, 2013). An important part of
understanding in management of information and technology is Data Governance. It is an approach
to manage information across entire company. Business firms depends on information and
technology for quick communications, data processing and market intelligence. It supports the
companies to enhance the business processes, accomplish cost efficiencies, drive revenue growth
and maintain a competitive advantage in the marketplace. The key purpose of managing
information and technology is to support managers in making strategic, tactical and operational
decisions in an efficient and productive way (Valacich Schneider and Jessup, 2012). The aim of the
present essay is to define the role of information system in organisation to gain competitive
advantage. The key objectives of managing information and technology are as follows:
 To discuss different types of information systems.
 To understand the integration of different information
systems in producing more accurate and targeted information about customers, markets, suppliers
and
competitors etc.
 To explore the application of information systems in improving decision making capabilities
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of a business.
MAJOR IDEAS
Types of information system-
The different types of information system are identified by a process of classification.
Classification is a simple method by which things are categorised together so that they can be
treated as a single unit. The classification of information system in various types is a useful
technique to design system and describe their application. A category of information system is a
simple concept which is created to simplify a tough problem by identification of areas of
commonality between various things (Jerman-Blažič and Tekavčič, 2012). The following are the
types of information system are as follows:
Transaction processing system: To meet the functionalities of the core operations of a business
such as data collection, storage, processing and outputting transaction processing system is used.
This type of system gathers data form user inputs and then produce outputs based on the data which
is collected. For ex: TPS system for online air ticket booking system. Under this system travellers
select their flight schedule and their favourite seats( the input), the system updates the list of the
available seats, removing those selected by the traveller (the processing). After this the system
generates a bill and a ticket copy(the output). This system can be based on real time or real batch
processing and can support the business owners to meet the demands and needs without having
additional employees (Conde, and et.al., 2014).
Customer relationship management system: To synchronise sales and marketing efforts business
owners use customer relationship systems. It accumulates and track customer activities, consisting
purchasing trends, product defects and customer queries. The abilities of a typical CRM information
system offers the customers to interact with companies for service or product feedback or problem
solutions (Sittig and Zuckerberg Facebook, 2010). Business firms also use this system internally as
a constituent of their strategies of collaboration. This system offers the business partners to connect
with each other for developing ideas and products. Even if business partners are in remote locations
then also collaboration can take place in real time.
Business intelligence system: It is a complex system because it identifies, extracts and analyses
data for different operational needs, mainly for decision making purposes. It provides the analysis
which predicts future sales patterns, summarise on going costs and forecast sales revenues. This
system gather data from different data warehouse in an organisation and provide management with
assessment as per lines of business, department or any breakdown that management wishes. Ex:
Financial institutions use these kind of system to build credit risk models which analyses the
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number and extent of giving credit credit to different sectors. To determine the possibility of loan
defaults this system may apply various techniques and formulas (Singer, 2012).
Knowledge management system: This kind of system organise and dissect knowledge and then
redistribute or share it with people in the firm. The motive of this information system is to introduce
innovation, enhance performance, bring integration and retain knowledge in the organisation. These
systems are particularly marketed for large business firms, but even small enterprises can enjoy it
benefits from harvesting knowledge. This type of system offers as central repository and retain
information in a standard format. It aids the business firm in maintaining consistency and enables
quick responses to customer and partner queries (Unger and Eppinger, 2011).
Integration of information system with decision-making capabilities-
The kind of information needed by the decision takers in an organisation is directly linked to
the level of management decision making and the amount of structure managers face in the
situations arising in the decision-making procedure. The levels of management decision-making
which should be aided by the information technology in a successful organisation are mostly shown
in a pyramid form as shown in the figure below:
 Strategic management: As part of strategic planning process, top managers develop overall
organisation goals, strategies and policies and supervise the strategic performance of the
firm and its overall direction in the political, economic and competitive business
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Illustration 1: Level of management decision making
(Source: O'Brien and Marakas, 2011)

environment (Van Turoff and Hiltz, 2014). Tactical management: Under this level the business unit managers and business professional
within self directed teams formulate short and medium range plans, schedules, budgets and
define policies, procedures and organisational objectives for the sub units of firm. Allocation
of resources and monitoring the performance of organisation sub units which consists of
department, divisions, process teams, project teams and other work groups is also done at
this level.
 Operational management: Development of short range plans such as weekly production
schedules is done by the operation managers and members of self directed teams. They also
direct utilisation of resources and performance of tasks as per the procedures and within
budgets and schedules established for the teams and other work teams in the company.
The application of information system in various department is elaborated here:
1. Finance department: For this department financial management information system can be
applied to support the finance managers or chief financial executives in taking efficient and
reliable decisions. It aids in generating all the financial reports, their trends, and other
related details. All these information is used by the finance managers for taking decisions
regarding raising finance, sources of funds. These decisions must be beneficial for the
organisation (Van Turoff and Hiltz, 2014).
2. Marketing department: A marketing management information system aids in carrying out
various functions in the department. The subsystems in this information system are product
development, delivering within the time limit, advertisement and promotions, sales analysis
and product pricing.
3. Human resource department: The application of information system in an organisation
enables easy management of payrolls, employees attendance, salary sheets etc. It helps in
analysing the costs which is incurred on the employees and accordingly their productivity
can be judged.
Application of information system to improve decision-making capabilities
As discussed in the above parts, information system is an integral part for any business
enterprise as it supports the organisational goals and mission. For improving the decision making
process capabilities in the organisation the following ideas are proposed:
 Increase in processing efficiency: If the efficiencies in processing will increase then it will
aid in effective completion of the daily tasks and activities like cash collection, invoicing,
expense approvals etc.
 Better communication: All the employees in the organisation must be communicated on
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time and updated with any changes, if made. This will make the flow of communication
smooth and better which will make the decision-making process easy (Mithas and
Sambamurthy, 2011).
 Minimising risks of errors: The risks associated with the decisions should be reduced as it
will affect the consequences of the decision. By effective use of information system many
mistakes can be avoided as compared to work done by human hands.
 Reducing information overload: The information collected in the system must be accurate,
specific and as per the requirement only. If unnecessary information is stored in the system
then it will affect the decision making which can reap negative results.
 Single and safe location: The information should be gathered in only one information
system as it is comfortable for the users to access the information. This will ensure that the
information which is confidential, do not go outside the firm (Bulgurcu Cavusoglu and
Benbasat, 2010).
 Support planning: The information system must aid the planning of the organisation. The
plans are formulated according to the information available to the planners. This affects the
planning team in making plans as if any single information or data is wrong, it can result in
disastrous outcomes.
 Encouraging decentralization: The information system must support the lower level of
management in the organisation. It will be successful only if it is useful for the lower levels
as they are the foundation in an organisation.
 Coordination:The information system must support in cooperation among the different
departments and functions of the organisation. It will enable firm to make the decision
efficiently so that every department is receiving its advantages.
Every organisation devotes its time and resources to capture, store and process the
information which is used in operations and decision-making. The information system are the major
resources for an organisation. Larger use of information and technology is mostly connected with
improved availability of information, productivity, quality of work, effectiveness and efficiency in
achieving tasks, subsequent reduction of costs. It leads to creation of new products, new services
and channels of distribution within traditional industries, along with innovative business models and
whole new industries (Borghoff and Pareschi, 2013). Information and technology contributes in
income generation and poverty minimisation and enables people and organisations to grab
economic opportunities by increasing process efficiency and promoting participation in extended
economic networks. It enhances the business decision-making and service quality or increase
efficiencies and productivity and thereby increasing profits. Also it involves changes to the
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organisation. The business firms can reduce operational costs by decreasing material, can also use
more and better information to improve the product's value and to make reliable and better
decisions. These features shows that information and technology has the capability to become a
strong enabler of development of business firms. Companies use information system in many ways
to minimise risks and support management in making decisions. There are three purposes of using
information system: handling the present, remembering the past and preparing for the future. The
major job of decision-maker is to make decisions and information processed by information
systems is related to decision-making. Business activities and functionalities cannot be performed
without the use of information system technology and managers cannot make qualitative and
reliable decisions (Galliers and Leidner, 2014). This implies the relationship between information
system and decision-making process. It is a system to convert data from internal and external
sources into information and to communicate that information in a proper and systematic manner to
managers at all the levels in all the functions so that they can make decision effective and on time
for making plans and control activities for which they are accountable. They play a vital role in
aiding all types of decisions i.e. structured, semi-structured and unstructured.
CONCLUSION AND RECOMMENDATIONS:
Form the above study, it can be concluded that information system plays a crucial role in
success and growth prospects for any business organisation. Through this system companies process
the data gathered from various sources with the motive of generating information which can support
in taking key business decisions. It is considered as a part of communication under which data is
collected and shared with other departments of the enterprise according to their needs and demands.
It aids in improving the present communication level and system in the organisation (Tallon and
Pinsonneault, 2011). For ex: Emails is a type of information system through which employees and
managers exchange information and communicates. In this users attach their information in the
form of files, folders, images etc. It is a very easy, simple and comfortable way to communicate and
share information in the firm. Along with this, information system assists organisation to maintain
several operational activities in functioning the business in an effective way. For instance, to gain
cost benefits over rivals or to differentiate products and services from competitors or providing
quality services to the customers, organisation applies different kinds of information system as per
their requirement and suitability. By processing the sales data, it provides insights to management
about purchases made by the customers and determines the level of stock that needs to be
maintained for meeting the demands made by the customers. Therefore, it can be said that
information system aids business companies in streamlining the operational activities in effective
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manner (Galliers and Leidner, 2014).
Further, on the basis of current study, it can be concluded that information system supports
the business firms to take better decisions and helps them to a large extent in conducting the day to
day tasks effectively. The results received from the following method helps companies in choosing
the right course of actions from various available options and performing accordingly. These
information system delivers the updated information to the organisation so that they can select the
right and best one to carry out their tasks and activities. This system works in diverse situations and
offers various types of information like costs, prices, profits and sales. Moreover it is summarised
from the above study that there are several reasons which shows that information system is
significant for business enterprises (Galliers and Leidner, 2014). The primary reason is their
relevancy in which the characteristics meets the needs of its users. They can easily access relevant
and correct information. Second reason is quality of the information system in which the processed
data generates qualitative content. It supports the business companies in taking correct and reliable
decisions. Apart from this, by applying information system management can easily retrieve internal
information. It enables the firm to collect data from different department without relying on them
every time. It aids in close monitoring of information storage and application in various areas with
full safety and security. There are different kinds of information system based upon the
classification process. This classification is further formed on the designs and applications of
information system in the business world.
These systems are designed to fulfil the needs and demands of top management, middle
management and operational management. Operational support systems offers assistance to carry
out the day to day operations effectively and efficiently. It is particularly designed to meet the needs
and demands made by the operational or lower level of management (Bloom, 2014). They are
formulated in such a manner that they satisfy the information needs of front line managers,
supervisors and operational managers effectively. Transaction process system fulfils the needs of
collecting the data, processing the gathered data, storing it and generating output for major business
operations. They are developed to carry out the routine business transactions in an effective manner.
Knowledge management system is designed to enhance the knowledge level of people in the
organisation. It is advantageous for both large firms as well as small enterprises. It helps in
enhancing the current level of knowledge, building innovative ideas in their minds, bringing
creativity etc. Based upon the several limitations and loopholes in the above information systems,
here are some suggestions to overcome these negative implications:
Developing technology usage agreement: Under this a business firm can carry out a technology
usage agreement with its personnel. It will be consisting of various features such as limitations in
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downloading, web suffering, data secrecy, data access etc. By restricting some particular websites
that can cause in the computer system, privacy and security can be assured. Apart from these,
prohibiting various sites such as gambling or file sharing, business enterprises can keep check and
control over management of information (Mookerjee Mookerjee Bensoussan and Yue,2011).
Building a comprehensive plan for technology: In this, a systematic replacement of outdated
technology workstations will be done by evaluating application of the present emerging
technologies. It is very important for every business organisation to keep their information system
updated, if not done so, then it the organisation can't get the competitive advantages and will lack
behind in the rapidly changing technological environment. It will give a basic idea to the business
firms as to how the information system will run in right ways and how it will react to the changes in
the technologies.
Product development: Information technology can speed up the time taken in reaching the market.
Business firms can write product needs and demands by collecting market intelligence from
proprietary databases, customers and sales representatives. Computer supported design and
manufacturing software speeds up the decision-making.
Stakeholder integration: It is another major recommendation to improve the information system.
Business companies use their investor relations websites to communicate with shareholders,
research analysts and other key stakeholders (Pearlson Saunders and Galletta, 2016).
Process improvement: It is another key suggestion to bring improvements in the information
system. It will allow managers to revise sales, costs and other operating metrics in one single
software platform generally in real time.
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REFERENCES
Books and Journals
Abdillah, L.A., 2014. Managing information and knowledge sharing cultures in higher educations
institutions. arXiv preprint arXiv:1402.4748.
Bloom, N., 2014. The distinct effects of information technology and communication technology on
firm organization. Management Science. 60(12). pp.2859-2885.
Borghoff, U.M. and Pareschi, R. eds., 2013. Information technology for knowledge management.
Springer Science & Business Media.
Bulgurcu, B., Cavusoglu, H. and Benbasat, I., 2010. Information security policy compliance: an
empirical study of rationality-based beliefs and information security awareness. MIS
quarterly. 34(3). pp.523-548.
Catthoor, F., 2013. Custom memory management methodology: Exploration of memory organisation
for embedded multimedia system design. Springer Science & Business Media.
Conde, M. and et.al., 2014. An evolving Learning Management System for new educational
environments using 2.0 tools. Interactive Learning Environments. 22(2). pp.188-204.
Davenport, T.H., 2013. Process innovation: reengineering work through information technology.
Harvard Business Press.
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
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strategies in managing information systems. Routledge.
Galliers, R.D. and Leidner, D.E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Jerman-Blažič, B. and Tekavčič, M., 2012. Managing the investment in information security
technology by use of a quantitative modeling. Information Processing &
Management. 48(6). pp.1031-1052.
Mithas, S. and Sambamurthy, V., 2011. How information management capability influences firm
performance. MIS quarterly. 35(1). pp.237.
Mookerjee, V., Mookerjee, R., Bensoussan, A. and Yue, W.T., 2011. When hackers talk: Managing
information security under variable attack rates and knowledge dissemination. Information
Systems Research. 22(3). pp.606-623.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information Systems,
Binder Ready Version: A Strategic Approach. John Wiley & Sons..
Sittig, A. and Zuckerberg, M., Facebook, Inc., 2010. Managing information about relationships in a
social network via a social timeline. U.S. Patent 7,725,492.
Tallon, P.P. and Pinsonneault, A., 2011. Competing perspectives on the link between strategic
information technology alignment and organizational agility: insights from a mediation
model. Mis Quarterly. 35(2). pp.463-486.
Unger, D. and Eppinger, S., 2011. Improving product development process design: a method for
managing information flows, risks, and iterations.Journal of Engineering Design. 22(10).
pp.689-699.
Valacich, J.S., Schneider, C. and Jessup, L.M., 2012. Information systems today: Managing in the
digital world. Prentice Hall.
Van, B., Turoff, M. and Hiltz, S. R., 2014. Information systems for emergency management.
Routledge.
Online
O'Brien, J. and Marakas, G., 2011. Management Information System. [PDF]. Available through:
<http://fumblog.um.ac.ir/gallery/652/James_OBrien,_George_Marakas_Management_Infor
mation_Systems,_10th_Edition______2010.pdf>. [Accessed on: 2nd January 2017].
Singer, M., 2012. Big Data Boosts Storage Needs - And Opportunities. [Online]. Available through:
<http://readwrite.com/2012/12/12/big-data-boosts-storage-needs-and-opportunities>.
[Accessed on: 2nd January 2017 ].
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