University Report: Analysis of Managing Information and Technology

This report provides a comprehensive overview of managing information and technology within a business context. It begins by highlighting the essential role of information systems in modern business, emphasizing their impact on efficiency, productivity, and strategic goals. The report then delves into the Enterprise Resource Planning (ERP) system, detailing its purpose, role, advantages, and drawbacks. It further explores the Accounting Information System (AIS) and its integration with ERP. The report also covers other key information systems, including Executive Support Systems (ESS), Management Information Systems (MIS), Decision Support Systems (DSS), Knowledge Management Systems (KMS), Transaction Processing Systems (TPS), and Office Automation Systems (AOS). It analyzes the implications of implementing a full ERP system on AIS and concludes with recommendations and a conclusion based on the analysis of the various information systems.

University
Managing Information and Technology
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Date
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Lecture’s Note

Managing Information and Technology
Table of Contents
Introduction.................................................................................................................................................3
Purpose and role of Enterprise Resource Planning system (ERP)...............................................................5
Advantages and Drawbacks of Implementing ERP System.........................................................................6
Purpose and Role of Accounting Information System (AIS).......................................................................7
Executive Support System (ESS)..............................................................................................................8
Management Information System (MIS).................................................................................................9
Decision Support System (DIS)...............................................................................................................10
Knowledge Management System (KMS)................................................................................................11
Transaction Processing System (TPS).....................................................................................................11
Office Automation System (AOS)...........................................................................................................12
The Major Implication for AIS of the Implementation of a Full ERP System...........................................13
Recommendation and Conclusion.............................................................................................................14
References.................................................................................................................................................15
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Managing Information and Technology
Introduction
In present days, the implementation of an information system is playing an indispensable role in
the expansion of the business. In addition, there are various types of requirements for
information notified inside an organization. In order to increase the efficiency, productivity and
support the business activity, the information system is playing an essential role in this world of
activity. On the other side, information system enhances significant advantages including some
implication for an organization when they choose to device diverse types of information
software. This paper is mainly focused on enterprise resource planning system (ERP) which
includes data collection, organization and dissemination capabilities of the business. Moreover,
ERP system is playing an essential role in controlling and managing organization through wide
information streams (Berry, 2006). Therefore, the significant welfares and potential problems for
an organization of applying ERP system will be explained in this assignment through concrete
evidence and justification. Apart from that, how Accounting information system (AIS) is
affected by the implementation of a complete ERP system will also be evaluated in this
assignment on the basis of proper justification and arguments.
Individual department of an organization requires different types of information for the
expansion of business. For an example, marketing management requires information in order to
conduct effective business planning. Thus, middle management needs enough detailed gen with a
view to control and monitor various business operations. With a view to performing allocated
duties and responsibilities, the employees of the organization need information. Besides that, in
this competitive world, each and every organization needs a good information system to meet its
strategic goals and objectives. It is crucial to have a good info system in every subdivision of an
organization such as marketing, secretarial and human resources subdivision for continuous
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Managing Information and Technology
performance of operational activities. According to Brown, the interaction between technology
and the algorithmic process can be notified as the information system (de Jong, 2013). Apart
from that, the definition of the information system is not only just technology used by business
but also it effectively refers the way in which an organization utilise the technology for their
business. One of the primary function of the information system is to collect the process and
restore the vital information for the decision-making process of an organization's management.
The organization which uses an update system, they get both internal and external business
advantages rather than other firms. With the help of sophisticated information system, an
organization can maintain co-ordination between manager and employees among different
divisions. In addition, monitoring employees is also possible through the information system.
Apart from that, with the help of efficient information system, the direct communication system
between suppliers, dealers, marketer and firm can be improved. Thus, a good and valuable chain
can be created in an organization through using information system together. An organization
can store, control and retrieve relevant information with the help of information system. The use
of information arrangement will be no longer as an selection for every organization in coming
future rather it will be compulsory for the success and development of an organization (French,
& Vince, 2009). Various types of information system has been implemented in many
organization in order to develop the business such as Executive support system (ESS), Enterprise
Resource Planning system (ERP), Management Information system (MIS), Decision support
system (DSS), Knowledge Management system (KMS), Transaction processing system (TPS)
and Office Automation system. A separate section of an organization requires diverse types of
the information system for growth of business. In this assignment, different types of the
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information system including ERP will be discussed with proper arguments and justification
(Gootnick, & Gootnick, 2000).
Purpose and role of Enterprise Resource Planning system (ERP)
The ERP system is mainly designed for retailer, suppliers and specialized facilities firms as per
their requirements. ERP system usage social database technique to enhance distinctive
components of a firm's information system including all business strategy and processes
associated with a separate system. Besides that, ERP system provides more safe time and correct
information, decrease expenses of asset and cash related series, upsurge purchaser faithfulness,
and all around fuse information over the endeavour stock system. On the other side, it is planned
to focus on four standard districts in an organization such as HR, financial, supply management
and marketing (Hamilton, 2003).
ERP system saves and in addition, recovers the competence of the normal current work pressure.
ERP system is required to all organizations and in any organization, autonomous of the business
goals, size, and region of actions. Thus, companies can't run forcefully amid organizations since
the break of correct recruited and characterised without the contribution of ERP system. In
addition, the appealing of ERP systems seem to be the pledge of halfway categorization most
probably and controlling many parts of business activities. Apart from that, the primary
interpretation behind this is since it may be conceived to costume a distant success of dissimilar
work approaches and this lead it got the fortuitous to be visible in significant activities. In
addition, an important part of the time used it gives an expectable combination of their business.
Along with this side, ERP system can be accepted to address a far-reaching imaginative
assurance and even a complete sign of work (Knod, & Schonberger, 2001).
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Advantages and Drawbacks of Implementing ERP System
The aids of applying ERP system is it assists an association to decrease prices and process
period, upsurge the efficiency and excellence and improve the client advantage through
automating central and monotonous operations. In addition, the ERP system reprises all the
process and save the info secure so that the association can supervise the influence of variations
in thing mix and capacities with a particular real objective to expand net business incomes. Thus,
ERP systems measure the interest for an item, order the rough resources, give manufacturer
programs, locate the entire stock, appoint prices, and save chronicled client. Other than that, ERP
systems furthermore provide informational points of interest to the management of a firm
(Reeves, 2004).
With the help of ERP system, an organization can get better management of resource for instance
in the management of workforce, better the work task, in stock management upgraded stock
chance and share the duty(Wilton, 2012). It improved decision making by augmentation the
market receptiveness and in progress control enhanced the stock system, and creation arranges.
Distinctive purposes of interest of ERP are that versatile the quality service, increase the service
change and reply to customer’s query(Pamungkas, 2009).
'Facilitated information systems pass on another chance to direct provision a fitted association
with their clients'. On the other side, it offers preferred standpoint to corporate to corporate
(C2C) smart consumer benefit, for example through customer arranges contribution it can
upgrade item prearrangement, enhance all consistent and reliable data enquiries. As ERP systems
give E-business by the netting compromise capacity, it gets nearer to clients.
Additionally, by the joined and normal request plan in ERP scheme, it gives structure sustenance
commercial elasticity to upcoming variations by the reaction to external and internal deviations
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and provide extent of decisions in respond, condensed IT charges and 'extended capacity for the
quick and financial application of different requests (Valverde, & Talla, 2012).
The disadvantage for applying ERP system is that rate of presenting is lots of luxurious. Thus,
maximum administrations consumed amid US$80-170 billion on the implementation of ERP
system in 1999. In addition, the charge of implementing an ERP scheme can be charged up to
US$200 million. Moreover, the ERP system is presented by ERP directing group and the costs to
change the system is furthermore exorbitant with typical at around "US$160-$325
consistently"(Khaparde, 2012).
Similarly, implementation ERP system vital for another technique to achieve the system, provide
training to labourer for the approach of the scheme, and executive and precise support. In
addition, this cause numerous organizations originate the alteration coup to ERP systems a right
and unbearable practice. "The application of the ERP schemes will aching the organization's
strategy, halt customer relationships and will obligatory a more drawn out time after fulfilling its
whole deal budgetary goals"(Khaparde, 2012).
Purpose and Role of Accounting Information System (AIS)
Stefano Constantinos J. express that, 'AIS is a procedure of social affair and record the statistics
and information in perspective of the actions that have a money-related result upon
administrations and keep the upkeep, get ready and correspondence of information to
accomplices'. Therefore, AIS joins the implementation, accounting systems, and checking of
information systems. Thus, Accounting Information System (AIS) shows as a spine in secretarial
trade prepare system. It usages the present day knowledge development capitals by the standard
accounting techniques to give cash related info to administrations.
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All the info will be secondhand for decision making reason and survey the fiscal place of the
association. AIS examine and get record all retail trades to make financial statements and give
secretarial data to succeed the business (Johnson, 2012).
Andreas I. Nicolaou, 2000 stated that 'an essential investigation issue in the areas of secretarial
and administration decision-generation anxieties the assault of the AIS with the necessities for
info-communication and manage. Other than that, Julie Smith David, Ed O'Donnell 2000 express
that 'AIS offer the commitment to decision making'. In addition, this infers AIS is a PC based
scheme which handles all the budgetary info and provisions the choice errands as to direction
and regulator of organizational actions. Along with that, AIS packed the indispensable business
events for example era, acquiring and offering practices for inside decision making.
AIS make business accounting practices less requesting, snappier, and more correct. Since AIS
aggregate all secretarial and trade info by automatically and thus so it keeps up a fundamental
departure from statistics area and recruiting blunders. In addition, it innocuous bookkeeper
period and evade untidiness up since the system is dissected secretarial archives and prepare
financial explanations.
Executive Support System (ESS)
ESS gathers and checks the internal and external info used as a portion of industries. Thus, the
Executive support system aids to oldest management to the choice business authoritative willing
proposal and to relax on the conclusion in a viewpoint of a system. On the other hand, "ESS is a
like contributory panel in the air make arena which is the presentation of the position of all the
key commercial activities to elder management meeting of an organization". Similarly, some
ESS stretches the inspection device that expects a drive of execution results additional time using
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feedback statistics (Guerre, 2012). Along with that, ESS consistently joins heaps of data review
and showing tools to assistance in critical decision making. This generous of ESS is significant
to the specialist workforce; it stretches likely effects and quick position to bits of knowledge and
numbers obligatory for the decision-making process. In addition, they also bounce the
workplaces to regulate the Executive support scheme to discourse issues of a specific
association. In current existences there are adapting breezes who proposal pre-plan. Managers
support system packages appropriate to one particular organization. Woolworths is the second
highest shop of Australia, and it has consumed through $US11billion and choice JDA inscription
computer plans' Arthur's wandered suite which is counting execution investigation tool and
information chairman files to provision its Big W office cable. The solid instance of the
association which is by PC founded ESS is Woolworths (Guerre, 2012).
Management Information System (MIS)
MIS has composed the system of the social occasion; prepare and safeguarding Management
information system is pressure with the interior wellspring of info of an organization. A
management info scheme is a process or system that bounces the information energetic to
achieve organization practically (Meltz, 2005). In addition, management information system
examines data got from trade planning system and settles on intelligences grounded in the
process of decision making. MIS is a great graduation and supportive of making intelligences for
instance, monetary statements, implementation report, standard rank report for monotonous or
non-routine approaches. Moreover, the report made by MIS will be secondhand by attention
management and operational administrator. It is crucial to managing the overflow of info in an
association aimed at the upcoming revolution of the corporate. For example, Cole's general
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supply is the best retailers in Australia. The Organization information scheme assists to a large
organization to achieve the information trading amid dissimilar offices, for instance, store and
sprinkling centre. Coles has started late performed the new type of the PC-based data
management system named "LETTUS" to give a basic stock management favorable position to
store and dealers(Brown, 2010).
Decision Support System (DIS)
DIS is elementary to understand decision provision system in the occupational meanwhile it
wires organizational and business decision making everything available. In other words,
Decision Support Systems (DIS) are primarily arrangement to comfort organization for choice
making in the condition where here is fragility around likely consequences of person conclusion.
Decision support system reshapes the bounds of the decision maker or social affair of decision
creator to resolve on the decision for organization's change (Brown, 2003). Thus, the suitably
complete decision support system is a" natural software design based system expected that would
help choice maker with accruing significant information from uneven data". Besides, Decision
support systems are the call of the efficient info system that ropes decision making works out.
Moreover, the decision provision system can be met into five strange sorts which are:
 Model-driven DSS
 Communication driven DSS
 Document-driven DSS
 Data-driven DSS
 Knowledge-driven DSS
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The implementation of Decision support system in commercial relaxes on undoubted decision
retention the factual impartial to mark business alteration. Along with that, the above-mentioned
dissimilar categories of decision provision system are secondhand to resolve on the decision in
light of different criticism (Brown, 2003).
Knowledge Management System (KMS)
KMS is recycled as a portion of an organization where representative marks knowledge and
consultant which can then be communal by different persons in the organization to mark
business introductions. Thus, the instances of the information organization schemes are
Companies of Lawyers related with business, clerks and supervision specialists. Knowledge
Management system benefits companies to mark and stake info. Education system all stuffs
considered controlled around which authorizations are gripping request and trickles of
knowledge. By and by days, it not an elective to usage knowledge management System for an
association whether it is exposed or secluded enormous or miniature. Knowledge Management
system involves agent to have decided admission of organization's records' founder of realism.
Knowledge management system proposals help to the team to creation distribution and handling
experience(Blanchard, & Blyler, 2012).
Transaction Processing System (TPS)
One group may have additional one deal processing schemes, for instance, charging system to
design reception for purchase, fund and cunning material system, broken equipment
requirements assessments system and Standard regulator system. Moreover, the step by step deal
completed by the Transaction dispensation system can benefit to high-level management to settle
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on a decision for the forthcoming occupational. Transaction processing scheme rummage-sale to
process routine transaction viable and positively. Apart from that, Transaction processing system
achieves statistics that must be in persistent formal. For example, by dissecting customer
transaction data management can observe the client's receiving improvements. There are various
marketplaces which controlled by transaction processing system to keep up their steady purchase
process (Mahajan, 2012). Thus, TPS similarly aid to maintain the connection with customers in
light of business. Coles Supermarket is a not too evil case which is using PC base transaction
processing system totally. Bigger amount management selects this set away data to identify
customer affection and keep up the association with a client to grow the business. TPS used by
Coles store their steady transaction in dominant statistics base.
Office Automation System (AOS)
AOS reliefs in renovating or automating current office system and there are various office
mechanisation system happen in a marketplace which can be effortlessly performed in an
organization to recover the efficiency of the employee (Pelphrey, 2005). Along with that, the
fantastic Office automation system used by a huge moment of organizations is Microsoft
Package including (PowerPoint, MS Word, MS Office, and MS Excel). Office Mechanization
systems can't circumvent being systems that aid to recover the efficiency of a representative who
is talented to course information and data. The instances of the comprehend office automation
system are Microsoft Office, Microsoft everything and that is fair the landfill of the lump of
snow. By far most of the administrations are expanding office automation system to make
reports, data sheet, and interpretations (Mahajan, 2012)
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