Businesses use numerous information systems to perform different procedures. Information Systems used in business refer to a business application of computer systems. The system consists of several components including databases, application programs, networks, hardware, personnel, infrastructure and machine procedures that substitute manual procedures. These systems consist of computer systems that do the processing to produce information needed by the business for different purposes. Information Systems have organization, management and technology elements [1].
Businesses can employ different information systems depending on the intended purpose. In most cases, businesses use their own Business Information Model (BIM) for defining the key business functions of the business. Some of the common information systems include Transaction Processing Systems, Decision Support Systems and Management Information Systems. All these systems may have different functionality, but their key role in business includes collecting, processing, storing, analyzing and disseminating information needed for a given purpose. Information Systems perform both primary functions and Support functions of the business. Primary functions include product design, product manufacture, product marketing and sell, and product distribution. Support functions include business planning, human resource management, finance management, operations management and information management among others. Information systems consist of machine instructions that instruct computers about how to accomplish scheduled activities.
Operations management lies in the heart of every business and, therefore, the role of Information system in operations management is critical. Businesses employ Information Systems that apply to business research, production control, product development and product manufacturing. The daily work of Information Systems in terms of operations management involves an interactive processing of transactions such as updating customer files, inventory files and the business’ master file. Information systems help the business to locate and contract prospective customers, to process customer’s orders and provide customer support service.
Information Systems such as DSS use information from other Information Systems to support non-routine decision making for the management of the organization. They provide materials for analyzing the solution to a problem [2]. DSS uses models to analyze data and focuses on how to extract and analyze information from large amounts of data from other systems. Information systems that support decision making provide the business with administrative functionalities that enable managers to monitor and control the business. Businesses that have in-house data processing functions use Information Systems to provide structure for database managers, programmers and data administrators to coordinate on business projects.
Information systems also function as finance and accounting systems for business. They support financial assets management, financial records management and capitalization of the business. This helps the business management team to establish long-term investment goals as well as providing a broad forecast for the financial performance of the business. Information Systems also help management to oversee and control financial resources.
In human resource management, Information Systems support activities that attract, develop and maintain the work force of the organization. Information systems help the senior management to identify manpower requirements such as skill and education level needed to meet long-term business plans. Information Systems help managers to track, recruit, monitor, allocate and compensate employees depending on the information provided by a DSS. HR Information Systems reflect the flow of workforce through the organization [3].
Businesses use Information Systems to achieve operational excellence, develop products and services, achieve customer intimacy and improve decision making processes. Information systems provide businesses with easy procedures that reduce manual work, promote competitive advantage and ensure survival of the business.
References
[1] http://www.mahmoudyoussef.com/aagsb/mba/mis/Lectures-2-and-3-Questions.pdf
[2] http://www.angelfire.com/rebellion2/jsmith/case_2.html
[3] http://www.umsl.edu/~joshik/msis480/chapt12.htm
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