information systems essay

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Information Systems in Organizations

Introduction.

In the modern world, the majority of organizations make use of the information systems to attain information necessary for effectively improving operations in the organization and accomplishing the tasks set aside in the organization. In an organization, an information system attains the data by collecting it, storing it, and processing the data to provide accurate and substantial information. Information systems do not necessarily require to be computerized but as the modern world dictates, the majority of the information systems depend on computers, which are more efficient than manual systems.

Information systems are normally grouped according to the tasks they are supposed to accomplish. Generally, there are four types of information systems depending on the organizational level they operate in. These four general categories are discussed in the section below.

Categories of information systems

Transaction processing systems.

In the context of information systems, a transaction is defined as the process of exchange between different groups of which, it is recorded and electronically stored in a computer. A good example of a transaction processing system is ATM cash withdrawal. The majority of the operations in an organization involve the use of transactions.

In these transactions, a transaction processing system functions by dictating the means of collecting data, processing it, storing it, modifying it, displaying it, and even canceling the transaction. The databases are used to store the data attained by the transaction processing systems. The majority of the transaction processing systems can accommodate numerous transactions simultaneously. The stored data in the databases by the Transaction processing systems are used in the production of periodically scheduled reports such as monthly bills (Parsons & Oja, 2010, p. 559).

Management information systems

The management information system is a type of information system that makes use of the data attained by the transaction processing system to produce reports that are useful in the decision-making process of an organizational manager. The data obtained by the transaction processing system is manipulated to obtain the reports used in decision-making.

In an organization, different levels of management have different types of information needs and it is the function of the management information systems to tackle these needs, for instance, the information needs of the management in an organization can be tackled by the production of ad hoc reports or schedule reports (Parsons & Oja, 2010, p. 561).

Decision support systems

Middle-level managers in organizations mainly make use of decision support systems to equip them with crucial data that they will use in making decisions on behalf of the organization. The term traces its roots in the late 1970s when it was used and is still used to equip the decision-makers in an organization with the necessary tools required in modeling and accessing data. In terms of semi-structured decisions, the decision-makers mainly make use of decision support systems.

This is because in analyzing the data, the decision-makers are not always sure of the process to follow, the necessary data required, or the right tools to be used. This category of information systems is designed to indicate the effectiveness of an organization against the objectives (Grossman & Livingstone, 2009, p. 529).

Strategic information systems

Strategic information systems are mainly used in the executive decision-making process. This type of information system develops the strategic decision-making abilities of the executives in an organization. The strategic information systems are generally categorized into two, according to the type of support they offer to an organization.

The first category of support is the timely and effective information search, which is used in retrieving crucial internal and external information but the organization’s top executives. The second category of support is the facilitation of first and comprehensive analytical decisions. It is suggested that with the use of this kind of support, the decision analysis by the top executives will be enhanced without slowing down the whole process of decision-making (Zhang, 2010, p.2).

Principles of organizational information systems

In an information system, the importance of the information achieved is supposed to be as important as the organizational objectives it attains in its decision-making process. In addition to this, foreseeing the impact of the information system on the organization and putting the knowledge acquired into good use is crucial in ensuring organizational goals are met and a successful personal career is established.

To achieve a successful information system the all the concerned parties, which include the managers, professionals of information systems, and the system users must work together. Not only does the incorporation of the information system into an organization add more value to the organization it also gives the organization a competitive edge (Stair, et al, 2009, p. 2).

Users of Information systems

Information systems are incorporated in almost any type of professional in the current technological world. In advertising products, sales representatives make good use of information systems by communicating with customers as well as monitoring and analyzing the sales trends. In organizations or firms, managers incorporate information systems in decision making especially when it comes to critical decisions.

In the offering of advice to the clients on saving for the future, the financial planners make use of the information systems. In addition to this, financial and accounting operations across the various types of businesses are carried out using the information system. Regardless of the type of business one is operating information system has emerged as a critical tool of ensuring the various business goals are met. The feedback process is attributed to achieving the business goals achievement such as profit increase and improved customer service (Stair, et al, 2009, p. 4).

Information systems are designed for the sole purpose of aiding an organization in achieving effective decision-making capacities. The transaction processing systems for instance are mainly involved while dealing with repetitive operations. The information is normally analyzed and structured as the data is obtained easily and later store in large volumes.

Management information system, which is mainly used by middle-level managers, is used mainly in tracking, monitoring, and controlling the progress of the organization, which is later on reported to the senior managers. The decision support system is mainly used by managers while dealing with unstructured decisions.

The data of the decision is retrieved and analyzed in this type of information system. It is in this type of information system that a manager of an organization can undertake the “what-if analysis” due to its ability to generate various types of solutions. Cooperation between the information system personnel and the organization managers is defined as the key to releasing the full potential of a new system.

Grossman, T. and Livingstone, L. J. (2009). The Portable MBA in Finance and Accounting . NJ: John Wiley & Sons, Inc.

Parsons, J. J. and Oja, D. (2010). New Perspectives on Computer Concepts 2011 . KY: Cengage Learning, Inc.

Stair, M. R., et al (2009). Fundamentals of Information Systems. KY: Cengage Learning, Inc.

Zhang, J. M. (2010). Can Firms Improve their Bottom-line Performance from Providing Information Systems Support for Strategic Decision Making? Connecticut: Sacred Heart University.

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StudyCorgi. (2022, March 28). Information Systems in Organizations. https://studycorgi.com/information-systems-in-organizations/

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Information System and Its Various Dimensions Essay

Modern times present new challenges for business and commerce in the context of informational technology. Vast quantities of data are being generated, sent, and processed every second. Currently, the proper utilization of complementary assets, which are vital for economic growth, is impossible without information systems. This means that business managers need a deep understanding of information systems to have a competitive advantage, and this understating starts with the definition.

The term “system” is used in multiple disciplines in all fields of study. In general, the system is defined as the object of a particular design (Zannah, 2022). This definition reflects the main component of a system – the intentionality behind its creation. All the components united as a system, serve a common system objective. Therefore, it is possible to define the system as a set of components integrated in an intentional manner to achieve a predefined objective (Piccoli & Pigni, 2018). Information is defined as knowledge obtained from investigation, study, or instruction; data; facts (Information). Therefore, the information system is a collection of data, facts, or knowledge integrated in an intentional manner for the purpose of collecting, processing, and storing.

The definition of an information system can be viewed from different points. For example, it is possible to find technological, sociological, socio-technological, and process dimensions of the term. The prevalent method of handling information is through informational technologies. Thus, most of the time, the information systems are reduced to their technological component – computer hardware and software, used for handling the information. The sociological view emphasizes the aspect of human relationships in the information system. It represents the information system as a part of human society. The process dimension purely states the abstract concept of the information system as an organized way of processing data.

The most plausible way of viewing the information system seems to be the socio-technological view. It takes into account all nuances of the phenomena without overly emphasizing one or having a mechanistic approach to a process view. Indeed, currently, the material basis for most information systems is information technology. However, the societal relationships define which data to collect, in what quantity and quality, and how to store and represent it.

Information systems are a vital component of any economic activity on a noticeable scale. Economic growth is tied to the process of innovation, which is may found by combining factors and resources that were previously viewed as unconnected to multiply the economic potential of all used resource designs (Zannah, 2022). This phenomenon is called complementary assets when the investment in one asset increases the marginal return on the other asset. An example of this is the automobile, which would be the main asset, and all infrastructure that facilitates the use of automobiles, such as roads or gas stations, which would be the complementary assets.

Modern businesses have a complex structure that supports the process of deriving value from their main assets. The complementary assets, in this case, would be anything from office spaces to corporate structures, such as human resources, sales and marketing, and manufacturing (Zhou, 2019). Considering the widely adopted data-driven approach to management, it is possible to see how information systems are an integral part of utilizing said complementary assets.

In conclusion, it is possible to define an information system as a collection of data, facts, or knowledge integrated in an intentional manner for the purpose of collecting, processing, and storing. Analyzing vast amounts of raw data is necessary for finding the most optimal way to ensure the maximum return on investment. Therefore, the widespread data use for business purposes calls for the adoption of information systems, which will allow a data-driven approach to business.

Information (n.d.). Merriam-Webster Dictionary . Web.

Piccoli, G., & Pigni, F. (2018). Information systems for managers: with cases (Edition 4.0). Prospect Press.

Zannah, S. (2022). Information Systems. Global text.

Zhou, X. L. (2019). A Review of Complementary Assets. American Journal of Industrial and Business Management, 09 (01), 1772-1780. Web.

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Home — Essay Samples — Information Science and Technology — Information Systems — Review on information systems

Review on Information Systems

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