The Strategic Business Objectives of an Information System - Research Proposal Example

The Strategic Business Objectives of an Information System Living in a world where passing information faster is necessary presents the crucial need of an information system. In an organization with over a hundred staff members, they all depend on the IT department to ensure that there is efficient and effective mode of communication in the entire group. Failure of the information systems would mean that the IT department is the pivot of all the communication in any business. With the development in technological systems, companies are striving to become digital firms. Currently, information systems offer companies the analytical and communication power they need. This paper focuses on the objectives played by information systems in an organization. It will also look into the management, business and technology components of the information systems. To begin, information systems refer to ‘the set of interrelated components that collect, process, store, and distribute information to support decision making, coordination and control in an organization.’ In addition to this information systems help in the analysis and solving of problems and; come up with products that are new in the markets (Laudon, and Jane, p12). Information systems have roles that they do play in organizations. ‘The network revolution and the internet’ is one of these roles. Over the years, there have been numerous developments in information systems. For instance, there are available software that are very easy to use, people can now analyse huge amounts of data and in an easy way (Beynon-Davies-Robert, & Chris, p134). These two features and many more, enable communication networks to be very powerful due to the computer technology. The internet is one of these communication networks, which is very vital for any company, regardless its size. The internet can connect numerous countries and is a platform for people in different fields to exchange information. Companies are able to use the internet to make business transactions, graphical presentations, documents, among other things. This happens very easily despite the distance between the different parties. The internet has different importance to any company. Collaboration and information is one of these roles. Whereby, people in an organization can easily communicate by the exchange of emails, or even transmitting documents, as reports. The internet can also be used to access information. For example, during a research; or when one requires certain information, they can look for related documents, or even read books online. In addition to these, people can hold discussions through the internet (Laudon, and Jane, 46). These include being part of discussion groups, or even having conference meetings through skype. These are just a number of the uses of the internet in an organization. This is a major reason as to why every business should have a department that is in charge of the information systems. Through these networks, information systems can carry out other roles in the firms. The major objectives of information systems in any business include the following. First is to ensure that there is an excellent operation in the company. For any firm to operate without any hiccup there has to be information systems in place. Efficient operations always lead to an increase in the profits made by the firm. Thus, information systems are used in the management of high efficiency levels and high productivity in the operation of the business. With information systems, businesses are able to monitor the work done by their staffs, which determines how efficient their operations are. For example, many discoveries in microprocessors have enabled pharmaceutical companies to ensure that there is efficient delivery process of drugs to the customers. Another goal of information systems is its use in the development of products. For example, there are designs and software used in manufacturing help in making the processes of making decision to be fast. Several technologies can be used by several teams in any part of the world to develop the components of a single or multiple products. Information systems help businesses to respond speedily to the changing needs of customers. Requirement documents of the product during its development may be obtained from proprietary databases containing information on the target market (Beynon-Davies, Robert, & Chris, 167). Also, these documents can be obtained from customers or sales representatives. All this is made possible by information systems in the firm. Information systems also play the important purpose of the integration of stakeholders. This is by providing a quick means of communication between the stakeholders of businesses even if they are in different continents. This is because information systems provide connectivity in the entire world, around the clock. Companies make use of websites meant for investor relations for communicating with shareholders, market and research analysts, as well as the participants. For example, a call from a customer in Africa can be picked in part in Europe, where the recipient could obtain information from the United States on the servers based in the headquarters. IT also has a goal in the improvement process. Managers analyse the progress of the company through systems referred to as Enterprise Resource Planning systems. Through these, they can make reviews on the sales and costs of their products, as well as other operating measures. This is done on only one system that contains integrated software (Laudon, and Jane, p 126). This system can be used in place of several systems for human resources or finances. This makes the evaluation processes easier and less costly. Additionally, information systems are used to ensure there are efficient costs. Despite information systems having costs on the software and the equipment used, IT ends up saving much money for any organization. Through information systems, the business can save on mailing costs and duplication among other expenses. This is because, with information systems, an organization can make a reduction in costs used in implementation and transaction processes. This cost reduction is possible while still ensuring excellent customer services and quality products. Information systems are also high for a company to have a competitive advantage. With the advantages of information systems mentioned above, for example, cost reduction, product development and improvement of processes. These factors enable an organization to be at an advantage over other competing companies. For instance, a company can choose to use prototyping, and software simulations among other IT systems, to market their product. They will do this in a very cost efficient way and speedily. Finally, information systems encourage globalization. IT is a central tool in globalization. This includes the examples of outsourcing and telecommunication. Through information systems, a company can outsource finances and resources, as staff, to their companies that are in other states. With information systems, the company will remain in contact with the offshore employees, as well as the customers and suppliers (Beynon-Davies, Robert, & Chris, p236). Therefore, with information systems business can survive any competition. From the discussion above it is clear that information systems are the pivot of every group. Through information systems, the business can develop its product, ensure that there are efficient and effective processes in place for the business, as well as helping in the reduction of expenses that the company would incur. Due to these crucial objectives of information and technological department in every organization, there is a need to ensure that the information systems are thoroughly managed. Information systems management includes ensuring the following. First, information systems management ensures that the primary management roles are carried out. These include staffing, budgeting, controlling; organizing, as well as designs in software, and network planning, among others. With the proper management of information systems, the value of technology offered to the company will be of good quality. For effective information systems management, proper business is a key factor. To ensure a successful business of the information systems, proper business strategies and the available technology must be in line. This will also determine the technological components of the information systems. As discussed above some of the technology components could include software needed for prototyping and software simulations, Enterprise Resource Planning systems, as well as word processing. To conclude, changes in technological developments are creating many changes in business organizations. With new information systems, companies are able to carry out several activities at a faster rate than was happening in earlier years. Technological developments have led to the creation of digital firms that ensure efficient operations. It is hard to dispute the immense benefits information systems have brought to business organizations. References Beynon-Davies, P., Robert G., and Chris S. Business Information Systems. Basingstoke, Hampshire: Palgrave Macmillan, 2009. Print. Laudon, K. C., and Jane P. L. Management Information Systems: Managing the Digital Firm. Upper Saddle River, N.J: Prentice Hall, 2002. Print. Laudon, K. C., and Jane P. L. Management Information Systems: Organization and Technology in the Networked Enterprise. Upper Saddle River, NJ: Prentice Hall, 2000. Print. Read More