Roles of Information Based System - Research Paper Example

Roles of Information Based System Introduction As early as 1970s, a number of organizations had already embraced the use of information based managements systems as a fundamental concept that is meant to aid business processes. Such adoption was mainly conducted to balance off power within organizations with respect to the competitors, customers and the suppliers. Deep concerns have been noted by integrating information system as part of business solutions, it implies new relationships of investments and business strategic development (Rainer & Cegielski, 2011). Based on the concept of business integration, strategic information system seems to embrace the concept of sharing information amongst consumers, suppliers and the management. Besides, the system enhances effectiveness to the organization through added value process. Eventually, information system integration also creates remorseful environment for the delivery of new products and services while providing an executive management control that supports integration through different types of information based controls. Roles played by information systems in enterprise-wide integration Enterprise resource planning systems Enterprise resource planning systems are business management applications that streamline and integrate business operations and information flow to help in the management of business office functions. Enterprise resource planning systems intercepts information flow either internally or externally and directs it into a simple comprehensive solution. Mostly, a system is designed to handle inventory planning-management, purchases, human resource management and other activities (Leon, 2008). According to Leon (2008), the above system is a critical component in business integration because it enhances productivity while promoting efficiency within the entire organization. As such the activity makes it possible through increased ability and concentration on the issues of the demand and supply with a lot of focus to enhance customer based services. Moreover, EPR improves cost effectiveness of the organization through efficient management of resources thus resulting into increased levels of returns. Most information based management scholars clarifies that Enterprise resource planning systems enhance data consistency by integrating all the important business management functions hence it is vital for the decision-making process. Inter-organizational systems Inter-organizational systems comprise of all information and management systems that transcend organizational departments through electronic networks purposely to share pieces of information besides online transaction process clarifies (Eom, 2005). Living in a digital age, businesses have increasingly adopted inter-organizational collaboration thus achieving numerous benefits while expelling various challenges that could have otherwise not been solved at independent departments. An observation made from most inter-organizational systems shows that it reduces uncertainty within the business environment by cutting down the cost of production. As such, it improves communication efficiency and encourages close relationships amongst stakeholders within the business fraternity. In addition, such types of systems are integrated into the organization through a network topology thus enhances sharing of resources, supply chain that help building up trust between customers and the organization Eom (2005). Besides, inter-organizational systems exhibit a character of numerous independencies. Therefore, it is used as a determinant beyond technical factors that influence the success of the other systems at different departmental levels. It has also been pointed out that integration of inter-organizational systems into the company improve the nature of strategic operations including the quality of the system, information and service quality. Decision support systems Decision support systems entail specially designed computer applications that are meant to help the organizational management in decision-making activities. Decision support systems are designed to be more interactive by intercepting raw data either physically or virtually by administering documents plus other relevant information. After which, it conceptualizes them into facts that are needed to solve problems and make important decisions. Due to entrants of new economic phenomenon characterized by diversity and globalization of international markets, decision making has become a critical business element that deserves numerous parameters. As such, it embraces maintenance of lead position to make up swift important suggestion for the success of the business (Shortliffe, 2007). The most important role of decision support systems is to process information and avail large amount of intelligent information that are believed to be in the simplest formats for the executive to make decisions. Such kinds of systems are characterized by automated functions that convert human physical and slow operations meant to sort accuracy such as mathematical calculations. Besides, such systems enhance accessibility of information for the non-technical team contained by managerial, professional team without widespread to non-professional individuals. Ultimately, the above systems support human element by providing accessibility to operational data thus enabling the accomplishment of complicated procedures through special commands within the shortest period possible (Shortliffe, 2007). Knowledge management systems According to Maier (2004), knowledge management systems constitute a class of information technology systems that record and retrieve knowledge through simple collaboration and location of various sources to enhance the management process. For a number of years, innovation has been a key driver for modern enterprises. Therefore, there is a need to develop information-based systems with a lot of focus towards the creation of knowledge vitals for the expansion of business solutions. From different classifications of knowledge ranging from explicit to tactical and market Knowledge management systems improve managerial decision-making capabilities hence leading to the best quality decisions through an accelerated discussion on how to share important managerial practices. Business scholars have also pointed out at a more developed learning routine that comes up due to availability of such systems. For instance, in a military environment, knowledge management systems create an opportunity where every person access oneself more continuously so as to determine the level of progress. Moreover, knowledge managements systems as used within the business environment enhance cultural change and unique opportunities to come up with new ideas. The above system enhances the rate of management development by creating a streamline of business unit leadership creating emphasis to adopt cultural change and embrace cooperate values (Maier, 2004). Conclusion Information based systems play a considerable role to organizations either internally and externally through integration of managerial concepts into the enterprise resulting into numerous values meant to improve modern business economy. The paper has discussed how different types of information based systems ranging from enterprise resource planning systems to knowledge-based management systems are important in generating positive managerial decisions that are vital for the organizational sustainability. References: Top of Form Top of Form Top of Form Top of Form Eom, S. B. (2005). Inter-organizational information systems in the internet age. Hershey, Pa. [u.a.: Idea. Leon, A. (2008). Enterprise resource planning. New Delhi: Tata McGraw-Hill.Bottom of Form Maier, R. (2004). Knowledge management systems: Information and communication technologies for knowledge management; with 91 tab. Berlin: Springer. Rainer, R. K., & Cegielski, C. G. (2011). Introduction to information systems. Hoboken, N.J: Wiley. Shortliffe, E. H. (1987). Computer programs to support clinical decision making. Jama, 258(1), 61-66. Bottom of Form Bottom of Form Read More