Advantages and Disadvantages of Using Information System Technology - Coursework Example

Information System Technology Name: University: Course: Tutor: Date: Information Systems Technology Introduction Information System (IS) is an integrated computer application that has got a set of components used for organizing, collecting, processing and storing information (Business Dictionary, 2017). These components interact with each other to produce information that can be used for communication. An information system can also be a combination of people and computer systems that analyze and interpret information ((Nah, 2002).). The term is sometimes used to refer to a particular software that is used to manage a database or a specific computer system. Academically, Information System can be defined as computerized systems that uses software and hardware in an organization to create, collect, process, distribute and store data. Therefore, this essay will discuss how businesses use Information System (IS) for information storage, information analysis and decision making. The essay will also discuss how businesses use IS technology to protect information that relates to their business. Finally, the essay will discuss the advantages and disadvantages of using Information System technology. Most business firms depend on Information Systems to operate with their customers, suppliers and also to engage in market competition. Electronic markets are operated using IS, interorganizational supply chains are also operated using Information Systems. For example, most business cooperation use online promotions to target their potential customers, to run their human resources and also to process and manage their financial accounts. These business activities especially the online marketing make proper use of information systems which will analyze the information sent and received. The systems will also store and back up company data in a particular database for future decision making. There are companies which are built using information systems like eBay, a company that deals with auctioning marketable products. Another business firm is Amazon, a company that expands electronically and provides cloud computing services to its customers among other services and products. Another example is Alibaba, an electronic market for business-to-business operations. Most governments participate in the provision of information system services which are cost-effective to its citizens. Such governments encourage electronic books, software products, video products and online services like social networking and online games which are all delivered with integrated information systems. In the modern world, human beings rely entirely on information systems with or without their knowledge. They use information systems in studying, shopping, socializing, banking and in general, they use IS to conduct their personal lives. During the introduction of new technologies, new devices for processing and recording of information were invented and the inventions empowered people around the world. During the mid-15th century, Johannes Gutenberg invented the printing press. In the 17th century, Blaise Pascal invented a mechanical calculator. These two examples among others show how information systems revolutionized the ability to grasp knowledge, and the ability to process and record information. Such inventions led to profound changes in human governance, personal lives and business cooperation. In 1890, Herman Hollerith invented a census tabulator which was the first mechanical information system to be invented in that year to conduct the U.S. census. Hollerith’s invention was a huge step to automation during 18th and 19th century as well as a motivation to invent more computerized information systems (Nah, 2002). In the past, information systems were mostly used to process information and UNIVAC was among the first computers to be used in retrieving and processing information. In 1951, the U.S. Bureau installed UNIVAC for administrative purposes. In 1954, the General Electric Company installed UNIVAC for commercial purposes. In 1970, personal computers were introduced and they indicated the benefits of information systems to small business firms and in personal lives. In the early 1970s, the internet expanded and became the global network of networks. Every department in a company has its own software program that is customized to meet the daily operations of the department. Therefore, the task of implementing a single software program to handle the needs of the warehouse department, financial department and human resource department might seem to be a huge and impossible operation (Nah, 2002). However, if the software is installed correctly and managed effectively then the integrated approach could be cost effective for the company. Information systems have got modular software design and a common database which enables every department of the company to store and retrieve data and information in actual time (Nah, 2002). The information should be easily shared, reliable and extremely accessible. The modular design software enables the business select the type of module they require, match modules from various vendors and allows the business to add new personal modules for performance improvement of the business. Most software systems are considered to be information systems because they are able to cover several functions in various business categories in the company or organization. In the past, Human Resources, Customer Relations Management, Warehouse Management, Financials, and Supply Chain Management were all referred to as Standalone software applications because they had personal networks and databases. Today, these applications fall under an information system. Implementation of an integrated information system solution allows departments to communicate, share and exchange information with each other (Crowder, 2015). Information systems in relation to business ensures satisfaction of the customers because of its development in new areas, services and products. It also promotes competition among various organizations that implement and practice the use of Enterprise Resource Planning systems. In relation to Information Technology (IT) sector, most software do not satisfy business needs and those that meet the needs of an organization are not easy to maintain. Therefore an information system which covers a wide range of business functions and integrates them into a single database is essential in managing today’s business world. Business secure their information by creating security policies and keeping their information system software up to date (Goldstein, 2017). Business owners educate their branch managers on how to use unique passwords and change the passwords regularly as a security measure. An ideal information system contains all data for different software modules in a single database (Nah, 2002). These modules include; Customer Relationship Management (CRM). CRM is applied to implemented processes of a company to maintain communication with the customers. CRM supports processes that relate to information storage on prospective and current customers. Employees are able to access and enter information in the system from different departments like customer service, performance management, sales, human resource development and marketing (Crowder, 2015). The system is able to store details on any contacts of a customer. This approach improves services that are directly provided to customers and the information in the system is used towards the intended market. Generally, CRM is a software based approach that handles customer relationships but software vendors argue that for CRM strategy to be successful, a holistic approach should be implemented. Failure of a CRM initiative is due to the fact that software installation was used in the limitation of CRM implementation. CRM encourages employee motivation in learning, input provision and utilizing the information systems. Manufacturing. This module include functions like quality control, manufacturing processes, and workflow management, engineering and material bills among others. Supply Chain Management. This module include activities like inventory, supplier scheduling, supply chain planning, purchasing and order entry among others. Data Warehousing. This module should be accessed by suppliers, employees and customers. Data warehouse is like a depot for an organization where data is stored electronically. They are designed to boost analysis and reporting and thus the definition of data warehouse aims at data storage. Some essential components of a data warehouse are to extract data, to analyze data, to manage data dictionary and to load and transform data. Human Resources. This module involves payroll activities, attendance, training and time. Financials. This is a module that involves accounts receivable, accounts payable, general ledger, management of cash and fixed assets. In conclusion, information systems have got several advantages but the main purpose of information systems is to generate the appropriate information, store and distribute to the intended people. Communication through the use of emails, video calls, voice calls and instant messaging becomes efficient, cheaper and faster when information systems are used (Nah, 2002). Most businesses are nowadays operational 24/7 because of information systems. Information systems has created new type of jobs like web designers, Computer programmers, System analyzers, Software and hardware analyzers among others with the help of Information Technology (IT). There are also issues related to Information Systems (IS). Thieves and hackers sometimes access company sensitive data which might endanger the company when the data is shared unknowingly with the public. Such data might be a company’s personal data, bank records or even vendor information (Applied Trust, 2008). It is argued that Information Systems and technology has globalized the world, but it has also resulted into one culture considered superior than another. For example, U.S. has been known to influence the lives and behaviors of teenagers all over the world. Bibliography Applied Trust. (2008). Every Company needs to have a security program. Retrieved from https://www.appliedtrust.com/resources/security/every-company-needs-to-have-a-security-program Business Dictionary. (2017). Definition of Information Systems. Retrieved from http://www.businessdictionary.com/definition/information-system.html Crowder, D. (2015). Business Technology and Customer Support. Retrieved from http://smallbusiness.chron.com/uses-computers-business-56844.html Goldstein, M. (2017). 4 Ways Small Businesses can protect themselves from Cyber-attacks. Retrieved from https://www.coxblue.com/4-ways-small-businesses-can-protect-themselves-from-cyber-attacks Nah, F. (2002). “Information System Technology and Business.” IST Press, Hershey. Retrieved from http://smallbusiness.chron.com/three-fundamental-roles-information-systems-business-23681.html Read More