Management Information Systems in the Age of Cloud Computing - Coursework Example

Age of Cloud Computing Student’s Name Institutional Affiliation Age of Cloud Computing An information system is inclusive of the input, processing of information and producing the output. Input is the capturing of data which is raw either from the environment or from within the organization. Processing is the method through which the raw data is transformed into meaningful information. The output is the transmission of the processed information to the relevant recipients. An information system is composed of a hierarchy ranging from the senior, middle and operational management; the hierarchy continues to the workers skilled with computer knowledge, data employees, and production as well as the service workers. Information systems are continually getting sophisticated and increasing relevance in both small and large businesses in the global economy. Objectives of the Organization’s Application of Information System The organizations in the present day economy are continually investing in the information systems. These kinds of firms are based on some objectives. One of the aims of these businesses includes the enthusiasm towards the operational success through information storage and analysis. The business, therefore, works towards increasing the firm’s profitability to a great extent. The efficiency and fostered productivity of the enterprise require advancement of the technology, which is utilized in the organization. The organization involves technological links which connect the suppliers to the customers, hence increasing the efficiency of the firm. More importantly, cloud computing leads to data security through the use of databases in the organization preventing loss of information concerning the sales and the customers. Data security is one of the key functions of the organization as it earns the firm the trust of the customers[Jul17]. The second objective is the improvement of the products, innovation of new ones and fostering the existing business models. The business models which are used in the organizations describe the line of the business operation. For instance, the information system linked to the business model represents what the company produces regarding goods and services. The businesses are also aiming at increasing efficiency regarding the customer care and the supplier intimacy. The information systems are also meant to increase the rationality of the decisions that are made concerning the internal and the external environment of the organization. The organizations are effectively increases the resilience of the businesses during the economic fluctuations. Moreover, every business embraces and integrates the information system in the operations to increase the competitive capacity. The strategy of the organization is a key attribute to the success of the information system applied[Mih14]. Benefits of Cloud Computing Cloud computing is the act of utilizing the network comprising of the remote servers which are connected to the internet allowing the firm to store, manage and process data efficiently. Cloud computing is popular in the digital era as the technology has many benefits to the organization rather than the local servers or the use of personal computers. The most significant benefit is the efficiency as services are delivered in the shortest time possible, unlike traditionally where the clients had to wait for an organization to respond, hence taking days and weeks. Business agility model is achieved through use cloud computing information systems in all business activities in an organization. The projects which are linked to the information technology require being delivered within the deadline and the timelines. When such projects are completed in he requires time; the firm can easily predict the time-to-market. When a firm is in a position to offer services which are quality, affordable and fast, it wins the competitive edge in the market. Saving on time reduces other significant costs in the market[Edw12]. The cloud computing is effective in the innovation of new business models. The cloud computing services can be combined or used separately to generate new value propositions as well as new streams through which revenue can be earned in the organization. Some organizations analyze the services of cloud computing and decide to completely do away with the former business models to adopt the new ones. Mostly smaller businesses, as well as the medium ones, choose the complete business model. For larger businesses, the former business model is fostered through the integration of cloud computing in the old information systems. Use of information system in the digital age is beneficial as the issues and defects are reduced drastically in the organization. The continuity of the business which eventually leads to the achievement of the economies of scale is enabled by the cloud computing applied in the organization. Cloud computing is efficient as same technology is repeatedly used in the firm to produce the same results without defects. The server images of the firm, for example, can be rebuilt through the predictive deployment of the cloud computing in the organization. The application servers and the landscape can also be pre-built using particular design patterns. Cloud computing is efficient in the sustainable use of resources in the organization. Resource management is linked to the business agility model which is achieved through information system cloud computing. More so, when the projects are delivered in time, and the firm experiences fewer defects and operational issues, the time saved can be used for more useful activities. Such time utilized efficiently offers much value to the business through increased productivity. The benefit applies to the small and the large organizations, but it requires rational decision making by the firm management team and the cooperation of the employees. Apart from the time resources, economies of scale are also achieved through resource management in the organization. The organizations which provide cloud services are aimed at energy conservation and utilization of the physical resources in an efficient way[Clo09]. Cloud services lower the expenditure used for capital, especially in small businesses which have not operated for a long time. The larger companies on the other hand also benefit from the capital expenditure reduction, especially through shifting to an operational expense model from the traditional capital expense model. The operational expense model of cloud computing is usually effective for the medium and short projects which are required in a few days or weeks. The operational expense model popularly referred to as OpEx, does not require upfront investment. The organizations, therefore, can initiate the projects fast and also complete them timely without losing investment cost in the cloud computing services. Cloud computing is the most efficient way to run the business[Mih14]. Cloud Computing Application in Marketing An information system is integrative of different business functions. For instance, marketing and sales, accounting and finance as well as in production are dependent on the information systems. The information systems in the digital era are useful for the market mix decision making especially for established companies which are already in global business. Through the information systems, an enterprise can make a rational decision regarding the place, product, price, and promotion. The major business segment which is more dependent on the information system more than all others is the external environment and more importantly, the market. Global business, for instance, can be operated by a firm which has efficient information system characterized by the cloud services. The marketing information systems are hence included in many organizations in the last few decades. The market information system is, however, primarily dependent on the external environment. The systems give information about the market place including the price fluctuations and data about the target market. Identification of the need of the customers is the critical step in the marketing research and requires the cooperation of the various information technology personnel in the organization as well as other professionals related to the sales and marketing. Organizations hence install the marketing research software which aid in the statistical analysis of the data about the prospects and the actual customers’ reaction to the products offered by the firm[OKT14]. Through the marketing research software, the firm is in a capacity to correlate the behavior of the customers to various characteristics such as demographic variables, psychographic variables, and geographic variables. The ethical and social issues of the information are hence integrated into cloud computing. Conclusion In brief, information systems are vital in business as they make communication from all departments efficiently. Moreover, information system leads to the collection of data from the external environment. Resource management and cost effectiveness are some of the benefits associated with cloud computing in the organizations. Cloud computing technology is efficient for both established businesses as well as smaller businesses. Marketing, the company’s infrastructure, and strategy are some of the operations in organizations which highly require integration of information system. References Jul17: , (Davoren, 2017), Mih14: , (Dimitrov, 2014), Edw12: , (Schouten, 2012), Clo09: , (Alliance, 2009), OKT14: , (OKTAWAVE, 2014), Read More