Role of the Information Systems - Assignment Example

Future Role of the Information Systems By Table of Contents Table of Contents 1.Introduction 3 2.Introduction to Information Systems 4 3.Examples of Successful Implementations 4 4.Role of Information Systems in Different Industries 5 4.1.Role of Information Systems in Healthcare Sector 5 4.2.How Business Organizations use Information Systems 6 4.2.1.Information Storage and Analysis 7 4.2.2.Assist With Making Decisions 7 4.2.3.Assist With Business Processes 8 4.3.Marketing Information Systems 9 4.4.Information Systems in Supply Chain management 9 4.5.Information Systems in Human Resource Management 10 5.Conclusion 10 6.References 12 Executive Summary At the present, the majority of organizations heavily rely on the huge volume of data and information to run and manage their business effectively. Basically, these sets of data and information are collected from a wide variety of sources such as customers’ responses, financial data and human resource related data. In fact, the day-to-day functions of an organization are based on these sets of data. In this scenario, an information system helps the business organization manage and organize these huge volumes of data effectively. These information systems allow them to use these sets of data to run as well as improve the business performance by taking effective decisions. There are various categories of information systems and each category contains particular kinds of information systems for instance management information systems and decision support systems. At the present, the success of an organization completely depends on the effectiveness of an information system. This report discusses the role of information systems in today’s ever-increasing competitive business environment. The basic purpose of this research is to show what role information systems play in the success of an organization and what the future of information systems is. 1. Introduction Without a doubt, this era is considered as the era of information technology (IT), where only those business organizations get the success that make use of information technology more effectively than their competitors. Additionally, in order to survive in this ever-increasing competitive business world designing and implementing information systems those produce accurate data and information on the subject of marketplace understanding, customers and competitive capacity. The basic objectives that business organizations want to achieve through the development and implementation of these modern technology based information systems include the overall corporate performance and effective and efficient handling of business data (Turban et al., 2005; Laudon & Laudon, 2005). This report will discuss how information systems are playing a significant role in the successful execution of business operations. This report will also discuss some of the successful examples of information systems’ success. 2. Introduction to Information Systems In their book (Turban et al., 2005, p.18) define an information system as a system which collects, processes, stores, evaluates, and distributes information in order to carry out a specific task. Additionally, the nature of tasks varies from department to department. For instance, an information system can be used to manage human resource related operations or for managing accounting related functions. However, like any other system, an information system comprises various elements such as inputs (in the forms of instructions and data) and outputs (in the forms of reports, calculations). In addition, it generates the required outputs by performing operations on the given input (Turban et al., 2005, p.18). 3. Examples of Successful Implementations (Laudon & Laudon, 2005, p.468) discuss a number of ways an information system can facilitate the management. In this scenario, Table1 outlines the uses of information systems in some of well-known business organizations: Table Examples of organizations using information systems, Table source: (Laudon & Laudon, 2005, p.468) Organization IS Application American Airlines This firm has implemented an information system to effectively determine and set the price and select the route for the planes. In this way, this American Airlines is getting a number of benefits from this information system (Laudon & Laudon, 2005, p.468). Equico Capital Corporation Equico Capital Corporation deals in capital investment matters. Hence, they implemented an information system that could help them with investment evaluation. This information system helped them improve their business performance by automating their business processes (Laudon & Laudon, 2005, p.468). 4. Role of Information Systems in Different Industries In this report I have divided the role of information systems with respect to different industries. The basic purpose is to analyze how different industries use information systems: 4.1. Role of Information Systems in Healthcare Sector At the present, information systems play vital roles in every walk of life. (Fichman et al., 2011) discuss the role of information systems in the healthcare sector. According to their viewpoint, the healthcare industry has a significant impact on the quality of our lives as well as how we live within the world. Hence, the mistakes in the healthcare industry can have critical and dangerous consequences or penalties that can have an effect on our capability to carry out communal and creative activities. In their paper, (Fichman et al., 2011) discuss that up till now a large number of researches have been carried out to see the impact of information systems on the healthcare industry. These researchers draw attention to the seriousness of hostile measures in hospitals and the threats such actions cause to the public and the individuals. On the other hand, any kind of medical mistakes (that is a major reason of unfavorable actions and other troubles are costly, raise patient hospital duration of stay, and sometimes cost human lives. In addition, if the healthcare sector fails to have power over infectious diseases it can lead to serious public health problems. For that reason, ensuring maximum quality in the healthcare sector is industriously followed and carefully carried out. In this scenario, information systems can make easier to deal with such issues by identifying and keeping an eye on mistakes at a variety of phases all along the range of care. In addition, information system performs a critical job at both population and individual levels (Fichman et al., 2011). Moreover, organizing and administrating healthcare resources has turned out to be a contest in opposition to time, for the reason that having control over the expansion of the disease is now as significant as treating it. Computerization and automation of healthcare sector through information systems offers a large number of benefits. In this scenario, many researchers give emphasis to the need to be aware of the situational aspects that force individuals’ comfort with receiving and distributing healthcare information in an electronic arrangement. In this scenario, one suggestion is to investigate severer rule of medical information, for instance, to make sure that stakeholders evidently recognize who they are, for what reason they will collect and distribute the data, what kind of data they will take and even to pose any limitations and restrictions on the amount of time that the stakeholder will be authorized to access (Fichman et al., 2011). 4.2. How Business Organizations use Information Systems Without a doubt, all the business organizations make every effort not to survive in this ever-increasing competitive business economy but also to be market leaders in their given business sector. On the other hand, in environments where a wide variety of aspects such as depression, inflationary stress and greater than before competition can interfere with the accomplishment of this goal, business organizations always try to find and implement strategies that help them achieve competitive advantages. In this scenario, one of the most useful strategies is the implementation of information systems in the business organization. For the business organizations, information systems help them make effective use of their data, decrease workload and support with conformity with a variety of compulsory regulations (Topi, 2008; Davoren, 2012). Business organizations use information systems for different purposes. Some of these functions are outlined below: 4.2.1. Information Storage and Analysis It is an admitted fact that at the present the majority of business organizations no longer deal with their data and information by hand using hard-copy and registers formats. In fact, through the implementation of information systems, business organizations are able to have stylish and comprehensive databases that can comprise all conceivable elements of data about the business organization. As discussed above, all the information systems store, bring up to date and even investigate the information, which the business organization can then utilize to identify and implement solutions to present or potential issues. In addition, these systems can put together data from a wide variety of sources, and these sources can include both internal and external entities, keeping the business organization state-of-the-art with internal performance and outside opportunities and issues (Topi, 2008; Davoren, 2012). 4.2.2. Assist With Making Decisions The enduring execution an accomplishment of a business organization heavily depends on the satisfactoriness of its tactical plans and business strategies. In view of the fact that the information systems offer an excellent support for building business strategies to survive in the business environment thus at the present, the majority of business organizations make use of information systems to build and implement strategic plans as well as make decisions for the company’s long life and success. In this scenario, business organizations make use of their information systems to assess information from a wide variety of sources, comprising information from outside environments for instance Bloomberg and Reuters, which present information on the wide-ranging market. In addition, this investigation and assessment of market factors and trends allows business corporations to investigate the satisfactoriness and worth of their strategic plans and decisions (Topi, 2008; Davoren, 2012). 4.2.3. Assist With Business Processes Information systems do not just only offer an excellent support for automating business processes but they also help companies design and implement a wide variety of value added-systems in the business organizations. For instance, in some cases organizations put together their manufacturing cycle with information systems in an attempt to make sure that the results it offers go along with the needs and requirements of the a variety of quality management measures. Additionally, the implementation of information systems makes straightforward business operations and gets rid of needless actions. In addition, information systems allow business organizations to include measures and control to workers’ processes, making sure that simply employees having the appropriate privileges can carry out definite activities. Moreover, information systems also get rid of recurring activities as well as augment correctness, facilitating organization’s workers to give attention to on more sophisticated tasks. In fact, information systems also help the business organization effective project planning and execution through efficient supervision and assessment aligned with established criteria (Topi, 2008; Davoren, 2012). 4.3. Marketing Information Systems Certainly, information systems play a significant role in almost all the areas of business. In the same way their role as a marketing information system is also very critical. In fact, the marketing information is the means of support of marketing method and marketing decisions cannot be taken without making effective use of marketing information. In view of the fact that marketing decisions are greatly influenced by a wide variety of external and internal organizational factors, hence the business marketers and decision makers need plenty of data and information associated with these factors, in order to forecast their instructions and their predictable influences on the domestic actions of the business corporation as well as the marketplace, with the intention of making the balanced marketing decisions in a doubtful surroundings opposite to the marketing management (Freihat, 2012; Ismail, 2011). 4.4. Information Systems in Supply Chain management Effective management of the supply chain is necessary for the business organizations for the reason that it is a tactical weapon to build up and improve sustainable competitive edge, such as, by minimizing expenditures and improving customer satisfaction. The process for planning, implementing, maintaining and managing the inside and outside elements of the supply system, such as transforming materials, supplying raw material and delivering completed products or services to end users, which is compatible with all strategies and objectives. Without a doubt, the definition of the supply chain management highlights the communication of the internal and external parts of the SC. The implementation of an information system to deal with supply chain operations can considerably increase the performance of a business organization (Nicholas Mavengere, 2012). 4.5. Information Systems in Human Resource Management Effective human resource management can play a significant role in attaining competitive advantages, if it is supported with sufficient modernized information on existing personnel, and prospective personnel in the labor marketplace. However, the emergence of information technology has offered a method for gathering this information through the implementation of human resource information systems (HRISs). Basically, HRIS encompasses a variety of processes and systems that puts together the job of information technology and human resource management. Additionally, the significance of human resource information systems is many-sided, varying from organizational support in gathering, storing and processing data for generating reports, summarizing and speeding up the operations and having control over the existing data, minimizing human resource expenditures for HR departments, and offering well-timed and varied information to the top management of the firm, depending on which it is possible to achieve quality tactical decisions associated with human assets (Dorel & Bradic-Martinovic, 2011; Maguire & Redman, 2007). 5. Conclusion This report has presented a detailed analysis of information systems. This report has discussed how information systems are being used in different industries and areas. Without a doubt, information systems have brought a large number of benefits and opportunities for different organizations. In this scenario, it is the responsibility of organizations to build effective strategies to take maximum advantages from information systems. The report has shown the uses of information systems in different areas and sectors. This report has discussed the ways different organizations are getting benefits from these systems. Thus, it can be concluded that in the future the role of information systems will further increase and their implementations will expand to other areas. 6. References Davoren, J., 2012. The Three Fundamental Roles of Information Systems in Business. [Online] Available at: http://smallbusiness.chron.com/three-fundamental-roles-information-systems-business-23681.html [Accessed 04 February 2013]. Dorel, D. & Bradic-Martinovic, A., 2011. The role of information systems in human resource management. [Online] Available at: http://mpra.ub.uni-muenchen.de/35286/1/MPRA_paper_35286.pdf [Accessed 06 February 2013]. Fichman, R.G., Kohli, R. & Krishnan, R., 2011. The Role of Information Systems in Healthcare: Current Research and Future Trends. Information Systems Research, 22(3), pp.419-28. Freihat, S..S., 2012. The Role of Marketing Information System in Marketing Decision-Making in Jordanian Shareholding Medicines Production Companies. IJRRAS, 11(2), pp.326-36. Ismail, S.T., 2011. The Role of Marketing Information System on Decision Making. An Applied study on Royal Jordanian Air Lines (RJA). International Journal of Business and Social Science, 2(3). Laudon, K.C. & Laudon, J.P., 2005. Management Information Systems: Managing the Digital Firm, 9th edition. New York: Prentice Hall. Maguire, S. & Redman, T., 2007. The role of human resource management in information systems development. Management Decision, 45(2), pp.252-64. Nicholas Mavengere, M.M.M.R., 2012. The Role of Information Systems in Supply Chain Strategic agility: a systematic literature review. [Online] Available at: http://iris.im.uu.se/wp-uploads/2012/08/iris2012_submission_26.pdf [Accessed 04 February 2013]. Topi, H., 2008. Role of information systems as a business discipline. ACM SIGCSE Bulletin, 40(2), pp.12-14. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Read More