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Strategic Approach for Information Systems - Essay Example

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Information system is an integrated set of components that facilitate management in the demanding world of today. Information systems help in accumulating, storing, processing, retrieving and disseminating large quantities of significant information. Businesses, firms, organizations, and even individual entities living in today's modern world use information systems…
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Strategic Approach for Information Systems
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Download file to see previous pages They are not only faster, but also much more accurate. Thus, large corporations process their financial accounts and supervise resources using information systems as human mind is prone to err. Not only do governments provide welfare and basic civic services using these systems, but individuals also utilize these facilities for everyday activities such as shopping, banking, investing and studying. (Robson, 2003)
As days pass and technology progresses, innovative and enhanced information systems are coming into existence. Not every person working in a business requires the same information systems; the type depends on their requirements. Top management focuses on business development and planning, while people working on the middle management level require intricate details about the production and etc. to supervise and control business activities. Based on different requirements, there are six basic types of information systems:
Transaction Processing System (TPS) - This keeps track and stores all the critical transactions that take place everyday in a business. This is mainly used by the middle management that takes care of the day to day activities of the business.
Management Information System (MIS) - This formulates a report that represents all the information recorded by the TPS. This again is of great help to supervisors who can also use this as a way to present the information to seniors.
Office Automation System (OAS) - This system basically helps the employees to become more proficient and productive by providing them with facilities to process information, calculate and create documents more accurately. Microsoft Office is a good example of an OAS.
Executive information system (EIS) - It readily provides the senior management with vital internal and external information regarding the business in an interactive manner.
Knowledge Management System (KMS) - This system assists the sharing of information among employees in an organized manner. Knowledge, the important ideas that have been extracted from the information, is communicated through this system/network. (Pearlson and Saunders, 2005)
Advantages of using Information Systems
The usage of information systems has many advantages to it. Firstly, it makes all the work painless as all the complicated calculations has to be done by the computer. Also, financial accounts become perfectly balance as errors are caught in a second on computers. Storage becomes simple as the memory of the computer is too deep and can be extended to whatever size we want. Secondly, paper work in finished off and there is no need for organizations to stock up uncountable files. Information systems are not only proficient at handling the information but also help in decision making. Assessment becomes quicker as the exact scenario is portrayed in front of us in forms of reports. Information systems also provide us with analytical tools that help us in judging a situation more clearly. Thirdly, information systems encourage decentralization of authority - it measures performance at all levels and help us in amending organizational plans and procedures. Most ...Download file to see next pagesRead More
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