The Role of Information System on An Organization Any business, big or small, must have a system in

place to collect, process, store and share data. Companies use modern technology to streamline and
automate these operations. Information systems are now playing a crucial role in data processing and
decision making. When used correctly, they can positively impact an organization's overall performance
and revenue. Information System (IS) At the most basic level, an information system (IS) is a set of
components that work together to manage data processing and storage. Its role is to support the key
aspects of running an organization, such as communication, record-keeping, decision making, data
analysis and more. Companies use this information to improve their business operations, make strategic
decisions and gain a competitive edge. Information systems typically include a combination of software,
hardware and telecommunication networks. adDownload to read ad-free 0 Businesses Pre-Information
Systems Until the 1990s, before the widespread adoption of personal computers and the Internet,
companies were using information systems to manage data processing and record-keeping
activitiesassociated with business transactions like maintaining the general ledger (book keeping),
payroll, billing, inventory management, etc. The focus was mainly on maintaining files and databases
related to day-to-day operations. Communications, both internal and external, relied on paper,
telephone, faxes, and other analog media. The arrival of the mainstream internet in the 1990s expanded
business capabilities and the role of information systems to a global system of interaction. Modern Day
Use of Information Systems Today, companies have eliminated the inaccuracy of paper- based tracking
by implementing ERP systems. In a recent study conducted by Panorama Consulting Solutions, 63
percent of companies used their ERP software to eliminate inefficiencies in processes such as order
tracking. Instead of standalone computer systems, ERP uses a unified program that links various
functional departments such as finance, HR, manufacturing, warehouse, planning, purchasing,
inventory, sales, and marketing. Once one department is finished updating and Unlock this
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processing the order, it is automatically routed to the next department so that everyone is alerted to
changes made. Adopting the Global Market Many businesses have begun to participate in the global
market, as it presents a chance for greater revenue and larger business prospects. The global
information systems market has seen consistent demands from several businesses. As businesses grow,
especially those intersecting with global relations, information systems are used to manage operations
accurately without growing the number of employees. The growing supply chains require that software
solutions be used in the following sectors: Web-based ordering Customer relationship management
Product configuration The Future of Information Systems As companies try to reduce costs, improve
productivity, employers are looking to ERP systems to help them grow and remain competitive globally.
Information systems have enhanced productivity for businesses. As businesses and organizations today
require more and more technical skills, adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_4');}); 0 companies are looking for employees who will help
manage andoperate the various information-based tools. Organizing the Information-Systems Function
In the early years of computing, the information-systems function (generally called data processing) was
placed in the finance or accounting department of the organization. As computing became more
important, a separate information-systems function was formed, but it still was generally placed under
the CFO and considered to be an administrative function of the company. As the role of information
technology continued to increase, its place in the organization also moved up the ladder. In many
organizations today, the head of IT (the CIO) reports directly to the CEO. New Models of Organizations
The integration of information technology has influenced the structure of organizations. The increased
ability to communicateand share information has led to a “flattening” of the organizational structure
due to the removal of one or more layersof management. Another organizational change enabled by
informationsystems is the network-based organizational structure. In a networked-based organizational
structure, groups of employees Unlock this documentUpload a document to download this document or
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an ad2 adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_3');}); 0 can work somewhat independently to accomplish a project. In a networked
organization, people with the right skills are brought together for a project and then released to work on
other projectswhen that project is over. These groups are somewhat informal and allow for all members
of the group to maximize their effectiveness. Information-Systems Users – Types of Users Besides the
people who work to create, administer, and manage information systems, there is one more extremely
important group of people: the users of information systems. This group represents a very large
percentage of the people involved. If the user is not able to successfully learn and use an information
system, the system is doomed to failure. Everett Rogers identified five specific types of technology
adopters: Innovators ( Innovators are the first individuals to adopt a new technology) Early adopters
( The early adopters are those who adopt innovation after a technology has been introduced and
proven) Early majority ( Individuals in this category adopt an innovation after a varying degree of time)
adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_2');}); 5 Late majority ( The late majority will adopt an innovation after the average
member of the society) Laggards ( Individuals in this category are the last to adopt an innovation) These
five types of users can be translated into information-technology adopters as well, and provide
additional insight into how to implement new information systems within an organization. The Evoluton
and Role of Informaton Sys ems We basically need to turn our attention to the role that information
systems play in an organization. As technology has developed, this role has evolved into the backbone of
the organization. The Mainframe Era From the late 1950s through the 1960s, computers were seen as a
way to more efficiently do calculations. Only large businesses, universities, and government agencies
could afford them, and they took a crew of specialized personnel and adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_5');}); 5 specialized facilities
to maintain. Typical functions included scientific calculations and accounting, under the broader
umbrella of “ data processing .” In the late 1960s, the Manufacturing Resources Planning (MRP) systems
were introduced. This software, running on a mainframe computer, gave companies the ability
tomanage the manufacturing process, making it more efficient. IBM became the dominant mainframe
company. Nicknamed “ Big Blue ,” the company became synonymous with business computing. Client-
Server In the mid-1980s, businesses began to see the need to connect their computers together as a
way to collaborate and share resources. This networking architecture was referred to as “client-server”
because users would log in to the local area network (LAN) from their PC (the “client”) by connecting to
a powerful computer called a “server,” which would then grant them rights to different resources on the
network (such as sharedfile areas and a printer). Software companies began developing applications
that allowed multiple users to access the same data at the same time. This evolved into software
applications for communicating, with the first real popular use of electronic mailappearing at this time.
adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_6');}); 5 The World Wide Web and E-Commerce First invented in 1969, the Internet
was confined to use by universities, government agencies, and researchers for many years. Its rather
arcane commands and user applications made it unsuitable for mainstream use in business. While the
first e-mailmessages on the Internet were sent in the early 1970s, companies who wanted to expand
their LAN-based e-mail started hooking up to the Internet in the 1980s. Companies began connecting
their internal networks to the Internet in order to allow communication between their employees and
employees at other companies. It was with these early Internet connections that the computer truly
began to evolve from a computational device to a communications [Link] 1989, Tim Berners-Lee
developed a simpler way for researchers to share information over the network at CERN laboratories, a
concept he called the World Wide Web. This invention became the launching point of the growth of the
Internet as a way for businesses to share information about themselves. Making Decision: In an
organization or business the managers need to make decisions all the time. The decision must be backed
by quality judgment of the situation and its implications. Data collected, compiled and presented in a
simple way helps managers adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_7');}); 5 understand the position of the organization and
take appropriate decisions. Information System (IS) helps in the decision-making process by providing
business intelligence which can be used to analyze and understand the current trend, user habits and a
lot more. Customer Interactions Information system provides means to interact with the customers that
helps in customization of the services and relationship building. Customers look for the platform where
they can provide feedback to the company, share about their experiences with the organization and its
products and find assistance from the company in problem solving. Information system makes it easier
for the customers to reach to the company through web-based front services and online self-service.
Strategic Information System It applies information technology (IT) with the firm’s product, service, and
business process to help the organization to gain a strategic advantage over the competition. Knowledge
Management System adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_8');}); 5 Knowledge Management system is a knowledge-
based information system to support creation. Organization and dissemination business knowledge to
employees and manager throughout the company. Operation Management: Information system is used
to manage every day operation in an organization such as employee monthly salary, taxes, attendance,
leave records, record income and expenses, receivables, procuring goods and inventory management to
name a few. Daily tasks or operations management to keep records or follow up on supplies, creditors,
and inventory is made easier with the help of IS. System Types and Characteristics:- Organizational
information systems can be conveniently be placed into the following categories:- Transaction
Processing System (TPS) or Data Processing System Management Information System (MIS) Executive
Information System (EIS) Decision Support System (DSS) Transaction Processing System (TPS)
adDownload to read ad-free 5 The system which these computer installations supported was called data
processing (DP) or transaction processing system (TPS). Some example of TPS systems in typical
organizations are:- A payroll system A stock control system An order entry system Bright Aspects of
Information System MIS facilitates planning MIS improves the quality of plants by providing relevant
information for sound decision-making. Due to increase in the size and complexity of organization,
managers have lost personal contact with the sense of operation. It minimizes information overload MIS
change the larger amount of data into summarized form and there by avoids the confusion which may
arise when managers are flooded with detailed facts. adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_9');}); 5 It encourages
decentralization Decentralization of authority is possibly when there is a system for monitoring
operation at lower levels. MIS is successfully used for measuring performance and making necessary
change in the organizational plans and procedures. It brings co-ordination MIS facilities integration of
specialized activities by keeping each department aware of the problem and requirements of other
department. It connects all decision centers in the organization. Dark Aspects of Information System:-
Hacker activities have broadened beyond mere system intrusion to include theft of goods and
information, as well as system damage and cyber vandalism, the intentional disruption, defacement, or
even destruction of a web-site or corporate information [Link] malfunction if computer
hardware breaks down, is not configured properly, or is damaged by improper use or criminal
adDownload to read ad-free 5 acts. Error in programming, improper installation, or unauthorized
changes cause computer software to fail. Power failure, floods, fires, or other natural disaster can also
disrupt computer [Link] has also increased from wide spread use of e-mail,instant
messaging (IM), and peer-to-peer file sharing programs. E-mail may contain attachments that serve as
springboards for malicious software or unauthorized access to internal corporate systems. Management
Information System In business, management information systems (or information management
systems) are tools used to support processes, operations, intelligence, and IT. MIS tools move data and
manage information. They are the core of the information management discipline and are often
considered the first systems of the information [Link] produce data-driven reports that help
businesses make the right decisions at the right time. While MIS overlaps with other business disciplines,
there are some differences: adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_11');}); 5 Enterprise Resource Planning (ERP) This discipline
ensures that all departmental systems are integrated. MIS uses those connected systems to access data
to create reports. IT Management This department oversees the installation and maintenance of
hardware and software that are parts of the MIS. The distinction between the two has always been
fuzzy. E-commerce E-commerce activity provides data that the MIS uses. In turn, the MIS reports based
on this data affect e-commerce processes. Besides computer science, there are fields of study that
overlap with MIS, both at the theoretical and practical levels: Information Technology (IT) IT is similar to
IS, but it focuses solely on [Link] worldwide rely on information technology to create,
store, exchange and process data. This industry includes thousands of services and software programs
that streamline communication, improve customer retention and increase security. adDownload to read
ad-free [Link](function() { [Link]('asc-scribd_incontent_1_12');}); 5
Communication Technology From social media to email, smartphones, messenger apps and team
collaboration tools, there are endless examples of communication technology . Unified communication
systems integrate messaging, video conferencing, live chat and other features to allow businesses to
communicate effortlessly and reduce infrastructure costs. Voice over Internet Protocol (VoIP), one of
the most widely used forms of technology in business, makes communication over the Internet possible.
Users can call directly from their computers, hold conferences remotely and multi-task without
interruption. Management Technology Modern technology enables business executives and managers
to work more efficiently and make better decisions. Database management systems, for instance,
provide users with a systematic way to retrieve, manage, update and create data. This helps ensure that
the information is consistently organized and can be accessed whenever it's necessary. The latest
systemsincorporate advanced features, such as activity auditing, data recovery and automated
[Link] Relationship Management (CRM) software has emerged as one of the most popular
types of technology for business. CRM systems facilitate the processes that invoke customer interactions
with the sales and marketing teams adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_13');}); 5 within an organization. Project management
software allows you to track the status of all projects in one place, identify risks and share updates in
real time. Informatics A discipline that combines software engineering, information systems
development, and networking. Electrical Engineering and Computer Engineering These fields focus on
the development and improvement of hardware and software, respectively. MIS helps determine the
practical and theoretical implications of these changes. adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_14');}); 5 Categories of
Management Information Systems Management information system is a broad term that incorporates
many specialized systems. The major types of systems include the following: Executive Information
System (EIS) Senior management use an EIS to make decisions that affect theentire organization.
Executives need high-level data with the ability to drill down as necessary. Marketing Information
System (MkIS) Marketing teams use MkIS to report on the effectiveness of past and current campaigns
and use the lessons learned to plan futurecampaigns. Business Intelligence System (BIS) Operations use
a BIS to make business decisions based on the collection, integration, and analysis of the collected data
and information. This system is similar to EIS, but both lower level managers and executives use it.
Customer Relationship Management System (CRM) A CRM system stores key information about
customers, including previous sales, contact information, and sales opportunities. Marketing, customer
service, sales, and business development teams often use CRM. adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_15');}); 5 Sales Force
Automation System (SFA) A specialized component of a CRM system that automates manytasks that a
sales team performs. It can include contact management, lead tracking and generation, and order
management. Transaction Processing System (TPS) An MIS that completes a sale and manages related
details. On a basic level, a TPS could be a point of sale (POS) system, or a system that allows a traveller
to search for a hotel and include room options, such as price range, the type and number of beds, or a
swimming pool, and then select and book it. Employees canuse the data created to report on usage
trends and track sales over time. Knowledge Management System (KMS) Customer service can use a KM
system to answer questions and troubleshoot problems. Financial Accounting System (FAS) This MIS is
specific to departments dealing with finances and accounting, such as accounts payable (AP) and
accounts receivable (AR). Human Resource Management System (HRMS )This system tracks employee
performance records and payroll data. adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_16');}); 5 Supply Chain Management System (SCM)
Manufacturing companies use SCM to track the flow of resources, materials, and services from purchase
until final products are shipped. Benefits of Using Management Information Systems Using an MIS
system can improve the performance of a company in many ways. Beyond the need to stay competitive,
there are some key advantages of effective use of management information systems: Management can
get an overview of their entire operation. Managers have the ability to get feedback about their
performance. Organizations can maximize benefits from their investments by seeing what is working
and what isn’t. Managers can compare results to planned performance by identifying strengths and
weakness in both the plan and the performance. Companies can drive workflow improvements that
result in better alignment of business processes to customer needs. Many business decisions are moved
out of upper management to levels of the organization that is closer to where the knowledge and
experience lie. adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_17');}); 5 Maintain the integrity and security of IT services across your remote
teams with these templates Enable your IT teams to manage requests, track the status of IT tickets, and
execute on software deployments from the field with helpful roll-up reports and centralized dashboards,
ensuring that all issues and tasks are collected, resolved, and deployed while working remotely.
Management Information Systems in Healthcare Organizations MIS in healthcare enables data and
information management related to clinical trials, financial and legal information, pharmaceutical
details, physician credentials, and more, to be handled within one comprehensive system. However,
because much of this information is confidential and must abide by HIPAA regulatory requirements,
these organizations must also be confident that their MIS is [Link] enable healthcare teams to
organize, manage, and store critical information within one holistic system, while also ensuring that
their data is safe and all protected health information (PHI) is secure, they need a tool that provides
transparency into critical processes, while remaining protected. adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_18');}); 5 Artificial
Intelligence Narrow AI (AI for specific tasks) is now pervasive in many organizations. Advances in
machine learning and deep learning are making narrow AI much more valuable to all of us. Think
instantaneous translation, autonomous vehicles, robots, digital manufacturing (3D printing), etc. MIS
departments must try to keep up with these advances and decide how narrow AI can be used in their
organizations. The Internet of Things (IoT) The rapid increase of placing sensors on all objects (animate
andinanimate) is leading to a sense-and-respond environment. MIS employees should perform the
SWOT analysis on IoT for their organizations. A well-publicized example of IoT is General Electric and its
Predix operating system. Block chain Distributed-ledger technology is now being used in a large number
of areas. Again, MIS employees must keep up with this technology and see how it impacts their
organizations. adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_19');}); 5 Financial Technology (FinTech) If organization is in the financial sector,
your MIS employees had better be closely watching start-up FinTech companies. These companies are
planning on disrupting the traditional financial sector. Store and analyze information: Sophisticated and
comprehensive databases, sometimes cloud- based, are used to store and analyze information
pertaining to business functions, customers, transaction data, and both employee and customer activity.
The results of these analyses provide insight that can help decision-makers solve current and future
issues. Management Information Systems Capabilities Managers of business departments that benefit
from information systems need to know the basic capabilities of information technology, data analytics,
and business intelligence systems. Management information systems use all of these capabilities in a
way tailored to managerial and executive decision-making. adDownload to read ad-free
[Link](function() { [Link]('asc-scribd_incontent_1_20');}); 5 Information access
Managers need to have easy and fast access to information including customer records, sales data,
market research, financial records, manufacturing and inventory data, and human resources records to
make informed decisions. Data collection Management information systems collect and collate data
from both outside and inside an organization. This data is pooled together and housed in data
warehouses, which are then networked together for purposes of analytics. Collaboration One of the
most useful functions of information systems is the ease by which different departments and distributed
teams can collaborate on decisions, taking into account massive amounts of data from a number of
different sources, departments, or evenindustries. Interpretation After a decision has been made,
information systems can help managers understand the potential implications of that decision
adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_21');}); 5 by constantly updating raw data and predicting possible future benefits or
problems. Presentation Most information systems, especially those intended for use by managers,
include tools designed to create easy-to-understand reports for review by higher-level managers or C-
suite [Link] can also take advantage of information systems that are specifically designed
for business functions that affect their department or position. Marketing information systems, product
subsystems, sales forecasting, and product design systems all generate information that is invaluable to
managers. adDownload to read ad-free [Link](function() { [Link]('asc-
scribd_incontent_1_22');}); 4 Improved Organizational Communication An important use of technology
in business is for communication through platforms such as conferencing software, email, video chat,
company intranets and the internet in general. IT allows businesses to easily hold virtual meetings with
staff and clients around the world without having to spend time and money on travel. At the same time,
employees can access and share information and collaborate on their work regardless of location;
employees can even work remotely so that the company can save on costs. Companies canalso use
platforms such as social media to address customer concerns more efficiently. Better Customer
Experience IT also makes it easier to provide a good customer experience through improved customer
service, easier customized marketing and e-commerce . Customers also benefit from being able to
purchase products and services from the company's website, and this also increases the potential for
more revenue and growth for the company. adDownload to read ad-free [Link](function()
{ [Link]('asc-scribd_incontent_1_23');}); 4 Increased Manufacturing Productivity By
automating business processes and giving employees ICT tools, business can improve its individual and
overall productivity. Access to manufacturing data enables managers to plan production more
effectively, making better use of resources and reducing lead times. Improved Customer Service Quality
of customer service is an important differentiator for businesses. Company can use ICT solutions to offer
faster response to and higher standards of service to its customers. Greater and Virtual Collaboration
Communication networks enable your project teams to collaborate effectively. By using
videoconferencing or web conferencing over the Internet, teams can hold virtual meetings that bring
together members from different locations, or different organizations, such as suppliers or business
partners. This helps to create stronger project teams and enables the teams to maintain progress on
important projects, rather than waiting for members to meet in a single location. adDownload to read
ad-free [Link](function() { [Link]('asc-scribd_incontent_1_24');}); 0
Information systems are only one of an almost infinite variety of systems which may operate within an
organization. It focus on the use of Information and Communication Technologies (ICT) in managing
organizations. In the 21 st century almost all organizations use Information and Communication
Technologies to efficiently manage their operations, to help managers make better decisions and
achieve competitive advantage, and to facilitate seamless internal and external communications with
their employees, customers, partners, and other stakeholders. Unlock this documentUpload a document
to download this document or subscribe to read and [Link] to downloadStart your 30 day
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