Roles of information system

Information System

Context:

This report will be presented to faculty of School Of Information Risk Management as per rules and regulation , and in Partial fulfilment of the requirements for the M.B.A top up.

Objective:

The roles of information systems in modern organisations and approaches to the implementation of those systems.

Literature:

1. Information system:

Information system is a set of organized procedures that ,when executed, provides information to support decision making and control in the organization. Information can be defined as a tangible or intangible entity that serve to reduce uncertainty of some stat or event. Since people first inhabited the earth there have been information system. Early system were of course, quite elementary and subject to extensive distortion and delays. Early information system were very informal and involved the exchange of news, stories and anecdotes with neighbors. As economics progressed, information on changing values of goods and services for barter and trade become important.

Formal organisation, from there inception, have required information system to operate successfully. production, accounting, financial and external data on customers and markets are vital to the operation of most modern businesses. Information system is a bridge between the business world and computer science. Information system is a key factor of making long and short term decisions. Accurate information is vital to an organizations current and future success and to achieve their goals. Information system consist of for major factors i.e. hardware, software, procedure, information or data. An information system is not only the technology used by an organisation but also the interaction of technology in business processes.

Role of information system in an organisation:

2. Impact on an organisation:

A technology as common as computer and information system has a vide range of impact on an organisation. Computers can effect the strategy of the firm, its revenues and expenses, the structure of organisation, and individual working in an organisation.

3. Revenues:

Some firms have used computers to generate additional revenue by offering computer services and consulting to various clients and by building a worldwide communication network for computer users.

Some organisation make information products available on the computer systems. There is sufficient amount of financial data bases and services to which one can subscribe. It is possible to obtain hundreds of types of data and information about the companies and their financial conditions. The most common example is that attorneys and their assistants in a law firm searching for past decisions that may be relevant to the legal problems at hand.

4. Savings:

Computers are being used in most of the organisation for cost savings. Banks and insurance companies generating bills, notices, renewals and so on, that are printed and distributed to customers reduces the number of employees in an organisation. Computers have saved money of manufacturing firms by controlling their inventories. Computer programs create best balance of costing and production procedures.

5. Better quality:

Computers are great help when it comes to the improvement of quality of output. Computer aid-design is a good example. Most of the engineering drawings are created with the help of computers. Engineers can store the drawing on computer files that can be recalled later for modification. This system helps reduce the need for draft people. Word processing is another example of using computers to improve quality. Composing, making changes, retyping and printing a document with the help of computer is efficient and with no strikeouts on the finished product.

6. Communication:

Computing activities increasingly involve communications. The communication services had undergone rapid change. Every day new companies are emerging, offering computer network and services.

There would be no other way to do some task than to use a computer. How else could an airline associate a passenger name with all of the legs of a trip and have the information accessible anyplace in the world in few seconds without the help of computer. There are many other applications where, because of the complexity of the procedures, the size of the data base or the necessity to have communications across a wide geographic area, a computer system is an only way to solve the problem.

7. Decision making:

In general information system support decision making. An organisation identify problem before a decision is made. After determining the cause or causes of the problem, programs are developed to deal with the situation. And the first step towards this area is strategic planning, where organisation develop and obtain their objective by allocating resources.

8. Basic view:

A basic view of processing information system in an organisation is presented in the figure below. The organisation collects data from a number of sources, including its own internal operation and customers. Many government statistics are also used by organisations. For example the government's department of agriculture publishes detail crop forecasts, which is very important to the food industry. In today's competitive business market information system plays an important role effecting the business. Developing a well planned information system enable an organisation to deal with the information resources efficiently and effectively and define a route to competitive strategy. The claim is made, repeatedly, that unless Britain can keep up with Japan, the USA, and the major European competitors in the rate of application of information technology, economic decline is inevitable.

9. Implementation:

To build up a computer culture it is essential to properly publicize information abut the benefits and applications of the computer technology. Implementation of information system can be achieved by following methods.

9.1 Direct approach:

Direct approach is when a new system is installed by discontinuance of the old existing system immediately. This approach is useful when the old system is of no value and the new system is simple and compact with more advantage and less risk involved.

9.2 Parallel approach:

Installing and operating a new system with the old one is a parallel approach. This could increase the expenses as maintenance of both system will be required. Following this approach, needs careful consideration of setting a fixed date to cease an old system while new system will continue operating on its own.

9.3 Modular Approach:

implementation of a system in the Organization on a piece-meal basis ia a modular approach and has few advantages including the risk of system failure is pinpoint and the problems can be identified and dealt with easily. Operating personal can be trained before system is installed.

10. Task of Implementation:

It is essential for an organization that they should plan carefully for implementation of information system. Planning the implementation activities, acquiring equipment, development procedure, generating files and forms, testing the system and evaluating and maintenance of the system.

11. Relationship establishment:

Network diagram must be prepared to establish parallel and successive activities. Efficient information system should be established for supervising the progress of implementation and for proper control of activities.

12 Installation:

Effective decision should be made regarding space requirement, locating utility outlets, control and movement of personal for replacing or installing a new system.

13. Development Procedure:

Purchase or development of software, evaluation selection of hardware testing and implementation strategies, these activities should be carefully considered in the implementation of the system.

14. Files and Forms:

Generate files and formats for storing actual date helps in future references and requires format date storage forms , checklist data and other remarks in data base.

15. Testing of the System:

At the implementation stage components, sub system and total system test should be done accordance with the specifications.

16. Evaluation and maintenance:

The system efficiency and cost effectiveness should be evaluated, by the performance of the system. If proper attention is paid over the time and by following the instruction, less maintenance will be required.

17. Conclusion:

Always consider information system's development and implementation guidelines when upgrading, enhancing, or implementing and to make sure that the guidelines comply with the State standards. The system should achieve performance to produce specific business results. Information system focus on effective performance, cost and increased efficiency and to produce specific output results needed by the business.

18. References:

Using MIS. Kroenke. 2009. ISBN 0-13-713029-5

Information system concepts for management, Henry C. Lucas, Jr. ISBN 0-07-038931-4

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