Importance Of Effective Information System In Organizations

Information storage and analysis

Question:

Discuss about the Strategic Information System Implementation.

In the current world of fierce competition, companies are striving to become a market leader in their respective sector. In the current climate where the factors like recession or pressure from inflation with rise in competition is hindering the accomplishments of the objectives where organizations look for strategies that helps in getting competitive advantage. One of the strategy is based on adopting the effective information system within the boundaries of the organisation (Laudon & Laudon, 2016). It helps in making the right usage of data, reducing the workload among the workforce and help with right kind of compliance with many important regulations.

Information storage and analysis: – in the current time, there are many organizations who manages the data and information in a manual form with proper registers or hard copy based format. During the time of adopting the information system, companies must make sure to use all kind of sophisticated as well as comprehensive database that consist of all kind of imaginable piece of data associated with the company. It is important to understand here that databases help in storing, updating and analysing the information where the company can make use to point the solution for present or future issues (Laudon & Laudon, 2015).

1. Assistance with decision making: success in long run of a company entirely depend on the rightness of its current strategic plan. A company’s management team utilises information system to form strategic level of plans and make effective decision for the overall longevity as well as prosperity of the business. The organization also uses information system to test the information from all kind of sources consisting information from external level references like Bloomberg and many more.
2. Assistance with business process: information system helps the businesses in the development of substantial number of value added services in the company. For instance, an organization can help in integrating information system with proper cycle of manufacturing to make sure that the results it produces come with the need of the many quality based management standards. Adopting information system also helps in simplifying the processes and further remove unwanted functions. Information system also adds control to employees the process, make sure that only the users with rights can work on certain things (QUANTUMGIS DEVELOPMENT TEAM. 2014).
3. Considerations: implementation of information system within a company can further become very costly in process. Execution cost consist not only the installation of the current system but also the important employees training based sessions. Moreover, employees have the power to see the adoption of the information system that ask for number of unwarranted kind of changes and therefore, people resist any kind of change. Any kind of resistance to change further hinders the operations of the business and cause employee’s turnover.

1. Analysing, posting and journalizing: – the process of accounting is important each day with business operations to make right projections and assess the options and save the financing for the organization. The initial part of the accounting based transaction cycle consists of evaluating transactions and source the document that can associate with business processes. For instance, a business procedure may consist of purchase of ten thousand dollars of supplies on account (McFeeters, 2013). The process of journalizing is based on creating a record of all the transactions at one place which saves mistakes and further links the credit and debit entries for all the transactions.
2. Preparation of unadjusted trial balance: – at one time when the transaction related to all kind of business process for the time that is based on journalizing and posting, preparing all kind of unadjusted trial balance that helps in making sure that no mistake occurs but exhibiting that the total amount in debit is equal to credit amount.
3. Preparation and adjustment of the adjusted trial balance: business procedures consist of external transactions like supply based purchase or utility based payment that can be recorded in previous time but the internal transactions need to get adjusted with the trial balance. For instance, business procedure at the time may consist of the usage of the prepaid rent or revenue making it very important to record as well as adjust with account based balances (Arvidsson et al, 2014).
4. Preparation of the financial statement: all the adjusted level of trial balance shows all the information to create the financial statement for business point of view and it also consist of the income statement and the statement of the equity based on owner along with balance sheet. Organization also select the usage of the information that helps in creating other financial statement along with summaries of the cash flow statement.
5. Closing as well as post-closing of the trail balance: while preparing the business procedure of the next time, the present period based accounts should first be closed. Any kind of temporary accounts are also closed with many other permanent accounts that have the balanced and carried forward to the next level. There are number of closed entries that are recorded along with posted to capital account once the information is recorded on the income based summary account. All the expenses in revenue along with withdrawal and income related summary balance are brought to nil balance.

Documentation of information system is a complicated process and one need to completely understand the associated business requirements and how such needs should be met. If there is no knowledge about how the technology helps the information where on need to risk at the time of losing the ability to find, open, work and understand the information and it can also be make an enormous impact on the ability to carry out the business (Isberg et al, 2015).

The usage of the digital based information also depends on the technological use which helps in creating, managing and providing access to it. It is also important to understand here that it is sensitive by nature to any change in the current technology. There are number of system based upgrades along with changes in form of file format, data based migration and the introducing the new software along with the disposal of modern technology that can affect the ability of the business to use its current digital information in any which it is needed. When there is no understanding of the impact of any kind of changes, one need to have an ability to use the information based assets and lose the risk of continuity in digital space. Mapping of the technical based dependencies of the information make sure that people relate to the technical kind of environment and the information based assets direct to the business requirements. This will also help in understanding as well as managing the risk of the continuity of the digital information as well as managing the overall impact of the current change and saving the information in right manner and further using it completely. Management of digital based continuity starts with the basics of the value based data and gaining clarity on how it can be used to meet the business needs (Klukas et al, 2014).

Documentation of information systems

In case when the information as well as technology helps the way, business needs to use the current data or information, one must create a digital space. Otherwise, companies are at risk to lose digital continuity. At the same time, the present need should be met with technical culture as well as business needs that are subjected to any kind of transformation. One must apply on the understanding of the technical kind of dependencies of the information based assets in managing the change in effective manner (Isberg et al, 2013). Following are the three important steps in mapping and understanding the technical dependencies of information based assets: –

1. Recognizing the technical environment
2. Capturing and documenting the technical based dependencies
3. Monitoring and reviewing the output which work through different steps in sequence also provides additional advantages of making sure that company build a cycle of continuous improvements.

The process of information management can be taken as an umbrella work that crosses all the systems and processes within the company for creating and using the corporate based data or information (Isberg et al, 2013). Technology, information management also encompasses system like:

1. Document management
2. Web content management
3. Record management
4. Digital asset management
5. Learning of management system
6. Learning of the content management system
7. Collaboration
8. Search for enterprise

The management of information system is much more than just a single kind of technology. It is also very crucial since it is always about the business processes and practices that can underpin the overall creation and usage of information (Isberg et al, 2013). It is also about the information itself, consist of structure of information, content based quality and much more. Information system thus further encompasses many levels like:

1. People
2. Process
3. Technology
4. Content creation

Companies must constantly be confronted with numerous information management issues. There are so many ways that the development of the electronic based information has further worsened such challenges over the last ten years or so. Following are the common problems consisting: –

1. There are substantial number of information management system which are disparate by nature.
2. Little coordination and integration that exist between the system.
3. There are ranges in legacy based systems needed to upgrade or get replaced.
4. Direct kind of competition that exist between the information management system.
5. Restricted adoption of present information system by the workforce.
6. Inferior quality of data which lack consistency with duplicated and outdated information (Shelestov et al, 2013).
7. There is little amount of recognition along with support associated information management by top level management.
8. The resources for deployment, management and improvement for information systems are restricted.

1. Privacy: government can collect huge amount of information on people and companies and using it for different variety of motives with national level security and right collection of tax, demographics, global level of geopolitical strategic based analysis and many more. Corporations do the similar kind of thing for so many commercial reasons which increases the business along with control the expenses, increase the level of profit and gain high amount of market share. Technological level of advances in both software and hardware have major amount of changes the level of scope of what can be properly processed. Enormous quantities of data, calculated petabytes and it goes beyond and it can be centrally saved as well as retrieved in an effortless manner. There are some disparate level sources along with data that can be properly referenced that it can come up with new meaning when the set of data can be viewed within the current context. Organization’s capacity to collect as well as process the data in an exponential manner which increases the level of scale which is primarily limited or restricted in any kind (Li, 2013). The fact that information that can be properly architected for specific motives which it must be even if by doing so people privacy level of rights that can be violated in potential manner.
2. Ownership: there are number of people that needs to sign nondisclosure agreement along with a clause which is done at noncompete rules in contract with legal document that can limit the ability to share information with other future managers even to the level of disallowance them to join specific companies to participate in specific industry.
3. Control: companies have the right to supervise what staff do and how technology can be used. It is a very common kind of practice to understand employees that when management is measured and how the current technology systems are utilised. It is also common to practice understanding the workforce that when they utilise assets like network and for they should not expect anything from the privacy. Even when there was no disclaimer that really don’t require the warning to understand this supervising process must also take place. The important question here is that whether organization have the right to evaluate the workforce to the level of monitoring. Another important question which is relevant to ask here that organization must be clear about supervising the long workforces that are utilising the internet and it must watch which website they can visit (Li, 2013).
4. Accuracy: business has always had the relationship of love or hate with righteousness. The existence of decision making is mainly driven by right information since the overall quality of control comes with the expense based on cost and it is done in terms of money and elevated level of productivity. In the current time, there was less amount of data that work along with the only type of assurance for quality that was required to perform as a part of data and process that were done in manual manner and therefore the results of those activities were treated in a critical manner. Technology has ensured that there is vast as well as more complexed and interconnected procedures like an issue far upstream with the process and a ripple based impact on rest of the procedure.

Conclusion

The concept of management information system is a set of systems that can help the management at varied stages to take effective decisions by giving the important data to the managers. It is also important to understand that it is not monolithic identity since the delivery of information and storage is covered here (Li, 2013).

There are different kind of subsystem that are working at the background level and have different goals but work in accordance of one another to meet the overall need of the manager for good and high-quality data. Management information system can also install by getting the self-system or by providing some level of commissioning with a customized answer.

Reference

Arvidsson, V., Holmström, J., & Lyytinen, K. (2014). Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems, 23(1), 45-61.

Isberg, V., Mordalski, S., Munk, C., Rataj, K., Harpsøe, K., Hauser, A. S., … & Gloriam, D. E. (2015). GPCRdb: an information system for G protein-coupled receptors. Nucleic acids research, 44(D1), D356-D364.

Isberg, V., Vroling, B., van der Kant, R., Li, K., Vriend, G., & Gloriam, D. (2013). GPCRDB: an information system for G protein-coupled receptors. Nucleic acids research, 42(D1), D422-D425.

Klukas, C., Chen, D., & Pape, J. M. (2014). Integrated analysis platform: an open-source information system for high-throughput plant phenotyping. Plant physiology, 165(2), 506-518.

Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the Digital Firm Plus MyMISLab with Pearson eText–Access Card Package. Prentice Hall Press.

Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.

Li, C. Y. (2013). Persuasive messages on information system acceptance: A theoretical extension of elaboration likelihood model and social influence theory. Computers in Human Behavior, 29(1), 264-275.

McFeeters, S. K. (2013). Using the normalized difference water index (NDWI) within a geographic information system to detect swimming pools for mosquito abatement: A practical approach. Remote Sensing, 5(7), 3544-3561.

QUANTUMGIS DEVELOPMENT TEAM. (2014). Quantum GIS Geographic Information System. Open Source Geospatial Foundation Project.

Shelestov, A. Y., Kravchenko, A. N., Skakun, S. V., Voloshin, S. V., & Kussul, N. N. (2013). Geospatial information system for agricultural monitoring. Cybernetics and Systems Analysis, 49(1), 124.