Discuss about the Business Information Systems for Decision Support System.
As stated by Iranmanesh et al (2012) the information is used in the business organization in various forms. Therefore, to process and manipulate this information the organization needs an information system. The information system that is used in the business organizations need to be flexible. Therefore, it can accommodate with the needs of the organization. Hence, the use of the information system can improve the productivity of the organization by the optimized use of the organizational resource. The daily operations like finance, marketing, accounting, and human resource management are also supported by the Business information system.
This report contributes to the disciplines, working procedure, impact on the business environment and the competence with the basic IT applications. The report also focuses on the ideas that can improve the efficiency and the effectiveness of the business operations using the information system.
The business information systems are developed to collect process and manipulate the data that is acquired from the different business processes. For this, the information system needs hardware, software’s, communication systems and most importantly the data. This system helps the managers to monitor the performance, evaluation of the performance and depending upon that they can design the strategies for future course of action. Here it can state that the information system is the subset of the organization. This information system helps in organizing the business processes, human resources, strategies of the organization. Using the information system information can stored, retrieved, shared, distributed, processed or transmitted (Alter 2013). Contrary to the traditional business systems, the data or the information can be stored into a shred database that encourages the idea of storing the data simultaneously from different sources. Due to the ne expert systems, the general employees can perform the expert jobs. Also with the help of software tools, the decision-making is a part of everyone’s job and is not the sole responsibility of the managers. Again, with the use of Enterprise software, the required data can be presented instantly.
The information system can be thought as the association of three components. The three components are component that collect data, another to components that process and store the process data.
The working process of an information system is a complicated process. The employees of the organization use the hardware and software components of the information system to communicate with the processing channel or processing component. The information can be categorized into the facts, concepts, opinions, procedures, principals. The information system plays three vital functionalities of any organization. These functionalities are supporting the business operations, managerial decision making (Ada et al. 2015) and provide strategic and competitive advantage to the organization. In a generic information system, there are three layers. In the lower layer there are two types of database one contain the internal and customer data and another contains the processed data or the information of the organization and the consumers.
The middle layer help in processing either access data from the database and receiving data from the organizations management. The database also contains data about the processing of the activities within the organization.
The top layer of the organization contains data about the people working within the organization and about the management entity.
Before purchasing and implementing, the information system the organization should be aware of the problems or issues that can arise in future during the use of the information system. Before discussing the kind of information system needed with the potential developers or suppliers there should be some criteria and goals determined by the organization ( Haux et al. 2013). These goals should be accomplished by the implemented system like the different information system (like enterprise information system, transaction processing system, Management information system)
In a business, there are there are hundreds or thousands of transactions are happening in a day. Therefore, this transaction needs some data to be recorded in the database. Like if a product is sold to a customer then we need some data to identify the product, the quantity of the product, payment method, sales date, and sales person. So this TPS used to store this kind of transaction data. The TPS ensures that maximum amount of data in minimum time and with minimal errors.
An Enterprise information system is tailored to fulfill the needs of an organization. In addition, there are two categories in the enterprise information systems. First is the generic enterprise information system. This kind of information system includes workflow management system, data warehouse systems, enterprise resource planning systems. The wide range of business organizations can use this kind of information systems (Mu 2015). On the other hand, some information systems are tailored to meet requirements of a certain organization. Examples of those kinds of information systems are hospital information system, electronic learning system, airline reservation system.
The process control systems are used to monitor the environment of the business processes. The PCS compare the monitored data with some preset boundaries. As a output the system sounds an alarm if the data or the current reading of a parameter is outside the predetermined value (Reich and Benbasat 2013). As an example, if we take that a process control system is monitoring the data of water storage and periodically reading the data of pollutants. If at any time the amount f pollutants reach a predetermined value then the PCS sounds an alarm to inform the concerned authority. In some cases, the PCS are able to adjust the equipment’s to bring back the equilibrium state of the environment. Opposite to the TPS system, the process control system is not activated or triggered because of action or transaction. Once a process control system is activated then it stays on to do the monitoring
Management information system: The MIS is the most common information system that is used in the business organization. There are different types predetermined of routine reports. These reports are printed periodically like daily, weekly, monthly, annually or on demand (Rainer et al. 2013). In addition, the MIS can do the basic arithmetic operations like addition, subtraction, division, average, minimum and maximum etc. The layout, format, equations are designed by the business professionals as well as the system developers are designed in the beginning of the lifecycle of the MIS. After the implementation of the MIS, the reports are printed repeatedly but with the same format, layout and the equations.
With all this importance, there are some issues with the current system too. Like
Maintenance: the main task of an information system is to take input raw data and up to date the information. All the departments having their information system and are generating the data in the organization. But if after all this the management information system have to again process the data then it becomes less valuable
Adaptability to changes: The major issue with the information system is to adopt the changes of the organization. There needs to be simple methods that can easily remove the user accounts internally. Since the old active accounts can be security issues to the organization.
Usability: Most of the information system fails because of its poor user interface or its too complicated. Therefore it becomes too hard to get the desired results for the organization when the implemented information system generated report is not in the useful form. Hence the organization should be aware of these issues and choose an information system that generates a report relevant to the company. This generation of the reports should be done with the minimal effort.
Reorganization of Utilizing Information System that used to Improve Business Process: The information system helps in different ways to improve the daily operations and other activities. Like faster and efficient internal and external communication, better decision-making through elimination of communication lags, improved efficiency in management, administration, planning and co-ordination of various support systems , Cost and time savings in accessing information, Reduction in the requirement of human resource needs (at messenger, clerical and typist ] , Easier records management and information sharing, Rapid access to the correct and real-time financial information for management and planning
Conclusion
The use of information system can improve the efficiency so that the organization can have higher profitability. The information system and technology can help the organization to introduce new products in the market like the internet based DVD rental systems provided by the iTunes, Netflix etc. This in turn helps in maximizing the profit of the organization. With the accurate information provided by the MIS the managers can use the forecasts, do best guesses for the future business strategies. This guesses can help in delivering better performance, can charge less for the superior products, respond to the consumers and suppliers in real time. The example of Toyota production system can be considered here, this system helps in getting a competitive advantage in the market.
At the same time the investment in the information, system does not guarantee the good returns. The factors that are to be considered by an organization while investing in the information system solution are Adopting the correct business model and Investing in organizational, managerial and social assets can ensure the good returns from the implementation.
References
Ada, Åž. and Ghaffarzadeh, M., 2015. Decision Making Based On Management Information System and Decision Support System. Journal for Studies in Management and Planning, 1(3), pp.206-217.
Alter, S., 2013. Work system theory: overview of core concepts, extensions, and challenges for the future. Journal of the Association for Information Systems, 14(2), p.72.
Bonczek, R.H., Holsapple, C.W. and Whinston, A.B., 2014. Foundations of decision support systems. Academic Press.
Haux, R., Winter, A., Ammenwerth, E. and Brigl, B., 2013. Strategic information management in hospitals: an introduction to hospital information systems. Springer Science & Business Media.
Mu, E., Kirsch, L.J. and Butler, B.S., 2015. The assimilation of enterprise information system: An interpretation systems perspective. Information & Management, 52(3), pp.359-370.
Pusnik, M., Sucic, B., Podgornik, A., Al-Mansour, F. and Vuk, T., 2014, May. Net fitting based production planning and decision support system for energy intensive industries. In Energy Conference (ENERGYCON), 2014 IEEE International (pp. 1236-1242). IEEE.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., 2013. Introduction to information systems: Supporting and transforming business. John Wiley & Sons.
Reich, B.H. and Benbasat, I., 2013. 10 Measuring the Information Systems–Business Strategy Relationship. Strategic Information Management, p.265.
Scott, J., Ho, W., Dey, P.K. and Talluri, S., 2015. A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments. International Journal of Production Economics,166, pp.226-237.
Shardt, Y., Zhao, Y., Qi, F., Lee, K., Yu, X., Huang, B. and Shah, S., 2012. Determining the state of a process control system: Current trends and future challenges. The Canadian Journal of Chemical Engineering, 90(2), pp.217-245.
Sol, H.G., Cees, A.T. and de Vries Robbé, P.F. eds., 2013. Expert systems and artificial intelligence in decision support systems: proceedings of the Second Mini Euroconference, Lunteren, The Netherlands, 17–20 November 1985. Springer Science & Business Media.
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