Information Technology Infrastructure
Information Technology Infrastructure
Introduction
Information technology infrastructure is a combination of network, hardware, software, facilities and other services that are required to manage, control, and deliver the operations of information technology. It is comprised of computer systems, networks, software applications, data storage, servers, and other components. It helps to manage the internal business operations of any organization. Information technology infrastructure consists of different hardware like computers, printers, routers, hubs, scanners, data centers, and others. The management of different software’s like enterprise resources planning (ERP), Oracle, customer’s relationship management (CRM), and others is involved in it. It is divided into two components, the technical IT infrastructure, and human IT infrastructure. Different employees within any organization are also important to IT infrastructure include IT managers, designers, network administrators, and others that play a vital role in managing the IT operations of any company. The scope of IT infrastructure has increased, and many organizations have strongly focused on creating an effective IT infrastructure that plays an important role in information management system of the company.
The IT professionals are important resources to manage the data, application, software and technology of any organization. It provides information about changes, problems, and incidents and describes the procedure to control it. It allows the companies to control the IT service according to needs of the business. Management information system (MIS) is a computerized system that has played a significant role in managing the company information system, and it provides information to the managers for making a strategic decision. The purpose of the paper is to discuss the importance of management information system in organizations and analyze the information technology role in managing operations of a company.
Importance of management information system
Information technology becomes an important part of every organization it helps businesses to run its operations smoothly and effectively. Information system helps the companies to improve its operational performance and take effective decision for the growth of the business. It enables the companies to manage and control the database and generate complete information about the business processes. It provides information about people, technology, operations, and system within the company. Information systems help the managers to obtain critical information about business processes for planning, controlling, organizing, evaluating, monitoring, and decision-making. It creates an easier and fastest interaction between the businesses in the world. It allows the organization to review the data that is collected from various sources and transfers that data to appropriate destination (Laudon & Laudon, 2015).
Information system helps the companies in problem identification, communication, and achieving operational excellence. It increases the speed of operations and other business transaction that can increase the company profit. It enables the companies to store and use the data transparently and efficiently. The data can be stored in the center that is easily accessible for all employees of the company in the home country and abroad. The system presents correct and accurate information to the employees and provides a way to enhances operational activities of the company (Laudon & Laudon, 2015).
Management information system allows management of any organization to set the business objectives. It provides advance information about the business operation that helps companies to gain a competitive advantage. The company can accomplish its objectives through proper use information infrastructure at the right time and the right place. Management information system has played an important role in globalization and increased the businesses interactions in the world. It is comprised of different subsystems include business functions system, customer relationship management, transaction processing system, office administration system, and decision support system and others .
Business functions system
Management information system has improved the business functions of the companies. It has managed the people and smoothly run different functional system within the organizations include human resources, marketing, finance, accounting, sales, logistics, and others. It helps the companies to share its data and communicate for making the effective decision for the business growth. The information system has managed human capital efficiently and stores the complete data of all staff in different companies. It provides support in many processes like recruitment, selections, payroll processes, placements, benefits analysis, leave management, pension plans and other services.
Information system helps the company to identify its potential employees and generate information about compensation and benefits offered to them. It provides the data about effective use of human capital, knowledge, technology, skills, talent, and abilities that help to take long term decision for the organizational success . The marketing information system plays a vital role in the organization that helps to market professionals to take a sound decision. It provides information about competitors, market channels, technology, political, and other factors for making a business decision. The up to date data can be stored in the system and information generated that can be used to improve the marketing strategy of the company. Accounting information system provides a complete picture of the business and its financial reports. It generates all information about the business transaction, expenses, income, and others that are important for making a strategic decision. It shows the performance of any company and the revenue of the business (Laudon & Laudon, 2015).
Accounting information system provides a platform to collect, store, process, manage, and retrieve the complete financial data of the company. It measures the net income of the company and shows whether it is in profit or loss. Logistics information system helps companies to obtain information about supply chain and ensure the effective flow of goods and services to meet customers’ demands. It provides information about services improvement and inventory management that play an important role in business growth .
Customer relationship management (CRM) provides information about customers and their relationship with the company. It helps to organize and analyze the customer’s data and provides techniques to improve business relationships and interactions with the potential customers. It allows the company to identify the customers’ demands and increase its sales to meet that demands (Oz, 2008).
It manages the complete customer’s record and provides information about the quality of products, customer’s complaints and suggestions, delivery records, unfilled order, and a list of satisfied customers. The scope of the system in increased because it helps to identify the customers’ wants and needs, competitors, services, product quality, and other components. It enables the company to identify the major problem the customers facing and deign the products that increase their satisfactions. It provides helps to attract more customers, maintains a good relationship, and increases the sales of the company.
Transaction processing system
Transaction processing system (TPS) provides complete information about the company transactions. It collects, store, process, and evaluate the data of the business transactions and increase the performance of the operations. The system has increased the reliability, standard, consistency, process timing, isolation, and durability of transactions. It has enhanced the processing speed and productivity to meet the increased customer’s demands. The fraud can be detected easily with the help of the system. The online transaction processing system is very fast and time saving that increases the financial transaction of the company .
Office administration system
Office administration system (AOS) is useful to run the operations of the company very smoothly and effectively. It helps to manage the data of financial transactions, employees, budgets, records, logistics, distribution, billing, and record keeping and make effective decisions to increase the organizational performance. The system is comprised of word processing, spreadsheets, email, web page, database and others. It increases communication among the employees through messages, videos, graphs, and audios and helps them to schedule the business meetings .
Decision support system
Decision support system (DSS) provides very useful information about the company operations and its financial position that helps the management to take better decision. It generates data from internal and external sources that provides a complete picture of the company performance. The generated data can be used in strategic decision-making that will improve the operations performance and productivity of the company. It helps the management in a goal setting and provides information to achieve that goal. The business managers can view the company information easily and use it efficiently. The system enables the management to reduce the operation and product weaknesses, take a sound decision and increase the company profit. Executive information system (EIS) is special kind of the system that provides information to the company executives for decision-making .
Conclusion
It could be concluded that the information technology plays an important role in the business growth. It becomes a necessary part of every organization that enables it to run its operations smoothly and efficiently. Every company needs hardware, software, and technology and other services to operate its business functions. It creates coordination and strong relationship between the businesses and the customers. It facilitates the organization to increase its performance through effective use of all resources. Information system helps the organization to identify problems, control and remove those problems.
References
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Gary, S., & Misty, V. (2008). Discovering Computers: Fundamentals. Boston: Cengage Learning.
Laudon, Kenneth C. & Laudon, Jane P. (2015) Management Information Systems: Managing the Digital Firm. New York: Pearson Education.
Oz, E. (2008). Management Information Systems. Boston: Cengage Learning.
Rainey, R. K., & Cegielski, C. G. (2010). Introduction to Information Systems: Enabling and Transforming Business. New York: John Wiley & Sons.
Turner, L., & Weickgenannt, A. B. (2008). Accounting Information Systems: Controls and Processes. New York: John Wiley & Sons.
