Introduction
What role do information systems play in an upcoming organization? Information system plays a crucial role of transcending information from a person or one company to another. The information is mainly meant to aid the business in meeting the transactions or decisions that the executive board needs to make. To perform this, there must be a format or chain to be followed so that the information can flow as required. The chain needs to be hierarchical so that the information can be passed from one head department to the other. In today's economy, failing to embrace the culture of technology can results to difficult situations when relaying information from one source to another. This is because; information is a crucial component in the business. In addition, managing the information will aid in the business making a profit. Furthermore, information systems play a significant role. For instance, planning, organizing and growing a business using technological systems such as computers. Since the company is new and developing, it is important to ensure that the information systems play a pivotal role that will see the company reaping massive profits in the course of adapting to the business environment. Besides, it is important to include these areas while applying information systems; transaction processing system, the system of office automation, data management system, decision support system, and electronic commerce system.
Types of Organizational Information Systems
For a business to strive for success, it needs to have ways to save time and money as well as different organizational information systems. The system adopted should be efficient while ensuring the smooth running of the establishment. As the system enables more diverse human activities, they have significantly influenced today’s society by far. They have made the day-to-day operations to run at a quickened pace. For example, when looking for data inquired upon by the client through the files would usually waste a lot of time using the traditional filing system. The information system will cut short the time span to be allocated to look for the content in question. Thereby, the employees are able to continue dealing with the task and responsibilities allocated to them. The system has also enabled people to be practical in doing a more rewarding task. The quality of the service offered to the consumers will be of high quality. This is because; technology does not get weary as opposed to human beings. Thus, the output presented to the customers will be appreciated since it is above the average or poor service delivery that most organizations provide.
Also, having a well-organized information system will enable the organization to carry out a market survey. The data collected will ensure that the clients inform them of the areas they wish to be improved upon or introducing a product to fill a market gap that will be identified. As a result, they have changed the type of products purchased in a given setting. The products will not just be offered as a by-the-way. Instead, it will be targeted to fulfilling the expectations of the clientele. Thus, the nature of the work has been greatly influenced. For the system to efficiently work as required, let's look at the functions of various systems under this information system
Integrating one type of information system is not enough because they all have different functions to perform and is beneficial in their ways with regards to the type of organizational structure put in place.
Functional area Information System- This is the system which supports activities in an appropriate functional area, for example, the salaries payroll. This is the basic level of the information system. The clients and staff get to interact with the system at a closer rate. Thereby, they can judge the efficiency of the technology adopted. The employees will not need to alter any content in the system and is usually bureaucratic. In the case of any problems arising, the supervisor or person in charge will be called upon to offer their skills. The salary payroll system is the same as the teller in a supermarket.
Transaction processing system- it enables the small enterprise to process event business transactions that occur on a daily basis. For instance, the patron will be able to interact with the system, to collect the requisite data, store information, aid in the retrieval procedure or modify the information in the existing system.
Office automation system- Supports day to day work activities such as Microsoft Office programs. The employees will be able to input any of the transactions that require documentation.
Management information system- It transacts summary reports from one area to the other, for example debit and credit card transactions. The management team will be able to acquire both historic and up-to-date performance statistics. The data retrieved is then used for strategic planning and designing a tactical approach to various issues. In addition, the managers will be able to decide whether to continue with the line of business or change into another idea after observing the market trends.
Decision support system- This system provides access to data and tools analysis, for example, "What if" analysis to plan change. It supports the operations plan as well as the problem-solving decisions. The board uses the decision support system to ascertain the impact the solution derived will have on the organization. Thereby, focusing the influence, the recommendations will have before implementing the idea generated.
Electronic commerce system- This system enables the transaction between organizations and customers achievable, a good illustration is an online shopping (Committee for Economic Development 27). The customers are able to receive any of the services wherever they are without having to consider their geographical location. The services and products they order are then delivered at an agreed date with the necessary terms and conditions being reached.
Benefits of Information Systems
Information systems are the groundwork for a successful business. Some of the advantages of the proposed information systems are:
It saves money and time. The system limits time wastage since the staffs are able to continue attending to other clientele while the system retrieves the information after prompting a command in the database.
Information is organized in an orderly manner and with ease. The information system design adopted is usually structured so that the information is keyed in with ease. There will be no need to create different criteria for inputting data.
Information retrieved is always accurate. The content stored is usually accurate and updated on a regular basis. Therefore, it is reliable. In case any alterations are made, only the authorized personnel will be able to carry out the changes as well as the time periods the modifications were made.
Most of the clients are satisfied with the services rendered by the system. They are served in record time hence, they feel fulfilled. This is opposed when the individual will have to wait to be serviced or product delivered for a long period of time when the system has not been adopted into the business. Furthermore, they will use the feedback collected through an online survey to improve service delivery.
The system keeps track of information in an organized manner. Since the business will have a designated filing procedure, identifying the particular location of data will be easy.
Less time will be spent tackling a task. Adopting a workable system will cut down the time spent to have a particular duty or responsibility assigned to reduced time frame, unlike when using the traditional organizational structure to reach the outlined goals.
Information tracking is a vital part of business, the sole reason as to why these information systems should be put in place in not only in this new business but to all commercial ventures. They keep the information easily accessed, therefore helping the customers to access goods and services promptly in stipulated time (Sant 183). Additionally, these information systems save a lot of money since it reduces the costs of labor requirement. It has been found to make the work easier for many organizations.
Shortcomings of Information Systems
Just like most of the aspects and sectors of life, where there are merits of a new system, there are also demerits on the other hand. Therefore, these are the drawbacks of information system
1. Initial capital is immense (Expensive to begin using).
2. Sometimes system crashes leading to distortion of data.
3. Lack of consistency in some programs.
4. The system can render many people jobless.
5. The IS has been attributed to causing deformation of body cells due to radioactivity.
6. Labor requirement to operate the system is strenuous when it comes to paying the person offering its services.
The initial use of information system in this new company is much more costly. Moreover, you still have to spend money to keep them running in a safe and updated manner or else they will fail to serve the intended purpose it was initially meant to. Maintenance costs are an unending process that the business will have to incur over time. In order to ensure the programs installed are working efficiently, then he services of an expert will be sought after. Furthermore, computers are not entirely reliable; they sometimes crash in some cases, especially when it has been overworked. If data by the time it hits could not have been saved, then, the information will get lost. But if it is retained then part of the data will be distorted. Another challenge is that the organization will need to install anti-viruses into the system to protect their system against viruses and Trojans. In this regards, there is a lack of consistency with the information systems because they might organize things in the wrong order or a different section compared to how it was before the last time it crashes.
Another major downfall, especially in today's economy is that these systems can render many people jobless since computers have replaced the tasks they could have offered them opportunities. When the organization adopts the use of technology, then the labor force employed will be reduced. Another disadvantage is that it tampers with the individual body cells will eventually be distorted as the effects of radioactivity take its course. When personnel spend a lot of time using the computers without taking time off during the work schedules, then they might develop eye sight complications. They will have problems either reading due to the constant exposure to the computer screen rays emitted.
However, the last demerit is that even though the information system significantly saves the costs and time, still human power and mind is the one that controls almost all the operating systems, be it the software or hardware drivers. It is the trained personnel that develop the different software to be installed in the system. Also, they need to check and ensure the hardware devices are in their right condition. This is proof that this particular person operating the system will eventually require remuneration for the services he or she has delivered. Therefore, labor costs are incurred in the long run (Freed, et al. 287).
Proposed Actions and Recommendation.
The proposal for embracing information systems in this new company is to begin by adopting the use of two standard systems which are; Transaction Processing system and the Office Automation system.
These two systems are the ones who ensure that the information systems will be relayed efficiently from the top managers to the bottom manual workers. Other than that, the two systems are of fundamental importance to the daily maintenance and running of the business. This will set a good foundation for this new business to thrive and head to a direction of productivity. The reason for streamlining this case is that the transaction system will help the business in keeping track of what business enterprise are spending as well as assist in recording inventory information. The other system, the office automation system, has programs such as Microsoft Office programs. These are used to keep track of data and information as well as keeping records of organizational objectives and goals. The system, which has already been formatted with examples and templates, does save a lot of time which can be converted to tackling other duties. Individuals using the system will simply follow the guide provided thereby reduced the time for training for operating the system. This is just a proposal, so there is a need to try out these information systems so that the company can equally compete with others in response to technological advances which have seen many organizations meeting their goals. Adopting dynamic changes of technology has proved beyond reasonable doubts that they can yield positive results. Once incorporated into the organizational structure, then, attaining the vision and mission set will be an easy task (Murray 206).
Conclusion
Information systems, when correctly used, are essential to promote and boost business firm to reach its ultimate achievements. They are there to help the business stakeholders in meeting their daily errands which make the business more efficient in saving time and money. Hence, the principle of using the minimal input to attain a maximum output using the scarce resources available is realized. These are critical areas that should always be tracked in any entrepreneurial business activities. Even though there are some challenges which in most cases forces people to quit, it should be understood that all businesses which are in their juvenile stages strive to reach profit maximization. Apart from that, challenges are aimed at making the business aim for better opportunities once overcome. Information systems have advantages which outweigh disadvantages. Therefore, this new company needs to adopt the system to reduce the cumbersome kind of task which is always experienced in this juvenile phases. Companies need to use information systems to help them expand their businesses while saving time and money at the same time while not compromising the quality and quantity of goods and services offered.
Work Cited
Committee for Economic Development, Investing in the People's Business: A Business Proposal for Campaign Finance Reform: a Statement on National Policy. New York, 2013. Print.
Freed, Richard C, Joseph D. Romano, and Shervin Freed. Writing Winning Business Proposals. New York: McGraw-Hill, 2011. Print.
Murray, Jean W. The Complete Guide to Writing Effective and Award Winning Business Proposals: Step-by-step Instructions. Ocala, Fla: Atlantic Pub. Group, 2008. Print.
Sant, Tom. Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts. New York: AMACOM, 2012. Print.
