Information Systems
Executive Summary
Nowadays, the use of technology quickly spreads to the world in a matter of seconds, just like a virus. Disparaging this technological expansion is meaningless because it minimizes manual work and saves lots of time. Individuals in different arenas have been utilizing these computer systems entrenched in special programs as well as applications to accomplish their work. In the same way, the system launched 30 years ago is promoting the success of giant organizations. These systems are called “management information systems. Misunderstanding the differences between management information systems as well as information systems is meaningless. Information systems are utilized at various levels of an organization, nonetheless the information systems utilized by the management are strategically called management information systems. This report highlights the impact of Information Systems on organizations as well as the resulting changes occurred to the business decision-making roles as well as competitive advantage.
Contents
Information Systems 3
Impact of Information Systems 3
Changes which have occurred to business managerial roles 5
Competitive advantage due to IS 5
Ethical and social considerations for strategic solutions 10
Conclusion 12
References 14
Information Systems
Impact of Information Systems
Tesco is a UK-based company that established its position a century ago and ranked first in the world’s third largest retail industry in the UK. It has different types of business, such as entering banks, telecommunications, fuel, club cards,technical support, etc. Though, its whole business is mainly based upon the retail market, and likewise has opened various kinds of stores in the UK, for example Tesco Superstores, Tesco Extra, TescoExpress, as well as Tesco Metro and so on. This is most popular brand worldwide, with 2,482 department stores in the UK and 2,329 stores worldwide. An information system is a system that “addresses the activities involved in operating, managing and strategically collecting, processing, storing, distributing, and using information in organizations.” “Technology and organization adapt to each other until it is satisfactory.” The above pyramid demonstrates the persistence of assorted levels in the organization (Ankrah, 2015). The information system is distributed at all these levels, including operational transaction processing systems, knowledge-based systems, strategic implementation information systems and management-level information systems. In addition to these systems, many systems have been commenced in latest years, such as data warehouses,expert systems,enterprise systemsand office automation. Atadministration level, the decision-making is a main job of managers. You can make decisions by analyzing information about sales, profits, customer choices, and so on. All this information must be given to the managers in the organization. Generally, this data is gathered at the operative knowledge level and then sent to a higher level. With the beginning of information systems, this procedure is automatic (Sawas&Watfa, 2015). Nowadays, as the information systems are positioned at every level, the obligation of these systems is to “collect as well as process” the data which is input into the system at operational knowledge level and then send this data to the management system level. The responsibility of a system at the administration level is to “analyze” data attained from the succeeding levels and help out managers to make decisions.Information systems play a critical role in the business world. They partake in each industry,in addition, they are an important part of,in what way the organization communicates, not only in themselves however, also in further parts of world. Persons who handle these systems perform a key role,in addition, must tackle many diverse challenges to guarantee that these systems are up and running successively. The hardware and software components used by information systems have a very short lifespan and are constantly being updated or replaced. Another important issue that managers need to address is data storage and availability issues. These systems need the ability to scale to meet data storage and processing capabilities, creating a problem for management. This issue also brings other problems that are required to be managed, for exampleenergy consumptionand facility requirements. The implementation of information technology in the organizations has been increasing rapidly (Vie, 2013). The utilization of this technology has progressed from anautomation of the structured processes to a truthfully revolutionary system because they present changes in the basic business processes. In fact, people believe that “not just through computer assistance, companies will rely on them to live, shape strategies and structures to adapt to new information technologies. Organization can utilize information systems to generate and strengthen partnerships along with partners through applications,for example, developing virtual establishments as well as inter-organizational information systems. Porter’s value chain model is another vital concept plus tool that helps companies identify competitive advantages and strategically use information system opportunities. The value chain approach treats the organizations as one or more process chains and divides the activities of the organization into two categories: main activities (Kozina, 2014). The information system processes data from the company inputs to create useful information for managing actions.
Changes which have occurred to business managerial roles
Although the significance of relationship between information technology and organizational change has been confirmed in a large amount of literature in this area, there is deficiency of comprehensive investigation of these matters from an economic viewpoint. From the economic viewpoint, information system technology can be perceived as a production element which can freely replace laborand capital. To automate the production procedure with information system technology, less manpowerand capital are needed to manufacture a specific production. The Internet as well as the World Wide Web are rising the organization’s storage,accessibility and the distribution of knowledgeand information, thereby significantly dropping transaction plus agency costs. Enterprises are quickly rebuilding some main business processes that are based on the Internet technology (Xie, 2014). In order to provide real advantages, information systems have to be based on a strong understanding of an organization that they use, and consider the company’s environmental, structural, cultural, political, organizational and leadership, business processes, and the main interests affected by the system.
Competitive advantage due to IS
Competitive advantage grows fundamentally from the value that companies can create for their customers. Customers are willing to pay value for value and superior value, because their price is lower than the equivalent price of the competitor, or the price offered exceeds the unique benefit that offsets the higher price. “The evolution of information has indeed changed how managers of the entire enterprise view the role of information systems. Now that the value of information has been recognized, and people realize that information is a devalued asset, it must be seen that organizations can/should be in their business. The resources used in the organization.The return of the organization’s investment is often associated with the strategic business line.The information system can enhance the overall business line by enhancing the synergies, using customer relationship management (CRM) applications, business intelligence tools to enhance analysis and core competitiveness (Finster&Hernke, 2014). Performance: Information systems that allow knowledge to be shared across business lines improve business capabilities and provide businesses with competitive advantages over competitors. In any enterprise information management, competitive strategy is one of the most important areas. Accurate management is critical to optimizing the customer lifecycle within the company, including the time they spend with the organization.Finally, the management information system plays a key role and provides anextensive range of rationalized options and decision makers can make up their favored choices among them. Most importantly, whatsoever the selections made by decision makers, the results will often become positive.In fact, this is the cause why most decision makers incline to utilize MIS tools while making difficult business choices.Like a well-known concept, the choice of decision-making assurances a worthwhile decision for our business.The organization can utilize an information system to basically change the expense of undertaking business or minimize the cost of business procedures or/and reduce a cost of suppliersor customers, i.e. utilizingonline business to consumers as well as corporate business standards, e-procurement systems to minimize the operating costs (Bellows & Smith, 2017). Organization can utilize information systems to grow differentiated functions, or to minimize the differentiated benefits of competitors, that is, to use online real-time chat systems plus societal networks to better comprehend as well as serve customers; use technology to generate information mediations to deliver value-added services,in addition, increase customer’s stickiness to organization’s website/business; use establishedand advanced online business means to take offline Practice for instance more precise and systematic measurement of the advertising effectiveness. The organizations can utilize information systems to classify and createinnovativeservicesand products, or/and develop novel/niche markets or/and radically alter business processes through an automation, they can likewise launch novel initiatives to establish pure online operations/business, while the Internet plus telecommunication networks offer better innovation opportunitiesand capabilities. “Innovation” is very good example. Before the network was established, there were many components on the network that were very expensive or very different. Organizations could unite or reconvene components on the network to generate new innovations. At the same time, everyone is associated to laptops,personal computers as well asfurther mobile devices via cable, Internet and wireless networks and mobile networks, and there are numerous opportunities to make them with external partners,customers and insiders.
MIS analytical approaches
Management information systems are designed to analyze, process, and collect data only. Furthermore, to the functions needed by an organization, they don’t have other features at all. Since the entire data requires to be set aside confidential on all levels, these systems are highly securitized. The analysis process considers the input of data at an operational level and converts the acquired data into pie charts,graphs as well as Venn diagrams. These Venn diagrams are in fact represent data in a format that is easy-to-understand, allowing managers to quickly determine the organization. Management information systems will likewise play a significant role in an analysis of the managers’ decisions(Oh &Pinsonneault, 2012). E.g., when the information system determines the pricing of a product, it analyzes the latest price policy based on the earlier record of product’sprice and analyzes the company’s gains and losses within a specified period to adopt a new rate. These decisions afterwards entered into the system and were displayed to the executives at strategic level. Therefore, the management information system helps to perform key activities, thereby saving lots of time for decisions making. These systems haveverified to be efficient and successful in implementing important decisions. Due to this, whole world’s giant organizations are utilizing these systems, ultimately leading to trusting on machines instead of human brains.Researchers are still struggling to determine the basic connections between information systems and organizational performance. Studies have shown that the efficientand effective use of the information systems is main factor in distinguishing flourishing organizations from their lesserfruitful equivalents. The growth of information systems has enormous potential for improving organizational performance. However, the huge investment in IS has put more and more pressure on management. It justifies the cost by quantifying the performance impact of IS applications. In addition, challenges such as reducing costs, increasing efficiency, and improving performance have led organizations to implement new organizational mechanisms today to improve performance, including IS. Therefore, IS represents the organization’s actual response to these challenges. From a practical point of view, the importance of the information systems to an organization is very clear, particularly when the information systems affect the organizational processes, mechanisms, and modes of organization. Therefore, this dynamic mechanism forces the organization to become digital in order to respond to the external environment faster than traditional organizations, making it more flexible to survive in a turbulent environment. On the other hand, the motivation for researchers and practitioners is to understand how and to what extent the application of information systems within the organization has improved. They used different concepts, theories and analytical methods, and adopted various methods of experience in multi-level analysis, making this area truly interdisciplinary. The function of management information systems in the organizations can be equated with the function of a heart in body (Li &Hitt, 2012). Information is a blood and MIS is a heart. In body, the heart performs a role of providing clean blood to entirecomponents of body, together with the brain. It controlsand regulatesimpure blood, processes the blood and then transmit it in requiredquantityand at required destination. It meets the needs of human blood supply during normal processes and crisis. The job of management information systems in an organization is exactly the same. The system ensures that proper data is gathered from various resources, processed and further conveyed to all the destinations where required. The system is anticipated to meet the information requirements of individuals, groups of the individuals, managers: managers and the top management. The management information system helps lower-level management personnel to make further decisions at operation level and adjust the out-of-control condition by delivering operation data for the planning, scheduling, as well as control. MIS assists mid-level managers to conduct short-term forecasting, goal setting, plus business function control. It is reinforced by the utilization of planning and control management tools. The degree of penetration of information systems in different industries shows some changes. Organizations may have differences in converting IS spending into productive output; however, this relationship has not been clearly defined. Therefore, in previous research, companies were divided into two categories: manufacturing and service types. In other words, the department or environment in which the research is applied is another important method. Importantly, some studies report that IS applications vary from environment to environment (Krasnikov, 2018). However, the results of these studies show no significant differences and are considered similar to other studies. The previous literature can be divided into education services, banking and manufacturing and other service sectors. In manufacturing, the result is mixed and anecdotal. Some of these studies have demonstrated positive relationships while others have otherwise stated. In the similarity of the service sector, the results show a mixed relationship between information systems and performance. Research shows that the proportion of IS revenue of high-performing companies is lower than that of low-performance firms. The literature shows that these studies from manufacturing to the service environment have examined different contexts. Although these studies have different environments, environments, environments and factors, they generally have some common results.
Ethical and social considerations for strategic solutions
Management information systems add information to managers and even increase the number of experts at all levels of an organization. Through presenting innovative concepts, they not just expand their knowledge, what they can be able to do, furthermore, what their choices are, in addition, help them complete their responsibilities and activities. Founded on the vital features of the management information systems, the executives of the systems are very important. Morality refers to the wrongand rightrules that people utilize to make selections to direct their actions. Ethics in management information systems protect individuals plus society through the responsible use of information systems. Most occupations usually have ethical guidelines or code of conduct guidelines that must be followed by all professional-related professionals. Over the past decade, we have witnessed one of the most ethical and challenging times in US and worldwide business. In today’s novel legal environment, a manager who violates the rules, has to spend much time in jail. Ethics means principles of wrongand right. Individuals, as perethical agents of freedom, are used to make choices to guide their behavior(Nazareth & Choi, 2015). When using an information system, you must ask “What is the ethical and social responsibility process of actions?” A more powerful analytical capability technology that can obtain information from several different sources, for exampletelephone records, employment applications, customer lists, in addition wanted list and related associations, to discover hidden acquaintances, which may help recognizeterroristsor criminals. Moral choice is a decision made by the individual responsible for all the consequences of his actions. Also responsibility is a major factor that means that organizations accept the likely costs, obligations and obligations of the decisions. On the other hand accountability is a main characteristic of the systems as well as of social institutions. It means there are mechanisms to decide who takes responsible actions moreover who is completely responsible. Before deciding which type of MIS approach to utilize, it is critical to make sure that the choices made are completely compatible with organization’s current system. This not just to avoid erratic choices, however, it also saves organization’s time as well as money organization wasted. Additionally, it is worth noting that MIS strategies or tools have been consistent with the decisions to be made. In other words, there is a connection between decisions made by individuals or corporate entrepreneurs and management information systems. As a fundamental consideration, MIS are a very complex as well as delicate stage and require their managers to take a lot of caution. For this reason, organizations recommend that organizations ensure that they carefully select all the individuals or employees who are controlled by the system. The more careful in addition to professional a person is, the more promising the MIS’s positive prospects in decision-making and other related business areas. In essence, if the established system for obtaining information in the MIS is not established, it will be difficult for the organization to make a decision. This is because of the lack of confirmation information; they will be forced to make unfounded information. In addition, management information systems often lay a solid foundation for determining specific decisions through the system tools, appropriate information, and appropriate management policies as well as regulations (SiugZdiniene, Gaule&Rauleckas, 2014). In addition, regulations concerning corporate information in management information systems are used as guidance when business owners make key business decisions. Therefore, managers and key decision makers must not exceed their boundaries and exceed their business authorizations. This is critical because it helps to maintain corporate checks and balances so that only validated decisions are always considered and untried decisions are thwarted. More importantly, the ability to direct decision-making has contributed to the progress moreover the improvement of the company’s operations. Additionally, most management information systems programs have the ability to update company or system events in real time.
Conclusion
The improvement of data frameworks or Information Systems has prompted a decrease in the bureaucratic idea of managerial administration. A few scholars trust that through IT basic leadership, the law based establishment of administration is debilitated in light of the fact that the idea of IT is basically specialized as opposed to popularity based. A few people feel that law based esteems, for example, data innovation, pluralism, and the right to speak freely have been made strides. In the correspondences world, coordinate control has been supplanted by circuitous instruments, for example, institutionalization and instruction. Data is the premise of energy. Prohibition of energy will have long haul negative outcomes, undermine society, and cause issues for all administrations. The utilitarian effect of MIS is in its administration. With great MIS assistance, advertising, fund, creation, and staff administration turn out to be more effective, and following and observing of utilitarian objectives ends up less demanding. The utilitarian supervisor will comprehend the advance of the action, accomplishments and weaknesses, and objectives. Chiefs remain alarm by giving data that shows conceivable patterns in different parts of the business. This assists with anticipating and long haul conclusion arranging. The director’s consideration was conveyed to an extraordinary circumstance, making him make a move or settle on a choice on the issue. A trained data revealing framework makes an organized database and information base for everybody in the association. Data can be utilized specifically, or it can spare administrators important time by blending and examining.
References
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Bellows, C., & Smith, A. (2017). Laparoscopic skills training of surgical residents: a comparison of two proficiency-based independent approaches. Mini-Invasive Surgery.
Finster, M., &Hernke, M. (2014). Benefits Organizations Pursue when Seeking Competitive Advantage by Improving Environmental Performance. Journal Of Industrial Ecology, 18(5), 652-662.
Kozina, A. (2014). Managerial Roles and Functions in Negotiation Process. Business, Management And Education, 12(1), 94-108.
Krasnikov, B. (2018). Real-time multiparameter study of mitochondrial functions: Instrumental and analytical approaches. Analytical Biochemistry.
Li, & Hitt. (2012). Price Effects in Online Product Reviews: An Analytical Model and Empirical Analysis. MIS Quarterly, 34(4), 809.
Nazareth, D., & Choi, J. (2015). A system dynamics model for information security management. Information & Management, 52(1), 123-134.
Oh, &Pinsonneault. (2012). On the Assessment of the Strategic Value of Information Technologies: Conceptual and Analytical Approaches. MIS Quarterly, 31(2), 239.
Sawas, M., &Watfa, M. (2015). The Impact of Cloud Computing on Information Systems Agility. Australasian Journal Of Information Systems, 19.
Šiugždinienė, J., Gaulė, E., &Rauleckas, R. (2014). Redisigning the Strategic Managment System in a Time of Fiscal Crisis in Lithuania. Public Policy And Administration, 13(1).
Vie, O. (2013). Have post-bureaucratic changes occurred in managerial work?. European Management Journal, 28(3), 182-194.
Xie, Q. (2014). CEO tenure and ownership mode choice of Chinese firms: The moderating roles of managerial discretion. International Business Review, 23(5), 910-919.