Importance Of IS-Related Solutions In Business ✓ Solved

5 Importance of IS-Related Solution in the Business World

Information Systems have tremendously transformed the business world. The rapid technological evolvement has played a fundamental role in this through the invention of various software which have made numerous operations especially processing simplest and accurate. Companies have exploited the capacities of the information systems and ended gaining maximum profits. The importance of IS emanates from the data processed for the company to produce information utilized to manage their various operations (Brodersen & Lim, 2000). There are ways of increasing the effectiveness of the IS like adding extra data or using the available in a different way.

Information Systems can be used for various purposes in an organization such as communication, making decisions, keeping records, and operations management. Information Systems solutions can be used in communication to gather and distribute the information. This ensures efficient flow of information. It is also used to support decisions making which ensures the outcomes are better and all the prerequisite information has been delivered. For instance Decision Support System is highly used in such cases to support this essential process.

Electronic Record Management is used to ensure that all the organizations records are secure and free from damage. Cases of loss are also minimized through use of ERM (Sprague, 1986). This project will tackle five IS-related solutions which are used often in companies. They are Decision Support System, Electronic Records Management, Cloud Computing, Transaction Processing System and Database Management System (Ali & Vasilakos, 2015). The above mentioned solutions have highly benefitted companies and we expect more to be unveiled due to technological advancement.

Introduction

Information system (IS) can be described as organization of the system used in obtaining, organizing, storing as well as communication of data. Additionally, it can involve all the network that organizations on individual uses in collecting, filtering, processing, creating and distributing data. Therefore, through interaction, they are capable of producing data. It has main focus on the internal organization instead of external environment of an organization. For an organization to have a successful business, it will have to process all the information as well as statistics.

In this regard, there are various organizations that have suffered data problems. Therefore, IS’s are important in ensuring that the organization can be able to gain optimum maximum benefits in the business. This is carried out through processing all the data in the organization so that the company can be able to produce data that is important in running its business. Effectiveness of the business can only be ensured through producing more information that will be important in running the business. Therefore, the accuracy of the information and reliability should be ensured at all costs.

The Role of Information Systems

Further, IS can be important in collection and distribution of data. This can in turn ensure that effective communication is ensured in the company among the managers. Third, the information can ensure that there are easy decision making in the company (Drucker, 2012). An organization which is faced with the problem of quick decision can spend a lot of time and energy in doing so without IS. However, with IS, the managers have been able to come up with strategic plans and informed decisions which has ensured the growth of various organizations in different parts of the world.

Decision Support System (DSS)

DSS can be described as various computer programs that are important in the analysis and decision making in company. DSS has a main purpose of presenting the information to clients in terms that they could easily understand. In this regard, it provides analysis to company’s data and thus, presenting it to the top notch managers who will have to come up with informed decisions. DSS employs the use of data summary, exceptions as well as patterns during the decision making process and it is not a must for DSS to provide information itself. In this case, it will be the work of the decision makers to come up with informed decision concerning the operation of the company (Dulisic & Silic, 2012).

Management Information System (MIS)

A Management Information System (MIS) refers to a computer database whose main function entails organizing financial information at an organization. In the 21st century, business organizations are looking for real-time financial information which guides the manner in which decisions relating to finances are made. During normal operations, MIS produces regular reports on various organizational operations on nearly all levels of managerial responsibilities (Karim, 2011).

When adopted, its main purpose is to give feedbacks regarding performance hence a manager is able to fully monitor financial performance and progress of an organization. Accountants and clerks may not be able to provide real-time information hence the system can support their decision-making and provision of detailed financial reports. Practically, an MIS system receives data from the various functions and units in the organization. These sources may be automated through use of check-out counters that relays data at periodic intervals. Also, the system can receive data that is keyed in manually also at periodic intervals by the workers at specific units.

Electronic Records System (ERM)

Similarly to DSS, Electronic Record Systems are computer programs that have been used in tracking and storing of information or records for a company. Its computer software employed in managing as well as maintaining the records, controlling the access and use of the information. Based on this understanding, the Electronic Record System must be able to track and store all records created by the company systems and applications (Van, 2015).

Various forms of evolution have happened to ERM. Previous ERM had little records management compared to the current ERM which have been able to keep the authentic records of data as well as protecting it from changes that might occur to them. This has been made organizations to keep track records of data (Bodnar & Hophood, 2012).

Customer Relationship Management Systems (CRM)

A Customer Relationship Management System (CRM) refers to a system that contains a set of technological applications that help in the organization and determination of needs of the customers. The CRM system enables the organization to manage, organize, and track the needs and preferences of the customers who are important stakeholders to every business organization (AL-Weshah, Al-Qatawneh & Al-Manasrah, 2017).

The system enables employees to easily undertake catalog and order entry, payment processing, and account management among others. It can also serve as an important platform upon which an organization and its clients can communicate. It is also an important source of information regarding the customer’s preferences and needs hence an organization can better them. Essentially, the system can help manage customer information, track their habits, organize interactions, and manage customer service requests in a manner that aligns with organizational and corporate goals.

Conclusion

IS-related solutions have greatly benefitted the business world. The solutions have made various operations simpler, cheaper, accurate and cost-effective. Due to their variety, companies/businesses have an opportunity to choose the solution they demand based on their needs. With the increased technological advancement, we expect more solution to be invented in due time (Harris, 2015). More so, 21st century has presented business with more complex needs especially when it comes to customer relationship and management of information. IS-related solutions can help address any issues in a manner that aligns with business objectives and goals.

References

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• AL-Weshah, G. A., Al-Qatawneh, M., & Al-Manasrah, E. (2017). Customer relationship management systems and organizational performance: Quantitative evidence from the Jordanian telecommunication industry. Journal of Marketing Communications.
• Bodnar, G. H., & Hopwood, W. S. (2012). Accounting information systems. Pearson Higher Ed.
• Brodersen, R. A., Chatterjee, P., & Lim, P. S. (2000). U.S. Patent No. 6,092,083. Washington, DC: U.S. Patent and Trademark Office.
• Dulcic, Z., Pavlic, D., & Silic, I. (2012). Evaluating the intended use of Decision Support System (DSS) by applying Technology Acceptance Model (TAM) in business organizations in Croatia. Procedia-Social and Behavioral Sciences, 58.
• Drucker, P. (2012). Managing in a time of great change. Routledge.
• Haislip, J., & Richardson, V. J. (2017). The effect of Customer Relationship Management systems on firm performance. International Journal of Accounting Information Systems, 27(1), 16-29.
• Harris, R. C., Altobelli, D. J., Blucke, R. W., Wilson Jr, R. M., & Wyle, S. C. (2015). U.S. Patent No. 5,517,406. Washington, DC: U.S. Patent and Trademark Office.
• Karim, A. J. (2011). The Significance Of Management Information Systems For Enhancing Strategic And Tactical Planning. Journal of Information Systems and Technology Management, 8(2).
• Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.
• Sprague, R. H., & Watson, H. J. (Eds.). (1986). Decision support systems: putting theory into practice. Englewood Cliffs, NJ.: Prentice-Hall.
• Van Ryzin, J. M. (2015). U.S. Patent No. 5,909,689. Washington, DC: U.S. Patent and Trademark Office.