What Are The Most Common Types Of Computer-Based Information
5 What Are The Most Common Types Of Computer Based Information System
What are the most common types of computer-based information systems used in business organizations today? (Hint: a Transaction Processing System is one type.) Give a specific real-world example of each. What are some general strategies employed by organizations to achieve competitive advantage? What is the role of the systems analyst? What is the role of the programmer? What is the operations component of a typical IS department? What is the role of the chief information officer?
Paper For Above instruction
Computer-based information systems (CBIS) are integral to modern business operations, supporting various functions from transactions to strategic decision-making. The most common types of these systems include Transaction Processing Systems, Management Information Systems, Decision Support Systems, Enterprise Systems, and Customer Relationship Management Systems, each playing a vital role in enhancing organizational efficiency and competitiveness.
Transaction Processing Systems (TPS) are foundational to business operations, capturing and processing day-to-day transactions. For example, a point-of-sale (POS) system used in retail stores like Walmart records sales, manages inventory, and updates financial records instantly. TPS ensures data accuracy and fast processing, providing immediate operational insights critical for daily business functions (Laudon & Laudon, 2020).
Management Information Systems (MIS) compile data from TPS to produce summarized reports that aid middle management in decision-making. An example is a sales management system that aggregates daily sales data into weekly or monthly reports, allowing managers at Amazon to monitor sales trends and inventory levels efficiently (O'Brien & Marakas, 2015). MIS enhances control and oversight by providing timely managerial insights.
Decision Support Systems (DSS) are advanced tools that analyze large volumes of data to support complex decision-making processes. For instance, a DSS used by FedEx to optimize delivery routes considers variables such as traffic and weather to improve efficiency and reduce costs. DSS empower managers to evaluate different scenarios and make informed strategic choices (Power, 2002).
Enterprise Systems (ERP) integrate core business processes across departments into a unified system. SAP's ERP implemented by multinational corporations like Nestlé streamline processes such as supply chain, finance, and human resources into a centralized platform. ERP systems promote coordination across the organization, reducing redundancies and increasing agility (Davenport, 1990).
Customer Relationship Management (CRM) systems focus on managing relationships with customers, enhancing sales and marketing efforts. Salesforce provides a CRM platform that tracks customer interactions, preferences, and sales pipelines, enabling companies like Adobe to tailor marketing strategies and improve customer satisfaction (Buttle, 2009).
Organizations employ various strategic approaches to gain competitive advantage, including cost leadership, differentiation, and innovation. Cost leadership involves reducing operational costs to offer lower prices; for example, Walmart's efficient supply chain minimizes expenses, allowing lower prices. Differentiation emphasizes unique product features or superior service; Apple’s innovative products and branding create customer loyalty. Innovation strategies focus on developing new products or services, as seen in Tesla’s electric vehicles, which disrupt traditional automotive markets (Porter, 1985).
The roles within an IS department guide its effectiveness and alignment with organizational goals. The systems analyst acts as a bridge between business needs and technical solutions, analyzing requirements, designing systems, and ensuring that technological solutions align with organizational strategies (Baskerville & Wood-Harper, 1996). The programmer translates system designs into functional software code, implementing the technical aspects of system development to ensure practical operation (McConnell, 1996).
The operations component of a typical IS department manages ongoing system activities, including maintenance, support, and troubleshooting. They ensure that systems run efficiently, are secure from threats, and are updated regularly to meet evolving business needs. This operational support is crucial to prevent downtime and sustain organizational productivity (Laudon & Laudon, 2020).
Finally, the Chief Information Officer (CIO) oversees the entire information technology strategy within an organization. The CIO’s role includes aligning IT initiatives with business objectives, managing IT budgets, and leading digital transformation efforts. A CIO at a healthcare organization, for example, might focus on implementing electronic health records securely while supporting innovative telemedicine solutions (Kearns & Sabherwal, 2006).
In conclusion, understanding the various types of computer-based information systems and their strategic importance enables organizations to leverage technology effectively. The roles of technical professionals such as systems analysts, programmers, and CIOs are critical in deploying and maintaining these systems, ultimately driving competitive advantage and operational excellence.
References
- Baskerville, R., & Wood-Harper, T. (1996). A critical perspective on the systems development methodology. Proceedings of the 7th International Conference on Information Systems, 253-263.
- Davenport, T. H. (1990). A technology rêve: Building an enterprise system. Harvard Business Review, 68(4), 121–131.
- Kearns, G. S., & Sabherwal, R. (2006). Information technology governance: A contingency perspective. MIS Quarterly, 30(2), 197-221.
- Laudon, K. C., & Laudon, J. P. (2020). Management Information Systems: Managing the Digital Firm (16th ed.). Pearson.
- McConnell, S. (1996). Code Complete. Microsoft Press.
- O'Brien, J. A., & Marakas, G. M. (2015). Management Information Systems (10th ed.). McGraw-Hill.
- Power, D. J. (2002). Decision support systems: Concepts and resources for managers. Westport, CT: Greenwood Publishing Group.
- Porter's Five Forces Model. (1985). Competitive strategy: Techniques for analyzing industries and competitors. Free Press.
- Buttle, F. (2009). Customer Relationship Management: Concepts and Tools. Routledge.