Question

How are information systems used to run, grow, and transform a business? ( minimum 400 words)

Answer 1

Information systems are also referred as information and communication technology (ICT) which are used by an organization to which supports the business processes. These are the formal, sociotechnical organizational systems which are designed to collect, process, store, and distribute information which helps an organization to ease its processes and make it efficient. The main components of the information systems include:

• Computer Hardware which is a physical technology which works with the information.
• Computer Software's role is to tell the hardware systems what has to be done and when it has to be done.
• Telecommunication helps to keep the systems connected with the other systems for the smooth flow of data and information.
• Databases and Data warehouses helps to keep the data collected compiled and safe so they can be retrieved whenever required.

The example of a few types of the information systems are:

• Transaction processing systems.
• Management Information Systems.
• Decision Support System.
• Office Automation
• Executive Information System etc.

The systems are used at the organization as per their requirements and it eases most of the tedious business processes therefore making an organization more efficient.

The information systems used to run, grow, and transform a business in the following ways:

• It provides real time information to the organization which is very beneficial for industries like manufacturing, shipping and logistics. The information provides the businesses with the capability to counter any issues faced in the very beginning of it and therefore it doesn’t hamper the productivity of the business.
• Office Automation has brought a revolutionary change in how the works are done at an organization. A move from the tradition form where the works were completed manually used to take lot of time and more human input were required which was error prone. With the use of information systems these processes are automated, the works are now completed quickly and it takes fewer people to complete those tasks at office therefore making the organizations become profitable and grow.
• Businesses have used the information systems in making sound and logical decisions. The decision support systems installed at organizations like banks, credit rating agencies helps them process the data really quick and the information is beneficial while decision making.
• Information systems also help in getting custom information from the huge piles of data therefore eliminating any unrequired information which will eat up the important time and resources of these organizations.
• Management information systems business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. Almost all the medium and large sized organization now depends upon MIS systems for the day to day decision making process and it has transformed the organizations.
• Use of CRM systems by modern day organizations have helped them create and establish mutually beneficial relationships with the customers. This systems helps the organization in keeping in constant touch with the customers and know about the demands and market trends which really helps an organization to grow.

Information Systems have become an inevitable part of modern day businesses and its importance can be ascertained from the fact that the early adopters of this technology has gained substantial competitive advantage in the market which made those companies a giant in their specific industries.