Information System Management In Organizations

Categories of Information Systems

The information system management is introduced or implemented in every organization ideally for enhancing the information system and services within an organization. They are mostly implemented within the organization because it has a potential of enhancing the competitive advantages of the organization (Ic?ten et al. 2016). This report would thus conduct the examples how organizations use the IS/IT strategies for the innovation, including the success factors or the lessons learned from them, the internal and external factors that have contributed to the IS/IT enabled innovation and the recommendations and guidelines for helping the organizations succeed in their efforts to embark on using IS/IT for innovation.

The extensive developments in the field of information technology has resulted in the growth of new technologies such as the information systems which are increasingly been used in different industries.

There are different categories of information system which are used in most of the information systems such as the Executive Support System (ESS) which are used by the senior management team of the business organizations to deal with the decision making issues and complexities (Yu et al. 2015). Management Information System (MIS), which are used in different global and small sized business organization to management the data and the information which are circulated in the business environments, Knowledge Management System (KMS) is defined as the category of the information system which are used in the sharing and the management of the knowledge which are utilized for achieving the mission and the vision of the organization, Transaction Processing System (TPS) which are used in the business organizations to deal with all the transactions between the stakeholders of the organization.

Table 1: Application of IS/IT in specific industries

(Source: Created by the author)

The business processes of the stated industries can be optimized with the help of the above discussed technologies. The application of these Information Systems are very much useful to maintain beneficial customer engagement for the business organizations. The enhanced customer relationship can be successfully used by the business organization to increase the business reach of the organization (Prasad and Green 2015). The storage of the information system can be very much useful to store the business records of the organization. The performance of the employee can be tracked and monitored with the help of the Information Systems.

The application of the different categories of information system in different industries can be used to minimize the challenges of those industries such as the maintenance of the customer complaints which has to be handled effectively by the management team of the organization so that the issues with the products can be minimized to a significant extent. The business objectives of the organizations can be aligned with the help of the Information Systems (Kerzner and Kerzner 2017). New business opportunities and new business strategies can be created and implemented with the help of the information systems. Business relationship between the internal and the external stakeholders of the organization can be also maintained with the help of the information system, however there are few challenges associated with the use of the information system such as the huge initial investments required for the installation procedure of the information systems, at the same time dedicated IT professional has to be kept to deal with the complexities of the information system (Laudon and Laudon 2016). The compatibility with the legacy system are the other prime challenge associated with the use of the Information Systems. 

Advantages and Disadvantages of Information Systems

Critical Success factors

Executive Support System or ESS: ESS is a software that is implied by most organizations because of its potential of allowing the users to transform the enterprise data into the executive level reports that are extremely easy and quick to access. The reasons for which most of the managers utilize the ESS is due to the advantageous effects it embarks on the operations of the organization (Abbasi, Sarker and Chiang 2016). The system has found to be extremely advantageous when it comes to providing a better access control of the sales and manufacturing departments and reduces the wastages of the inventories. The system is found to be taking much more timed decisions, and has an easy access over the unavailable information.

Management Information System or MIS: MIS have provided the business organizations with the ability to feasibly collect data, process and interpret it accordingly. The business organizations have mostly implementing this system because of the various advantages it has been providing the organizations with. Amongst them, few of the advantages can be listed as the integrated system that allows the improved communications amongst the hierarchical levels of the organizational executives and the better decision making abilities for the executives taking the responsibilities of making the appropriate decisions.

Transaction Processing System or TPS: There are various advantages of the TPS which is why, various organizations are found to implement them in their business processes. The advantages can be listed as the availability of the batch-time or the real time processing, the level at which it reduces the processing, cycle and lead time and the reduction of costs it offers to the inventory, ordering or personnel costs (Thannhuber, Bruntsch and Tseng 2017). At the same time, the system increases the productivity as well as the level of satisfaction for the customers.

Knowledge Management System or KMS: Knowledge Management System or KMS is mostly utilized in organizations because of its ability of making use of the collective business data and further elevate it to create value for the organization. The other advantages include, the improvement of organizational agility, the faster and better decision making ability, the quick rate of problem solving and innovation creation and improving better communication within the business executives. It also elevates the competitiveness of the organization. 

Executive Support System or ESS: It has been found that mostly organizations use the likes of the Executive Support System to add benefits to the organization, however, there are also some negative points about the system that should be learned from or be aware of before implementing it within the system to be precautious before implementing it. These are the difficulty of the system in keeping up with the current data and that the system may lead to less reliable and insecure data (Schmitt 2017). In addition to that, it has been found that few of the SMEs have faced problem in implementing this system because of its excessive implementing costs and too detailed nature.

Impact of Information Systems on Different Areas

Management Information Systems or MIS: Along with the advantages that the MIS offers the organizations and their decision making bodies, there are also various disadvantages acquired from the system that may be applicable to make sure that the business executives learn a proper lesson from them and apply the best solution to overcome these problems (Santoro et al. 2018). Out of the disadvantages, the most noticeable ones are the issues in data quality if the insufficient or misplaced data makes it difficult for the decisions to be made and the security issues regarding the data that might be extremely sensitive for the company, like the bank records, intellectual properties or the personal data of clients.

Transaction Processing System or TPS: Although TPS has various advantages imbibed within the systems, there are also various disadvantages of the system as well. It has a huge implementation cost that may impact the overall capital investment of the business and it also lacks in standard formats (Hammer 2015). Moreover, there might be some inconveniences within the system that deals with the incompatibility of the system with that of the hardware and software traditionally used within the organization.

Knowledge Management System or KMS: Just like the advantages of the system, there are certain disadvantages of KMS as well that should be used as a lesson for the organizations to learn so that the problems occurred due to them can be properly eliminated (Tseng 2016). KMS are complex and pretty difficult to understand for an average skilled worker and there should be proper implementation of the training systems to make sure that it does not become difficult in handling. 

There are different impacts for the use of the information system across various industries. All the managerial decisions, impact on an employee as well as impact on the organizational performance can be improved with the help of the information systems.

Organizational Impact: The transaction cost of the organizations is a huge business perspective which often determines the growth of the organization. The cost of market participation can be reviewed by the optimization of the business processes with the help of the information systems. The cost of the raw materials can be properly evaluated with the help of the business strategies created and development from the information systems (Giboney et al. 2015). The information which are circulated from one entity of an organization to another which have a direct impact on the growth and productivity of the organization can be properly monitored and then examined with the help of Management Information System.

Organizational Impact

Individual Impact: The performance of each of the stakeholders of the business organizations such as the internal stakeholders like managers and external stakeholders such as the supplier of the raw materials can be monitored with the help of the audit reports which are created with the help of the Management Information Systems (Xiaojun 2017). The remuneration issues which involves the calculation of the incentives can be done with the help of the Transaction Processing System.

Managerial Impact: The management team of the business organizations can be hugely benefitted with the use of the KMS or the Knowledge Management System for taking all the important business decisions such as the selection of the professional service providers or the professional sales and marketing team as they need to understand the current market trends and needs and requirements of the consumers.

The application of the different type’s information systems can have a huge impact on the external factors such as the market, industry, social, economic, technological and political factors.

Market: All the available resources can be assigned their project objectives with the help of the business strategies which can be developed with the help of the Information Systems like the Management Information System.

Industry: The incorporation of the Knowledge Management System can give a business organization huge competitive advantage by creating new and innovative products as needed by the consumers.

Social: The working environment of the business organizations can be improved with the help of the Information System as the conventional procedures followed in the production rooms can be replaced by updated technologies (Fernandez, Zainol and Ahmad 2017). Organization of work can be scheduled with the help of the MIS. 

Economic: The economic growth of the business can be controlled with the help of the Transaction Processing System as it helps it protect and manage all the business transactions in any working environment.

Technological: Maintaining a good relationship with all the consumers is the primary requirement of the business organizations which can be achieved with the help of the Executive Support System (Elias, Ghani and Mohd 2018). The ESS can serve as a medium between the consumers and the management team of the organization. The need for new technologies in any department can be also identified with the help of the MIS.

Political factors: New and impactful business strategies can be created and implemented with the help of the Management Information System. The legal laws with the use of the automated systems and the code of workplace ethics can be also determined with the help of the automated Information systems.

Individual Impact

The following are the recommendations and guidelines by which the organizations can be helped for succeeding in their efforts to embark on using IS/IT for innovation:

• The organizations should develop a process to capture, share as well as record the knowledge embarked within the organization.
• The management initiatives should be correctly defined within the organization with proper scope and objectives.
• A proper corporate culture should be settled within the organization before the implementation of the management systems.
• Consider the change management strategies for the implementation process along with the budget determination for the budget, strategy and training needs.

Conclusion

Therefore, it can be concluded that the organisations apply the strategic use of IS/IT to achieve IS/IT enabled innovation to benefit the organizations from various aspects in the organizations. This also considers the various disadvantages of the systems and prepares the business operations considering them to repel the problems. Therefore, the above report has been developed to have a full idea about the conduction of the examples on how organizations use the IS/IT strategies for the innovation, including the success factors or the lessons learned from them, the internal and external factors that have contributed to the IS/IT enabled innovation and the recommendations and guidelines for helping the organizations succeed in their efforts to embark on using IS/IT for innovation. 

References

Abbasi, A., Sarker, S. and Chiang, R.H., 2016. Big data research in information systems: Toward an inclusive research agenda. Journal of the Association for Information Systems, 17(2), p.I.

Elias, N.F., Ghani, R.A. and Mohd, M., 2018. A comprehensive instrument for measuring knowledge management system satisfaction. GSTF Journal on Computing (JoC), 2(4).

Fernandez, D., Zainol, Z. and Ahmad, H., 2017. The impacts of ERP systems on public sector organizations. Procedia computer science, 111, pp.31-36.

Giboney, J.S., Brown, S.A., Lowry, P.B. and Nunamaker Jr, J.F., 2015. User acceptance of knowledge-based system recommendations: Explanations, arguments, and fit. Decision Support Systems, 72, pp.1-10.

Hammer, M., 2015. What is business process management?. In Handbook on business process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.

Ic?ten, E., Joglekar, G., Wallace, C., Loehr, K., Sacksteder, J., Giridhar, A., Nagy, Z.K. and Reklaitis, G.V., 2016. Knowledge provenance management system for a dropwise additive manufacturing system for pharmaceutical products. Industrial & Engineering Chemistry Research, 55(36), pp.9676-9686.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.

Prasad, A. and Green, P., 2015. Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance. Journal of Information Systems, 29(3), pp.123-149.

Santoro, G., Vrontis, D., Thrassou, A. and Dezi, L., 2018. The Internet of Things: Building a knowledge management system for open innovation and knowledge management capacity. Technological Forecasting and Social Change, 136, pp.347-354.

Schmitt, U., 2017. Devising enabling spaces and affordances for personal knowledge management system design.

Thannhuber, M.J., Bruntsch, A. and Tseng, M.M., 2017. Knowledge management: managing organizational intelligence and knowledge in autopoietic process management systems–ten years into industrial application. Procedia CIRP, 63, pp.384-389.

Tseng, S.M., 2016. Knowledge management capability, customer relationship management, and service quality. Journal of enterprise information management, 29(2), pp.202-221.

Xiaojun, Z., 2017. Knowledge Management System Use and Job Performance: A Multilevel Contingency Model. MIS quarterly, 41(3).

Yu, C.P., Chen, H.G., Klein, G. and Jiang, R., 2015. The roots of executive information system development risks. information and Software Technology, 68, pp.34-44.

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