Discussion
All organizations deal with information from various sources such as; suppliers, customers, government, manufacturers, and others. They must be organized in such a way that they utilize this information to operate efficiently and effectively.
The role of information systems in organizations is to manage information, make effective and efficient decisions, and improve execution of organizational business processes.
Information systems assists in improving business processes as they are used to increase efficiency of available processes and enable new processes capable of transforming the manner in which organizations conduct business (Rainer, 2009). This paper demonstrates understanding of information systems and how they contribute to forming competitive advantage in business.
How Organizational Systems are transforming Business and their Relationship with Globalization
Information systems have transformed the world from an industrial society to a knowledge based economy. Managers today depend on information technology in running daily business operations and making strategic business decisions. As instruments of this information age, computers perform complex operations as well as daily tasks like word processing and creating spreadsheets.
The speed of change has been accelerated since personal computers became a necessary feature in most computer desks; individual units became part of the networks, accompanied by more sophisticated enterprise wide networks (Laudon, 2009).
Powerful desk computers enable most workforces to speed their daily work. Specialized super computer centers also enables workforce to tackle massive computational problems. Jobs or tasks that took years on a personal computer can be performed in just hours on a super computer. Businesses use super computers to improve inventory and production management and product design (Thierauf, 1999).
Information systems have had immense impact in transforming global business. Through the internet, organizations get opportunities to collaborate on international scale. This is in addition to computers and internal networks owned by businesses. Managers in organizations are able to share information with many people worldwide as easily as with colleagues stationed at other floors in same building.
Today, the internet and the web are critical business tools that facilitate communication within organization as well as customers. The size of electronic trading blocs has improved business thus leading to expansion of global economy. Through advancement of information technology, global electronic trading has gone beyond internet retailing. Special websites such as e-market places facilitate electronic trade between businesses in specific industries.
Why Information Systems are so Essential in Running and Managing Business Today
Information systems are critical for running and managing businesses today. They are essential in the sense that they support the distribution, processing, management and evaluation of data and information.
Today, information systems are traced everywhere. They impact every aspect of people’s lives. For instance, the emergence and growth of the internet as an international information resource for all businesses has meant that computers are not only the way we communicate at work, but also with our family, friends and society at large (Laudon, 2009).
One of the essential recent transformations in the way businesses operate, is how much they depend on networked technology. It is commonplace now for businesses to have a website. Access of such website is through both wired and wireless networks. To access information, both customers and employees may use networked technologies such as personal computers, laptops, blackberries and mini notebooks. In today’s business environment, absence of online presence by an organization makes it difficult for it enjoys advantages of global opportunities available for business (Laudon, 2009).
How Information systems Support Major Business Functions and how they affect Business careers
Information systems assist organizations to support their business processes. As businesses involve varying business processes, they need varying levels of software and support. Business information systems are sometimes specific to an area or groups of individuals. At other instances, offer services to the organization as a whole. In a functional view, business information systems are described by their business function, such as; sales and marketing, finance and accounting, manufacturing and production, and human resource (Stair, 2011).
Sales and marketing is a functional area that caters for selling business products or services. The marketing function is concerned with identifying new and existing clients for organizations products and services. It also assists determine client needs or wants. Primarily, the sales function concerned with contacting clients, selling their products or services, and taking orders.
It also deals with follow ups of initial sales with appropriate support and guidance. Information systems in sales and marketing function creates strategic advantage for companies through; customer management systems, online website monitoring tools, and business analytical tools. These tools are essential for better understanding of customers (Laudon, 2009).
The finance and accounting function is responsible for management of organization’s financial assets and managing firm’s capitalization, such as; determining new assets in stocks, bonds or other forms of debt. The function also involves maintenance of organizational financial records, such as; invoices, payments, receipts, stocks and payroll.
Information systems supports financial and accounting function through establishing, building and managing of strategic products and services such as; financial advising, wealth management, risk management systems, credit services, and online financial services (Laudon, 2009).
Manufacturing and production function governs production of organization’s goods and services. It is concerned with planning, development and maintenance of production infrastructure. It also deals with identifying production goals, procurement of materials, equipment and labor scheduling, and making of final products.
Information systems aid this function by developing manufacturing and production systems that assist organization to compete by; reducing supply chain costs, increasing quality and enabling the firm to design and introduce new products in the firm (Laudon, 2009).
The human resource function deals with management of company’s workforce. The human resource information systems support activities such as employee records, payroll, and training and skill programs. Information systems support this function by providing information and communication capabilities that reduce the cost of managing employees; organizing jobs, and work assignments to reduce operational costs. This gives an organization a strategic edge (Laudon, 2009)..
How a Four-Step Method for Business Problem-Solving Helps in Solving Information System Relations Problem
The four-step method for business problem solving assists in solving information system relations problems; as it includes generation of new ideas using creative computer software. Solving information relations problem requires a process exhibited in the four step method for business problem –solving. The four steps involved in this method include; generation, evaluation, validation and establishment of boundaries (Thierauf, 1999).
Generation is the most significant step in problem search. It involves probing of potential problems that might have an impact to the organization. It assists search for future problems as well. Once the problems are identified and analyzed, it provides a need to evaluate the cause and effect relationships of each problem and its possible effects on the organization currently.
The evaluation step reviews the problem uncovered in the generation stage for managerial concern, aided by cost benefit analysis. It also uses creative computer software to generate new ways to evaluate future organizational problems.
Validation step builds on evaluation of the problem. Actual problems are selected at this stage for managerial concern currently and in future. Validation for problem solving is generally supported by cost benefit analysis and related organization’s essential success factors if necessary. The fourth step involves establishment of boundaries. Completion of problem validation necessitates definition of each problem within its boundaries (Thierauf, 1999)
Conclusion
Information systems have transformed the globe from industrial society to an knowledge-based economy. Organizational managers today depend on information technology for everything from conducting daily business operations to executing strategic business decisions. As tools of this information age, computers perform complex operations as well as daily tasks like word processing and creating spreadsheets.
Through the use of information systems, for instance, orders can be placed by clients from their own homes, payment can be taken and suppliers can be notified about which products to produce and where to ship them. All this can be done online through the internet, thus, enhancing efficiency in existing process of placing order.
Reference List
Laudon, K., & Laudon, J. (2009). Essentials of Management Information Systems. New Jersey: Prentice Hall Publishers.
Rainer, R., & Cegielsky, G. (2009). Introduction to Information Systems. New York: Greenwood Publishing Group.
Stair, R., & Reynolds, G. (2011). Principles of Information Systems. New Jersey: Prentice Hall Publishers.
Thierauf, R. (1999). Knowledge Management Systems for Business. New York: Greenwood Publishing Group.