An information system can be simply defined as a set of interconnected mechanism that gather, process, accumulate and dispense information to assist in making decisions in a given company or organisation. It usually contains information regarding the persons, places and facilities in the organisations surrounding environment.
According to Oz (2008), the components of information systems are computer hardware and software, databases, telecommunications and human resource personnel. Information systems are of different types in respect with the kind of business or organisation. In this, case a brick and mortar business would require the following types of information systems (Oz, 2008).
- Office information system – this type of information system deals with software, hardware and networks in order to improve the flow of work and facilitate good communication amid employees. The workers perform their duties using electronics or computers as a substitute of manual labour (Gorry, & Morton, 2009).
- Transaction processing system – this information system gets and processes information realised in an organisations daily transactions as illustrated by Oz (2008).
- Management information systems – the management information system generates information on expected basis in accurate, organised and timely manner to be used by managers or the business controllers in decision making, problem solving and activity supervision as illustrated by Gorry and Morton (2009).
- Decision support systems – this type of information system collects data from the above information systems and from external sources and produces information that assists management to prepare and draft for the upcoming (Akiva, Palma & Kaysi, 2010).
- Office automation systems – in this type of information system, tools or electronics improve on the efficiency of the employees and reduce the amount of work in an organisations office (Buckland, 1997).
The advantages of information systems are several. First, as argued by Buckland (1997), there is a significant reduction in the cost of recording and storing information. The number of staff required is lower as compared to the manual hence the cost and expenses are reduced. The storage of records and other information takes less time and space. This implies that the business allocation takes minimal space since information and data is stored in computers and its components.
Easy accessibility of information is another advantage of use of the above information systems in a business or organisation. Updating and information retrieval is easy and fast when using electronic information systems as described above. Files and information is interchanged between computers hence making it possible to transfer data from one place to another.
The drawbacks or disadvantages of the use of the above information systems are as follows. First, the employees lack job security because there is no certainty with the high technology growth. The growth in technology is so high and can lead to downsizing in future.
Lack of privacy resulting from hackling and signal interception is another setback. Erosion of cultures and negative internet related influences is a setback that is not well regarded in the society (Akiva, Palma, & Kaysi, 2010). The table below summarises the types of information systems, their advantages and disadvantages.
|Type of information systems||Advantages||Disadvantages|
|Office information system||-Minimizes overload and cost and facilitates better planning||Results in unemployment|
|Transaction processing system||Encourages decentralisation and globalisation||Reduces privacy due to hackling|
|Management information system||More time allocation and effective follow ups||Lacks control and can result to information leakage to competitors|
|Decision support system||Aids in decision making and avoids poor mismanagement||Lacks job security|
|Office automation systems||Improves communication and bridges cultural gap||Facilitates a dominant culture and erosion of moral values|
The information systems described above can be illustrated in a simple pie chart to illustrate the impacts of information systems on the record store business.
Viewed on Laudon, K. C., & Laudon, J. P. (2010). Management Information System: Managing the Digital Firm. Prentice-Hall International, Inc.
Office information system is the appropriate system to introduce in the record store business. This involves data entry in computers, which is fast and consists of a high data keeping capacity. It is recommendable because the records are easily accessed and requires less space for their storage.
Akiva, M. B., Palma, A. D., & Kaysi, I. (2010). Dynamic network models and driver information systems. Transportation Research Part A: General, 25(5): 251-266.
Buckland, M. K. (1997). Information and Information Systems. CA: ABC-CLIO.
Gorry, G. A., & Morton, M. S. S. (2009). A Frame Work for Management Information System. Cambridge, MA: M.I.T.
Laudon, K. C., & Laudon, J. P. (2010). Management Information System: Managing the Digital Firm. New York, NY: Prentice-Hall International, Inc.
Oz, E. (2008). Management Information Systems. Stamford, CT: Cengage Learning.