Information system is the collection of technical and human resources that provide the storage, computing, distribution, and communication for the information required by all or some part of a firm. A special form of Information system is a management information system , which provides information for managing afirm
Trends of modern information system
• Converging administrative and academic solutions
• Alternative technology models
• Support of emerging institutional requirements using administrative systems
• Leveraging administrative systems infrastructure for strategic uses
Decision-making is a daily doings for any human being. When it comes to business firms, decision-making is a habit and a process as well. Effective and successful decisions result in returns, while unsuccessful ones cause losses. Corporate decision-making is the most critical process in any firm. In a decision-making process, we choose one sequence of action from a few possible replacements. In the process of decision-making, we may use many tools, techniques, and perceptions.
Information system involvement and Business Decisions
1. Programmed Decisions:
Normal decisions which for all time follow the similar agenda. Given that such, they can be written down into a series of fixed phases which anybody can follow. They might even be written as computer program.
2. Non-Programmed Decisions.
These are substandard and non-routine. Every choice is not rather the alike as any prior choice.
These influence the permanent direction of the trade
4. Operational Decisions.
Temporary decisions regarding how to be significant the plans
Information management helps daily decision making
Types of information system
Following are the types of information system
Management Information Systems
Office Automation Systems
Executive Support Systems
Knowledge Management Systems
Operations support systems, including transaction processing systems
Marketing Information System
Enterprise Resource Planning
There are many types of information systems, depending on the requirement they are designed to fill. An operations support system, such as a transaction processing system, converts business data (financial transactions) into valuable information.
Also, a management information system uses database information to output reports, helping users and businesses make decisions based on extracted data.
In a decision support system, data is pulled from many sources and then reviewed by managers, who make determinations based on the collected data.
An executive information system is useful for examining business trends, allowing users to quickly access custom strategic information in summary form, which can be reviewed in more detail
A marketing information system (MIS) can be used by marketing managers and researchers to manage a vast flood of information by organizing data in a logical and availableway. Over this system, a business can monitor its performance in the market and identify difficulties and opportunities with in a market
The potential usage in the business sectors
To get the maximum benefits from our firm’s information system, we have to activate all its capacities. Information systems increase their importance by processing the data from firm inputs to generate information that is useful for managing our operations. To increase the information system’s effectiveness, we can either add more data to make the information more accurate or use the information in new ways.
Part of management is gathering and distributing information, and information systems can make this process more efficient by allowing managers to communicate rapidly. Email is quick and effective, but managers can use information systems even more efficiently by storing documents in folders that they share with the employees who need the information. This type of communication lets employees collaborate in a systematic way. Each employee can communicate additional information by making changes that the system tracks. The manager collects the inputs and sends the newly revised document to his target audience.
How we manage our firm’s operations depends on the information we have. Information systems can offer more complete and more recent information, allowing we to operate our firm more efficiently. We can use information systems to gain a cost advantage over competitors or to differentiate ourself by offering better customer service. Sales data give us insights about what customers are buying and let we stock or produce items that are selling well. With guidance from the information system, we can streamline our operations.
The firm information system can help we make better decisions by delivering all the information we need and by modeling the results of our decisions. A decision involves choosing a course of action from several alternatives and carrying out the corresponding tasks. When we have accurate, up-to-date information, we can make the choice with confidence. If more than one choice looks appealing, we can use the information system to run different scenarios. For each possibility, the system can calculate key indicators such as sales, costs and profits to help us determine which alternative gives the most beneficial result.
Our firm needs records of its activities for financial and regulatory purposes as well as for finding the causes of problems and taking corrective action. The information system stores documents and revision histories, communication records and operational data. The trick to exploiting this recording capability is organizing the data and using the system to process and present it as useful historical information. We can use such information to prepare cost estimates and forecasts and to analyse how our actions affected the key firm indicators.
Information System provides the following advantages.
1. It Facilitates planning
Information System progresses the quality of plants by providing appropriate information for sound decision – making . Due to increase in the size and complexity of firms, managers have lost personal contact with the scene of operations.
2. In Minimizes information overload
Information System change the bigger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.
3. It Encourages Decentralization:
Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. Information System is successfully used for measuring performance and making necessary change in the organizational plans and procedures.
4. It brings Co-ordination
Information System facilities combination of specialized activities by keeping each section aware of the problem and requirements of other sections. It connects all decision centers in the firm.
5. It makes control easier
Serves as a relationship between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost.
6. Information System assembles, process , stores , Retrieves , evaluates and Disseminates the information
Information systems are used by organizations to track, store, manipulate and distribute information to the appropriate people when necessary. Using a management information system can enable a business to streamline its operations into a cohesive functioning unit. Management information systems support business decision-making by providing management with critical data. They serve to enhance the organization’s communication, reduce human labor, support short- and long-term business goals and distribute complex information.