The module Information Systems Strategy module mainly focuses on information systems and the strategies that has been taken in business industry.
Theory and Application:
Information systems run a main role in most of the companies. The reason for this is now a day most of the companies based on automated systems and office day to day work involve with systems.
According to Hardcastle (2008) the main role of the information system is to provide information to management in order to make decisions. In order to make decisions information is needed. Data i the first step of information, the out put of data is information.
Data has three dimensions. They are,
- Time
- Form
- Content
In-order to process information data need to have above mentioned three dimensions.
As Tyran explained (2012) In information processing there are five components. They are called as 5 Cs in information Processing.
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| Figure 1: 5 Cs in Information System |
Above has mentioned the 5 components involve in information processing. In information processing each and every component need to be include in-order to have an effective output. Below table has illustrates of the purpose and the technology that can use in each component.
Table 1: Purpose and Technology in 5 Cs
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Above mentioned purpose need to be fulfill by each components to called a proper information system.
Process of Information System:
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| Figure 2: Process of Information System (intranet.ibta, 2012) |
Above mentioned figure illustrates about process of information system. The main three components of this process are, input, process and data. This process can expand more as below.
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| Figure 3: Process of Information System |
Above figure is expansion of process of information system. Data is the input and data should have time, form and content. Then it goes through a process and get the put come. That is information. Information use to make decisions. Several decisions combine and make knowledge and this knowledge converts to an information system (wisdom). This information system help to find data, take decisions etc.
Information systems involve in most of the activities in organization. Any level of an organization use at least use a simple automated system which helps to work fast.
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| Figure 4: Organization Hierarchy (Khoil, 2012) |
Above figure describes of different level in an organization, information systems that involve in each level and type of decision that made in each level. In operational level capturing, creating and converting data to information that helps to take decisions among the same level or in tactical management. In this level make decisions like how, when and what involves decisions. Ex:- How to increase sales?, How to make profit etc. For this use transaction processing systems. In this level make structured decisions which help to upper level management to take high risk decisions. In this level risk is less compare to other two levels in the hierarchy. In tactical level communicating, storing related works take place. In tactical level management make semi structured decisions using management information systems. They mainly take medium term decisions. These decisions helpful to the strategic level management when they make decisions. The most top level strategic level only involves in communicating. They are the ones take long term decisions for the organization. In this level unstructured decisions be taken. The risk is very high in this level. Because whatever the decisions made by this level effect on the future of the organization. In this level use decision support systems which helps to senior management to make risk decisions.
Application:
In tire manufacturing company the manufacturing of tires and other procedures supervise by the supervisors that has appointed into each section. In manufacturing tires there are several steps to follow such as check raw materials, mix them etc. each process is supervised by the supervisors. Collected information from these processes make decisions and go ahead with current process and the report of the current process will hand over to the tactical level management. For this level managers for different department includes. Managers go through the current process and make decisions in monthly production and need raw materials etc to the tactical level and final report will send to the strategic level of the management. In this level directors, CEO includes they check for the reports like sales, production etc and take long term decisions like improvements need to be done to the company.
Reflection:
Information systems play a main role in organizations. Information system is a subset of information technology. Information system focuses on software and information technology focuses on hardware. In order to use systems need data. Data insert to the system and goes on process and as an outcome information comes out which helps to make decisions in many levels in organizations. In this process 5 Cs need to be perform in-order to make a proper information system.
The main reason for this is these systems help to reduce the most of the problems in manual procedures that took place in organizations. Mainly problems like data redundancy, data isolation inaccurate data etc. These problems leads to make wrong decisions in the organizations. For solution for these problems people came up with systems. From this it helps to store, create, update and manage data in accurate way. The information was more efficient which process from these systems. With the development of the technology information systems developed which helps to make most risky decisions in organizations. Ex:- Decision Support System.
Now information systems use in any level of the organization. These information systems save time, help to complete tasks more accurate way. From this it eliminates unnecessary work force as well from this it affect company cash flow in a positive way.
References:
Hardcastle, E. (2008). Role of information system. [Online]. Available at: http://www.promeng.eu/downloads/training-materials/ebooks/business-information-systems.pdf
[Accessed 31st October 2012].
Intranet.ibta. (2012). Process of Information System. [Online]. Available at: http://intranet.ibat.ie/moodle/course/is_management/mis10e/images/img01_04.jpg - Process of information system [Accessed 31st October 2012].
Kohli, S. (2012). Organizational Hierarchy. [Online]. Available at: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGhKcc18O-Uy_adybZDX4wlmQAduDwKIJy4mH1Tq9IjVlJBzplKkawDrLTvBwUdb58VWXKmtMU2KWcvri0yUtr5QBTlvVjJPfDDn9CWIzIWA8Ps_eMnLcLmIiMJCf6-Qy2c1qV5y3Tsej5/s1600/Picture1.png [Accessed 31st October 2012].
Tyran, C. (2012). 5Cs in Information System. [Online]. Available at:
http://www.google.lk/urlsa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CCwQFjAC&url=http%3A%2F%2Fwww.cbe.wwu.edu%2Fmisclasses%2Fmis320f10pencil%2FPresentations%2F03%2520Types_of_IS_post.ppt&ei=5tdUKuDCMryrQfl0IGgAQ&usg=AFQjCNHnd9e11gmdohM0SCHDBY_8F4LMvw&sig2=1r5qFpmdBoY5HgkS0uX_EA [Accessed 31st October 2012].
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