INFORMATION SYSTEM

Impact of Information System On Business

Impact of Information System On Business

Introduction

Information system is the system of mixture of information technology and people's activities that help in operations, management and decision making process. It commonly referred to the interaction between people, procedures, information and technology. It is the process of not only communicating and sharing of information but also the procedures and methods used for this interaction. In the modern age, information system becomes a vital aspect of not only large business entity but also the small business entity. This is only because the information system has showed dominant results in the business environment. The impact of information system on an organization can be classified in respect of Management Information System, Decision Support System, Transaction Processing System and Negotiation Support System. If we concern the business, we deal mainly with the three types of systems i.e. Management Information System, Decision Support System and Transaction Processing System.

Discussion

Organizing, summarizing and generalizing the information for the managerial decisions is the ultimate goals of the Management information system for internal reporting. Information gathered, documented and accounted manually before the development of technology. This resulted in the delayed process and inept management performance. With the development in the field of technology, it becomes more efficient and effective. It is only because of the development of computational technology that related information can be distinguished from data, and now there are systems which can organize abstractions, summarize the detailed information and generalize the information on the basis of data.

It is due to the developed technology that a huge amount of data can not only be stored easily but also links up for managers to sort out the intricate abstraction from the raw stored data. Usually Management Information System develops to facilitate the managers regarding the information about sales, purchases, inventories, locating orders and other data that would be helpful in managing the organization and its activities.

Today, Management Information System, refers in various aspects such as to support decision making process, planning, managing and using of resources, managing social responsibilities in terms of employees, customers and vendors, managing performance of enterprise, managing supply chain, project management and applications of retrieval of database. The day to day progression in Management Information System not only supports long range of business plans but also provides reporting, which depends upon performance analysis in critical areas, receives feedback necessary for the organization in every aspect and also in recruitment and training process. The main advantage of the Management Information System is that it identifies both the situations of success and failures in meeting the objectives, plans and goals. It is also helpful in accessing the performance of cost centers and project analysis for accountability of an individual.

Decision support system is yet another computer based information system that helps the organization or business in decision making process. Decision Support System provides management with the different operational and planning activities of an organization which help in decision making process which are generally not specified in ...