INFORMATION SYSTEMS

Impact of Information Systems on Business Enterprise

[Name of Supervisor]

Impact of Information Systems on Business Enterprise

Question No.1

(a)Evaluate the impact of information systems (IT systems) in transforming business

Information system is playing an effective role in transforming business in an instant through their ability of sharing information. Due to lightning-fast technology, the overall pace of business is progressing day by day.

In past, sharing information among different individuals and parties who were located in different countries or cities was very expensive. At that time, face-to-face meetings and long-distance phone calls were the only options they were offered (Venkatraman, 1999). In last few years, IT has emerged as the backbone for the performance of various business functions. With its increased role in the enterprise, the IT function has completely transformed (Peterson, 2003, pp.767-81). With the evolution of IT organizations, from technology providers into service providers, it is necessarily required to take IT management from a different perspective. IT Governance aimed to contribute in the existing business performance and operations as well as position and transform IT in order to meet future challenges in business while IT Management domain focuses on the effective and efficient supply of IT products and services as well as the management of IT practices. IT Service Management keep a track of services delivered by IT at the center of IT management and is commonly defined as “a set of processes that are cooperated in order to ensure the quality of live IT services, in accordance with the levels of service satisfying customer demand” management domains are superimposed by it. These management domains include network management, systems management, systems development, and on various process domains involving problem management, asset management and change management (Grembergen, 2004, p.123).

It is no more considered only as a technology partner but now it is also considered as a strategic partner. Due to this revolution, IT infrastructure is leading towards a highly adaptive and centralized model

(b) What impact and effect these had on the way businesses operate and produce their products and services?

With the implementation of information system in business, advancement has been brought to business practices by developing effective communication all around the world. With the help of information technology, information can download and sent easily. Following are the ways in which this technology has affected business practices:

Web conferencing

With the rapid advancement in technology, organizations are more focused to expand their business throughout the world as it has become much easier than past. Web conferencing is observed to be a cost-effective and efficient way to manage different business issues. Web conferencing is a technology in which internet connection is used to carry out business meetings and live group discussions among people who live in different areas of the world. . For instance, conferences and meetings can now take place via low-cost services such as Skype that also offers free services to users. Web conferencing helps businesses to save a great deal of money on travel costs by providing easy and simple communication. This helps the business ...