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Roles of information systems in modern organizations

The INFORMATION SYSTEM takes on a major role in the organization by satisfying the diverse needs through a number of systems such as Query systems, Examination systems, Modeling systems and Decision support systems.

It helps the Clerical workers in transaction processing and answers their queries on data regarding transaction. It helps junior management by giving operational data for planning and control, and helps them in Decision-making. It helps the Middle management in short-term planning, target setting and controlling business functions. It can help Top management in goal setting techniques, planning and changing business ideas and their implementation.


At the operational level are orders processing systems through which products were created, promoted, produced, and sent. These systems build up information in directories that form the foundation for higher-level systems.

In today's leading organizations, the info systems that support various functional units-marketing, finance, production, and real human resources-are integrated into what is called an enterprise source planning (ERP) system. ERP systems support the entire sequence of activities, or value chain, through which a company may add value to its goods and services. For example, a person or other business may post a custom order over the Web that automatically initiates "just-in-time" production to the customer's exact specs through an procedure known as mass customization. This involves sending requests to the firm's warehouses and suppliers to deliver materials just with time for a custom-production run. Finally, financial accounts are up to date consequently, and billing is set up.

Along with assisting to assimilate a firm's own value string, transaction handling systems can also provide to assimilate an organization's overall resource chain. This consists of all the various firms involved in making, marketing, producing, and delivering the products and services-from raw materials to final delivery. Thus, inter organizational information systems are essential to supply-chain management. For instance, purchasing something at a Wal-Mart store generates greater than a cash register receipt; it also automatically sends a restocking order to the appropriate supplier. Suppliers can also access a retailer's inventory data source over the net to schedule reliable and timely deliveries.

Many transaction control systems support electric commerce online. Among these are systems for on-line shopping, bank, and securities trading. Other systems deliver information, educational services, and entertainment on demand. Yet other systems serve to aid the search for products with desired traits, price discovery (for example, via an auction), and delivery of products within an electric form (software, music, films, or handmade cards). A growing array of specific services and information-based products are made available from various organizations on the net, as an infrastructure for electronic digital commerce is rising on a worldwide scale.


A large percentage of work within an information society entails manipulating abstract information and knowledge, alternatively than directly handling, manufacturing, or providing tangible materials. Such work is called knowledge work. Three basic types of information systems support such knowledge work: professional support systems, office information systems, and knowledge management systems.

Professional Support System

Professional support systems provide facilities needed to perform jobs specific to a given profession. For example, automotive designers use computer-aided executive (CAE) software together with "virtual fact" systems to create and test new models for energy efficiency, managing, and passenger coverage before producing prototypes, and later they use CAE in the design and examination of physical lab tests. Biochemists use special three-dimensional modeling software to visualize the molecular framework and probable effect of new drugs before investing in lengthy clinical tests. Investment bankers often make use of financial software to calculate the expected rewards and potential dangers of varied investment strategies. Indeed, specialized support systems are actually available for most occupations.

Office Information System

The main targets of office information systems are to assist in communication and cooperation between the participants of a business and to facilitate them between organizations. Positioning an organization's documents and information in an electric format-which can be grouped, indexed, and stored for easy retrieval-enables individuals to gain access to information on demand. One type of office information system, known as a workflow system, is utilized to course relevant documents automatically to all or any appropriate individuals because of their contribution. Other styles of office information systems take care of digital information in the proper execution of e-mail, facsimile, and words mail.

Another group of office information systems allows different individuals to work all together on a distributed task by using networked pcs. Known as groupware, such systems accomplish this by continually mailing up to date documents-such as business proposals, new designs, or progress reports-to each collaborator's computer. They and their pcs do not need to be located in the same office or even the same building. Groupware is usually deployed over an intranet, a private network that is sealed to everyone, and is also often seen by using software originally developed online.

Knowledge management systems

Knowledge management systems provide a means to put together and take action on the data accumulated throughout a business. Such knowledge may include the text messages and images within patents, design methods, best practices, competitor cleverness, and similar options. Organizational knowledge is often tacit, somewhat than explicit, so these systems must escort users to participants of the organization with special competence. Access to an organization's knowledge is often provided via an intranet equipped with specialised search software. The next section, Management support, identifies how information systems are used to assemble reports and reach executive decisions.


Management confirming systems

A large category of information systems includes those designed to support the management of a business. Those systems rely on data obtained by transaction control systems, as well as data purchased outside the corporation (such as business intellect gleaned on the web) and data provided by business associates, suppliers, and customers.

Information systems support all levels of management, from those responsible for short-term schedules and budgets for small work organizations to those worried about long-term plans and finances for the complete organization. Management reporting systems provide tedious, comprehensive, and voluminous information reviews specific to each manager's regions of responsibility. Generally, these records focus on past and present performance, alternatively than projecting future performance. To avoid information overload, records are automatically sent only under exceptional circumstances or at the precise request of the manager.

Decision support systems

All information systems support decision making, however indirectly, but decision support systems are expressly designed for this purpose. Both principal varieties of decision support systems are model-driven and data-driven.

In a model-driven decision support system, a preprogrammed model is applied to a limited data set, like a sales data source for today's quarter. During a typical program, an analyst or sales administrator will carry out a dialog with this decision support system by specifying a number of "what-if" cases. For example, to be able to determine a selling price for a new product, the sales manager could use a marketing decision support system. Such something is made up of a preprogrammed model relating various factors-the price of the merchandise, the expense of goods, and the campaign expense-to the projected sales level above the first five years on the marketplace. By supplying different product prices to the model, the administrator can compare predicted results and select the most profitable value.

The primary goal of data-driven decision support systems is to analyze large private pools of data, gathered over extended periods of time in "data warehouses, " in an activity known as data mining. Data mining searches for significant patterns, such as sequences (buying a new house, accompanied by a new dining room table) and clusters (large people and truck sales), with which decisions can be made. Data-driven decision support systems add a variety of statistical models and count on various artificial intelligence techniques, such as expert systems, neural systems, and intelligent agents.

An important group of decision support systems allows a group of decision makers to interact without always being in the same place at the same time. These group decision systems include software tools for brainstorming and achieving consensus. Another category, geographic information systems, can help examine and display data by using digitized maps. By looking at a geographic syndication of mortgage loans, for example, one can easily establish a routine of discrimination.


Executive information systems make a variety of critical information readily available in an extremely summarized and convenient form. Older managers characteristically use many informal resources of information, however, so that formal, computerized information systems are of limited assistance. Nevertheless, this assistance is very important to the chief exec officer, senior and executive vice presidents, and the mother board of directors to screen the performance of the company, assess the business enterprise environment, and develop tactical directions for the future. Specifically, these executives need to compare their organization's performance with this of its competitors and investigate basic economic fads in regions or countries for potential enlargement. Often counting on multiple media, professional information systems give their users an opportunity to "drill down" from conclusion data to increasingly detailed and concentrated information.


When an information system is executed internally by a business, 1 of 2 methods is used: life-cycle development or immediate software development (RAD).

Large organizational systems, such as transaction handling systems and management reporting systems, are usually developed and managed through a systematic process, known as something life circuit that includes six periods: feasibility research, system research, system design, programming and testing, unit installation, and operation and maintenance. The first five periods matter system development proper; the last stage requires long-term exploitation. Carrying out a amount of use (with maintenance as needed), as the shape shows, the info system may be either eliminated or upgraded. In the case of a major update, the system enters another development life circuit.

The principal aim of an feasibility study is to determine whether the system is desired on the basis of long-term plans, tactical initiatives, and a cost-benefit analysis. System analysis offers a detailed response to the question, what will the new system do? The next stage, system design, results in an comprehensive blueprint for how the new system will be planned. During the programming and testing level, the individual software modules of the machine are developed, tested, and integrated into a coherent functional system. Further levels of testing ensure continuing quality control. Set up includes final assessment of the machine in the work environment and change of organizational operations to the new system. The later stages of development include such execution activities as training users and modifying the organizational techniques where the system will be used.

Life-cycle development is frequently faulted because of its long development times and voluminous paperwork requirements-and, in some instances, for its inability to fulfill the user's requirements at the end of the long development street. More and more, life-cycle development has been substituted by a process known as immediate application development. With RAD an initial working version of a credit card applicatoin, or prototype, is made quickly and inexpensively, albeit imperfectly. This prototype is converted to the users, their reactions are collected, suggested changes are contained, and successive prototype versions eventually evolve into the complete system. Sometimes RAD and life-cycle development are combined: a prototype is produced to ascertain user requirements through the initial system evaluation stage, after which life-cycle development gets control.

After an installed system is handed over to its users and operations personnel, it'll almost invariably be improved thoroughly over its useful life in a process known as system maintenance. For instance, if a large system takes 2 years to develop, it will typically be used and maintained for a few 5 to 10 years or even much longer. Most maintenance is to modify the system to the organization's changing needs and also to new equipment and system software, but inevitably some maintenance requires correcting design mistakes and exterminating software "bugs" as they are discovered

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