Several viewpoints on information systems illustrate that the study of information systems is a field with multiple disciplines and therefore, no single theory or perspective governs. In most cases, the field can be separated into behavioral and technical approaches. The behavioral approach can be broken down even further into sub-categories to add economics, psychology, and sociology. The technical approach can even be divided into sub-categories to add management science, computer science, and procedures research.
A very important aspect of the information systems field is involved with behavioral conditions that surface in the development and preservation of information systems. Problems like strategic business design, implementation and utilization, and management cannot be fully explored with the models by using a technical approach. Behavioral disciplines such as economics, psychology, and sociology can also contribute essential concepts and processes. For instance, economists study information systems mainly considering what impact systems have on cost structures within the business and within its particular market. On the other hand, Psychologists are thinking about how human decision makers comprehend and use information. Finally, sociologists study information systems looking for how groups and organizations form the development of systems and also how these different systems affect individuals, groups, and organizations ("Information Management", 2010).
The behavioral approach does not completely ignore technology. In fact, information systems technology is frequently the explanation for a specific behavioral problem or issue. But usually the heart of this approach is not normally geared toward technical solutions. Instead it centers on modification in attitudes, management and organizational policy, and behavior.
The technical approach to information systems puts emphasis on mathematically based models to study information systems, in addition to the physical knowledge and skills of the systems. The disciplines that are likely involved in the technical approach are computer science, management science, and businesses research. Computer science is due to creating theories of computability, means of computation, and methods to effective access and storage of data. Management science highlights the growth of models for decision-making and management procedures. Lastly, businesses research deals with mathematical methods for optimizing business issues such as inventory control, transportation, and transaction costs ("Information Management", 2010).
Building, operating, and maintaining information systems in today's fast-paced business community can be very challenging. These key management challenges are based on a variety of problems such as information system investments, strategic business decisions, globalization, information technology infrastructure, and ethics and security.
If managed intelligently, investments in information systems can improve employee's lives and a business's efficiency. For instance, over the past twenty years the web has developed form a technical innovation to a personal and business necessity. Some business's have recognized considerable improvements in processing information by changing from mainframe computing to computers connected by geographic area networks (LAN). The power of applications to recognize and correlate pertinent data in a data warehouse allows businesses to uncover unidentified financial or physical resource relationships and for that reason provide suitable assistance where there have been none. However, combined with the ability to improve lives and organizations, some information system investments can become risky, costly, wasteful mistakes. To overcome these challenges, senior management personnel need to be in a position to successfully evaluate these investments to guarantee the correct return on investment (ROI) (Laudon & Laudon, 2006).
You can pick up any management book and you could read about the importance of developing a strategic plan, and ideas about how precisely to both develop and implement your plan. On the other hand, you'll also find articles that you imply that strategic planning does not work because it is impossible to develop a permanent plan in this ever changing business environment. For me, the truth lies somewhere among.
Strategic planning will surely help you to get prepared on what you need to accomplish over the next years, what things you will need to accomplish those goals, and exactly how to go about accomplishing your goals. The trouble is usually that the great things about strategic planning can be easily lost. These plans fail mostly because of what happens after the procedure for strategic planning. Generally, a great effort switches into creating and developing a strategic plan, which is then quickly put away and forgotten, even by the individuals who created it. The goal of strategic planning lies not only in the development of the plan, but also in its implementation. Implementing the strategic plan is only going to work if you are obvious about what this plan can bring to you and the organization.
The strategic plan needs to have value, not only to the organization, but also to the employees. The end result is that the program must be utilized by everybody. A strategic plan needs to be used as a decision-making tool from the top of the organization completely to underneath. Chief Executive Officers should be able to use it to make decisions on the direction of these business, mergers, or staffing. Managers should also have the ability to put it to use to make decisions for the priorities with their departments goals and objectives, also to align the task of their department with the entire goals of organization. Lastly, every employee must have the ability to use the plan to recognize his / her own goals, and where they can fit in big scheme of things. When implemented correctly, a strategic plan really helps to add meaning and focus to not only every individual, but the organization as a whole ("Information Systems", 2010).
The globalization of it warrants special attention by business executives, government officials and scholastic researchers for a variety of reasons. First, is that it and systems are high-technology industries of considerable size and with significant potential for stimulating economical growth and jobs. The immediate growth in global trade and the surfacing of an international economy require information systems that can sustain both production and selling of goods and services in numerous countries. Second, access to the most up-to-date computer and telecommunications technology is central to competitive success in nearly all industries. Government policies which deliberately or inadvertently retard technological progress in the production and use of computers, information systems and telecommunications have important economical effects. Third, given language barriers, cultural, and political distinctions among dissimilar countries, this focus often led to confusion and the break down of central management controls (Laudon & Laudon, 2006). To overcome these challenges, it is imperative for organization to develop global hardware, software, and information systems standards. Additionally, organizations must have the ability to create global accounting and reporting methods and design worldwide business processes.
This particular challenge for businesses handles how organizations can form it infrastructures that can sustain their goals when business situations are changing at an instant pace. Aging infrastructure is obviously a huge issue in many industries that only gets bigger as time goes on. Some equipment may experienced external upgrades or facelifts, but in most cases, it has ended 70 years of age. Many organizations are left with expensive and unmanageable IT platforms that cannot readily adjust to innovation and change. Additionally, a competitive business environment and the pressures of the global financial situation weigh increasingly on companies' minds ("Information Systems", 2010). To fight this challenge, some organizations may be asked to redesign its organization and create a new it infrastructure to survive in this competitive business world.
Organizations must always be cognizant that their information systems are being used in both an ethically and socially responsible manner. Although information systems have provided many benefits, they also have created new ethical and security conditions that must be addressed. Every improvement in it can be tied together with at least one ethical dilemma. From Facebook to ordering merchandise online, computer users are ignorant of the delicate balance between ethical behavior and profits. Businesses, software and hardware developers, and individuals must consider what is ethically correct when using information technology on a daily basis. The principal issues essential to the world of it are the individuals expectation of privacy and the provider's ethical duty to utilize its applications responsibly ("Information Systems", 2010). The challenges organizations will face will be how to apply high-quality assurance standards to their information systems, as well concerning their products and services. Additionally, they have to develop information systems that aren't only secure but that remain simple to operate by most individuals.
A digital firm can be described as, "One where nearly every one of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediate" (Laudon & Laudon, 2006, p. 11-12). The firm's primary business processes are performed through digital networks encompassing the complete organization or connecting several different organizations.
A core or primary business process can be explained as the minimum single tasks to be completed to provide a certain level of reliability in output, without the considered to hardware, software, or performance. Whenever a core process is apply, anything can be put into make the procedure better, but nothing can be removed. Alternatively, a small business process can be defined as, "The set of logically related tasks and behaviors that organizations develop over time to create specific business results and the unique way these activities are organized and coordinated" (Laudon & Laudon, 2006, p. 12).
Digital firms are really powerful because they can sense and react to their ever changing surroundings considerably faster those traditions organizations. Because of their quick reaction and the actual fact that they are more adaptable than the original firm, digital firms are much more able to endure in unstable times. Because these new firms are completely digital, there exist much more opportunities for the kids in the global business word.
The Internet is quickly becoming the information system infrastructure of preference for electronic commerce. It provides organizations a fairly easy way to hook up with other business and individual at an unbelievably low cost. Additionally, it provides a complete and uncomplicated set of technologies and technology standards that can be implemented by any organization. Organizations can use Internet technology to drastically cut their transaction costs, time searching for buyers and sellers, and gathering information on products or services. This information reaches the fingertips of anyone with your personal computer and access to the web.
One example of a robust digital firm must be EBay. Following 2001, there were a high volume of dotcom businesses that failed, but there have been a few that held their ground, like eBay. The success of eBay is dependant on its capacity to transform many splintered, predominantly local markets into global ones at a comparatively low priced to its users (Simonsohn, 2010). People have always had a basic need and an appeal in investing used objects and collectibles items. Prior to eBay, people would have tried to sell their unwanted items through family garage sales, classified ads, and flea markets. Nevertheless, the amount of people accessible to market these items to was limited because of the fact that face-to-face transactions were more often than not required.
Another great exemplory case of a robust digital firm would be Google. Google isn't only legendary for producing and providing useful services, but it has also acquired a few innovative businesses and integrated them. Included in these are YouTube, Blogger, Picasa and Jaiku. Google used its digital background to use advantage of opportunities in the global business world, making them one of the very most powerful businesses up to now ("Google", 2010).
For most organizations, there are many different requirements for data or information. Senior managers continually need up-to-date information to help aide in their business decisions. Mid-level managers might need a bit more detailed information to assist them in monitoring and managing a large number of different business dealings. Lastly, supervisors and employees with operational roles need information to allow them to perform their everyday jobs. Consequently, organizations generally have a number of information systems operating at the same time. The three I am discussing will be the management information system (MIS), decision-support systems (DSS), and the transaction processing system (TPS).
A management information system (MIS) management information system (MIS)System used to extract data from a database and compile reports that help managers make routine decisions. obtains data from a database to compose reports, such as detail reports, summary reports, exception reports, and financial statements to assist managers in making better decisions. The various types of reports rely upon the precise information a particular manager may necessitate. A MIS is basically associated with internal resources of information. MIS generally receive data from the transaction processing systems (TPS) and reduce it into a sequence of management reports. MIS reports generally are used by mid-level managers and operational supervisors (Laudon & Laudon, 2006).
A decision support system (DSS)decision support system (DSS)Interactive system that extracts, integrates, and displays data from multiple sources to help managers make nonroutine decisions. is an interactive system that gathers, displays, and combines information from various sources to help managers make non-routine decisions. DSS are explicitly designed to help management make decisions in circumstances where there is doubt about the actual results of these decisions. DSS are made up of tools and procedures to help gather pertinent information and analyze decisions and alternatives. DSS often requires the use of complex spreadsheets and databases to produce what-if models (Laudon & Laudon, 2006).
The majority of organizations day-to-day activities are documented and processed by its transaction processing system (TPS)transaction processing system (TPS)Information system used to record and process an organization's daily activities or transactions. , which acquire input data and changes them into output information designed for a variety of users. Input data are called transactions which can be transactionsFinancial and nonfinancial events that affect a businessevents that affect an enterprise. Transaction Processing Systems (TPS) are intended to process everyday transactions accurately and efficiently. A business may have several transaction processing systems to add; billing systems, payroll and tax payments systems, production and purchasing systems, or stock control systems to handle all movements into and from the organization (Laudon & Laudon, 2006).
Although the countless different types of information systems are available to an organization and can be extremely beneficial to its growth, there are a few management challenges. A few of these challenges are the tension related to designing and building the information systems, the need for training for both management and employees, and the need to establish which information systems is the most critical, therefore which system receives a lot of the funding. For a business to overcome these challenges they want establish exactly what is necessary in terms of information systems. Next, they have to schedule and offer proper training to all company personnel, so they are familiar with the systems. Finally, they need to develop a approach to accounting for the price of the systems and their priority.
Most organizations compete in an rapidly changing, aggressive, global environment. Operating in a worldwide environment forces a business to concentrate on the most cost-effective implementation of its processes, customer service, and speed at which their products or services are taken to market. To attain these lofty goals, it is vital that the organization freely exchange useful information across different functions, levels, and business departments. By incorporating all its processes, the organization can better exchange information between departments, customers, and suppliers. The four key enterprise applications are enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems.
Enterprise systems incorporate the essential business processes of a business into another software system. Data from a number of functional areas are centrally housed and maintained where they can be retrieved and employed by other functional processes. This alters an organizations work flow. Now information can effortlessly run throughout the organization, increasing synchronization, efficiency, and decision making. Enterprise systems are really tricky to employ successfully and once employed, are specially hard to improve. "Enterprise systems, also known as enterprise resource planning (ERP) systems solve problems by providing a single information system for organization-wide coordination and integration of key business processes" (Laudon & Laudon, 2006, p. 56).
Supply chain management (SCM) can be described as an overseeing of resources, information, and finances as they move form supplier to manufacturer to wholesaler to retailer and lastly to the buyer. Supply chain management requires managing and integrating the information, goods, and services flow together within and among organizations. Supply Chain Management Systems (SCMS) are used to help a business manage its relationship with suppliers to optimize the planning, sourcing, manufacturing, and delivery of goods and services. SCMS supply information to aide suppliers, purchasing organizations, wholesale distributors, and logistic companies coordinate, schedule, and control business processes for their products and services (Su & Yang, 2010).
Many businesses make more benefit from ongoing relationships with the customers than from the original sale. Customer relationship management (CRM) is a term applied to processes implemented by an organization to take care of its contact with its customers. Customer relationship management systems (CRMS) concentrates on the coordination every one of the business processes encompassing the organizations with its customers in sales, marketing, client satisfaction, earnings optimizing services, and customer retention (Laudon & Laudon, 2006). In the current highly-competitive business surroundings, the success of a business relies greatly after maintaining and exceeding customer expectations for both service and value.
Knowledge management is the precise management of essential knowledge and information acquired by individuals such that it can be is effectively shared and made use of by other personnel in the business. Through the successful sharing of corporate intellectual assets, Organizational Knowledge must be efficiently changed into business intellect.
Personal knowledge concerning a business process must be converted into corporate knowledge ensuring it applied throughout consistently, ensuring obtain the most to the organization. The main function of an understanding Management System (KMS) must be to make information obtainable to all or any authorized users (Laudon & Laudon, 2006). However, implementing a straightforward information management system, file indexing and retrieval system is merely the beginning. Securing corporate knowledge requires more than software and technology, it needs solid document management software and cultural alteration of how information is produced, handled, stored, and distributed.