DEFINITION:
Henry Lucas defined information system as “a set of organization producers that where the executed provides information to support decision making and control in the organization”.
The
goal of any part of information system is thus to help managers to make
accurate quick and timely decision. Modern information system consist of
computer hardware, software, and information networks, data resources and human
resources to store, retrieve transform and disseminate information in an
organization.
IMPORTANCE OF INFORMATION SYSTEM:
To
gain the maximum benefits from your company’s information system, you have to
exploit all its capacities, information system gain their importance by
processing the data from company inputs to generate information that is useful
for managing your operations. To increase the information system’s
effectiveness, you can either add more data to make the information more
accurate or use the information in new ways. From the following points the
importance the information system can be judge.
1.COMMUNICATION:
Part
of management is gathering and distributing information, and information
systems can make this process more efficient by allowing managers to
communicate rapidly. Email is quick and effective, but managers can use
information systems even more efficiently by storing document in folders that
they share with the employees who need the information. This type of
communication lets employees collaborate in a systematic way. Each employees
can communicate additional information and sends the newly revised document to
his target audience.
2.OPERATIONS:
How
you manage your company’s operations depends on the information you have.
Information systems can offer more complete and more recent information,
allowing you to operate your company more efficiently. You can use information
systems to gain a cost advantage over competitors or to differentiate yourself
by offering better customers service. Sales data give you insights about what
customers are buying and let you stock or produce items that are selling well.
With guidance from the information system, you can streamline your operations.
3.DECISIONS:
The
company information system can help you make better decisions by delivering all
the information you need and by modeling the results of your decisions. A decision
involves choosing a course of action from several alternatives and carrying out
the corresponding tasks. When you have accurate, up-to-date information, you can
make the choice with confidence. If more than one choice looks appealing, you
can use the information system to run different scenarios. For each
possibility, the system can calculate key indicators such as sales, costs and
profits to help you determine which alternative gives the most beneficial
result.
4.RECORDS:
Your
company needs records of its activities for financial and regulatory purpose as
well as for finding the causes of problems and taking corrective action. The
information system stores the documents and revision histories, communication
record and operational data. The trick to exploiting this recording capability
is organizing the data and using the system to process and present it as useful
historical information. You can use such information to prepare cost estimates
and forecasts and to analyze how your actions affected the key company
indicators.
Post A Comment:
0 comments so far,add yours
Post a Comment