Information system (IS) can be... free essay sample

Information system (IS) can be defined as an organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. Today, we mainly depend on IS to communicate worldwide in a more effective and efficient way using a variety of physical devices (hardware) , information processing instructions and procedures (software) , communications channels (networks) , and stored data (data resources) according to OBrien, ;Marakas, 2007.Hasan ;Shamsuddin;Aziati (2013), are category that there is more stress on most organizations to make their operational, tactical, and strategic processes to become more efficient and effective with the growth of a competitive global environment. Therefore, an information system (IS) is also a group of components which can increase competitiveness and gain better information for decision making. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers to analyze problems, visualize complex subjects, and create new products. Information system has been of immense help to the organisation during the year 1960s with the transformation of office automation to replace manual task. The backbone of office automation is a LAN, which allows users to transmit data, mail and even voice across the network. All office functions, including dictation, typing, filing, copying, fax, Telex, microfilm and records management, telephone and telephone switchboard operations, fall into this category. However the use of IS was mostly to perform activities like transaction processing, recordkeeping, and produce meaningful reports and it was mainly used for electronic data processing (EDP).EDP is described as the use of computers in recording, classifying, manipulating, and summarizing data. It is also called information processing or automatic data processing. Record-KeepingTo take corrective action, all company need records of its activities for financial and regulatory purposes as well as for finding the causes of problems. Information system uses a data warehouse which is a single, complete and consistent manner, where data are obtained from a variety of different sources made available to end users in what they can understand and use in a business context. Microsoft office software (word and excel) is an example of such tool that can read, amend, search or add any data by using the system to process and present it as useful, present or historical information. Today the need of such information is utmost important to prepare cost estimates and forecasts and to analyze how our actions affected the company key indicators. In the account department, for example, it helps manage invoices, paying, collecting and reporting with consistency and performing to the highest standards. Data which are stored in the information system, allow user to later search, use, update or delete. Even in the administrative area information system were integrated with the accounting and financial system to increase efficiency. It reduces the number of tasks that would otherwise need to do manually. IS helps to gain more time to work on more value added project to the business, allowing organization to become innovator and giving more incentive. Some examples and advantages of record keeping are:†¢ It helps you record business transactions, including income and expenses, payments to workers, and stock and asset details.†¢ Less storage space are required therefore it is Efficient way to keep financial records. †¢ It helps by providing the recording a sale when you raise an invoice, not when you receive a cash payment from a client.†¢ Easy to generate orders, invoices, debtor reports, financial statements, employee pay records, inventory reports.†¢ It provides quick reporting functions.†¢ Back up records and keep them in a safe place in case of fire or theft is one of its powerful toolsDecision-MakingIn most organization, information system can help to make better decisions by delivering all the required information and by modeling the results of their decisions. This includes choosing a path of action from a number of options and carrying out the equivalent tasks. Accurate and up-to-date information gives more confidence for decision making. One can use the information system to run different scenarios if more than one choice looks appealing. To determine key indicators such as sales, costs and profits, the system can help you determine which alternative gives the most advantageous result for each possibility. Time-keeping Normally workers who work per hour are paid in accordance to their working hours during the pay period. A time-keeping system is used by the employer to calculate hours and pay hourly employees accordingly. However, it is critical to input each employees time as accurate as possible. An employer uses a time clock to track work hours of his employee. Therefore, we require a manual payroll system for computing the time clock data by hand; this result to likelihood of mistakes. On the other hand an automated time-keeping system allows the employer to import time clock data into payroll software. Nowadays, to clock in and out, the employee uses a swipe card or badge, or the hand print or fingerprint method. It is an online processing method, once there is an input, the entries go immediately into the payroll software, and the software calculates the time worked. In the payroll department the operating staff member should ensure the time is transported appropriately and gives the go ahead to the software to do the operation.Some examples of Payroll software are QuickBooks, PenSoft, Z-Pay, Ultipro and Sage Peachtree which calculates gross-to-net earnings based data received. It is therefore utmost important that input are accurate so as to have good result. Davoren,( 2018)Implementation of MRP/ERPAnother evolution of IS, is in the field of manufacturing through the introduction of Material Requirements Planning (MRP) in the year 70s-80s. The MRP is a computerized inventory management system that helps production managers plan and schedule the purchase of raw materials and com ponent parts for manufacturing facilities. The (MRP) combined data from both production schedules and inventory system and the bill of materials (BOM) to calculate purchasing and shipping schedules for good, services and works. Materials Requirement Planning (MRP) and Manufacturing Resource Planning (MRP II), later evolved into ERP (Enterprise Resource Planning)The ERP are applied in the areas such as:? The Accounting department (account payable/receivable etc)? The Human resources department (payroll, time sheets, training etc)? The Manufacturing process (bill of materials, QC, managing the manufacturing process etc)? The Supply chain management (stock control, purchasing, scheduling)? Customer relationship management (sales and marketing, support and customer service)? Project management (managing costs, forecasting, time and activities)? The quality assurance management (verification of product specification before giving release)? Data warehousing (document management: Track both short-term and long-term data in the wo rld of financial plans, workforce allocation plans, marketing, inventory, and other aspects of business)Benefit of ERP system in an organization: Source: www.workwisellc.comOperations ManagementTo manage your companys operations depends largely on the information you have. Todays Information systems can offer full and up to date information, so that you can operate your company more efficiently. Information systems can be used to gain more cost advantage and differentiate yourself to your competitors by offering better customer service. For example sales data give you indication about what customers are procuring and let you replenish items that are selling well. With information system, you can streamline your operations (organization or system) more efficient and effective by promoting faster or simpler working methods. However to achieve the maximum benefits from your companys information system, you have to exploit all its capacities. Greater advantage is achieved with Information systems by processing the data from company inputs to generate data that is useful for managing and controlling your operations. The following steps can be taken to increase the information systems effectiveness; more data can be added to make the information more precise or use the information in a new way.? Production efficiency –investing on a fully automated machine that will render production more efficient since no thinking is needed by the machine, therefore less human error and no losses. ? Accuracy and reliability – once an automated machine is programmed to perform a task over and over again, the accuracy and reliability compared to an i ndividual is far greater.? Reducing human error – since no one is perfect, and we are all prone to making mistakes. This is the reason why a machine that performs repeated tasks is less likely to make mistakes than an individual.? Reduce costs – introducing automated machines to an operation, means less employees are needed to get the job done. It also indicates less safety issues, which leads to financial savings. With less people are employed, there are numerous costs that are diminished or reduced such as payroll, benefits, sick days.? Increased safety – with automated machines means having less employees who perform tasks that can be dangerous and prone to injury, which can make the work environment safer.? Increase in production volume – investing in automated equipment creates a valuable resource for large production volumes, which in turn, will increase profitability.Communication SystemsThe routine task of management is gathering and sharing of information, and information systems can make this process more efficient by allowing managers to communicate rapidly. Todays managers can use information systems even more efficiently by storing documents in folders on a shared files using network, that they share with the employees who need information The use of email, video conferencing, video call are quick and effective. Each employee can communicate additional information by making changes that the system tracks. The manager collects the inputs and sends the newly revised document to his target audience. This type of communication lets employees, customers and suppliers collaborate in a systematic and efficient way. Markgraf, (Updated 2018)To ConcludeImplementing information systems within an organization can prove to be costly. Implementation costs include not only installation of the systems but also employee training sessions. Most of the time, employees may see the innovation of an existing systems as an unwarranted change and, thus, may resist this change. Very often resistance to such changes can led business operations inactive and thus harming the business. Therefore the organization should have strong leadership in place to assess the adequacy of the decision to have an information system. As well as to guide the company through such transition phase and weigh information systems cost against the potential benefits.