Helpful Information Systems Categories for Business

There are different aims and objective which has been set during the course of conducting this respective essay. Mainly there will be focus on several categories of information system and how it can be effective. On the other side ERP system is being used widely and that has a direct outcome on overall result of an organisation. In the last part, number of benefits will explained which company can have just because of ERP system. Also, main target will be to clear that doubts that how favourable decisions can be obtained if in any of the circumstances, business uses the system like ERP for their organisation.

MAIN BODY

Information System (IS) is explained as a group of interrelated components which uses input, processing, storage, output and control action for the purpose of conversion of data into understandable information. It is crucial in any of the circumstances because it helps to take some of the effective decision through which chances of occurrence of goals increases automatically. There are number of categories of IS such as Data Processing System (DPS), Management Information System (MIS), Decision Support System (DSS) & Executive Information System (EIS). All of this Information system has its own importance and effect on business organisation. It is because it helps to obtain desire result which is required by any of the association.

Talking about Data Processing System, it is understood as one of the most effective Information system technique which simply allows to store data and information. This system is also determined as a Transaction Process System as it deals with number of transaction on a daily basis which allows to keep data and system safe and secure (INFORMATION SYSTEMS - INTERMEDIATE IIUSING INFORMATION, 2019). In case of business organisation, this types of work is performed at operational level where work load is comparatively high and it becomes difficult to manage every single work. The second category of Information system is

Management Information System (MIS) where it is crucial as it help to collect internal as well as external information. The collected information is further presented in front of manager where chances of taking positive decision increases automatically. There are benefit as well as disbenefit of MIS as it is not so flexible in nature and capabilities and on the other side, it allows to present data in the form of weekly, monthly and yearly basis. When it comes to

Decision Support System, it can be clearly said that each and every work must be performed by taking proper support where effective decision has been taken by the management. This types of information system is very effective in nature because it simply gives idea to overview the performance of an organisation (Veit and et. al., 2014). Also, option is available in it where rules and regulation of premisses can be placed in the form of decision table which are mainly developed for decision making process. If all of this work can be managed properly, then chances automatically increases for proper planning and forecasting. For example: there is a high probability that DSS will give option to manager where they can review each and every work in a systematic manner with their output. It can be the way to decide whether decision should be taken or not and if not what can be the suitable way for effective result.

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In case of Executive Information System, this will simply allow the business organisation to plan each and every work and review the work. The main area which it focuses and target is related with addressing the unstructured decision & developing the generalised computing and communication environment. It do not focuses on foxed application or any of the specific capabilities. Also, this types of system allows to develop the environment where complex information can be developed in a simplest form with the help of easy to use representation. The graph of complexity is always shown in the form of simplex to complex (Vom Brocke and Rosemann, 2014). In short, all of this information system can be used within the business organisation for the purpose of accomplishing the goals in best possible manner. Also, it gives number of opportunity where decision can be taken as per the requirement by having proper planning and forecasting.

Enterprise Resource Planning (ERP), is explained as the system software which directly allows the association to manage day to day business activity for improving the overall performance of an organisation. Talking about the area which it mostly manages is accounting, procurement, project management, risk management and compliance, & supply chain operations. If in any of the situation, association uses the ERP suites then it increases its creditability for the company because in that respective condition, option increases for plan, budget, predict, and report on an organization’s financial results (What Is ERP, 2019). 

It is necessary to understand that ERP system is one of the those system software which makes working condition easier and familiar. In present scenario, using ERP is one of the most crucial thing for business because it simply allows to improve the overall performance by enabling the flow of data between top to lower level of management. Also, there are limited opportunity where chances of duplication of data occurs which is the main reason that most of the organisation like to prefer ERP system for effective result. There are number of situation where organisation requires to distribute the data in wider area and in that respective circumstances, ERP system can allow to distribute the data in very short period of time (Kerr, Troth and Pickering, 2020). Although, it is result oriented but if in any of the situation the management doesn't uses it in systematic manner then in that respective situation company might have to suffer and may have to face losses.

This types of system allows the business organisation to make communication become more easier and result oriented. There are number of organisation which is not able to perform as per the requirement and in that particular situation they tries to improve their overall performance which can be easily with the help of ERP. Secondly, it is said that small organisation has to improve their performance and in that particular situation they can easily allow to implement ERP which will give them the effective result. This types of system software is not limited but it does have number of benefit because it can be operated from any party of the world which makes working condition much easier and faster. There are number of advantage and disadvantages of ERP (Fichman, Dos Santos and Zheng, 2014). The main advantage is that it can easily cover all of the needs of department and it can be customised as per the requirement of business organisation. On this other side, if manufacturing application does not perform any of the work as per the requirement then problem may arise. Also, there are some of the situation where organisation requires the software according to their needs and in that respective position, it can be one of the costly process.

In case of benefits of ERP in real life business organisation, it is quite easy to express that it can be one of the system software which can allow companies to accomplish their goals. The first benefit which organisation like to have in any of the situation is that they try to reduce the cost and saves money which is very easy within this respective process (Schwade and Schubert, 2017). There is the option available in which company gets the option to improve financial consolidation. Whenever organisation perform any of the work manually, it seems that chances of errors increases but when it comes to the case of ERP, organisation will get the opportunity to set high standard which will automatically improve the results.

This types of system software simply allows the small and medium size industry to improve their performance by conducting every single work in proper procedure (SYSPRO Defines the Meaning of ERP, 2019). In recent period of time, there are number of organisation which is not able to perform their work which is just because of lack of communication but it can be easily improved with the help of communication among different department. Communication can become easier with the help of ERP software. The most important area which is required to be focused is that there are number of occasion where percentage of waste product remains high in business firm, but if company uses ERP software in best possible manner then automatically they will raise the standard and profit will also increase (Abbasi, Sarker and Chiang, 2016). This software is not limited up to here, but there are additional benefit for business organisation such as company gets the opportunity to reduce the percentage of overall risk by improving the data integrity as well as financial control. This are some of the most important benefit which people can get if they are able to utilise ERP system in desire manner.

CONCLUSION

From the above file, it can be concluded that information system is one of the most effective way to improve the overall performance of an organisation. The scope of business can be improved easily if they are able to use system software in a best possible manner. There are different types of information system which organisation can use as per the requirement because that directly or indirectly gives opportunity to enhance the performance. Even there are number of circumstances where company is unable to decide the pattern of working style but if they are able to use Executive Information System, then they will clarify about the complexity of the work and its nature. On the the other side, ERP is one of the system software which can be really beneficial for the company because they will be able to use software for effective result as cost can be reduce which will impact on improving revenue.

Although there are number of benefits of using different systems but it will be important for management that whenever they introduce any of the system software in the company, then it becomes the responsibility to guide so that work can be performed as per the requirement. It is recommanded to association that proper planning must be done so that proper customisation c be done work can be performed in a successful manner. It is also important to understand for small organisation that they must be able to introduce ERV because that will help them to uplift the standard of a company.

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REFERENCES

Abbasi, A., Sarker, S. and Chiang, R. H., 2016. Big data research in information systems: Toward an inclusive research agenda. Journal of the Association for Information Systems. 17(2). p.3.

Bourgeois, D. T., 2018. Information systems for business and beyond.

Fichman, R. G., Dos Santos, B. L. and Zheng, Z., 2014. Digital innovation as a fundamental and powerful concept in the information systems curriculum. MIS quarterly. 38(2). pp.329-A15.

Kerr, D., Troth, A. and Pickering, A., 2020. The use of role-playing to help students understand information systems case studies. Journal of Information Systems Education. 14(2). p.6.