Different Types of Information Systems Hepful in Managing

The example clearly illustrates flow of money, information and products within complete process associated with supply chain that is initiated from raw materials and ends with their distributors & retailers. Enterprise resource planning refers to susceptibility for delivering unified suite of business applications. This is the modular software system which is being designed for integrating major functional areas into a merged system. It is being utilised by firms for streamlining their processes as well as information around firm. This will lead organisation to have improvised efficiency along with productivity (Bhattacharya, Wamba and Kamdjoug, 2019). The aim and objective of this essay is to furnish in-depth study of information systems in addition to this different types information systems will also be elaborated. Along with this, enterprise resource planning systems and there benefits with respect to real-life businesses will be discussed.

Main Body

Information system refers to integration of software, hardware along with telecommunications network which people build as well as are utilised for collection, creation as well as distribution of crucial data within organisational settings (Cheng, 2019). Basically, they involves interconnected components which works in collaboration for supporting decision-making, controlling, analysing, visualisation and decision making in an organisation. There are different types of information system which are being illustrated in this section, they are as following: Transaction processing system are utilised by firms for maintaining the records which are being needed by firm for carrying out their business operations (Cheng, 2019). For an instance shipping records, sales order entry, payroll, etc. Basically, firms like Microsoft can use this for periodic report generation within the scheduled way. TPS is being utilised for furnishing reports as per requirements. On the basis of operations which are being carried out by firm, transactions will vary. They can be carried out either yearly, quarterly, monthly or even as per demands on the basis of requirements of firm. TPS is being utilised for recording everyday business transactions and are used by individuals within operational management levels.

Decision support system denotes interactive information system which is liable for rendering models, information and manipulation tools for formulation of decisions within unstructured and semi-structured situation (Grenci and Hull, 2020). Basically, it involves techniques and tools which assist within assemblage of significant information as well as analysing alternatives and options. Bank loan management systems, financial planning system, etc. are example of DSS. It involves sophisticated data analysis tools that are liable for supporting as well as assisting essential aspects associated with problem-specified decision-making. With respect to this, firms can have DSS which utilise data from external sources like current stock prices for enhancement of decisions which are being formulated. It is normally used by senior management for making non-routine decisions (Hwang, 2019).

Executive information system denotes computer based systems which assists within taking decisions at top level of firm. This creates an impact on entire organisation, thus it needs appropriate sight and judgement. With respect to this, advanced graphic software are being used for displaying crucial data which is in form of graphs or charts for solving wider range of problems that are being faced by organisations. For this, management of organisation like Tesco, Microsoft or SAP might make use of concise internal data from DSS, MIS and data from external sources related with new competitors within marker or new policies which are being formulated by government with respect to new market (Kocsis, 2019). They are generally utilised for monitoring performance, tracking activities which are being conducted by competitors, identification of opportunities along with forecasting trends.

Management information system is liable for furnishing summaries of routine nature to management with respect to basic activities of firm. The particular objective behind installation of MIS within firm is to enhance operational effectiveness in terms of finance, production, marketing and various other aspects related with this. It is liable for extracting transaction data from implicit TPS and then compiles it for producing information in terms of responses, displays or reports. An instance can be taken like exception report is liable for furnishing exceptional situations in context of sales which are being carried out by peculiar sales representative when it is far beyond what is being expected.

The different types of information systems have been mentioned above and each have distinct functions which are being carried out by them (Samiei and Habibi, 2020). Depending upon the operations conducted by organisation, IS can be utilised as this will aid them within attainment of organisational goals and objectives within stipulated time frame.

Enterprise resource planning denotes kind of software which are being used by firms for management of everyday tasks like procurement, risk management, accounting, compliance, project management along with maintaining supply chain operations associated with this. ERP suite comprises of software aids within predicting, formulation of budgets, predictions, reports and formulation of plans through which financial outcomes can be attained. ERP possess host of applications which is responsible for managing core business functions within integrated way which is liable for facilitating broadloom flow of task associated with customer relationship management, inventory, sales, finance and human resources (Schmidt and Freeze, 2019). ERP tools acts like unified platform which has ability for streamlining organisational functions. An ERP suite comprises of distinct enterprise resource planning applications which involves talking to one another along with sharing of database. Each ERP module emphasise on peculiar business area and distinct abilities can be combined for meeting needs of an organisation. For an instance each organisation have different departments logistics, sales, HR or finance for meeting their needs.

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There are distinct kind of enterprise resource planning implementations, that involves cloud, hybrid and on premises. Cloud ERP is SaaS (Software as a Service) that assist users within accessing ERP software over a network. The major benefit which can be attained by firm through its usage are low upfront cost as computing resources can be leased instead of purchasing and maintaining on premises. It furnishes organisation like Microsoft or Tesco with smart as well as adaptable solutions with respect to problems that are being faced by them and provides with built-in machine learning, optimised processes and predictive analytics (Surendra and Nazir, 2019). This furnish fast, affordable, secured along with reliable solutions which are being covered with respect to system security to compliance. Hybrid ERP system denotes integration of cloud and on-premise system as it not only furnish cheap prices but also furnish reliability with respect to them. This is also referred to as tier-two model due to bimodal merging of abilities of both of these ERP's. It furnish solid base with respect to on-premise functionality along with agile cloud applications for addressing both unique existent processes.

 On-Premises ERP implies the software which are being installed as well as are executed within the premises of firm through usage of software instead of remote facilities like cloud or server farm. Basically, in this applications are being executed when they are under direct control as well as on servers within their own data centre (Turner, Weickgenannt and Copeland, 2020). It provides firm with an option for customisation of software with respect to peculiar needs. Depending on number of synchronous users and size of organisation, on-premise ERP can be priced under one-time perpetual licence fees along with this it also involves different recurring fees related with updates, training and support. This section provides an insight into enterprise resource planning which enables firms to deliver their operations in an effectual way.

The major benefits which are being furnished by ERP system within real-time scenario comprises of higher efficiency, ERP software eradicates iterative processes which minimises need for manual entry of information as well as aids to streamline business processes which makes it easier as well as efficient for firms within collection of data (Venkatesh, 2019). Enterprise resource planning software renders managers as well as users to create precise forecasts. The reason behind this is that information present within ERP is accurate through which realistic estimates can be formulated. Enterprise resource planning software leads to save time along with improvisation of productivity. By possessing redundant automated processes individuals get time for carrying out processing on other crucial tasks & projects. Collaboration is being provided among different departments within the organisation which aids within manufacturing operations as well as allows within thorough visibility of various aspects. This leads them to attain accurate and precise outcomes along with minimised wastage (Ayağ and Yücekaya, 2019).

Structured enterprise resource planning software allows adding new functions as well as users through which they can grow while initially executing the solutions which are being formulated by them over a certain time frame. This denotes the scalability where business is is ready to continue as well as grow to build. The issues associated with data which is spread around different databases can be resolved as entire information can be kept within the identical location. IT implies that firm can have integrated information as different platforms like CRM can be merged with ERP system that assists within furnishing data accurate, unique and consistent (Bhattacharya, Wamba and Kamdjoug, 2019). Along with this, the major benefit provided by this includes is that it aids within decision making by taking into consideration all the aspects related with this.

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Conclusion & Recommendations

From above, it can be concluded that information system refers to flow of information in system whose objective is to render relevant data to user for gathering, processing of data along with interaction of information to user of system. This involves gathering of diverse pieces of equipments which are concerned with dissemination of information. There are different types of ERP systems and depending upon needs of firm, they can be utilised by them. An example can be taken to understand this aspect like multinational firms make use of decision support system which directly or indirectly depends on other systems for ensuring that effectual decisions are made by taking into consideration all the aspects of firm. This is liable for making use easy routines such as compendious along with equivalence that allows management within formulation of decisions for which procedures associated with reaching a peculiar solutions are mentioned in advance. Enterprise resource planning aids firms within formulation effectual decision-making through which they can have higher productivity as well as profitability.

It is recommended that the different industries can opt for cloud ERP as this provides scalability, flexibility along with on-time availability of services. As per needs of organisation, they can have storage space which can be extended as well as shrink when they need this. Along with this by opting for transaction processing system they can maintain their inventory and ensure that there operations and finances are carried out as per the required standards. In addition to this, it will lead them to have all the details of what is there in warehouse and when it has to be filled again before they go out of stock.

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References

Ayağ, Z. and Yücekaya, A., 2019. A fuzzy ANP-based GRA approach to evaluate ERP packages. International Journal of Enterprise Information Systems (IJEIS), 15(1), pp.45-68.

Bhattacharya, M., Wamba, S.F. and Kamdjoug, J.R.K., 2019. Exploring the Determinants of ERP Adoption Intention: The Case of ERP-Enabled Emergency Service. International Journal of Technology Diffusion (IJTD), 10(4), pp.58-76.

Cheng, Y.M., 2019. A hybrid model for exploring the antecedents of cloud ERP continuance. International Journal of Web Information Systems.

Grenci, R.T. and Hull, B.Z., 2020. New dog, old tricks: ERP and the systems development life cycle. Journal of Information Systems Education, 15(3), p.7