The Impact of Information Systems on Business

Question
The Impact of Information Systems on Business: This essay will examine how information systems have transformed how businesses operate. You could discuss how information systems have improved efficiency, productivity, and decision-making.
Answer
1. Introduction
An information system (IS) is an arrangement of data, processes, people, and information technology that interact to collect, process, store, and provide as output the information needed to support an organization. They help business operations and decision-making by providing the right information and it is long-lasting. “Information Systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data” (www.informationsystems.co.uk, 2010). So IS is the integration of data and technology to support the operation and management of an organization. IS has the power to change businesses and markets, it can change the way a company does business, and it can enable new ways of conducting business in the global marketplace. The innovations of IS can change the basis of competition in an industry. Businesses can use IS to make differentiation of their products; it can provide a business with a strategic advantage and an edge over the competition. New companies can use IS to enter the market, without ever having to set up a physical shop front. These days it is imperative that a business institutes some form of IS to be successful in the current global marketplace. Failure to do so can result in a loss of custom or the company will not be able to survive in today’s demanding task-oriented society. This essay will examine the impact of IS on businesses and the requirement for businesses to keep up to date with IS in today’s fast-moving and ever-changing world.
1.1. Definition of Information Systems
Now let us see the conclusive and the most common definition provided by various authors and scholars. The information system is an integrated set of components for collecting, storing, and processing data and for providing information, knowledge, and digital products. The information system is not necessarily a data-processing computer system. Moreover, it is a system which, as well as computer hardware and software, includes manual and non-automated systems such as a system and a programmer who is a and the people who maintain and install the computer. This definition was published in a journal called Decision Support Systems and was based on a Delphi study of IS academics.
An information system is considered a sociotechnical subsystem in which it is composed of some combination of the four elements in the social system of an organization: the technical system, an interface between the two systems, and the processes for the implementation of a new system. Through this it is hoped that the systems will make some impact on the performance of the organization in a way that is more than incremental and it will inevitably change the system that it seeks to influence. However, as the term information system is often used as a more general term to describe systems with a heavy data and data processing emphasis, some researchers prefer to label the study of system data and data processing change as opposed to change in the organization itself as the study of an information system and system which studies only those information systems which make an impact on the organization are sometimes referred to the systems and management sciences. This poses a difficulty of terminology for students wishing to orientate themselves within the study as there is concept of information system is a broad one and it is often difficult to know to which specific concepts or terms refer.
The information system, which forms the subject of this report, serves to provide those people, whether they be effective executives or academic researchers, who do not necessarily understand the nature of the concept with an opportunity to see the relevance of the concept to organizational and decision-making theory and how the concept can be made operational for purposes of empirical research. An information system is the field that is concerned with the utilization of information technology and software tools to assist the decision-making of management and its workers within an organization. The area is the subject of much theoretical debate as to whether the concept of an information system is academic, a figment of the imagination of consultancy marketers, or a reality in which managers and organizations have to exist. At the same time, and largely because of the preceding claim that the concept of an information system is relevant to organizational and decision-making theory, many academic disciplines carried on the concept in a variety of research activities all of which are relevant to the study of an information system but which, taken together, constitute an amorphous body of work which is difficult to define. And which sometimes appears to be tangential to the “real” world of organizations and data processing.
1.2. Importance of Information Systems in Business
This changing environment has a profound impact on the way business is conducted, and organizations need to use this to their advantage to keep up with the fast pace of changes in their environment. The competitive global economy is a recent phenomenon that has had an impact on the way modern organizations conduct business. The modern global information/knowledge-based economy represents new ways of conducting and competing in business. It is well known that national economies have greatly benefited from IT development and new infrastructure, which has resulted in new jobs and industries. However, it also represents a challenging environment for organizations to maintain their operations in the new global sectors. Modern organizations must use information systems throughout every aspect of the business (from HR to production and marketing) to have a chance of succeeding and remaining competitive in the new global environment.
Without information about the effects new information technologies can have on an organization, it can be difficult to justify the cost (Laudon and Laudon, 1991). This is the essence of the explanation of the importance of information systems in business. The authors believe that the modern environment of IT has a great ability to change certain aspects of organizations. They note that modern IT is very powerful and can if used correctly, change organizations by its impact on efficiency and effectiveness. They argue that the recent development of IT is a result of a shift towards an information/knowledge-based economy, and this can change modes of access and use of information for people and society.
1.3. Overview of the Essay
The essay consists of a small study on the information system and its impact on the organization and its stability in the market. An information system is a system that combines data processing, reporting, and inquiry and is considered as the heart of the organization. Technology is quickly changing and affecting the way markets work and how business is done in today’s society. It not only has a strong influence on the way the global economy works but also on individual and organizational levels and on the markets in which they operate. The increased velocity of technology has a lot to do with how information has an impact in today’s society. And the increased velocity of technology has created an information revolution that has an effect on the world economy (Data Monitor, 2001). Information technology is a very important and intelligent asset to keep organizations involved in the global market. In order for small businesses to succeed and obtain a competitive edge, they must engage in some sort of IS/IT. Whether it is automating internal processes or creating a website to reach a broader market, information technology is an efficient resource to keep a company well-informed and well ahead of its competition. Small organizations can utilize the available technology to continue operating even being very small; a well-automated home business can have an international impact. An enormous example is businesses involving e-commerce. The internet is the most efficient way to do business on a global level; using the internet is a cheap way to promote globalization for a small business. Large organizations are more obligated to use information systems due to the increasing velocity of technology and the challenges of a global marketplace to get the most efficient and effective information. Technology can benefit these large organizations in many ways; it can increase the efficiency of business processes, decision making, and work group collaboration. It paves the way for management and executives, making it easier to access unstructured information and have it presented in an easy, simple manner. It can be an intelligent way to make a quick and precise decision. Technology nowadays has the ability to automate complex tasks, so that they can be done quicker with no human error. Large organizations can create software agents that will continuously scan the environment and provide it with the information when a specific task has been completed by acting like an artificial intelligence. In today’s society, it is known that people are working harder and longer, technology can make work an easier and less stressful task and with the information revolution showing no signs of changing its course, information technology is something that will be here for a very long time.
2. Efficiency Improvement
2.1. Automation of Processes
2.2. Streamlining Workflows
2.3. Reduction of Manual Errors
3. Productivity Enhancement
3.1. Real-Time Data Access
3.2. Collaboration and Communication Tools
3.3. Integration of Business Functions
3.4. Task Management and Prioritization
4. Decision-Making Support
4.1. Data Analysis and Reporting
4.2. Predictive Analytics
4.3. Business Intelligence Systems
5. Security and Risk Management
5.1. Data Protection Measures
5.2. Cybersecurity Strategies
5.3. Disaster Recovery Planning
6. Customer Relationship Management
6.1. Customer Data Management
6.2. Personalized Marketing Strategies
6.3. Enhanced Customer Service
7. Supply Chain Optimization
7.1. Inventory Management Systems
7.2. Demand Forecasting
7.3. Logistics and Distribution
8. Globalization and Market Expansion
8.1. E-commerce and Online Marketplaces
8.2. Virtual Collaboration Tools
8.3. International Business Operations
9. Conclusion
9.1. Summary of the Impact of Information Systems
9.2. Future Trends and Challenges