Nowadays, organizations employ many different types of information systems. through this post, we well highlight the numerous and diverse the types of information systems.
Computer-Based Information Systems (CBIS): use computer technology to perform some or all of their tasks and are composed of:
1- Hardware: a device such as a processor, monitor, keyboard or printer.
2- Software: a program or collection of programs that enable hardware to process data.
3- A Database: a collection of related files or tables containing data.
4- A Network: a connecting system (wireline or wireless) that permits different computers to share resources.
5- Procedures: are the set of instructions about how to combine the above components in order to process information and generate the desired output.
6- People: are those individuals who use the hardware and software, interface with it, or uses its output.
Information Systems Inside Your Organization:
Information Technology Outside Your Organization:
Capabilities of Information Systems:
< !--[if !supportLists]-->n <!--[endif]-->Perform high-speed, high-volume numerical computations
< !--[if !supportLists]-->n <!--[endif]-->Provide fast, accurate communication and collaboration within and among organizations
< !--[if !supportLists]-->n <!--[endif]-->Store huge amounts of information in small space
< !--[if !supportLists]-->n <!--[endif]-->Allow quick, inexpensive access to vast amounts of information worldwide
< !--[if !supportLists]-->n <!--[endif]-->Interpret vast amounts of data quickly and efficiently
< !--[if !supportLists]-->n <!--[endif]-->Increase effectiveness and efficiency of people working in groups in one place or around the world
< !--[if !supportLists]-->n <!--[endif]-->Automate semiautomatic business process and manual tasks
Application Programs: An application program is a computer program designed to support a specific task, a business process or another application program.
Breadth of Support of Information Systems
Functional area information systems: support particular functional areas in an organization.
Enterprise resource planning systems: tightly integrate the functional area information systems via a common database.
Transaction processing systems: support the monitoring, collection, storage, and processing of data from the organization’s basic business transactions.
Inter-organizational information systems: connect two or more organizations. Examples are supply chain management systems and electronic commerce systems.
Information Systems Support for Organization Employees
Office automation systems: typically support the clerical staff, lower and middle managers, and knowledge workers. These people use OASs to development documents, schedule resources, and communicate.
Functional area information systems: summarize data and prepare reports, primarily for middle managers.
Business intelligence systems: provide computer-based support for complex, non-routine systems, primarily for middle managers and knowledge workers.
Expert systems: attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain.
Dashboards: support all managers by providing rapid access to timely information and direct access to structured information in the form of reports.
Competitive Advantage: An advantage over competitors in some measure such as cost, quality, or speed, leads to control of a market and to larger-than average profits.
Strategic Information Systems(SIS): provide a competitive advantage by helping an organization to implement its strategic goals and to increase its performance and productivity.
nThreat of entry of new competitors is highwhen it is easy to enter a market and low when significant barriers to entry exist.
nA barrier to entry is a product or service feature that customers expect from organizations in a certain industry.
nThe bargaining power of suppliers is high when buyers have few choices and lowwhen buyers have many choices.
nThe bargaining power of buyers is high when buyers have many choices and lowwhen buyers have few choices.
nThe threat of substitute products or services is high when there are many substitutes for an organization’s products or services and low where there are few substitutes.
nTherivalry among firms in an industry is highwhen there is fierce competition and low when there is not.
Strategies for Competitive Advantage:
Cost Leadership: Produce products and/or services at the lowest cost in the industry.
Differentiation: Offer different products, services or product features.
Innovation: Introduce new products and services, add new features to existing products and services or develop new ways to produce them.
Operational Effectiveness: Improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals.
Customer-orientation: Concentrate on making customers happy.
Why are Information Systems Important to Organizations & Society:
- IT will reduce the number of middle managers.
- IT will change the manager’s job.
- IT impacts employees at work.
- IT provides quality-of-life improvements.
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