Information systems and technologies have become a vital component of successful businesses and organisations. An information system is a set of interrelated components that collect, retrieve, process, store and distribute information to support decision-making and control in an organisation. It is made up of data, hardware, software, telecommunications networks as well as people.
There are two types of information systems; operations support systems and management support systems.
Operation support systems include Transaction Processing System (TPS), Enterprise Collaboration Systems and Process Control Systems. Management support systems include Management Information Systems (MIS), Decision Support Systems (DSS) and Executive Support Systems (ESS).
Information is a vital commodity for successful organisations in today’s world. Modern business organisation use computerised information systems to acquire information. However, technology is rapidly advancing and a main issue that arises is how management can use these IS systems to improve the whole organisation and make the most out of it.
The recent integration of computer networks and on-line data exchange has allowed for the creation of common databases and cloud computing not only in businesses but also among governments. This in turn created new possibilities such as allowing organisations to develop new practices such as Just-In-Time production. An example can be can be viewed here.
Nowadays, the role of IS in companies is shifting to support business processes rather than just individual functions. The focus is now on customers rather than internal procedures. This creates a challenge to existing information systems which are not always structured to meet these needs. It could also create problems for those who design and use these systems as they may not be appropriately trained.