Information systems in today’s world are in every branch of the work force. An information system is a set of inter-related processes that collect, retrieve, process, store and distribute information to support decision making in an organization. Its important to realize that information systems have a major role in today’s world. They provide operational excellence, improved decision making, new products services and business models, customer and supplier intimacy, and survival.
Operational excellence is important to a business as it improves efficiency in operations to help achieve a higher profit. Information systems are readily available to managers everyday this helps them make important decisions faster and more effectively. the american company Walmart uses a system called retail link which lets them track and monitor products and as soon as a product is sold, using the system the store knows that item needs replacing.
Improved decision making is a key positive of information systems. Managers in business need to make decisions efficiently to keep the business profitable and productive. To do this information systems are key as having information at hand in a timely fashion is vital to keeping poor outcomes to a minimum.
When it comes to new products and services, information systems are a major tool in creating new products services and even business models. A business model describes how a product is designed, manufactured and sold to create a profit for the company. For example Apple transformed an old idea in the ipod into a new fantastic brand that has earned the company billions when it created the idea of the iphone and itunes.
Customer and supplier intimacy is very important to a business. If a business leaves an outstanding impression on a customer this will encourage the consumer to return and buy again which in turn raises profits and revenue to the company. The more a business engage its suppliers, the better the suppliers can provide vital inputs. This in turn lowers costs. Examples include the (high-end) hotel industry. hotels use computer technology to track a customers previous stay and the experience they had. They track any requests the guest made and the type of room service a customer may have ordered to keep a high standard of customer satisfaction.
Finally and probably most importantly, businesses invest in information systems because they are a necessity in business today. This necessity is because of industry level changes. For example Citibank provided the first automated teller machine to race out ahead of other banks. this in turn made all the other banks install an atm service and it is now a given around the world
From this blog i hope you learnt how important and everyday information systems are in the world of business.