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Benefits and Drawbacks of Information Systems… The Final Blog!!! :)

10 Mar

Hi Bloggers,

Well, time for the final blog! To sum up all the previous blogs, I would like to just mention some benefits and drawbacks of Information Systems.

Some Benefits:

An information system can be defined as any means of communicating knowledge from one source to another, and/or from one person to another. The difference between an information system and a data system is that a data system makes raw data available to the user. On the other hand, an information system is designed to provide the best possible information to its users. Information systems typically refer to computerised methods of searching, storing and retrieving information. An information system is all about providing the most usable information needed, and is there to empower users and equip them with the tools to do their jobs most effectively. An information system offers a litany of benefits that help to make the process of managing information easier. Central access, easy back up, central distribution of information, easy record keeping, easy tax preparation, as well as easy customer trait identification, are just a few of the benefits offered by an information system.

Learning about information systems will help you both personally and professionally. An understanding of information systems can also help a company. An effective information system can have a major impact on corporate strategy and organizational success. This impact can benefit the organization, users of the information system, and any individual or group who will interact with the information system. Some of the benefits organizations seek to achieve through information systems include:

*Added value to products (goods and services)
*Better safety
*Better service
*Competitive advantages
*Fewer errors
*Greater accuracy
*Higher-quality products
*Improved communications
*Increased efficiency
*Increased productivity
*More efficient administration
*More opportunities
*Reduced labor requirements
*Reduced costs
*Superior financial decision making
*Superior control over operations
*Superior managerial decision making


The primary disadvantage is the vulnerability of data in today’s world. It is very easy for a business to be a victim of espionage or robbery if they keep their data online, which most businesses do now a days.

Depending on organization deployment, usage and extraneous factors, some disadvantages related to Management Information Systems can come to the fore. Allocation of budgets for MIS upgrades, modifications and other revisions can be quite tricky at times. If budgets are not allocated uniformly or as per immediate requirements, key functionalities might get effected and benefits might not be realized consistently. Integration issues with legacy systems can affect the quality of output and vital business intelligence reports.

I hope you have enjoyed my blogs and have found them useful. Thanks again for reading them 🙂

Best of Luck in the end of year exam!


The Many Different Types of Information System Continued…

10 Mar

Following my last blog, I mentioned I will be discussing in detail Accounting Information Systems, Knowledge Management Systems, and Executive Support Systems. The first of these will be Accouting Information Systems.

1. Accounting Information Systems:

An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including  investors,creditors and tax authorities.

Advantages of an Accounting Information System:

A big advantage of computer-based accounting information systems is that they automate and streamline reporting. Reporting is major tool for organizations to accurately see summarized, timely information used for decision-making and financial reporting. The accounting information system pulls data from the centralized database, processes and transforms it and ultimately generates a summary of that data as information that can now be easily consumed and analyzed by business analysts, managers or other decision makers. These systems must ensure that the reports are timely so that decision-makers are not acting on old, irrelevant information and, rather, able to act quickly and effectively based on report results.


2. Knowledge Management Systems:

Knowledge management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices.

Knowledge-management systems are used to improve the performance of business processes. The fields that most often use knowledge management include: computer science, public health, information systems, business administration, public policy, and library and information sciences, as well as general management. The departments in which knowledge management is used are typically called “Business Strategy,” “Human Resource Management” or “Information Technology.”

Different types of Knowledge Management Systems include:

Expert Systems, Groupware, Document Management Systems, Decision Support Systems, Database Management Systems, and Simulation Systems.


3. Executive Information Systems: 

An executive information system (EIS) is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organisational goals. It is commonly considered a specialized form of decision support systems (DSS).

EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace.

EIS components can typically be classified as:

  • Hardware
  • Software
  • User interface
  • Telecommunications

EIS also has many advantages and disadvantages:

Advantages of EIS

  • Easy for upper-level executives to use, extensive computer experience is not required in operations
  • Provides timely delivery of company summary information
  • Information that is provided is better understood
  • EIS provides timely delivery of information. Management can make decisions made promptly.
  • Improves tracking information
  • Offers efficiency to decision makers

Disadvantages of EIS

  • System dependent
  • Limited functionality, by design
  • Information overload for some managers
  • Benefits hard to quantify
  • High implementation costs
  • System may become slow, large, and hard to manage
  • Need good internal processes for data management
  • May lead to less reliable and less secure data

Again, thanks for reading! My final blog will give a brief outline of information systems’ benefits and drawbacks as whole!


Read more: Definition of Knowledge Management System |

The Many Different Types of Information Systems…

10 Mar

There are many different types of Information System: Decision Support Systems, Knowledge Management Systems, Executive Support systems, Management Information System, Accounting Information Systems and Transaction Processing Systems to name a few.

In this blog, I will focus on Management Information Systems, Decision Support Systems, and Transaction Processing Systems. In the next blog, Knowledge Management Systems, Executive Support Systems and Accounting Information Systems will be discussed in detail.

1. Management Information Systems:

management information system (MIS) provides information that organizations need to manage themselves efficiently and effectively. Management information systems are typically computer systems used for managing three primary components: technology, people (individuals, groups, or organizations), and data (information for decision making).

Why are they different to other information systems?

Well… Management Information Systems are used to analyze and facilitate strategic and operational activities. Many schools are organisations have an MIS department, just like they have an accounting department, a finance dept, marketing dept, etc.

Management information systems (MIS), produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems ( which will be discussed further on) to middle and operational level managers to identify and inform structured and semi-structured decision problems.

Management Information Systems have many advantages:

  • Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees’ performance record etc. The identification of these aspects can help the company improve their business processes and operations.
  • Information is an important asset for any company in the modern competitive world. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company.
  • Giving an overall picture of the company and acting as a communication and planning tool.

2. Decision Support Systems: 

decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSS’s serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision support systems can be either fully computerized, human or a combination of both.

Things that would be typically visible in a decision support system:

  • inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),
  • comparative sales figures between one period and the next,
  • projected revenue figures based on product sales assumptions.

3 fundamental components in a DSS are:

1. the database, 2. the model, 3. the user interface.

As well, DSS boast many benefits including:

  • Improves personal efficiency
  • Speed up the process of decision making
  • Increases organizational control
  • Encourages exploration and discovery on the part of the decision maker
  • Speeds up problem solving in an organization
  • Facilitates interpersonal communication
  • Promotes learning or training
  • Generates new evidence in support of a decision
  • Creates a competitive advantage over competition
  • Reveals new approaches to thinking about the problem space
  • Helps automate managerial processes
  • Create Innovative ideas to speed up the performance.

3. Transaction Processing Systems: 

Transaction processing is a style of computing that divides work into individual, indivisible operations, called transactions. A transaction processing system (TPS) or transaction server is a software system, or software/hardware combination, that supports transaction processing.

Transaction processing systems also attempt to provide predictable response times to requests, although this is not as critical as for real-time systems. Rather than allowing the user to run arbitrary programs as time-sharing, transaction processing allows only predefined, structured transactions. Each transaction is usually short duration and the processing activity for each transaction is programmed in advance.

The following features are considered important in evaluating transaction processing systems.


Fast performance with a rapid response time is critical. Transaction processing systems are usually measured by the number of transactions they can process in a given period of time.

Continuous availability

The system must be available during the time period when the users are entering transactions. Many organizations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business.

Data integrity

The system must be able to handle hardware or software problems without corrupting data. Multiple users must be protected from attempting to change the same piece of data at the same time, for example two operators cannot sell the same seat on an airplane.

Ease of use

Often users of transaction processing systems are casual users. The system should be simple for them to understand, protect them from data-entry errors as much as possible, and allow them to easily correct their errors.

Modular growth

The system should be capable of growth at incremental costs, rather than requiring a complete replacement. It should be possible to add, replace, or update hardware and software components without shutting down the system.

Hope this has been helpful, and the next blog will follow on from this explaining Knowledge Management Systems, Executive Support Systems and Accounting Information Systems in detail. Thanks for reading 🙂

How Useful Information Systems are to Business and Everyday Life.

10 Mar

Hi Bloggers,

Following my recent blog on the major roles of information systems, today’s blog will hopefully show you the importance of Information Systems both in everyday life and in business and organisations. By the end of this blog, hopefully it will be clear to you that Information Systems are used in so many aspects of everyday life that we sometimes might not even notice.

I think the only way to actually understand how the internet and everything information systems related is so powerful is to watch the following video and to see its impact on the world as a whole. Enjoy! 🙂

Below is a similar video but this time in relation to the workforce and the impact it has on them 🙂

Hope you enjoy these videos, I think they portray the uses of information systems quite clearly!

The Major Roles of an Information System?

10 Mar

To expand on my first blog, I would like to explain today the major roles of Information Systems.

There are three very important roles:

  • Support Competitive Advantage & Decision making
  • Support Business Decision Making
  • Support of Business Processes and Operations

These roles all operate on different levels.

1.Support Strategic Advantage: operates on a strategic level, and an example of this is when the head office uses systems to look at sales trends across stores to identify ways to gain competitive advantage over other retailers.

2. Support Business/Managerial Decision Making: operates on a tactical level, and an example of this would be where in store managers use systems to decide what lines to add or discontinue.

3.Support Business Processes and Operations: on an operational level. An example of this kind of information system is the paying of employees, the tracking of inventory, and the recording of customer purchases in a retail information system.

These 3 aforementioned roles are in my opinion the three most important. See below an image to back up my previous statements.

These roles along with many others are the jobs of Information System Managers. The link to the YouTube video below shows and explains the day to day work of an Information Systems Manager

Hope this blog and video explains more to you about the roles of Information Systems, in a clear and defined way. Thanks for taking the time to read 🙂

My next blog will explain how useful Information Systems are in business and everyday life.

What is an Information System?

22 Feb

What is an Information System?

A system is a collection of interrelated parts that work together to achieve one of more common purposes. A system is generally made up of 5 components: Input, Process, Output, Feedback, and Control. The input collects or captures raw data from both internal and external sources. A process converts the raw data into meaningful form, and the output transfers the processed information to people who will use it. The feedback controls the output returned to the appropriate members of the organisation that will then help them in the evaluation of the input stage, whereas the control will monitor and evaluate feedback to determine whether a system is moving towards achieving its goal, and if not, it will make the necessary adjustments.

An Information System is a set of interrelated components that collect, retrieve, process, store, and distribute information to support decision making and control within an organisation. An information system is made up of five components: Data, Hardware, Software, People and Telecommunications Networks.

Information Systems are more than just computers! To use information systems effectively, requires a clear understanding of the organisation, management and information technology all together shaping the system!

Today’s blog briefly describes what an information system is. Over the coming weeks, I intend on explaining the major roles of an Information System, how useful IS are to business and everyday life and also the distinguishing between the many different types of Information Systems, their benefits and their downfalls.

Hope you enjoyed the blog, and thanks for reading.


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