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Contents

1. Introduction: ....................................................................................................................... 2
2. Justification to adopt Information system to the organisation ............................................ 2
2.1 Productivity ................................................................................................................. 2
2.2 Information .................................................................................................................. 2
2.3 Cost Reduction ............................................................................................................ 3
2.4 Collaboration ............................................................................................................... 3
2.5 Customer Service ........................................................................................................ 3
2.6 Communication ........................................................................................................... 4
2.7 Operations ................................................................................................................... 4
2.8 Decisions ..................................................................................................................... 4
2.9 Records ........................................................................................................................ 5
3. The process involved in Information System planning ...................................................... 5
3.1 Corporate mission ....................................................................................................... 6
3.2 Information system mission ........................................................................................ 6
3.3 Information system vision ........................................................................................... 7
3.4 Strategic planning ........................................................................................................ 7
3.5 Tactical planning ......................................................................................................... 7
3.6 Operational planning ................................................................................................... 7
3.7 Budget ......................................................................................................................... 8
4. Information System for support various levels of management ......................................... 8
4.1 Enterprise Collaboration Systems (Office Automation Systems) ............................... 8
4.2 Decision Support Systems........................................................................................... 8
4.3 Executive Information Systems .................................................................................. 8
4.4 Knowledge Management Systems .............................................................................. 9
4.5 Strategic Information Systems .................................................................................... 9
4.6 Functional Business Systems ...................................................................................... 9
5. Management Information System (MIS) .......................................................................... 10
6. Conclusion ........................................................................................................................ 11
References ................................................................................................................................ 12
1. Introduction:
The information systems play an essential role in managing market provision, particularly
computer, point-of-sale (POS) terminals, uniform product bar codes, satellite tracing,
electronic data interchange EDI, and electronic funds transfer EFT. These developments have
shortened the order-cycle time, reduced clerical labour, reduced the error rate in documents,
and provided improved management of operations. It has enabled firms to create a promise like
the product is going to be at shipped at 10:00 am tomorrow, and managed that promise
through information.

Therefore, in this report, we will be discussing the importance of information system so


that we can justify on integration of information system in doing business. In this report, we
will first be discussing on the importance of adopting the information system into organisation.
Then, we will have a look on process involved in planning information systems. Next, we will
take a few examples on the information systems that can are useful to the different level of
management in an organisation. Then, we will be discussing on what actually is Management
Information System and finally conclusion on from the whole report will be made.

2. Justification to adopt Information system to the organisation


Organizations develop information systems to fulfil necessary business objectives, like
rising aggressiveness, increasing productivity and potency, fast growth, supporting innovation
and reducing prices, in line with information technology research and advisory company
Gartner in a 2011 survey of the priorities wanted by quite 2,000 chief info officers. The
surveyed CIOs see technology ways as closely associated with business ways.

2.1 Productivity
Productivity is a very important reason for developing information systems. in line with
the Financial Times, chief executives are asking chief information officers to manage
3 key challenges: value potency, service quality and a contribution to the productivity
of the business. Productivity enhancements will scale back the time you are taking to
develop a brand-new product and convey it to all-out production, for instance.

2.2 Information
Information systems are key to delivering the knowledge and intelligence you wish to
enhance innovation. An IBM survey of chief information officers found that their chief
concern was managing info and business intelligence. By finance in information storage
systems and secure communication networks, you'll provide your staff access to the
knowledge they have. Your information system groups ought to conjointly concentrate
on strategies of gathering information from shops, branch offices and different external
sources so decision-makers will act on up-to-date info.

2.3 Cost Reduction


Cost reduction remains a priority for organizations in each sector. Information systems
will scale back your prices by automating business processes, so your staff will work a
lot of with efficiency. In client support, for instance, providing customers self-service
facilities on a website will facilitate cut the quantity of incoming calls to your contact
centre, reducing the quantity of agents you wish. In producing, you'll use IT systems to
mechanically capture internal control information from production, reducing
examination prices and serving to eliminate waste.

2.4 Collaboration
Investing in information systems and tools to enhance collaboration will assist you to
win growth and productivity targets. Several organizations created cross-functional
groups to develop new product or modification business processes. Providing
communication links, video conferencing services and facilities like project websites
will facilitate your groups scale back the time to complete projects, help you to come
up with new revenue streams quickly and accelerate growth.

2.5 Customer Service


The quality of client service is a very important part in building and maintaining a
competitive advantage. Information systems will assist you to improve client service in
a very range of the way. By making a database of all client interactions, like purchases,
inquiries, complaints and repair requests, you'll provide your client service
representatives the knowledge they must reply quickly and with efficiency to client
calls. You'll conjointly use information systems to line up e-commerce facilities on your
website, creating it a lot of convenient for patrons to try to business with you.
2.6 Communication
Part of management is gathering and distributing information, and data systems will
build this method a lot of economical by permitting managers to communicate
efficiently. Email is fast and effective; however, managers will use information systems
even a lot of with efficiency by storing documents in folders that they share with the
employees who need the information. This sort of communication lets staff collaborates
in a very systematic manner. Every worker will communicate additional info by
creating changes that the system tracks. The manager collects the inputs and sends the
newly revised document to his target market.

2.7 Operations
How you manage your company's operations depends on the knowledge you have got.
Information systems can give a lot of complete and newer info, permitting you to work
for your company a lot of with efficiency. You'll use information systems to achieve a
value advantage over competitors or to differentiate yourself by providing higher client
service. Sales information provide you with insights regarding what customers area unit
shopping for and allow you to stock or turn out things that area unit merchandising well.
With steering from the knowledge system, you'll contour your operations.

2.8 Decisions
The company data system will assist you to build higher choices by delivering all the
knowledge you wish and by modelling the results of your choices. A call involves
selecting a course of action from many alternatives and affecting the corresponding
tasks. Once you have corrected, up-to-date info, you'll build the selection confidently.
If more than one alternative appearance appealing, you'll use the knowledge system to
run completely different situations. For every risk, the system will calculate key
indicators like sales, prices, and profits to assist you to establish that various offers the
foremost useful result.
2.9 Records
Your company wants records of its activities for monetary and restrictive functions yet
as for locating the causes of issues and taking corrective action. The information system
stores documents and revision histories, communication records, and operational
information. The trick to exploiting this recording capability is organizing the data and
using the system to a method and gift it as helpful historical information. You'll use
such info to organize value estimates and forecasts and to investigate however your
actions affected the key company indicators

3. The process involved in Information System planning


The first step in information system planning is that the identification and explication of
the organisational strategy set. Some parts of the organisation strategy set might exist in written
type. The organisation's strategic, or long-range, set up is that the most evident supply of such
material.

However, existing plans might be deficient if the design method is not a subtle one that
expressly provides thought to such broad decisions as that of the organization's objectives.
Different documentary proof is also deficient in this it's ready for a "public relations" purpose
instead of for the aim of guiding social control alternative. If so, a definite method of
distinguishing strategy set parts are needed of the information system designer.

Such a method is also thought of in terms of variety of steps:

a) Defining the structure of the organization

The organization's purpose, objectives and strategy should essentially relate to


its numerous business, or claimants - those that have a claim thereon. These
claimants, typically stated as "stakeholders" to differentiate them from the legal
owners of firms, have a stake within the activities and way forward for the
organization. Thus, most business companies can delineate its owners,
managers, employees, suppliers, customers, and creditors as applicant teams.
alternative claimants whose views and wishes can kind a basis for the
organizations purpose and strategy is also local governments, local
communities, competitors, alternative companies within the same trade, and the
public.

b) Distinguishing goals for every group


The goals of every claimants cluster should be accounted for within the
organization's mission, objectives, and strategy. King and Cleland have shown
an approach for doing this that involves the qualitative description of the
character of every claimant's claim and the specification of measures, direct or
proxy, of the degree to that the claim is being pleased.

c) Distinguishing the organizations functions and strategy relative to


every group.

Once the character of every claimant group's claim has been known, the
organizations goals and methods relative to every cluster should be known.
Generally, these linkages are quite straightforward. "Social responsibility"
objectives are often copied on to the goals of the public and local communities,
as will methods be involving the development of pollution-free production
facilities and therefore the employment of minority cluster members. "Product
quality" objectives and strategies are traceable on to the interests of shoppers,
government regulative agencies, and therefore the industries.

Once all the parties involved understand these points, the planning of the information system
development can start. There are several processes involved to ensure that the information
system planning to be successful. Figure below will illustrate better on the importance in the
planning of an information systems; -

3.1 Corporate mission


Strategic planning starts with the company mission that details the goals and aims of
the organisation. Determination of the company mission is vital as a result of every
organisational perform are going to be centred on that mission.

3.2 Information system mission


The management of the information system plans the mission of the information system
that is built on the goals of the organisation. The mission encompasses the goals to be
achieved with the employment of information system that's in line with the goals of the
organisation

3.3 Information system vision


The manager of the information system outlines the vision of the data system in respect
to the hardware, package and telecommunications that may contribute to the
accomplishment of organisational goals. for instance, the client is allowed to access the
organisations web site.

3.4 Strategic planning


Strategic planning of information system explains in larger detail the action that needs
to be taken in respect to information technology and data system facilities so as to
realize the organisational objectives. Strategic planning is generally for 3 to 5 years.

Strategic planning of information system should fulfil the subsequent 3 criteria:

a) In line with the organisational strategic planning

b) Prepares the information technology design to modify the user,


application and information to be networked and integrated

c) All resources for developing the system should be promptly accessible


to be used to ensure that every one of the objectives are going to be
completed on time, among the stipulated budget which it functions
properly

3.5 Tactical planning


Tactical planning explains however and once the strategic goals is achieved. Tactical
planning is typically created for brief periods as compared to strategic plans. Tactical
plans are more elaborated and have added direct referring to near-term activities than
strategic plans. This set up focuses on prioritising and programming IS development
efforts, establishing action plans for development and performance measures to be used
throughout operational planning.

3.6 Operational planning


Operational planning is said to the implementation of daily activities by considering the
resources and tasks that has got to be performed. Operational planning should make
sure that the information system functions continually to fulfil their objectives. This
includes addressing the barriers to those functions, like technology, finance and human
resources.
3.7 Budget
Organisational activity planning that suits the monetary resource

4. Information System for support various levels of management


4.1 Enterprise Collaboration Systems (Office Automation Systems)
Office automation systems are one of the most widely used types of information
systems that will help managers control the flow of information in organisations.
Enterprise collaboration systems (office automation systems) are enhance team and
workgroup communications and productivity. Office automation systems are other
types of information systems are not specific to any one level in the organization but
provide important support for a broad range of users. Office information systems are
designed to support office tasks with information technology. Voice mail, multimedia
system, electronic mail, video conferencing, file transfer, and even group decisions can
be achieved by office information systems.

4.2 Decision Support Systems


A Decision Support System is a computer based system intended for use by a particular
manager or usually a group of managers at any organizational level in making a
decision in the process of solving a semi structured decision. According to Heidarkhani,
et al. Decision Support Systems are a kind of organisational information computerise
systems that help manager in decision making that needs modelling, formulation,
calculating, comparing, selecting the best option or predict the scenarios. According to
Khanore, et al. decision-support systems are specifically designed to help management
make decisions in situations where there is uncertainty about the possible outcomes of
those decisions. According to Shim, a decision support system is a computer-based
information system that assists managers in making many complex decisions, such as
decisions needed to solve poorly defined or semi-structured problems.

4.3 Executive Information Systems


Executive Information Systems have been developed, which provide rapid access to
both internal and external information, often presented in graphical format, but with the
ability to present more detailed underlying data if it is required. Executive information
systems provide critical information from a wide variety of internal and external
sources in easy-to- use displays to executives and managers. According to Patterson,
An EIS provides senior managers with a system to assist in taking strategic and tactical
decisions. According to Shim, an executive information system is designed to generate
information that is abstract enough to present the whole company operation in a
simplified version to satisfy senior management.

4.4 Knowledge Management Systems


Knowledge management systems are knowledge-based information systems that
support the creation, organization, and dissemination of business knowledge to
employees and managers throughout a company. Knowledge management is the
deployment of a comprehensive system that enhances the growth of an organization's
knowledge (Salisbury, M.W.,)

4.5 Strategic Information Systems


Strategic information systems apply information technology to a firms products,
services, or business processes to help it gain a strategic advantage over its competitors.
According to Belle, et al., strategic information systems are an important special type
of organizational information system is used to secure or sustain competitive advantage
in the market place.

4.6 Functional Business Systems


Functional business systems are information systems that focus on operational and
managerial applications in support of basic business functions. Examples information
systems that support applications in accounting, finance, marketing, operations
management, and human resource management. The functions that relate most to the
management level is Human Resource Information System. Human Resources
Information Systems are process of producing, organising, storing and distributing
manpower information to help the organisation managers at various levels, to make
proper decisions. Nowadays most of successful companies are using human resource
information systems to support daily operations of human resources (Khanore, et al.,).
The human resources function is responsible for attracting, developing, and maintaining
the firm's work force. Human resources information systems support activities such as
identifying potential employees, maintaining complete records on existing employees,
and creating programs to develop employees talents and skills.
5. Management Information System (MIS)
Management information system (MIS) is a type of information systems that provides the
information organisations need to manage them efficiently and effectively. Management
Information System usually is a computerized system used to manage the five main
components which are hardware, software, data (information for decision-making), procedure
(design, development and documentation) and people (individuals, groups or organization).
Management information system is different from the information system to another, where
they are used to analyse and facilitate strategic and operational activities. MIS is a term usually
used to refer to the study of how individuals, groups, and organizations assess, design,
implement, manage, and use the system to generate information to improve the efficiency and
effectiveness of the decision-making process, including the so-called decision support systems,
expert systems, and executive information systems.

According to Kenneth C. Laudon and Jane Price Laudon in their book Management
Information Systems: A Contemporary Perspective, an information system is "a set of
procedures that collects (or retrieves), processes, stores, and disseminates information to
support decision making and control." In most cases, information systems are formal, computer
based systems that play an integral role in organisations. Although information systems are
computer based, it is important to note that any old computer or software program is not
necessarily an information system. "Electronic computers and related software programs are
the technical foundation, the tools and materials, of modern information systems," Laudon and
Laudon wrote. "Understanding information systems, however, requires one to understand the
problems they are designed to solve, the architectural and design solutions, and the
organizational processes that lead to these solutions." Though it is sometimes applied to all
types of information systems used in businesses, the term "management information systems,"
or MIS, describes specific systems that "provide managers with reports and, in some cases, on-
line access to the organization's current performance and historical records," Laudon and
Laudon noted. "MIS primarily serve the functions of planning, controlling, and decision
making at the management level."

MIS are one of several types of information systems that can serve the needs of various
levels in an organization. For example, information systems might be developed to support
upper management in planning the company's strategic direction or to help manufacturing in
controlling a plant's operations. Some of the other types of information systems include:
transaction processing systems, which simply record the routine transactions needed to conduct
business, like payroll, shipping, or sales orders; and office automation systems, which are
intended to increase the productivity of office workers and include such systems as word
processing, electronic mail, and digital filing. Ideally, the diverse types of information systems
in an organization are interconnected to allow for information sharing.

6. Conclusion
In conclusion, information systems in organisation are vital to provide support for the
business process and operations by helping managers to conduct daily activities and functions
properly. For example, in a bank with different activities, which involve but are not limited to:
account creation, the withdrawal of money, statement generation among others, the
Information System helps managers to conduct such activities accurately and in a timely
manner with the help of different software.

Besides, information systems also helping in making decisions in terms of employees and
managers. An Information System will take data as an input and process it thus generating
information. Managers can then use this information for to better their organisation. As an
example, an Information System can analyse existing historical data about customers in a bank
and generate information such as which customers were 'good', which were 'bad' as well as
other attributes, Managers could then use this information while deciding to provide a loan for
new customers, whether it be the restrictions thereof, the amount the loan is for or even whether
a loan can be given at all support in making strategic decision for competitive advantages.
Information systems can give information like which items to launch in which location by
analysing data collected from various sources such that company can have advantage by using
these information over their competitors. Information systems also can help business houses in
conducting their business process differently than their competitors
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implemen

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TRADE AND MANUFACTURING ENTERPRISES. EUROPEAN INTEGRATION
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America: John Wiley & Sons.

THAKUR, D. (n.d.). Four Stage Model of IS Planning. Retrieved from eComputer Notes:
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model-of-is-planning

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