Concept Of Information Systems In Business Management

Task 1: Theories, Methods, and Techniques

Because of the emergence of various advanced technologies, many businesses have benefited from it. The adoption of these technologies not only helped the businesses to automate their business process and operation but also improved their internal infrastructure to improve their performance and provide more profitability. As information is growing every day so businesses need to adopt such strategies so that such growing data can be managed efficiently and effectively. Because of that, the adoption of information systems by the companies comes in handy.

According to the author (Iivari 2017), the term information system is basically an organizational, formal, sociotechnical system that is designed so that it could distribute, store, process, and collect different information. From the perspective of socio-technical information, a system is composed of the four main components such as technology, structure, people, and task (Donets, Kuchuk, and Shmatkov 2018). The adoption of an information system helped in processing the data from the inputs of several companies in order to generate the information which is beneficial for managing their operations.

The prospect of this report is to present the concept of information systems and how this concept helps the management to take appropriate decisions at various levels of the organizations. This research report also highlights the techniques and methods which are related to the design as well as development of Information Technology solutions. As there are several different parts of an information system, so of the important ones will going to be mentioned in this research report. Apart from this, the topic of globalization will also be discussed and the effects of IT on globalization. Also, a detailed explanation of one digital infrastructure including its advantage and disadvantage will be addressed.  

In this section, the theories, techniques, and methods which are related to the design as well as development of the existing information technology solutions have been discussed. Here, two types of IT solutions have been considered such as Moodle and Canvas.

• Theory:In Moodle, the theory which is used is social constructionist philosophy that generally underlines the assertion of Moodle that learning happens specifically well in the collaborative environment that builds both the teachers and the student together (Chootongchai and Songkram 2018). This philosophical theory also states that the student should have the flexibility to have the availability of the resources shared by the teacher in that environment so that the learning capability of the student can be improved.
• Method:The Moodle was first developed by a person named Martin Dougiamas so that it could help the educators to create a course online with the aim of the interaction as well as collaborative construction of the content. As per the design perspective, there are themes in Moodle that allows the user to change the overall feel and look of the Moodle site (Sykamiotis et al. 2017). It was firstly announced as the website but later to make it available for the larger community application of Moodle has also been developed.
• Technique:The Moodle comprises the Moodle code which is executed in the PHP capable web server where a database has been managed by Oracle, MySQL, MariaDB, Microsoft SQL Server, and PostgreSQL including a file storing feature for uploading and generating the files from the Moodle folder (Putri et al. 2020). Here, all these three parts run on a single server or can also be separated with the help of several load balancing web servers, a cluster of databases, as well as a file server.

• Theory:For the IT solution such as the Canvas the theory which is used is the Theory of Change. The theory of change is the explanation of why a specific way of working is said t be effective, including showing the change that occurs in the short, long, and medium-term in order to achieve the intended impact (Rahayu, Zutiasari and Munadhiroh 2021). Canvas uses this theory so that a piece of information can be portrayed in a form of a visual diagram and as a narrative or as a single.
• Method:The method which is used is the use of the lineTo() method that helps to draw the line from the existing drawing position to the position which is determined by the x and y. This method generally takes the two arguments such as the x and y that are coordinated at the endpoint of the line (Amini and Pujiharti 2021). As the Canvas is a useful platform for presenting information or content visually. So, these two arguments determine to the user that they are drawing to the right coordinates.
• Technique:For the canvas application the technique which is used is the imperative development technique that helps to achieve the objective of the application. In the field of computer science, the term imperative is the programming technique that utilizes the statements which can change the state of a program (Rahmonovna and Erkinovana 2022). It is mainly focused on describing how the program operates step by step instead of on high-level descriptions of its desired outcomes.

In this section different types of information, and systems have been mentioned including a detailed description of it with an example. These systems are used for a specific purpose in specific areas of the business.

A DSS which stands for Decision Support System is basically an interactive system that examines a huge amount of data so that it can help in the business decisions. A decision support system is supported by the management, planning, and operation levels of an organization in order to make the decision process more appropriate (Teniwut and Hasyim 2020). This thing is done by assessing the importance of the uncertainties as well as the trade-offs which are involved in creating one decision over another. A decision support system leverages the combination of the business model, personal knowledge, documents, and raw data in order to assist the user to make appropriate decisions (Yun, Ma, and Yang 2021). The data source which is utilized by this system could incorporate the relational data sources, sales projections, revenue projections, electronic health records, data warehouses, cubes, and so on. For example,

Moodle

The decision support planning can use GPS route planning in order to plan the best and fasted routes between two different points by examining the options which are available. These types of systems sometimes incorporate the capability to monitor the real-time traffic to route around the congestion.

The executive support system or ESS is generally referred to as the reporting software that permits the user to turn the data of their organization into some meaningful summarized reports. Then these generated reports are used by the managers of the executive levels for quick access to the reports that are coming from all the company levels as well as the departments like the cost accounting, billing, scheduling, staffing, and many more (Kolomoiets and Kolpakov 2019). This support system also provides tools for analysis that predicts the series of the performance results over time by utilizing the data provided in the system. This type of executive support system is very useful to the business executives as this system provides the potential results as well as a quick reference to the statistic and the number which are required for making the decisions (Beverungen 2019). For example,

Cambridge Systematics has the executive support system for the Ministry of Transportation that supports their investment planning process. The function and the features that this system brings to the Cambridge Systematics are completely different from the ESS of Meditech which is utilized for the health care organization.

A transaction processing system or TPS is generally software that is used for managing the transaction of data that is done outside or within the organization. In this type of software, there is an option that allows the user to restore the data which are lost (Wang and Kogan 2019). So, if any data get lost accidentally then it can be easily get restored by using the transaction processing system. It is mainly done or operated by the front-line company’s staff as well as the customers (Gupta and Sadoghi 2021). For example,

The transaction which is done by the customers and the staff in the railway station is also the type of transaction processing system. Suppose, if a customer wants to buy a product and for that he/she needs to pay online, here, the TPS plays its role. The user provides their card details to the system which get verified by the processing system and then the transaction of the payment gets done.

A management information system or MIS is a series of a set of processes that are used to process, display, and analyze the data that are used in deciding on the business. This type of system is the planning system which is part of the internal control of the company and consists of human resources, management accounting processes, technology, and documents (Martins et al. 2019). The main objective of the management information system is to collect and then organize that collected data from the different levels of the business and then summarize the data and then facilitate the decision making. It also enhances the quality to improve the profitability and productivity of the company (Eroshkin et al. 2017). For example,

Canvas

The use of enterprise resource planning by the large and small companies so that they perform management and integrated monitoring of the data between the units of the business. Another example is the use of supply chain management by the business which helps them to integrate the management of the material supply from the retailers, manufacturers, and suppliers to the customers.

A KSM (Knowledge Management System) is referred to as both the process for sharing, forming, and gathering information across the entire organization, as well as the technology that is utilized to manage those identified processes (Iskandar et al. 2017). A knowledge management system is essential because it enables the customers to have the self-serve, breaks down the internal silos, and improves the agent efficiency (Oseledchik, Ivleva, and Ivlev 2018). For example,

Spartan Race's knowledge base which is a global leader in the obstacle races is the first that has used the knowledge management system for its customer-centric self-service strategy. The business of Spartan Race understands that the relationship of their customer with the brand is not the one-size-fits-all which presents the knowledge that is aligned with the unique needs of the customer and due to this the adoption of the knowledge management system is a success for them.

Globalization is the term that usually represents the growing interdependence of the populations, economies, as well as cultures of the whole world which are brought by the cross-border trade in the service and goods flows of investments, technology, information, and people (Hopper, Lassou and Soobaroyen 2017). The countries have built economic partnerships in order to facilitate the defined movements over the centuries. The term globalization mainly get famous after the Cold War as these arrangements of cooperative sectors shaped modern everyday life (Perraton 2019).

The advancements in technology have continuously facilitated globalization. Technological improvement has been the key force that is driving globalization. According to the author (Pleninger and Sturm 2020), the breakthrough in the technology has compelled the enterprises of the business in order to become global by enhancing the economics of the scale as well as the market the size that is required to break even. According to the author (Gravina and Lanzafame 2021), information technology has led to the rise of the global village. For instance, the www which is the world wide web has reduced the boundaries of the place and time in the dealings of the businesses. The sellers and the buyers are now able to make the transactions at the time and in any part of the globe.

The digital infrastructure is generally defined as the foundational services that are important to the capabilities of nation’s IT, organization, city, or region. In addition, the digital infrastructure is essential to the quality of life and economy of a modern nation (Shenglin et al. 2017). There are various examples of digital infrastructure that can be seen nowadays such as:

• Fixed Broadband
• Mobile Telecommunication
• Communications Satellite
• Network Infrastructure
• Data Centres
• Cloud Computing
• Platforms
• Systems
• Applications
• APIs and Integration
• User Devices
• IoT (Internet of Things)

The most commonly used digital infrastructure is cloud computing which nowadays is the most preferable by the organization. The term cloud computing is generally defined as anything that is involved in delivering the services which are hosted over the internet (Srivastava and Khan 2018). These types of services are then bifurcated into 3 key categories such as IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service).

Advantages of Cloud Computing	Disadvantages of Cloud Computing
No cost on the infrastructure	Needs good internet speed with proper bandwidth
Minimum cost and maintenance	Downtime
Forget about the management and administration hassles	Limited infrastructure and control
Accessibility and pay per use	Limited or restricted flexibility
Reliability	Ongoing costs
Data control	Security
Data recovery and backup	Vendor Lock-in
Huge cloud storage	Technical issues
Automatic update of software

Task 2: System Explanation

There is a certain risks that are associated with the outsourcing of information systems such as:

• Inexperienced staff àOne of the risks associated with the outsourcing of the IS is having staff who don’t have the qualified skills in order to manage the information system. When the company hires the in-house team there is an assurance that the team member has the skills which are required for the project as they are appointed through the interview (Suresh and Ravichandran 2021).
• Hidden Costs àAnother risk which is there is the hidden cost of the IS services. Many companies charged on the monthly basis but will rack up the surcharges for the additional software, support, or consulting (Kazmi, Hafeez, and Ali 2018).
• Unresponsive support team àIt is also the major risk that is associated with the outsourcing of IS. The inappropriateness in the response of the outsourced team will impact the entire project and because of that costs get increased (Nyameboame and Haddud 2017).

In order to guarantee that the company is keeping up with the digital transformation demand properly, it is important to have a strong digital infrastructure. Digital transformation is mainly determined by the aim of enabling the agility of the business and the powering of the user experience which helps to drive the loyalty and engagement of the customers. The adoption of information technology boosts the transformation of digital transformation as the more the business gets automated the more efficiently it can be transformed into the digital.

Conclusion

Information technology is nowadays become one of the most useful and preferable technology for businesses due to the capability that it provides. Companies are now shifting towards the era of digitalization in which IT plays a very important role. In this research report, I have elaborated on the concept of the information management system and how it is used in different fields. The statements which are provided in this research report are true and if considered for the further research for any business then it would be proved to be beneficial for them.

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