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Question:
Discuss about the Influence Of Information System On Business.

 

 
Answer:
Introduction

Information Systems in today’s world are growing rapidly and it will continue to grow in future as it has lot of potentials in changing the scenario of current business operations for every organization. The Information System is a key player in the market as it helps organizations to improve retention of workforce and consumers and generating new leads. The areas in organizations where the need of Information System is major are finance and accounting, marketing, human resource management and other areas. The major function of Information System is to provide better business processes, strategies for competitive advantage and decision making process. The chosen company in this report is a small charitable organization named Brisbane Multi-Faith Temple (BMT).

The Brisbane Multi-Faith Temple is a small charitable organization run by small group of people. The chairman is Sam Sharma and the growing demands for the business require the chairman to manage the business efficiently for future purposes. They are planning to adopt Information Systems for their organization and they need strategies and future prospective of the technologies. The report focuses on the brief explanation of Information System and its importance, issues related to the system, requirements and suggestions. The purpose this report is to provide solutions to the concerns raised by the chairman for implementing Information System and the related problems and issues with suggestions.

The report will highlight the key points required to establish Information System. The first is Information System description and the role it will play in the organization. The second is problems related to business and system that are faced by Brisbane Multi-Faith Temple. The third is information requirements for Brisbane Multi-Faith Temple and its advantage in improving Brisbane Multi-Faith Temple competitive position. The fourth and fifth is specific Information System usage for business problems, decision-making and competitive position. Then, it mentions the requirements for fulfilling communication and collaboration of stakeholders with the use internet, intranet and extranet. The sixth is introduction of Change management and its use in Brisbane Multi-Faith Temple, and security and ethical issues are also discusses. The seventh is recommendations to the above issues.

 
Discussion

The report focuses on the major questions asked by the chairman of Brisbane Multi-Faith Temple and their solutions, and suggestions to him for the growth of business. The following paragraphs will discuss the solutions and suggestions.

Information System

The Information System has changed the scenario of medium to large Organizations from past few years. The Information System has ability to provide various functions which are relevant and can help in business growth. Information System is a vital resource for management of Organizations from small to large. There are basic components such as automated teller machines (ATMs), barcodes, kiosks and other systems which are common information systems for businesses (Stair and Reynolds, 2013). The small organizations such as Brisbane Multi-Faith Temple are growing in terms of business and thus they need to have understanding and knowledge of Information System for implementation. There are five phase in adoption of Information System in Brisbane Multi-Faith Temple. The first phase is the general idea of information system and then identification of the areas which needs improvement. The second phase is application of software and hardware in Brisbane Multi-Faith Temple. The third phase is business application for the improvement of business operations. The fourth phase is development process where planning will be done for implementing Information System. The fifth phase is challenges associated with implementation of Information System faced by the management. Brisbane Multi-Faith Temple gets benefit from Information System as it provides assistance and accurate information with minimum expense. Thus it ensures minimum loss in business. The accurate and relevant information of Information System in Brisbane Multi-Faith Temple will help to achieve desired goals and objectives with profit. Information System will help Brisbane Multi-Faith Temple to assemble, develop, accumulate, employ and circulate information through utilizing advanced technology (Peppard and Ward, 2016). Brisbane Multi-Faith Temple can utilize the potentials of Information System to ensure effective flow of information without any duplication. There are various types of Information Systems that can be utilized to earn maximum profit at lowest cost for Brisbane Multi-Faith Temple. They are discussed in the following paragraphs.

Types of Information System

The types of Information System relevant to Brisbane Multi-Faith Temple are Transaction processing System (TPS), Decision Support Systems (DSS) and Executive Support System (ESS) (Lipaj and Davidavi?ien?, 2013).This results in managing cost as well as efficient outcomes for Brisbane Multi-Faith Temple. They are discussed in below paragraphs.

 
Transaction processing System

The Transaction process System is a type of Information System that helps in making the transaction process easier and reliable for everyday transactions improving business operations. The Transaction process System working process is by collecting, storing and processing information. The Transaction process Systems is also known as real-time processing. The system is described briefly through an example of Coffee Shop (Sriratanaviriyakul, Nkhoma and Pham, 2013). The Transaction Process System gives benefits of processing more than thousand transactions at a time. The system is also capable of keeping records of every transaction done. The other benefit it provides are ordering and printing materials such as receipts, for providing shipping of order.

Brisbane Multi-Faith Temple can implement Transaction process Systems as it can be used for online transaction processing where customers can connect electronically with the suppliers. The Transaction process Systems will help Sam to check the transaction data at any time at any place. The system will also help to manage the ordering of food products across all the temple sites as it will provide real-time monitoring of available products. The system will also help to store contributions from the clients and at the end of the year they get printed statement of their contribution.

Decision Support Systems

The Decision Support System is helpful tool for assisting Organizations workforce from chairman to manager in making decisions regarding any problems or issues. It has ability to provide internal and external data for Organization’s goals and objectives. Decision Support System presents information in such a way that it is suitable for making effective decisions. The System will also help to identify negative trends of the existing business processes and it will provide better allocation of business resources for decision making. The Decision Support Systems has feature of representing situations in the form of charts and graphs. This helps to get a more summarized picture of the overall scenario of the situations existing in the Organization. The other major benefit is that it can analyze any type of decisions whether structured, unstructured or semi-structured decision problems. The Decision Support Systems usually serves the mid-level management and high-level management.

The decision support system will help Sam in making effective decisions for hiring suitable people for various roles. It will also help Sam to hire person who are well suited for the particular role. Decision Support System will also help in maintaining and managing decision making for various meeting and how to maintain overall Information Technology setup costs and complexity. Thus this shows that introduction of Decision Support System will help the business growth by providing effective decisions to Sam.

Executive Support Systems

The Executive Support Systems is used for transforming business data and information into summarized reports for businesses. The generated report is used by senior managers for making long-term planning and scheduling according to planning to be used for effective future operations. The generated reports through this system are used in areas such as billing department, accounting department and staffing department. Executive Support System is used in conjunction with Decision Support System. The process is that Executive Support System generates quick statistical data to be used for decision making process through Decision Support System. The generated report is summarized and can be easily understood by the senior management to get an insight to the working of business operations.

Brisbane Multi-Faith Temple can gain potential outcomes from Executive Support System. Executive Support System will provide a short and summarized form of donations, staff files, timesheets and meetings to the senior management that they can use it to make effective decision. The ordering of food products will also become easier as the system will provide day-to-day requirements of products that are necessary. This will then achieved by Decision Support System to make effective decision regarding ordering of food products. The financial situations will also be represented through past, present and future cost and budgeting of the organization’s requirements.

Problems faced by Brisbane Multi-Faith Temple

Brisbane Multi-Faith Temple is growing and opening of several temples at different sites has raised a major concern for Sam. The concern areas are implementation of Information System across the temples and their complexity and cost which are described in the following paragraphs.

The business and system problems are correlated and can be described by analyzing the complexity and cost of implementing Information Technology setup in Brisbane Multi-Faith Temple. The first major problem regarding Brisbane Multi-Faith Temple is that the cost of Information Technology is high and complex to implement. This will require strong financial requirement and investment which is a major concern for Brisbane Multi-Faith Temple. The second problem is the safety and security of information shared across sites as it contains sensitive data of clients such as bank details and donations (Lipaj and Davidavi?ien?, 2013). This can create huge risk of data breach if not handled properly. The third problem is storage of data that is storing of data in a secure place. The fourth problem faced by Brisbane Multi-Faith Temple is related to food serving to more than thousand people in the temple. The food serving and ordering is done by traditional way and this poses problem. The problem is sometimes when temple run out of supplies there is a rush of supplying food manually which is hectic for employees of Brisbane Multi-Faith Temple. The other problems are related with implementation of above given different types of Information System. The available technology will pose concern for Sam as there is no formal training for the employees to understand the operation of technology. The lack of integration between existing manual system and advanced Information System creates problem for Brisbane Multi-Faith Temple. Sam itself has limited knowledge and understanding of Information System.

Information Requirement

The information requirements are necessary for Brisbane Multi-Faith Temple’s case as it will help to survive and compete even in extreme conditions. The information requirements are given below.

  • The basic information requirements for Brisbane Multi-Faith Temple are keeping day-to-day transactions, and details of day-to-day sales and management of cash transactions (Sommerville, Lock and Storer, 2012).
  • The requirement of knowledge-based system that will help and assist Brisbane Multi-Faith Temple in long-term benefit and impact.
  • The implementations of information technology for information requirements are customer support specialists, system analysts, programmers, database administrators (Chun, Kim and Lee, 2015).
  • Management information is necessary requirement for Sam to make effective decisions such as information of food deliveries and supply and its cost.
  • Employee’s accessibility for interaction, coordination and collaboration tools is an important information requirement that can help to operate even when Sam is not present physically.
  • The integration of current systems in Brisbane Multi-Faith Temple areas involving human resource management, finance department and production management.

The above information requirements are helpful for Brisbane Multi-Faith Temple. This is because a computerized system that is Information System easily store, update, modify, delete and retrieve data for benefit of any Organization. Here, in this case, Information requirements play a major role in providing real-time processing and monitoring to generate reports and then access of these reports. The information requirements will help Sam and its associates to develop and operate entire operations at the temple smoothly (Tallon, Kraemer and Gurbaxani, 2000). This will be a major benefit for business growth. The food ordering will be handled better with the automated services in case of peak hours benefitting accountants from rushing here and there. All the information requirements are bonded together with a single service and that is Internet. Internet is the major source for the above information requirements. 

 
Improvement of Brisbane Multi-Faith Temple

This section identifies improvements and enhancements in areas related to competitive position, business decisions and business problems of Brisbane Multi-Faith Temple. The different types of Information System discussed earlier in this report are discussed in this section relevant to the problems. The discussion here brings result for developing strategies for improving and enhancing the mentioned problems. The strategies for the problems are given in the following paragraphs.

Strategies for Business Problems

The business problems in Brisbane Multi-Faith Temple are correlated to Transaction processing Systems. The improvement in business problems can be achieved by using Transaction Process System efficiently. The transactions on daily basis are solved which will help Brisbane Multi-Faith Temple to organize their invoices, payments, orders and sales in the system. The transaction process in Brisbane Multi-Faith Temple is very important. The Transaction processing System has inbuilt security systems and it will provide safety and security to information that are stored and updated daily. It has major impact in future. This is because in future when the business will grow Transaction processing System will be capable to do multiple transactions. Adding to this, storage will also modify according to the size of transactions. The Transaction processing Systems are also shared across all the temples of Brisbane Multi-Faith Temple thus it can be accessed from anywhere (Sriratanaviriyakul, Nkhoma and Pham, 2013). Brisbane Multi-Faith Temple can also utilize Transaction processing Systems where all the logistics and statistics will be stored and user can access the data at anytime from anywhere.

Strategies for Business Decisions

The business decision problems in Brisbane Multi-Faith Temple are correlated to Decision Support Systems. The improvement and enhancement in business decisions can be achieved by Decision Support Systems. The Decision Support Systems will help senior executives by providing innovative ideas and solutions by analyzing the whole business process situations. It provides internal and external information for desired goals and objectives of Brisbane Multi-Faith Temple. The decisions for maintaining food ordering and supply and transactions are important and they are achieved through Decision Support Systems. The Decision Support System will help Sam to make decisions with appropriate information inputted in the system. This will help him to grow business in future with effective decision making.

Strategies for Competitive Advantage

The competitive advantage problems in Brisbane Multi-Faith Temple are correlated to Executive Support Systems. The improvement and enhancement in competitive advantage can be achieved by Executive Support Systems. The Executive Support System together with Risk Management is best strategy to improve competitive advantage. The Brisbane Multi-Faith Temple has opened new temples across different areas and thus they require lots of job for dealing with competitive advantages. The Risk Management linked with knowledge management minimizes the impact of future projects and developments in Information System (Alhawari et al., 2012). Executive Support System analyses the scenario of Brisbane Multi-Faith Temple data and information, and then transform it in summarized report format. This report is then analyzed for any risks in Risk Management System. The Risk Management System and Executive Support System both help in sustaining Brisbane Multi-Faith Temple and become competitive in the business environment in present and future. The internal and external pressures in competitive advantage will be tackled by both the systems together that is Risk Management and Executive Support System.

Stakeholders and their requirements for communication and collaboration

The business operations are not only accessed by Information Systems, it also requiresa medium through which every technology and system can communicate with each other across the globe. Brisbane Multi-Faith Temple management needs to utilize the Information System properly to ensure success for the future business purposes. The Brisbane Multi-Faith Temple chairman, Sam needs to have medium through which he can interact, communicate and collaborate with the stakeholders including patrons, customers and employees. This ensures quick response and communication exchange without any errors. This can be achieved through different types of network which are used for organizations from small to large. The networks that Brisbane Multi-Faith Temple should use for communication and collaboration purposes are Internet, Intranet and Extranet. The Internet, Intranet and Extranet will help Brisbane Multi-Faith Temple’s survival and success in business environment (Gloor, 2012). Brisbane Multi-Faith Temple is a small organization which can be modified with the use of web knowledge through the use of internet, intranet and extranet (Palacios-Marqués, Soto-Acosta and Merigó, 2015). This can be achieved with the consideration of workforce in Brisbane Multi-Faith Temple. Human resources play an important role in web knowledge management.

Internet for communication purposes

Internet is a basic requirement for any Information Systems and it is used from past few decades in every Organization. Internet is basically required for communication purposes across the globe. Email or Electronic mail is an important and reliable communication services which is available on the Internet and exchange of messages are done with this service. The Internet will help in communication through other services also such as pictures, documents, videos, blogs, social media and other services.

Brisbane Multi-Faith Temple chairman, Sam needs to have Internet for communication as it provides communication without across all temple sites without having concern over geographical boundaries. The Internet will help Brisbane Multi-Faith Temple to reach the global standards by providing benefits in peak hours when there is a lot of rush and hassle. The Internet will help Brisbane Multi-Faith Temple to open online portals which will help patrons, stakeholders and employees to track their activities and make interactions smooth. All sources of funds and donations transactions across the sites of temple help Brisbane Multi-Faith Temple to track daily updates. The Internet will help Sam to operate Brisbane Multi-Faith Temple management from any place at any time. The online operation through the use of Internet will help to avoid confusion and ensure simplicity in Brisbane Multi-Faith Temple (Ajegbomogun and Popoola, 2014).Brisbane Multi-Faith Temple can also use Internet for advertising through social media like Facebook, Instagram and Twitter. This will help in growth of business.

Intranet for Organization’s collaboration

Intranet is a private network that is used and accessed within an organization by the organization’s staff. This network ensures the availability of information and services to be private and not public. This can be explained as information and services are not available to public outside the organization. The establishment of Intranet network is through Local Area Networks (LANs) and Wide Area Networks (WANs). Intranet is basically used for collaboration within an Organization. Intranet is used for collaboration to facilitate working in groups and teams to improve productivity. Intranet is derived from Internet and use Internet technology to facilitate its own function within an Organization.

Intranet will help Sam to make internal interactions and collaborations among its employees to improve the functioning of business. The food ordering will also be improved and help to collaborate with the employees of temples in different sites to analyze and track the availability of food products. Intranet will help to communicate internally to track the existing development and to discuss future developments among employees and senior management in Brisbane Multi-Faith Temple. The effective communication and collaboration between internal stakeholders helps to impart understanding of internal and external business development. The collaboration helps in betterment of overall business performance and competitive advantages of Brisbane Multi-Faith Temple.  

Extranet for business services

Extranet is a private network that is controlled by an Organization and allows access to authorized partners, stakeholders, suppliers or authorized people. The information accessible from Intranet is used by Extranet to allow accessibility to authorized people. It gives benefits of exchanging large volumes of data and collaborating with other companies for jointly developing efforts on business purposes. It connects with authorized stakeholders including customers, suppliers or business partners privately to provide access to internal developments. Extranet in different Organizations has security and safety systems to protect their information and which can be accessed by authorized person using User Id and password.

Brisbane Multi-Faith Temple stakeholders are clients who donate for temple operations and food suppliers. The clients and food suppliers are authorized people who also need to get an insight of the business operation, developments and advantages gained. This ensures establishment of long-term relationships among the stakeholders and Brisbane Multi-Faith Temple. However, Brisbane Multi-Faith Temple chairman, Sam should allow limited accessibility of information to stakeholders including clients and food suppliers. This will ensure safety and security to information from going in the hands of unauthorized people. The installation of Extranet is costly however after the installation the cost of company in future business development will be reduced.

Change management and proposed changes in Brisbane Multi-Faith Temple

Changes are necessary to adapt in the current and future environment. It is an important part of nature. Changes can be anything, anywhere, any place and any situation. Change here is discussed in reference to Organizational behavior. Change that occurs in an Organization is either planned or unplanned and revolutionary or evolutionary. Planned Organization change is defined as the change which is regarded as strategic move by the Organization having objective of changing the entire business operation internally and externally. Unplanned Organization change is defined as the change which is regarded as unplanned strategic intervention internally and externally in an Organization. Revolutionary change is defined as changes which are related to leadership change and in a situation of any crisis. Evolutionary change is defined as changes related to convincing people and this change is not documented. Evolutionary changes are those changes which are done on daily basis and basically unplanned.

The above explanations of different types of changes show that Brisbane Multi-Faith Temple has changes that are both evolutionary and revolutionary change. Brisbane Multi-Faith Temple chairman, Sam is considering changing the entire manual and labor-centric system to technological system (Burke, 2017). Here, implementation of Information System is a planned Organization change which is needed for betterment of Brisbane Multi-Faith Temple.

Change management is defined as a process which provides an Organization to implement changes that are pre-planned. There are various factors of change management. Change Management can benefit an Organization and at the same time provide disadvantages. The major issues arise when an Organization plan to change the entire system from one situation to another situation. Brisbane Multi-Faith Temple case is also the same where the change will impact the management. Implementing Information Systems in workplace might have to let go some of the employees of Brisbane Multi-Faith Temple (Pieterse, Caniëls and Homan, 2012). This can also affect the relationship with the previous employees. The suggestion for this situation is that the senior management should communicate with these employees in such a way that it imparts a positive message without hurting their sentiments.

 
Security and Ethical Issues related to Information System

The Information System implementation will have some issues related to security and ethics. These issues can be vulnerable at times thus it should be looked upon and should be tackled with proper measures. The security and ethical issues related to Information Systems are unauthorized access, hacking, virus attacks, loss of data, system malfunction and other issues. These issues can adversely affect any Organization. However, these issues can be tackled with proper and effective utilization of Information Systems.

Brisbane Multi-Faith Temple also faces with security and ethical issues that need to be taken into account before and after implementation of Information Systems. The implementation of Information Systems results in sacking of employees which will break ethics of Brisbane Multi-Faith Temple. However, some Information Systems come with advanced security options that can help to eradicate security and ethical issues. The security and ethical issues are not only the result of malfunction of Information Systems but also due to human error. Thus there is a need of adequate training of employees and senior management to use the Information Systems effectively. The security challenges related to Implementation of Information System in Brisbane Multi-Faith Temple are hacking, cyber theft, data breach, unauthorized use at work, software piracy and viruses and worms (Laudon and Laudon, 2016). The ethical issues are breaking of business ethics of Brisbane Multi-Faith Temple and the ethics are equity, rights, honesty and exercise of corporate power. Therefore, this issues need to be addressed as improper handling and using of Information System will result in major risks and hazards in critical situations.

Conclusion

Therefore, from above discussions it can be concluded that introducing and implementing Information Systems will help Sam and his Organization, Brisbane Multi-Faith Temple, to tackle their everyday problems. Sam appointed consultant to help him understand and get knowledge of Information System before implementing Information System. This step is taken to avoid any risk of present and future hazards as because with limited knowledge of Information System, Sam can be affected financially. The report focuses on how Sam can utilize Information Systems and its functions to provide benefit to Brisbane Multi-Faith Temple. However, technological innovations use such a creating an official website and a portal for Brisbane Multi-Faith Temple will provide functionality and at the same time attract security issue. The report focuses on demonstrating present and future actions and strategies to be taken by Brisbane Multi-Faith Temple and its associates to eliminate the present condition of their business. Therefore, Sam must take into account the strategies and precautions that are described in the discussion part to have a smooth business operation. Incorporation of new technologies will give rise to certain issues which will be a concern for internal and external employees and stakeholders. Thus, considerations of the above strategies are needed to incorporate Information System effectively.

Recommendations

The above conclusions showed that there is a need of taking proper precautions before and after implementation of Information Systems. The below points suggest some points which should be taken into account by Brisbane Multi-Faith Temple chairman, Sam, to apply it to his business operations and human resource management.

  • To give training to staff and, internal and external stakeholders for proper use of Information System and knowledge of functions the systems provide.
  • To restore sacked employees by giving training to them and making them utilize the Information System.
  • To install security systems such as firewalls, antivirus and others security measures in Information Systems in order to provide safety and privacy.
  • To advertise through online media such as Facebook, Twitter and other media using Information System. The Internet helps to do online advertising.
  • To consider each and every factor of Information Systems before installation so that it will not hamper the future prospective of Brisbane Multi-Faith Temple.
  • To upgrade and modify the Information Systems functions and operations in order to provide better security to Brisbane Multi-Faith Temple’s business operations.
  • To fully analyze change management procedure before applying any changes within Brisbane Multi-Faith Temple as well as outside of the Organization.
  • To check all Information Systems on a daily basis to keep track of every technology and its functions. It will help to alert any failure that can happen in future operations. 
 
References

Ajegbomogun, F.O. and Popoola, S.O., 2014. The Influence of Self-Efficacy, Perceived Usefulness, Accessibility and Utilisation of Internet Resources as Determinants of Research Productivity of Lecturers in Universities of Agriculture in Nigeria. Libri, 64(2), pp.155-172.

Alhawari, S., Karadsheh, L., Talet, A.N. and Mansour, E., 2012. Knowledge-based risk management framework for information technology project. International Journal of Information Management, 32(1), pp.50-65.

Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.

Chun, H., Kim, J.W. and Lee, J., 2015. How does information technology improve aggregate productivity? A new channel of productivity dispersion and reallocation. Research Policy, 44(5), pp.999-1016.

Gloor, P., 2012. Making the e-business Transformation. Springer Science & Business Media.

Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.

Lipaj, D. and Davidavi?ien?, V., 2013. Influence of information systems on business performance. Science–Future of Lithuania/Mokslas–Lietuvos Ateitis, 5(1), pp.38-45.

Palacios-Marqués, D., Soto-Acosta, P. and Merigó, J.M., 2015. Analyzing the effects of technological, organizational and competition factors on Web knowledge exchange in SMEs. Telematics and Informatics, 32(1), pp.23-32.

Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.

Pieterse, J.H., Caniëls, M.C. and Homan, T., 2012. Professional discourses and resistance to change. Journal of Organizational Change Management, 25(6), pp.798-818.

Sommerville, I., Lock, R. and Storer, T., 2012, March. Information Requirements for Enterprise Systems. In Monterey Workshop (pp. 266-282).Sommerville, I., Lock, R. and Storer, T., 2012, March. Information Requirements for Enterprise Systems. In Monterey Workshop (pp. 266-282).

Sriratanaviriyakul, N., Nkhoma, M. and Pham, H., 2013. Osaka flower coffee shop: transaction processing systems. Journal of Information Technology Education: Discussion Cases, 2, pp.1-11.

Stair, R. and Reynolds, G., 2013. Principles of information systems. Cengage Learning.

Tallon, P.P., Kraemer, K.L. and Gurbaxani, V., 2000. Executives’ perceptions of the business value of information technology: a process-oriented approach. Journal of Management Information Systems, 16(4), pp.145-173.

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