An information system provides procedures to record provide information, concerning area of the organization, to assist group related activities. Information systems are more then the computers. Effective consumption of information system takes a thorough understanding of the organization, its management and the info technology it indicates. Information system is defined as the "mix of hardware, software, infrastructure and trained employees organized to assist in planning, control, coordination, and decision making. "(Web-2). Three activities; Suggestions, Processing, and Outcome in the information system produce the information that are had a need to make decision making, Studying the problems, controlling procedure, and in releasing new products. Insight collects the natural data, which is manifested into meaning form by the Cpu and Output exchanges the prepared data to the relevant person.
Super market check-out is one of the most typical examples of uses of information system employed by the retail industry. It holds loads of valued information. It will keep millions of data, such as product cost and the details, product identification number and number of product sold-out. Based on the information collected, companies analyze the total number of the items sold-out, items kept in the stock, items which sell most, the items that need to bought, and the most review its sales.
Information system is divided into operational, knowledge, management and tactical level and into five major practical areas; development and manufacturing, Money, Accounting, sales & marketing and Recruiting. (Laudon and Laudon, 2003) A proper level system helps older management in tackling and dealing with strategic issues in order to support the long range planning. Management level systems supports in monitoring, handling, decision making, and administrative activities for middle managers. Knowledge and data workers are supported by the knowledge level system. Its importance is believed, when new ideas (knowledge) are to be injected in to the business. And basic activities and transactions of the business (such as cash first deposit, sales, receipts, payroll etc) are done by the functional professionals, which is supported by the Operational level system. It is clear from the above classifications, that the info system is essential for every level of the organization. Since, every level within the business is interdependent. Any oversight, delays in information passing in any of the level, is enough for downfall of the business.
Similarly, in lots of ways, the information system supports the primary business functions. For example, sales and marketing information system helps the firm to explore market segments for its products or services, develop products and services that meet customers' need and promote and sell those products and services. The developing and production information system is in charge of planning, development and production of goods and services and control the production flow. Likewise, fund and accounting information system really helps to create long-term investment goals and provide long-range forecasts of financial performance of the firm. In addition, it helps the professionals to control and control the firm's financial resources. Moreover, human resources information system takes on a vital
role for taking care of people effectively. It helps to keep and maintains employee records which makes easy to investigate and assess job performance, conduct recruitment and selection, training and development and retention as well.
Managers and the Organization cannot ignore information system because of its critical dynamics. The affect and the value of information system are visible in decision making, planning, and management of its employee and in general management of the merchandise. One of the main roles of any administrator is to make effective decisions which is very challenging job of the administrator. The managers often be based upon information system to make decisions because it helps to talk and disperse information. Interdependence between your business strategy and the info system is becoming increasingly more complicated. Any change in any of the components has overall influence on the organization.
Future prospect of any group wholly depends upon the information system it relies on. The following physique shows the partnership between group and the info system. When guidelines, steps and strategy of the organization have to be changed, additionally it is important to change hardware, software, database and, telecommunication. One of the reasons for the vast need for the info system in any organization and its effect on more and more people is as a result of high power and dropping cost of the computer technologies.
Interdependence
Organization Information System
Business
Strategy
Rules procedure
Software
Telecomm-unication
Database
Hardware
Figure1. Marriage between corporation and information system
A theory predicated on both financial and behavioral techniques has made us easier to know the affect of information system on group. Matching to Economic Theory, Information technology helps firm contract in size, as it helps to decrease the transaction cost. According to (Williamson, 1985; Coase, 1937), using market place is expensive because of the problem of interacting with faraway suppliers, buying insurance, obtaining product, etc. According to Transfer cost theory, companies and organization try to lower the cost of transaction just as much as they are doing on development costs. It also reduces Management costs. Similarly, according to Firm theory, companies are seen as the nexus of agreements among self applied interested those who most be supervised and monitored. (Laudon and Laudon, 2003, p80).
Information system is a multidisciplinary field having different perspectives on information systems. In order to make the info system work properly, a lot of cultural, organizational and intellectual investment funds are required. It is split into two different techniques, i. e, complex strategy and behavioral approach.
Technical way includes computer science, management technology and operations research where computer science purely deals with the computer system such as computation methods and effective data safe-keeping and access method. The management science is in charge of developing models for decision-making and management routines. Similarly, functions research emphasizes numerical techniques that help company to optimize selected guidelines such as travelling, cost of exchange and inventory control. So, technical approach can be involved with mathematically centered models, physical technology and the capabilities of the systems.
Behavioral approach focuses on the changes including management and organizational coverage, attitudes and habit. Although it will not normally give attention to technical solutions, it generally does not disregard technology. The models found in this approach help explore different issues which can not be explored through complex approach. Important concepts and methods are made from other behavioral disciplines. For example, sociologists review information system in order to get knowledge about how precisely development of system is molded by communities and organizations. Likewise, the psychologists analyze information system in order to know how individuals decision producers understand and use formal information. Alternatively, the economists study information system to know what impact has been created by system on cost framework of the firm and the markets as well. The ideas from the sociological, mental and political point of view are of help in determining the tendencies of individual firms, which is mentioned by the behavioral methodology.
It is clear given that the advantages of information system in organization is to boost its success and efficiency. Computerized activities helps in the reduction of the price incurred, brings more reliability then the individuals intellects, and the most is the Velocity. It saves time and reduces pointless costs. Organizations like British gas, Uk Petroleum, Banks and so many more calculates a lot of customer expenses and other activities, which is only possible through the use of information system. It could be said with warranty that many large companies would not make it through more than 24 hrs without information system. On the contrary, its dark side on the cost at original installment, the changes that comes along with it, and reluctance of the staff to go with it, and the cost of unproductive information would cause a severe problem to the organization.
