Question 1 Distinguish between information technology (IT) and information systems (IS)? List four organization functions that can be served by IS. Information technology is the use of computers and networks to manage data and information. This is mainly done by the use of computer software which is mainly responsible for information storage, processing, protection, transmitting and retrieving. Information systems on the other hand are the softwares and the hardwares that support data applications through collection, storage and distribution (Andriessen, 2004). Four organizational functions of ISDelivery of better results is one of the main functions of the information systems in an organization.
This can be achieved by improving the accuracy and speed of processing data and thus eliminating all the errors that may lead to poor results. This can be achieved through the use of information management systems (Malik, 2007). Responding to business challenges is one of the organizational roles of information technology. In the current business world it is necessary for managers to adopt changes in order to remain relevant in the business. This will involve the establishment of new products or the modification of the existing products.
This can be achieved easily by the use of information systems through the analysis of data and to identify the areas that needs change. Adding value to the organization is also a key function of information systems. Through the use of information systems, the production of the organization will improve. This is because it will take a shorter time to perform duties that will require long working hours if it were done manually. The number of people to perform the tasks will also reduce thus reducing costs.
Revenue collection will also increase since information systems will enhance accuracy and transparency in the collection and use of funds (Jatinder & Sharma, 2004). Improving the decision making process is also a function of information system in an organization. This is because managers will be able to make accurate and informed decision when they have reliable sources of information which are also accurate. Information systems will always promote accurate information like the rate of sales or competition in the market and therefore this in formation will enable managers make good decision (Power, 2002), Question 2Distinguish between Management information systems (MIS) and Decision support systems (DSS) and what are the relationships among these systems.
Management information system is the processing of raw data into information for the purpose of communicating the results to the different departments within an organization for proper decision making exercise. According to Benbasat (1999), its main purpose is to improve coordination between the departments, enable easy access to data within an organization, improving organizational and departmental techniques, management of the organizational activities and to keep pace with other organizations or competitors.
Decision support systems on the other hand is a computer based software that supports the organizational decision making process by compiling useful information from raw data, business models and personal business experience. This information is then transformed into a problem solving and decision making tool. The most common data being sales figures or projected revenues. These figures are the analyzed and used to make certain decisions that will promote the growth of the organization or help the organization achieve its main goals and objectives (Stair, Reynolds & Reynolds, 2009).