Information Systems to Meet the Information Needs of Different Departments of the Organization – Term Paper Example

Proposed Information System for My Chosen Business Table of Contents Introduction……………………………………………………………………………………….3 Transaction Processing System…………………………………………………………………...3
Executive Support System………………………………………………………………………..4
Supply Chain Management System………………………………………………………………4
Decision Support System…………………………………………………………………………5
Office Automation System……………………………………………………………………….6
Conclusion………………………………………………………………………………………..6
References………………………………………………………………………………………..8
Proposed Information System for My Chosen Business
Introduction
Bagad (2009) argues that information is a very critical resource in an organization the reason being that both managers and employees need information to enable them perform their duties. The informational needs, however, vary from one organization to another. For instance, top managers may require information to help them is planning, while middle managers may require detailed information to assist them in monitoring and control of business activities.
These informational needs call for a variety of information systems operating concurrently to meet the needs of an organization. This proposal highlights the various types of information system that might work well for my chosen business. It will also highlight the pros and cons associated with the systems (Bagad, 2009).
Transaction Processing System
One of the information systems that are likely to fit in my business is the Transaction Processing Systems (PTSs). The reason being it will assist in recording of data gathered at different points where the organization transacts business with other parties. Apart from recording transactions at different boundaries, it also records several transactions inside the organization. For instance, TPSs would greatly assist in recording of movement of parts from one manufacturing stage within the organization to another and from raw material to finished goods, which is a common feature of the business. The good thing about TPS is that the business would be able to have several of this information system such as systems for calculating tax payments and payrolls; billing systems to relay invoice to customers; stock control systems for processing all material movements within out of, and into the business (Rainer and Cengielski, 2010).
The advantage associated with the system is that it is fast and takes very few seconds to record all transactions. The main disadvantage is that there are high chances of double booking.
Executive Support System
The business will also require an executive support system (ESS) to help the senior managers of the organization in planning. The reason for proposing this system is that it is capable of collecting, analyzing, as well as summarizing key external and internal information required by the business (Bagad, 2009).
Benefits of ESS include:
It improves tracking of information
Increases efficiency to decision makers
It filters information for management
Drawbacks
Too detailed and complex to use
Hard to keep current information
Its implementation requires a lot of cost which may be expensive for small businesses.
Supply Chain Management System
Based on the fact that my business involves production of goods activities such as buying of raw materials, manufacturing and assembling, shipping, packaging, marketing, collection, billing and after-sale-services, a supply chain management system is necessary. The reason being, SCMS is capable of handling all supply data transactions right from the origin of every order, real time inventory, and location assignments, as well as reorder quantities. It is also good for the business because it provides accurate calculation and analysis of inventory on hand and matching them with the orders and outgoing transactions thereby providing supply chain visibility for maximum management of stock (Rainer and Cengielski, 2010).
Benefits
Gives customer hassle-free and satisfactory order processing
It has reliable supply chain forecasting features
Provides efficient ordering, procurement, delivery and controlling functions
Has efficient electronic data interchange features
Drawbacks
The drawbacks associated with SCMS are that it is costly and complex to implement.
Decision Support System
The type of business will also require decision support systems (DSS) to assist management in decision making especially in situations where there is uncertainty about the likely outcomes of their decisions. DSS usually improves decision making speed and identification of negative trends leading to better allocation of business resources in an organization. It does this by analyzing data so that managers can use the information gathered for decision making (Rainer and Cengielski, 2010).
Benefits
Speeds up decision making process
Increases personal efficiency
Promotes training and learning
Improves competitive advantages over competitors
Assist in automation of managerial processes
Speed up problem solving
Promotes interpersonal communication.
Drawbacks
Implementation cost is generally high
Too detailed and hard to use
Office Automation System
Based on the structure of the business, it will be prudent also to introduce an office Automation System. This is because it will help improve workers’ productivity who, may need to process information and data. The reason being, OAS assists in collecting, storing and overseeing raw data storage, electronic transfer of information and management of electronic organization data (OZ, 2008).
Benefits
Speeds up data retrieval
Reduces storage space
Increased efficiency
Drawbacks
Establishment and implementation cost is generally high
Fewer employees are required thereby leading to unemployment
Conclusion
Information is indeed, a vital resource for an organization since every worker, be it an employee of a lower cadre or senior manager needs information to enable them perform their duties. This informational need can be satisfied by designing the right information system to the right employees. As for my chosen business, it will be in order to consider putting in place the Transaction processing System, Executive Support system, Supply Chain management Systems, and Decision Support System and Office Automation System.
References
Bagad, V. (2009). Management information systems. Shaninwar Peth, Pune: Technical Publications.
OZ, E. (2008). Management information systems (6th ed.). Boston, MA: Cengage Learning.
Rainer, R. & Cengielski, C. (2010). Introduction to information system: Enabling and transforming business. Hoboken, NJ: John Wiley & Sons