How Businesses Use Information Systems

The use of information technology in a company creates efficiency, effectiveness, and competitive advantages. Every business generally uses information systems to facilitate the process of business activities and to shorten business processes. C ompanies who want growth are required to innovate both in terms of quantity and quality of information systems. Operational managers need a system that tracks basic activities and organisational transactions, such as sales, receipts, cash deposits, payroll, credit decisions, and flow materials at the factory. Transaction processing systems (TPS) provide such information. Middle level managers require a system to assist in monitoring, control, decision making, and administrative activities. Corporate applications help businesses become more flexible and productive by coordinating business processes more closely. There are four main enterprise applic ations: enterprise systems, supply chain management (SCM) systems, customer relationship management (CRM) systems, and knowledge management systems (KMS). Enterprise resource planning (ERP) is usually used by companies in regulating and carrying out supervision that is
mutually integrated with the existing work units within the company. Executive information systems (EIS) provide easy and fast access to selective information. The supply chain management system helps companies manage their relationships with suppliers to optimise the planning, pr oc ur ement, production and delivery of goods and services. Know le dge management systems (KMS) enable companies to optimise the creation and distribution of knowledge to improve business processes and management decisions.

QUESTION 1

The article above states: “There are four main enterprise applications: enterprise systems, supply chain management (SCM) systems, customer relationship management (CRM) systems, and knowledge management systems (KMS)”. Describe FIVE (5) benefits that a business would gain by merging customer relationship management (CRM) with artificial intelligence (AI). (20 Marks)

QUESTION 2

The article above further states: “Companies who want growth are required to innovate both in terms of quantity and quality of information systems”. Summarise FIVE (5) ways in which the infor mation systems (IS) department serves their organisation. (10 Marks)

Answers to Above Questions on Information Systems

Answer 1: Artificial intelligence has its implication in almost all the fields and it can be of significant advantages by merging Artificial Intelligence with that of customer relationship management. The benefits that could be complete from merging artificial Intelligence with CRM includes better insight about the customer and personalisation of services, automation of routine tasks, optimised marketing and sales campaigns etc.

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