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. Companies 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 applications: 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, procurement, production and delivery of goods and services. Knowledge management systems (KMS) enable companies to optimise the creation and distribution of knowledge to improve business processes and management decisions.
QUESTION 1 (20 Marks)
The article above states: “Every business generally uses information systems to facilitate the process of business activities and to shorten business processes”. Elaborate on FOUR (4) objectives that companies hope to gain when investing in information systems and technology.
QUESTION 2 (10 Marks)
The article above further states: “Companies who want growth are required to innovate both in terms of quantity and quality of information systems”. Briefly explain FIVE (5) ways in which the information systems (IS) department serves their organisation.
Answers to Above Questions on Information Systems
Answer 1: The investment in information systems and technology is undertaken by companies in order to achieve better performance in its business processes. The four specific business objective that businesses look to achieve from investment in information system and technology are to achieve enhanced operational efficiency in caring out its business processes, achieve optimization in the core functional areas such as supply chain management or customer relations management, achieve cost efficiency, and gain competitive advantage over its competitors in the form of innovation, or new products or services for its customers.
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