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How Does Modern Business Influence Information Systems?: New Products and Services

Modern businesses use information systems to analyze processes, develop new products and services, store operational data, and simplify decision making. Information systems help Walmart manage its vast supply chain operations and share data with suppliers. They integrate hardware, software, data, people, processes, and communication to store and analyze information, assist with decisions and business processes, and support management needs like access, collection, collaboration, interpretation and presentation of data. Information systems are now essential tools that most businesses rely on.

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Teja Mullapudi
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117 views4 pages

How Does Modern Business Influence Information Systems?: New Products and Services

Modern businesses use information systems to analyze processes, develop new products and services, store operational data, and simplify decision making. Information systems help Walmart manage its vast supply chain operations and share data with suppliers. They integrate hardware, software, data, people, processes, and communication to store and analyze information, assist with decisions and business processes, and support management needs like access, collection, collaboration, interpretation and presentation of data. Information systems are now essential tools that most businesses rely on.

Uploaded by

Teja Mullapudi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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How does Modern Business influence

Information Systems?

With the constant change and evolution of customer preferences and requirements –
businesses that can bring about new methods and innovative techniques can survive
the market and continue to function as per the customer demands. The
implementation of information system can benefit a lot in businesses and helps in
controlling the internal and external processes.
Following are the benefits of information system
New Products and Services
Any business striving to enhance and to give a strong hold on the future has to instill
a well organized Business Information System. An IS can help in analyzing
independent processes and enables organized work activities. Hence an information
system entitles the companies to understand how the company generates, develops
and sells the services or products.

Information Storage
Keeping a log of activities is important for all the organizations, to understand the
reason for the problems and so to provide solution to the same. Business
Information System makes it simple to store operational data, revision histories,
communication records and documents. The storing of data manually involves a lot
of time and money. A sophisticated Information system stores the information in the
database which simplifies the process of finding the data easily
.
Simplified Decision Making
Business Information System, eases the process of decision making and simplifies
the process of delivering the required information and hence assists in taking better
decisions instantly.

Behavioral Change
Business Information System can be effectively implemented to help communication
better between the employers and the employees. Information Systems work better
as it stores documents and files in folders that can be accessed and shared by the
employees. This ensures to oversee the flow of information between the
management and the lower-level employees. This also allows the the front-line
employees to be a part of the decision making process and hence feel motivated and
committed towards doing a task.

What Are Information Systems, and


How Do They Benefit Business?
A good example of the benefits of business information systems is the success of
Walmart. Since its inception, the massive retail corporation has led the industry in
adapting new information technology to business use.

Walmart “was a pioneer in barcode scanning and analyzing point of sale information,
which was housed in massive data warehouses,” according to data professional
Anthony B. Smoak.

“Walmart launched its own satellite network in the mid-1980s, which led to profound
business practice impacts with respect to its supply chain management process.
Strategic systems … enabled data integration and sharing between Walmart and its
suppliers. These systems also enabled the concept of vendor-managed inventory,”
Smoak writes.

The retail giant is at the forefront of a field that offers value to many types of
businesses. Since the onset of the Internet Age, the importance of information in
business cannot be overstated. Harvard Business Review editor Nicholas Carr even
likened information technology to a new, necessary commodity, like electricity, in his
2003 article, “IT Doesn’t Matter.” A decade and a half later, companies that don’t
invest heavily in business information technology may struggle to stay afloat.

Defining What Information


Systems Can Do for Business
Information systems, in the business sense of the term, are complementary networks
and interconnected components that amass, disseminate, and otherwise make data
useful to bolster management’s decision-making processes.

Information systems have evolved over time, requiring redefinitions as new


technologies (Web 2.0, for example) have proliferated.

Information systems are not just technological, however. “Besides the components of
hardware, software, and data, which have long been considered the core technology
of information systems, it has been suggested that one other component should be
added: communication,” writes researcher Dave Bourgeois.

“An information system can exist without the ability to communicate—the first
personal computers were standalone machines that did not access the internet.
However, in today’s hyper-connected world, it is an extremely rare computer that
does not connect to another device or network,” Bourgeois continues.

To integrate communication, Bourgeois suggests adding people and process to the


traditional hardware, software, and data components of information systems.
Business executives in nearly every industry have discovered that the processes
they use, particularly the “as-a-service” cloud analytics services, and the active
participation of customers who want to customize their experiences more each year
are inseparable from business information systems.

Once all the elements are integrated, every information system plays several roles
for businesses with varying degrees of importance depending on a company’s
needs. Tech writer Julie Davoren details them on Chron.com as follows:

 Store and analyze information: Sophisticated and comprehensive


databases, sometimes cloud-based, are used to store and analyze
information pertaining to business functions, customers, transaction data, and
both employee and customer activity. The results of these analyses provide
insight that can help decision-makers solve current and future issues.
 Assist with making decisions: Information systems can compare in-house
analyses to external sources to, for example, compare internal insights to
information about the general state of the economy or competitors’ financial
reports. Decision-makers use these insights to review the adequacy and
quality of their strategic decisions.
 Assist with business processes: Information systems are used to develop
value-added systems for business functions. Business processes can be
simplified and unnecessary activities can be streamlined through the use of
information systems adapted to common business tasks, such as
manufacturing, supply chain, and employee processes.
As information systems become more entrenched in the world of business,
companies’ managerial staffs and executives are expected to familiarize themselves
thoroughly with business information systems and what they have to offer.
Accordingly, many MBA classes have added information technology to their
curriculum.

Management Information Systems


Capabilities
Managers of business departments that benefit from information systems need to
know the basic capabilities of information technology, data analytics, and business
intelligence systems. Management information systems use all of these capabilities
in a way tailored to managerial and executive decision-making.

Tech writer Ian Linton breaks information system capabilities down into categories in
an AZ Central article:

 Information access: Managers need to have easy and fast access to


information including customer records, sales data, market research, financial
records, manufacturing and inventory data, and human resources records to
make informed decisions.
 Data collection: Management information systems collect and collate data
from both outside and inside an organization. This data is pooled together and
housed in data warehouses, which are then networked together for purposes
of analytics.
 Collaboration: One of the most useful functions of information systems is the
ease by which different departments and distributed teams can collaborate on
decisions, taking into account massive amounts of data from a number of
different sources, departments, or even industries.
 Interpretation: After a decision has been made, information systems can
help managers understand the potential implications of that decision by
constantly updating raw data and predicting possible future benefits or
problems.
 Presentation: Most information systems, especially those intended for use by
managers, include tools designed to create easy-to-understand reports for
review by higher-level managers or C-suite executives.
Managers can also take advantage of information systems that are specifically
designed for business functions that affect their department or position. Marketing
information systems, product subsystems, sales forecasting, and product design
systems all generate information that is invaluable to managers.

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