How information systems does play a strategic role in the success of an organization?
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. Show
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 BusinessInformation 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:
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. Information systems are complementary networks that make data useful to corporate decision-making. Management Information Systems CapabilitiesManagers 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:
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. About WSU’s Online Master of Business Administration ProgramWashington State University’s Carson College of Business offers one of the top-ranked MBA programs in the nation. WSU’s online MBA degree program is designed to equip students with the tactics, knowledge, skills, and strategies used by today’s most high-profile business leaders. By the time they graduate, MBA students should be familiar with new technologies, such as information systems, and also the tried-and-true business skills that have long produced effective and productive business leaders. The program offers several MBA concentrations—marketing, finance, hospitality business management, international business, and general MBA. For more information, visit WSU’s online MBA website. Recommended Reading: When Whole Worlds Migrate to the Cloud 4 Ways Artificial Intelligence Is Changing Modern Business The Importance of Predictive Analytics in Manufacturing Sources: Walmart’s Technology Strategy – Smoak Signals IT Doesn’t Matter – Harvard Business Review Business Information Systems – PressBooks.com Roles of Information Systems – Chron.com Management Information Systems – AZ Central What is the strategic role of information system in an organization?Strategic information system provides a connection between demands of organization and latest information technology. This tactic helps an organization to get hold of the market by utilizing Information tech to meet its challenging requirements to the continuous variation in the corporate environment.
How information systems contribute to an organization's success?A sophisticated Information system stores the information in the database which simplifies the process of finding the data easily. 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.
How does information systems help an organization a business or a company?Information systems help decision-makers at a business to make informed decisions for the company. Information technology helps get prepared data on all areas of the business as it offers current data, background, and trend analysis.
How do successful businesses use information systems to achieve their strategic business objectives?The management of your company can use information systems to come up with strategic plans and make best decisions when it comes to taking business steps. A good information system evaluates information from all the company's sources and manages to come up with the best conclusion in regards to the current economy.
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