INFORMATION SYSTEMS MANAGEMENT IMPACTS ON BUSINESSES

The introduction of information technology to maintain the principal activities and functions of a business is known as Information Systems management. Businesses have recognized the significance of managing resources, for instance, labor, raw materials and capital. Presently, it is broadly acknowledged that managing information resources is extremely important. Information Management systems guide the collection, storage, supply and utilization of a business’s information resource.

This paper will examine the various benefits of information systems to a business. The adoption of information technology (IT) in organizations has been growing at a rapid pace. The utilization of the technology has transformed from the automation processes to systems, which are radical in that they establish change into primary business procedures. Certainly greater than being assisted by computers, businesses will survive by them, transforming plans and structure to fit latest information technology.  Whilst the significance of the relationship among information technology and organizational transformation is evidenced by the substantial literature on the issue, there is a absence of complete examination of these questions from the economic viewpoint. The objective of this paper will be to introduce an economic understanding of ways which information systems impacts business performance.

Information Technology offers several advantages to a business; these advantages include; the ability of Information Technology to connect and enable staff performs their functions.  Electronic communication boosts the general quantity of communication in a business. The most significant features are that employees from varying units of a business can interrelate with one other and therefore horizontal communication is developed. Every obvious advantage of more rapid information accessibility is the result of this function of Information Technology but it should also be noted that excessive electronic contact results to risen alienation of staffs due to enhanced impersonality. The paper will examine these additional effects. Adding to this, Information Technology also boosts boundary spanning. An employee could access any data in any section of the company with the help of the suitable technology. This abolishes the necessity for the replication of information and therefore improves non-redundancy.

Information Technology’s capability to accumulate information means that the business does not have to depend solely on the unreliability of human error, and which is subjected to mistakes and erosion. Information can be accumulated, retrieved and distributed far more effortlessly and effectively. Nevertheless, Information Technology can regularly lead to information surplus, meaning that supervisors have to examine through overwhelming amount of piled data and thus barring timely decision-making. Information overload is not an Information Technology problem but rather of a documentation problem. Besides, management tends to acclimatize to IT problems the instance it gets used to the thought of the latest technologies.

In general, utilization of Web-based data systems can considerably lower the expenses of communication between workers and businesses and cost-effectively improve the harmonization of supply channels or webs. This has resulted to many organizations to concentrating on their core competencies and to subcontracting other parts of their value channels to specialized companies. The ability to communicate information competently within a business has led to the exploitation of flatter organizational structures using reduced hierarchical layers.

Nonetheless, information systems do not consistently lead to increased profits must be discouraged. Accomplishment relies both on the expertise with which information systems are used and on their deployment being combined with additional resources of the company, for instance relationships with industry partners or greater knowledge of the business.

Works Cited

Harsh, B. “MANAGEMENT INFORMATION SYSTEMS.” N.p., Web. July 3. http://departments.agri.huji.ac.il/economics/gelb-manag-4.pdf