INFORMATION SYSTEMS IN BUSINESS

INFORMATION SYSTEMS IN BUSINESS

INTRODUCTION
The role of information systems in organizational productivity has been extremely challenging. This is partially because the benefits of information systems are often intangible, manifesting themselves in areas such as improved customer service and greater organizational responsiveness. Hence, organizations are developing new measures, such as reduce cycle times and delighting the customers come to better major the impact of information system in
organizational productivity.
The various functional areas in business, including manufacturing, marketing finance and accounting, quality control and human resources have all been influence information systems.
These functional areas, using information system, to capture new market achieve at competitive edge in existing are planning to develop cross functional systems
FUNCTIONAL AREAS OF BUSINESS
The following five functional areas in an organization are:
• Manufacturing.
• Quality control.
• Marketing.
• Accounting &finance.
• Human resources.
In each of the functional area, a data flow model portrays the local decision making environment. Figure shows the data flow diagram, which consists of the following components:
• External environment :-The external environment contains two components the operating environments, which consists of consumer, suppliers, competitors, distributors, and the labor supply; and the remote environment, which consists of economics, social, political, technological, an industry concerns. These environmental sources generate key external information that flows into the firm, at times informally.
• Data bank:-It is used generally to describe the general storage of data. A data bank can include data existing in files and in computer databases. An organization’s data bank consists of internal data, such as those generated from the firm’s transaction processing system or from monitoring forecasts and external data which are collected from monitoring the external environment. Both types of data have information potential.

• Decision making:- Decision making is the key of each functional data flow model .this process consists of selecting those data needed to make a decision and then making the decision.
• Other areas of the firm:-Information produced decision making in one functional area is often used in another. For example, sales forecast prepared the marketing department is used as data the finance department to produce the overall financial plan for the firm.
• Feedback mechanism:- The dotted feedback arrow indicates that decision made the firm ultimately affect its performance in the market place. The firm’s performance, in term, generates other data that are used elements in the environment. The firm’s performance is often important on the competitor’s, consumers, and suppliers. Only a radical change coming from within a big organization such as a state (or provincial) government, or a corporate
giant, like Tata industries; would cause noticeable change in the remote environment.

(Visited 2 times, 1 visits today)
Share this:

Written by