Discuss five (5) ways in which information systems are transforming business. Answer:
An Information System (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create and distribute data. Information system is crucial to collect, arrange, store, process and distribute necessary information at the required times to the required personnel. Usually information is much required for day- to- day operations of business, to confront growing competition and to ensure efficient management of the business. Information systems are the lifeblood of the modern enterprise. They have the power to create and restructure industries, empower individuals and firms, and dramatically reduce costs. Therefore, information system has been of great concern to business management and operations. Today’s managers simply cannot effectively perform without a solid understanding of the role of information systems in organizations, competition and society. Information systems are transforming business through their ability to share information in an instant. Due to lightning-fast technology, the overall pace of business is rapid-fire and growing faster every day. For example, meetings and conferences can now take place via low-cost services such as Skype, which also offers free services to users. In the past, sharing information between parties in different cities or countries could be very expensive - long-distance phone calls or face-to-face meetings were necessary. Today, getting information where it needs to go is cheaper and easier than ever before. Businesses save money and globalization escalates. Because it is easier to reach out, it is easier to expand a business to other countrie via Internet storefronts that literally service the whole world. Cultural barriers are breached each day, as people use technology to learn more about doing business with other nations. This concept of fast-moving information and globalization contributes to a whole new way of doing business. Cell phone, smart phones, text messaging and social networking have also transformed the promotional aspects of running a business in the post-millennial age. Information systems have transformed business through improved decision making. The objective of any management Information system is to provide information for decision making on planning, initiating, organizing, and controlling the operations of any business. Managers need rapid access to information to make decisions about strategic, financial, marketing and operational issues. Companies collect vast amounts of information, including customer records, sales data, market research, financial records, manufacturing and inventory data, and human resource records. However, much of that information is held in separate departmental databases, making it difficult for decision makers to access data quickly. Information system simplifies and speeds up information retrieval by storing data in a central location that is accessible via a network. The result is decisions that are quicker and more accurate leading to increase productivity. Information systems have enhanced globalization opportunities of businesses. Globalization is a leading concept which has become the main factor in business life during the last few decades. This phenomenon affects the economy, business life, society and environment in different ways, and almost all corporations have been affected by these changes. These changes are mostly related to increasing competition and the rapid changes of technology and information transfer which is basely facilitated by changes in Information Systems. Globalization leads to increased competition. This competition can be related to product and service, cost and price, target market, technological adaptation, quick response, quick production by companies etc. When a company produces with less cost and sells cheaper, it is able to increase...
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