Information System in Organization

Topics: Customer relationship management, Decision theory, Information systems Pages: 10 (2977 words) Published: April 7, 2013
Information System in Organization
This topic might be complicated for the one who have not experience any real functioning information system in organization. For this topic, various information systems in organization will be described. Learning Objectives

Describe and categorize of information system then utilize the organization Evaluate the role played by system serving the various levels of management Describe different types of decisions and decision-making in organization Assess how information systems support the activities of manager and management decision making Define Enterprise Systems- What are the benefit and risk of enterprise system? Information Systems

Information system collects, processes, stores, analyzes and disseminates information for a specific purpose of application. Normally, information system consists of hardware, software, data, network, procedures, and people. Terms

There are differences among the term of data, information and knowledge that can be described as the followings: • Data
The data is raw fact to describe things, events, activities and transaction. The data is not useful and has a little benefit for decision making. For example, the temperature of this room is 25 degree. • Information

The data has to be processed into information that creates some meaning. It consists of unit of analysis that can facilitate good decision making. For example, the average age of women in this room is 25 year olds. • Knowledge

For the knowledge, it’s the relationship among information. The knowledge is the most useful type of information that the organization is able to use. Normally, knowledge express in term of theory in term of relationship with the information. Basic Components of Information Systems

The basic components of information systems can be classified into six categories which are as the followings: • Hardware
• Software
• Network
• Data
• Procedures
• People

Business Process
The term business means the activity of the company that used to create value to the organization. The example of business process would be sale and marketing, manufacturing, finance and accounting and human resources. IT enhances business processes in two main ways

The first way is that IT can be used to automated business process. Also, it can be used to replace human in organization or replace people in organization. Next, IT can be used to enable new type of business process. For example, it can enable customers to order products online. Value of Decision making

There are three main types of decisions making in organization that are the followings: • Unstructured
Decision maker need to provide judgment evaluation and insight to solve problem. This type of problem is not the routine problem and usually decides by the executive. For example, what type of business should the company be in? • Structured

Structured decision is repetitive and routine; involve definite process for handling. Normally, the decision is involve with the operational level of the organization. For example, cashiers who is able to make decision due to pre-define rule. • Semistructured

This type of decision is the combination between structured and unstructured decision. For example, how the company decides on the marketing plan or how the company develops a departmental budget. Four stages of decision making (Simon, 1960)

Herzburg Simon, Nobel Prize winning in 1960 by creating the decision making model. There are four stages of decision making which consisting of the following stages: • Intelligence
To discover, define and understand the problems occurring in the organization • Design
To identify and explore different solution to solve the problem or create alternative to solve the problem • Choice
To choose solution among alternatives
• Implementation
To bring the best solution and implement the chosen alternative For example, the decision making issue is to buy the house. Firstly, buyer has to define what kind of...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • business information system Essay
  • Accounting Information System Essay
  • Information System in Organization Essay
  • Essay on Information System
  • Information System Essay
  • Management Information Systems Essay
  • Management Information System Essay
  • information technology system Essay

Become a StudyMode Member

Sign Up - It's Free