IS in the business environment

Information systems in a business environment

Why does everyone need to know about IS in Businesses

Organizations strive to be market leaders in their given industry, in climates where factors such as recessions, increased competition can hinder the achievement of this goal, companies look for strategies that lead to competitive advantage, and one such strategy is the adaptation of information systems within the company.

Advantages of implementing IS in businesses

• Helps with information storage and analysis
• Assist with business processes
• Allows for differentiation

Disadvantages of not implementing Is in businesses 

• Loose business processes
• Failing track to your business processes
• Damage or loose data

Information systems can help keep track of data for clients in organizations of any size. This can be anything form simple databases to large server network holding hundreds of terabytes of information. Information systems can also help a company make adequate use of its data, reduce workloads and assist with compliance with various regulations. Information systems can help expand business and increase productivity, these systems allow for monitoring of the input and output of data which can be used to monitor productivity across business as a whole.

Implementing information systems can be expensive and difficult

 

Let’s consider a business implementing ERP systems (enterprise resource planning)

• This process is complex
• It is unlikely that the ERP system will operate in the same way that your business operates.
• A business can either customize the system or change their business.
• Either way will be difficult and costly.

 

Business must implement ERP when:

• They run fairly business processes
• Their business processes are not key to their strategic advantage
• Their organization is large enough that integration will be beneficial

Don’t implement ERP:

• Just because everyone else is
• They have business processes that are better that industry best practice
• Organization is small and simple.

In conclusion

Information systems in the business environment are important but it is very crucial to consider the costs involved and benefits involved.

Links to contribution

http://online.asurams.edu/news/business/in-what-ways-can-information-systems-help-organizations/albany state university   24/04/13

https://cle.wits.ac.za/access/content/group/INFO1004_2013/Theme%20two%20ERP%20Enterprise%20resource%20planning%.pdf   24/04/13

Author: Thabo Pitja

Editing partner: Ngosa Habanyana