Role of Information Systems in an

Organization
by Contributing Writer - Updated June 29, 2018

An information system can be a mainframe, mid-range or network computer concept that allows
distributed processing for a group of users accessing the same software application. These
systems provide management with control over their data, with various tools to extract data or
view data structures and records. The role of an information system is to foster a data
management environment that is robust and can be expanded according to an organizations’
strategic plan for information processing. An information system also satisfies diverse
information needs in an organization.

Automation of Manual Tasks

Information systems architecture can assist an organization in automating manual tasks.

Automation can save time, money and resources and enhance organizational workflow. There
are various types of information systems that automate manual tasking, ranging from robotic
information systems used in areas such as health and medical services to logistical information
systems (automated warehouses and distribution systems).

Hardware and Software Integration

An organization can have several different computer platforms (hardware and software). The
concept of information systems as a scalable platform can merge different hardware and software
systems. A system can process, store and distribute information if integrated into the workflow
of an information system. For example, a local area network (LAN) can integrate into a
mainframe system that processes accounting information through a concept called a “gateway.”
An open architecture information system allows for integration at all levels throughout an
organization.

Support of a Multi-Processing Environment

An information system can support a “real-time” multi-processing environment through the

concept of “time-sharing application.” Time-sharing application allows for the prioritizing of
applications based on user-id and system priority assigned to an application, device, and database
or system catalog. These features are important to an organization that process transactions while
developing and testing program applications. In a multi-processing environment, various
departments, divisions or branches can have access to the system at the same time intervals.
System Partitioning

The layout of an information system is partitioned according to data security policies, user access
and program applications. The partitioning of the physical hard drives, memory and storage
space related to software applications creates system balance and effective use of the system
Central Processing Unit (CPU). System partitioning programs, tools and routines keeps the
system from overloading, which slows down system performance. Extra files paged to memory
that are not being used can slow down a customer support system, which relies on timely
processing of customer inquiries. System partitioning is maintained by a process of “preventive
maintenance” which ensures the integrity of system partitioning.

Provides Data for Decision Support

The most important role of an information system in an organization is to provide data to help
executive management make decisions. Data is compiled through transaction processing or query
routines built into the information system to access item and detail records. Through decision
support programs, which are packaged as software routines, executive management can analyze
several areas of an organization and create scenarios through the information system for a
desired result. These results are defined in the organizations’ objectives and goals to improve
productivity.

References

 Scranton University: The Role of Information Systems in Increasing Productivity

 Your Business AZ Central: Three Fundamental Roles of Information Systems in Business

Site source:

https://bizfluent.com/about-6525978-role-information-systems-organization.html
 Sited from:

https://elearning.scranton.edu/resource/business-leadership/the-role-of-information-systems-
in-increasing-productivity

The Role of Information Systems in Running

the 21st Century Organization
Management Information Systems (MIS) focus on the use of Information and Communication
Technologies (ICT) in managing organizations. In the 21st century almost all organizations use
Information and Communication Technologies to efficiently manage their operations, to help
managers make better decisions and achieve competitive advantage, and to facilitate seamless
internal and external communications with their employees, customers, partners, and other
stakeholders.

Businesses Pre-Information Systems

Until the 1990s, before the widespread adoption of personal computers and the Internet,
companies were using information systems to manage data processing and record-keeping
activities associated with business transactions like maintaining the general ledger (book
keeping), payroll, billing, inventory management, etc. The focus was mainly on maintaining files
and databases related to day-to-day operations. Communications, both internal and external,
relied on paper, telephone, faxes, and other analog media. Information systems have evolved
over the last 40 years, including the move from the mainframe computer of the 1970s to personal
computers becoming an integral part of the tracking and organizational process in the 1980s. The
arrival of the mainstream internet in the 1990s expanded business capabilities and the role of
information systems to a global system of interaction.

Today, the main focus of companies is to stay globally competitive by leveraging the capabilities
of modern information and communication technologies (ICT). Companies can use ICT to
provide products & services of the highest quality at affordable prices and top-rated customer
service, and help the companies to enter new markets through e-commerce. Globalization,
collaboration, and integration have become the new drivers in this competitive arena. To remain
competitive, companies are investing in modern information systems like Enterprise Resource
Planning (ERP) software, which integrate the different functional areas of the business, and
provide consistent real-time data for fast decision making. ERP systems help companies manage
their operations seamlessly across the globe.

Companies’ Modern Day Use of Information Systems

In the past when a company received a customer order, whether it was for a service requested or
for a product purchased, the order needed to go through a process of paper-based workflow that
was passed along to different departments, inbox-to-inbox. Throughout this process, the order
often had to be re-typed as it passed through various departments, increasing the potential for
human error. There was no accurate account order status because there was no official tracking
device to alert each department. In order to retrieve order status information, customers were
frequently directed to contact the company’s warehouse for manual research!

Today, companies have eliminated the inaccuracy of paper-based tracking by implementing ERP
systems. In a recent study conducted by Panorama Consulting Solutions, 63 percent of
companies used their ERP software to eliminate inefficiencies in processes such as order
tracking. Instead of standalone computer systems, ERP uses a unified program that links various
functional departments such as finance, HR, manufacturing, warehouse, planning, purchasing,
inventory, sales, and marketing. While each department may have its own set of software
modules, the software is interconnected so that information can be shared throughout the
organization. Once one department is finished updating and processing the order, it is
automatically routed to the next department so that everyone is alerted to changes made.

Adopting the Global Market

Many businesses have begun to participate in the global market, as it presents a chance for
greater revenue and larger business prospects.

Already, the global information systems market has seen consistent demands from several
businesses. The challenges vary depending on the size of businesses. For smaller businesses,
controlling operations and storing information are less complicated. As businesses grow,
especially those intersecting with global relations, information systems are used to manage
operations accurately without growing the number of employees. The growing supply chains
require that software solutions be used in the following sectors:

 Web-based ordering
 Customer relationship management
 Product configuration

The Future of Information Systems

As companies try to reduce costs, improve productivity, employers are looking to ERP systems
to help them grow and remain competitive globally. Information systems have enhanced
productivity for businesses. A career in managing information systems is ideal for those looking
to advance in a Fortune 500 company. As businesses and organizations today require more and
more technical skills, companies are looking for employees who will help manage and operate
the various information-based tools.

Among the many degree and certificate programs available online at The University of Scranton
are the two programs pertaining to Enterprise Resource Planning (ERP). These programs provide
hands-on experience in utilizing SAP ERP, the market leader in ERP software today.  The ERP
programs offered at The University of Scranton are: (i) a stand-alone, 4-course Graduate
Certificate program; and (ii) an ERP specialization within the MBA program.