INFORMATION SYSTEM

AND ORGANIZATIONAL
EFFICIENCY
By- Jainaba Drammeh
Nalesia Machauene
Netsai Trish Chikonhi
 INTRODUCTION

 In today's data-driven world, information systems play a crucial role

in helping organizations streamline operations, improve decision
making, and gain competitive advantage. An information system is a
set of interrelated components that works together to collect, process,
store and breakdown the information to support decision making.
Information systems encompass the tools that organizations use to
collect, manage, and analyze data. This data guides decision-making
to improve efficiency and profitability. Every decision an organization
makes should be data-driven, so the uses of information systems are
practically limitless.
 NEEDS FOR INFORMATION SYSTEM

1. Information System Ensures Data Security

 The ability to store data in an electronic format is obviously beneficial – but it also makes the data vulnerable to any
cyber threats. If a company’s system were hacked into and destroyed, all of its hard work could be gone in an instant.
That’s why information systems are designed to protect your company’s data by using firewalls and other security
measures

2. Information System Enhances Productivity

 An information system can have a significant impact on a business’s productivity. It provides employees with the data
and tools they need to get the job done more efficiently while also making collaboration between departments a breeze.

3. Information System Helps Improve Collaboration & Teamwork

 Modern technologies have given rise to new ways for businesses, teams, and individuals to collaborate. Because
everyone will be speaking the same language with access to the same data. The right information system that’s built
around collaboration in mind can save a company time and money and increase productivity. This means it won’t
matter what department people work in or where they are located – the information will always be there for them to
use and share with their colleagues.

4. Information System Helps In Healthcare & Government Sectors

 An information system helps in the healthcare sector by providing access to vital patient data. It also gives medical
professionals the ability to communicate with each other. As for the government, an IS can help keep track of
demographic information on citizens across various regions. This is crucial when it comes to emergency response –
particularly during national disasters or terrorist attacks.
 TYPES OF INFORMATION SYSTEMS

1. Transaction Processing System (TPS)

 Transaction Processing System are information system that processes data resulting from the
occurrences of business transactions. Transaction processing is essential to helping businesses perform
daily operations.
 Their objectives are to provide transaction in order to update records and generate reports i.e to
perform store keeping function
 The transaction is performed in two ways: Batching processing and Online transaction processing.
 Example: Bill system, payroll system, Stock control system.

2.Management Information System(MIS)

 Middle managers handle much of the administrative chores for day-to-day routines and performance
monitoring, ensuring that all the work is aligned with the organization's needs. It reports tending to be
used by middle management and operational supervisors. That's why MIS is such a valuable tool.
Management Information Systems are specially designed to help middle managers and supervisors
make decisions, plan, and control the workflow. The MIS pulls transactional data from various
Transactional Processing Systems, compiles the information, and presents it in reports and displays.
 Examples: Sales management systems, Human resource management system.
 Additionally, these reports can be produced monthly, quarterly, or annually, although MIS can have
more immediate reports (e.g., hourly, daily).
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3.Decision Support System (DSS):
 Decision Support System is an interactive information system that provides information, models and
data manipulation tools to help in making the decision in a semi-structured and unstructured
situation.
 Decision Support System comprises tools and techniques to help in gathering relevant information
and analyze the options and alternatives, the end user is more involved in creating DSS than an
MIS.
 Example: Financial planning systems, Bank loan management systems
4.Executive Support System (ESS)
 The ESS is like the MIS but for executive-level decision-making. The decisions involve company-
wide matters, so the stakes are higher. Consequently, they demand more insight and judgment.
 The ESS provides greater telecommunication, better computing capabilities, and more efficient
display options than the DSS. Executives use ESS to make effective decisions through summarized
internal data taken from DSS and MIS and external sources. In addition, executive support systems
help monitor performances, track competitors, spot opportunities, and forecast future trends.
STREAMLINING BUSINESS
Streamlining business refers to the process of optimizing and simplifying various aspects of a
company's operations to make them more efficient, cost-effective, and productive. The goal is
to eliminate unnecessary steps, reduce waste, and enhance overall performance. Here are
some key aspects of streamlining business:
1. Process Improvement: Analysing and re-evaluating existing workflows and processes to
identify bottlenecks and inefficiencies. Streamlining often involves reengineering
processes to make them smoother and faster.
2. Cost Reduction: Identifying areas where costs can be reduced without compromising
quality or customer satisfaction. This could involve renegotiating contracts, cutting
unnecessary expenses, or automating tasks.
3. Resource Optimization: Efficiently allocating and managing resources such as human
capital, time, and equipment to maximize productivity. This may include workforce
reallocation or better utilization of technology.
4. Automation: Implementing technology and software solutions to automate repetitive and
time-consuming tasks. Automation can help reduce errors, speed up processes, and free
up employees for more valuable tasks.
5. Inventory Management: Ensuring that inventory levels are optimized to prevent
overstocking or under stocking, which can tie up capital or result in lost sales.
6. Customer Experience: Improving customer service and satisfaction by streamlining
communication channels, response times, and order processing. Happy customers are
more likely to return and refer others.
7. Data Analytics: Utilizing data analytics to gain insights into business operations, customer
behaviour, and market trends. Data-driven decisions can lead to better resource allocation
and strategic planning.
8. Supply Chain Management: Optimizing the supply chain to minimize delays, reduce costs,
and improve product availability. This can involve better supplier relationships and
transportation logistics.
9. Quality Control: Implementing rigorous quality control processes to ensure that products or
services meet or exceed customer expectations. This reduces the need for rework and returns.
10. Employee Training and Development: Investing in training and development programs to
enhance employee skills and knowledge, making them more capable of handling complex
tasks.
11. Communication and Collaboration: Improving internal communication and collaboration
among teams to streamline decision-making processes and reduce misunderstandings.
12. Legal and Regulatory Compliance: Ensuring that the business complies with all relevant
laws and regulations to avoid costly penalties and legal issues.

Overall, streamlining business operations is an on going effort that requires a combination of

strategic planning, continuous improvement, and adaptability to stay competitive in a rapidly
changing business environment.
HOW INFORMATION SYSTEMS CONTRIBUTE TO
STREAMLINING BUSINESS
Information systems play a crucial role in streamlining business operations by improving
efficiency, decision-making, and communication throughout an organization. Here's a brief
overview of how information systems contribute to streamlining business:

1. Data Management: Information systems help collect, store, and manage vast amounts of data,
making it accessible and organized. Efficient data management reduces manual data entry and
retrieval, minimizing errors and saving time.
2. Automation: Information systems automate routine tasks and processes, reducing the need for
manual intervention. This can include automating payroll, invoicing, order processing, and more,
which leads to faster and more accurate operations.
3. Streamlined Communication: Communication systems, such as email, messaging apps, and
collaborative platforms, facilitate quick and efficient information exchange among employees and
teams. This enhances collaboration, reduces communication delays, and accelerates decision-
making.
4. Data Analysis: Information systems provide tools for data analysis and reporting. Businesses
can use these systems to gain insights from their data, make informed decisions, and identify
opportunities for improvement.
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5. Inventory and Supply Chain Management: Information systems can track inventory
levels, monitor supply chain activities, and optimize order management. This helps
prevent overstocking or under stocking issues, reducing holding costs and improving
product availability.
6. Customer Relationship Management (CRM): CRM systems enable businesses to
track and manage customer interactions, sales leads, and customer support. This leads
to better customer service, improved sales, and enhanced customer satisfaction.
7. Financial Management: Accounting and financial information systems streamline
financial transactions, budgeting, and reporting. They help businesses manage their
finances more efficiently and ensure compliance with financial regulations.
8. Human Resources Management: HRIS (Human Resources Information Systems)
simplify personnel management, including payroll, benefits administration,
recruitment, and employee records. This reduces administrative overhead and
improves HR efficiency.
9. E-commerce and Online Sales: Information systems power e-commerce websites and
online sales platforms, making it easier for customers to place orders, track shipments,
and access product information. This can significantly improve the customer
experience.
In summary, information systems are integral to streamlining
business operations by automating processes, improving data
management, enhancing communication, and enabling data-
driven decision-making. Leveraging these systems effectively can
lead to increased efficiency, reduced operational costs, and
improved competitiveness in today's fast-paced business
landscape.
HOW IT ENHANCES
ORGANIZATIONAL EFFICIENCY
.
 Information systems play a crucial role in enhancing organizational
efficiency. An effective information system with comprehensive information
management can help avoid potential cyber-attacks and enhance the
organization's performance . The study also identified that repeated cyber
attacks threaten the reputation of the business and its organizational
operations. Therefore, creating effective awareness about risks and
challenges on business operation among the workforce enhances the
performance and efficiency of the organization
 Highly efficient IT organizations focus primarily on five enabling capabilities:
centralizing cost management and identifying key performance indicators,
managing business units' or functions' demand for IT based on business
value, controlling productivity and creating incentives that promote it,
standardizing, simplifying, and automating processes, and optimizing
sourcing The highly efficient companies in their benchmark were able to
optimize their IT spending and divert funds to burgeoning digital initiatives
 Information systems can help organizations improve productivity, business
effectiveness, and customer experiences. They can also help organizations
optimize their IT spending and divert funds to digital initiatives.
CONTINUATION

Information systems can help businesses improve their efficiency in several ways.
 One way is by providing employees with the data and tools they need to get the job done more
efficiently, while also making collaboration between departments easier
 Another way is by automating repetitive, formulaic tasks, which can deliver orders-of-magnitude
improvements in the speed of information analysis and in the reliability and accuracy of outputs .
For example, enterprise cognitive computing (ECC) applications that use artificial intelligence (AI)
to enhance business operations can reduce search time and process more data to inform decisions,
thereby enhancing productivity and freeing employees to perform higher-level work . ECC
applications can also enhance operational excellence, customer satisfaction, and employee
experience
 In addition to these benefits, data collected from various sources can be leveraged to become more
efficient and profitable than ever. For example, data can be used to better understand customers
and adapt marketing strategies or sales training based on what is found ¹. Data can also help
businesses better understand their current customers so they can improve retention efforts .
Overall, information systems are important for businesses as they help them become more organized
and make decisions faster. They also help businesses identify their strengths and weaknesses, which
can lead to a higher level of efficiency within the company .