INFORMATION SYSTEM

Importance of Information in Business



Information Systems3

Types of Information System3

Office Information Systems4

Transaction Processing Systems4

Management Information Systems5

Decision Support System6

Expert Systems6

Assistance of Information Technology on Business6

Data Management7

Information Management of customer Relationship7

Inventory Management7

Management Information Systems8

Communication8

Examples of Information system Communications in Business9

Teleconferencing9

Audio and Video Conferencing9

Internet9

Conclusion10

Importance of Information in Business

Introduction

The core purpose of this literature is to describe and discuss the effect of information technology on the modern business environment. On the context of information technology, the literature will also discuss in detail the various types of Information technology along with its association in business. In modern Business environment, the Information technology plays an important role in the development of the business. The Information Technology appears as an essential part for every business community. Whatever is the size of the corporation, each and every company needs an Information system. A global business unit uses mainframe systems in their organization whereas a small business corporation uses a single computer. Each and every department of Business Corporation relies on the efficiency of Information systems they use. A better information system will lead an organization towards better growth.

Information Systems

Set of correlated components, processing, storage, and their distribution can be technically defined as an information system that help the business organizations for the delivery of information to strengthen the coordination and control within the organization. In addition to that decision-making, coordination, and to strengthen the control, IT may help the management and workers to analyze the problem, identify complex subject and create a new product (Barros, pp 96-106, 2005).

An information system within an organization holds all the significant information of the organizational environment, significant people, and places. It is the responsibility of Information System to convert the collected data into a meaningful form that can be useful for the Management of an Organization. The data that Information system collects is in the form of raw data Information arrange each and every single value of the data in a way that it can be helpful for the Organization (Inshakov et al, pp 17-23, 2007).

In the context of Modern Business, Information system plays an active role to provide effective solutions for managers to avoid the effects of challenging problems of an organization. In order to understand the management system of an organization, the management needs to identify the framework of Organizational business and the potential of Information system to provide the solution for the organizational problems. Information system of an organization is a combination of all behavioural and technical approach, through this perspective the Information system provides effective solutions for the continuous development of an Organization (Jing et al, pp 54-59, 2006).

Types of Information System

Information system is a combined effect of data collection, tabulation, environment and the procedure designed for the purpose of generating useful information that supports every single activity of an organization and its users. The general classification of the Information systems comprises of the following five categories.

Office Information Systems

This Information system can be defined as the one that provides the benefit of effective and smooth flow of ...