Strategic Integration of Information Systems

Introduction

Information management system provides an opportunity to the organisations to develop software and hardware to manage the operations and collect raw data for exploring important information. In the recent era of globalisation, there are efficient multinational corporate firms which apply different information system in the organisational workplace to enhance the operational efficiency and maximise organisational excellence, where the information system is beneficial to perform at fast pace system and renovate the organisational operations successfully. The information system is hereby beneficial for the business firms to improve their creativity and technical innovation for achieving future success (Wiesche et al., 2017). All the firms in the recent years try to implement latest technology and develop their hardware and software application to strengthen their business process and achieve the organisational aim in long run. The aim of the research is to identify different categories of information system, where the business firm utilise a vast range of technology to run their operations efficiently. Hereby, there is an opportunity to identify different information system which is applicable for running the organisational operations successfully. The study also provides a scope to analyse the ERP software where the business firms utilise the software for their business operations. After analysing the ERP software, it is also possible to identify the benefits of ERP in the real life business operations. The study is also effective to analyse and evaluate the information system and after proper analysis, developing suitable recommendations for the organisations so that the business firms can achieve future organisational aims and objectives efficiently.

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Information system

Information system is the organisational system which designs proper database management system for collecting the raw data, process the data, manage storage of the information and develop effective strategic decision for the business, information system in this regard is composed of four components including task, people, structure and technology which enhance the organisational performance through structure workplace and working process for running the operations efficiently. Computerized information system are effective to compose people and technology and it enhance the process of operations where the people utilise the software system, and organisations try to collect, filter, process and create the data and information for managing the business operations successfully (Kavanagh and Johnson, 2017). The organisations in the recent era of digitalisation utilise latest information system and restructure the organisational activities for better management and conducting the operational activities strategically. The people are involved in the information system, as well as the appropriate information system is advantageous for the organisations to develop strong networking and enhance the communication for running their business efficiently. In addition to this, the technological development and latest software are also implemented in the organisation to develop the infrastructure and run the organisational activities successfully. Hardware system, database management system is also effective to gather the appropriate data and information for better management.

Information system

For collecting the data, develop proper input to maximise output through storage and analysis, it is necessary to develop proper information system where the major categories are Data Processing Systems (DPS), Management Information Systems (MIS), Decision Support Systems (DSS), Executive Information System (EIS), which are effective to enhance the management of information, supporting the organisational decision, developing executive decision and management system which in turn provides a scope to the firms to enhance their activities and secure future sustainable development (Wiesche et al., 2017). The other different categories of information systems are Pyramid Diagram of Organisational levels and information requirements, Transaction Processing System (TPS), Artificial intelligence techniques in business and Online Analytical Processing (OLAP) which also contributes efficiently for maximising the organisational outcome. DPS is referred to TPS where it deals day to day operations and transactions in the organisation (Beck et al., 2017). The major activities of DPS are managing accounting system, invoicing and stock control management and data entry, where the computerised database management system is appropriate for the organisations to manage their daily operations, where the stock can be handled well as well as billing and invoicing method can also be improved at fast pace.

On the other hand, it is also utilized in the supermarkets store, where bar code would be used for finding the products and billing system where the sales representatives are able to manage invoice and serve efficiently to the customers. In this regard, DPS is one of the effective information systems which enhance the organisational excellence and ensure further development of the strategic planning to run the firm successfully in near future (Hair et al., 2017). In addition to this, MPS is also effective to convert the data from internal and external sources into information which enhances the organisational decision making practice, where the leader and the management team are successful to identify the market data and internal data to develop important information which enhances the decision making process of the business firms. Data storage and processing technique can be improved through MPS, and it further provides a scope to the mangers review the organisational performance. For example, reviewing the monthly sales volume at the supermarkets as well as calculating weekly turnover is the application of utilising MPS and it hereby provides a scope to enhance the analytical capability where the organisations can make appropriate strategic decisions for future establishment of the brand.

Categories of information system

TPS is hereby utilises for day to day operational management system and it enhances the activities of point of sales, payroll system management, booking system and stock control system,. On the other hand, MIS is also effective for the organisations to manage human resources, budgeting system and sales system which enhance the organisational operational efficiency in long run (Longley and Cheshire, 2017). There is also high use of DSS, which is necessary for making effective decision and developing financial planning. The system is helpful for analytical context where the management team can review the data and utilise the tool for developing effective decision. It also adjusts the value of total sales, cost of operations which further helps to develop budget and financial planning for the next years.

ERP systems

Enterprise Resource Planning (ERP) is the business process of management, where the organisation can develop integrated system to manage the operations and enhance automated system for running the functions as well. It develops proper integrated system by involving the human resources, technology and services. ERP is mainly integrated database to reduce human error and manual labour activities through developing automated system. Real time data collection and cross business activities in ERP are helpful to improve profitability and productivity of the firm. The ERP modules include product lifecycle management, supply chain management (for example purchasing, manufacturing and distribution), financials, human resources, customer relationship management (CRM), sales order processing, online sales, warehouse management, and decision support system. For managing procurement, the organisation implements the supply chain management system by developing end to end procurement and logistics system (Abbasi, Sarker and Chiang, 2016). Production planning and product portfolio management are mandatory, where ERP is useful for the organisations to optimise manufacturing capability and material resources. Utilising the raw materials for maximising organisational output is the system where the automated process and developing the production machineries and organisational infrastructure are helpful to manage the quality products at the organisation.

ERP module

On the other hand, ERP is also providing the scope to manage the distribution network, where tracking system, controlling warehouse process through computerized database and cloud computing system are helpful to manage the warehouse. It responds faster to challenges and changes the supply chain management system where the organisational representatives are efficient to manage the product stock and warehouse for distributing the right products as per the customer’s demand. The ERP system also develops the database for the employees to manage human resources where the computerised database further helps the managers to manage the workers and enhance their performance as well through continuous monitoring and performance assessment program (Liu, Santhanam and Webster, 2017). On the other hand, ERP also develops accounting system through ensuring regulatory compliances and gaining real time insight over the organisational performance. Hereby, it is also effective to manage accounting system and develop proper information system, so that the firms are able to maximise their financial planning and make effective decision to run the operations efficiently. ERP also controls the sales management process, by implementing the functions of order placement, order scheduling, shipping and invoicing. All the process can be done through developing information system, where the integrated ERP is also efficient to manage the customer’s orders and enhance the activities to run their operations efficiently from order processing to final delivery of the orders (Koivisto and Hamari, 2019). The customer’s management system is also developed through ERP process, where capturing and maintaining customer’s relationship is mandatory for the organisation to strengthen the customer’s base. Recently, the organisations focus on developing online website and mobile application to manage the customers and store their data by managing privacy. Hereby, continuous support and assistance for the customers, managing their equerries, developing proper strategy to serve them with high quality products are effective activities through which the organisation’s ERP system aims at creating values of the customers.

Benefits of ERP systems in a real-life business

Utilising the ERP system is beneficial for the organisations in the market to run their operations efficiently. It mainly enhances the profitability and productively both, where the firms can maximize their profit volume by incre4saing sales activities at the firm. It is also effective to enhance the productivity, where the firms become efficient to run their operations in innovative manners (Beynon-Davies, 2016). Hereby, the ERP system is an integrated process which enhances innovation and creativity of the organisations to perform in the market and gain high competitive advantage. In the recent era of globalisation, there is high competition in the global market and using the integrated system of ERP provides a scope to the firms to gain high market share by developing their strategies efficiently. The ERP system, is also effective, where the organisations can create values for the customers, who are the major stakeholders of the business to secure future sustainable development where the integrates system helps to develop culture service efficiently, manage customer relationship and maximise their satisfaction by delivering high quality organisational products at right time (Pearlson, Saunders and Galletta, 2019). The processing system through ERP is also helpful to manage the customers and retain them of long run. The ERP system is also applicable to manage the human resources of the organisation, where the employees are playing a crucial role to maximise organisational operational activities and improve its productivity. Thus, the organisation can also manage the strong employee base and manage them in long run to improve efficiency of the organisation and maximise performance.

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Conclusion and recommendations

It can be concluded that, the information system and ERP are effective for the organisations to run their operational activities more creatively for maximising the organisational aims and objectives. The ERP is also effective for running the business in an efficient way which further provides a scope to maximise profitability and generate revenue, where the business firms are able to create values for all the stakeholders, engaged with the organisation. In order to manage the international operations, the companies must implement Information and Communication Technology (ICT) for enhancing internal and external communication. Additionally, the organisation needs to invest more in developing mobile application for enhancing online shopping activities and e-commerce system this is an integrated system development, where customers data can be managed well, as well as the organisations can track the orders and process it efficiently. It also provides a scope to improve customer’s service excellence where the sales representatives can serve the customers creatively by providing 24*7 support and assistance. Hiring efficient engineers and skilled workforce is also necessary so that the business firms can manage the organisational infrastructure and improve the operational activities where the experienced staff can handle the automated system efficiently and contribute positively to expand the business operations across the globe.

Reference List

Abbasi, A., Sarker, S. and Chiang, R.H., 2016. Big data research in information systems: Toward an inclusive research agenda. Journal of the Association for Information Systems, 17(2), p.3.

Beck, R., Avital, M., Rossi, M. and Thatcher, J.B., 2017. Blockchain technology in business and information systems research.

Beynon-Davies, P., 2016. Information Systems Development: an introduction to information systems engineering. London: Macmillan International Higher Education.

Hair, J., Hollingsworth, C.L., Randolph, A.B. and Chong, A.Y.L., 2017. An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems.

Kavanagh, M.J. and Johnson, R.D., 2017. Human resource information systems: Basics, applications, and future directions. London: Sage Publications.

Koivisto, J. and Hamari, J., 2019. The rise of motivational information systems: A review of gamification research. International Journal of Information Management, 45, pp.191-210.

Liu, D., Santhanam, R. and Webster, J., 2017. Toward Meaningful Engagement: A Framework for Design and Research of Gamified Information Systems. MIS quarterly, 41(4).

Longley, P.A. and Cheshire, J.A., 2017. Geographical information systems. In The Routledge Handbook of Mapping and Cartography (pp. 251-258). Routledge.

Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2019. Managing and using information systems: A strategic approach. New York: John Wiley & Sons.

Wiesche, M., Jurisch, M.C., Yetton, P.W. and Krcmar, H., 2017. Grounded theory methodology in information systems research. MIS quarterly, 41(3), pp.685-701.


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