Computer Based Information Systems Information Technology Essay

Introduction –

Information systems are applied within an organisation or a business in order to improve effectiveness or efficiency within that organisation. One of the key reasons in which adding information systems to the business improves effectiveness and efficiency is because it enables employees to perform tasks, in which without the assistance of Information systems, results may be in accurate or it could take longer to complete tasks, for example, performing calculations is made easier by simply adding the correct formula, or analysing vast amount of data, all these tasks mentioned are performed more constructively with the aid of information systems. Each organisation can adapt a computer based information system to meet its needs and requirements, therefore they are not limited in which they are designed to have maximum benefit to the organisation. Computer information systems use a uniquely designed system in order to allow the organisation to organise their files and categorize data.

Management theories relating to computer based information systems –

Borje Langefors –

Borje Langefors has had a big impact on information systems, he was the individual he created special emphasis on administrative data processing. Borje was able to indentify how computer based information systems can implement and meet the needs of organisations and their staff.

Goodhue & Thompson:

Task – Technology fit –

The task technology fit theory is used to explain the way that computer based information systems help to accomplish the demands of the task provided by the organization. The TTF, basis its theory on the fact that technology or computer based information systems will increase the performance of the business due to the fact that it helps and supports people within that organisation to complete the requirements for a task which has been set by a manager.

Fred Davis:

Technology Acceptance Model –

The technology acceptance model is a theory that shows how organizations can accept technology within their business, by accepting and using the technology this enables them to increase effectiveness and efficiency within their organisation. This theory basis its idea on the fact that when a person is presented with technology there are a number of different aspects that affect how and when they will use the computer based information systems.

Fredrick Davis, split the theory into two different definitions, Perceived Usefulness and perceived ease of use. Perceived usefulness. This was defined by Fred Davis as “the degree to which a person believes that using a particular system would enhance his or her job performance”. Perceived ease of use, Davis defined this as “the degree to which a person believes that using a particular system would be free from effort” (Davis, 1989). (Expert systems in business and finance – Paul R. Watkins and Lance B Eliot)

F Taylor –

Taylor was the founder of scientific management; this adopted a different approach in which a task is completed within a business. Taylor’s theory adopts a scientific approach when managing a company. His quest to resolve the cause of low efficiency and increase effectiveness in an industry resulted in a conclusion that the ineffectiveness was primarily caused by the poor order and system of the management techniques. Therefore this theory relates to computer information based systems, because managers now use computers and other information systems in order to ensure that staff are receiving the support they need in order to reach maximum efficiency. However one of the disadvantages of computer based systems for managers, is that they need to send their staff on training days to ensure successful use of the systems, and leave no room for errors to occur, this therefore can be expensive for a company to do, and also time consuming in terms of whilst the employee is on training they are unable to complete attend work full time during that duration and a cover needs to be arranged.

Computer based information systems –

Computer based information systems are used by managers within an organisation in order to increase productivity at that company and also maximise efficiency. CBI can be advantageous in many ways, for example a computer is able to collect and analyse more data than an average human, in which you as a manger are already saving time. Another way that it is advantageous, is that for example managers in supermarkets use computer based information systems such as barcode scanners, this is used for security and to monitor stock, therefore this is a effective way of knowing how much stock there is and how much has been sold.

Expert system –

An expert system is a system that is used in order to perform a task that would have been completed by a human. Expert systems base their results on data that has been entered by the user, and provides a solution for that specific problem. The expert system acts like an interpreter between the user and the information systems, therefore you are able to manage the input and output of the data entered into the system.

Advantages –

An advantage to using expert system is that it eliminates room for error, therefore the computer will not make the mistake that a human may make whilst analysing data, or calculating specific data, therefore this ensures the manager that results are accurate.

Disadvantage –

However a particular disadvantage to this is that if the person using the system has entered the wrong data, or has made a mistake whilst using the system, then this can cause the whole data/result to be inaccurate.

Data warehouse –

Data warehousing is a system that combines data from a range of different sources and generates a database that is easier to analyse and read. This is beneficial to managers when they want to establish certain trends occurring, as they are able to collect vast data and create an end result of one database with all the information necessary. It provides a over view of all the data that is collected.

Advantages –

An advantage to managers from this type of system is that, there are no limitations in terms of, information can be gathered from a number of different sources available and it will convert them all into one database. This is therefore beneficial when a manager is trying to establish a certain trend, it helps them create strategic plans based on results gathered from data warehousing throughout a period of time.

Disadvantages –

One of the main disadvantages for data warehousing is the cost, it is expensive for many companies to afford them. Other disadvantages include the complexity of the systems, therefore for example adding new data or waiting for the result of data can take time.

Customer Related management –

Customer related management is a strategy that is used to help a organisation to manage the relationship with their customers in order to improve customer satisfaction and increase profits. This system is beneficial to the managers because it allows the whole organisation to have some contact with the customers whether it is direct or indirect. For example the manager/centre of a call centre uses CRM for their staff, because it gathers data about potential customers/callers and automatically the system generates different numbers gathered, the employees then gather the data from the number dialled, and the data is then sent to other departments to be analysed and stores. This is one example in which CRM can operate.

Advantages –

Managers are able to benefit from this system because it ensures that profit margins are increased due to the fact that there is more interaction with the customers, therefore the organisation is able to understand the needs of the customer and meet their demands. This also leads to customer loyalty to the organisation for the service provided; this is due to the fact that the company is aware what the customer requires because of the interaction through CRM.

Disadvantages –

CRM can be complex to install within the organisation, therefore small businesses do not install the CRM systems within their company. Another disadvantage is that many employees are not initially aware of benefits of the using the system, therefore a manager may face with conflict from staff which they have to resolve, this could ideally done through offering interactive training in order to identify the benefits of CRM, as well as time consuming this could potentially be expensive for the organisation.

Enterprise Resource planning

Enterprise resource planning is a system that is used in order to combine all of the organisations departments and functions into one overall system that acquires the needs of each department. It inter connects all the departments to work together in order to make decision making easier, for example human resources department provides all the information on employees payroll, pay slips ect, whilst the finance department provides the data of costs, profits, budgets, ect therefore each department communicates in order to create on successful system. This benefits the manager because it makes it easier for them to manage the business, it all saves them time because for example the system processes the order the same time for example that payment therefore the finance department immediately communicates with the warehousing department where the product is collected or delivered.

Advantages –

One of the main advantages of the system and the aspect that the manager benefits from the most is due to the fact that each separate department cannot access another department in order to change any aspects of a transaction, therefore once a certain task is completed by a department they are unable to undo that function, in which a manager will have to oversee the potential problem and therefore resolve the situation as they please, this is beneficial because it gives the manager control within the organisation.

Disadvantages –

One of the main disadvantages of enterprise resource planning is that, staff need adequate training in order to be able to use and handle the data effectively, many company’s do not operate a successful policy protecting the data and how it is used, therefore this can lose customer trust and loyalty. Another main disadvantage is that the system needs to be maintained by professional personnel in which this costs more money as more staff need to be hired, this therefore increases the costs associated with using the system.

Conclusion –

There are a wide variety of computer based information systems that are available to managers to use. Different systems are used for different purposes depending on the type of organisation and the purpose of the organisation, for example a manager at a non profit organization or a government agency will use different computer based information systems to gather and analyse their data for their specific purpose, compared to a manager at business that is profiting such as Tesco. Tesco uses information systems in order to gain data from their customer to analyse what products are more popular amongst customers. Whereas a non profit organization or a government agency will need to collect data from random members of the public in order to collate and analyse a vast variety of information therefore it is more generic.

The main benefit of using computer based information systems, for the manager is that it allows them to analyse a whole range of data in which through this they can analyse positive factors and negative factors about the business, this therefore allows them to identify possible problems in which they are able to improve, this ultimately results in improved efficiency and effectiveness within the business. In which the manager can effectively increase the net profit of the organisation due to organised data provided through computer based information systems. However one of the main problems that I noticed that managers face through most of the systems, is the cost associated with applying the system effectively, therefore before a certain system is applied it is vital for a manager to outline the positive and negative factors of using the system, and to carefully decide if the organisation profits from using such a system or if the company can do without it.

WORD COUNT: 2081

Bibliography –

http://sigs.aisnet.org/SIGHCI/amcis02_minitrack/RIP/Dishaw.pdf – ACCESSED – 25/02/2011

http://findarticles.com/p/articles/mi_hb5785/is_200910/ai_n42858812/ – ACCESSED – 28/02/2011

http://portal.acm.org/citation.cfm?id=1189471 – ACCESSED – 28/02/2011

http://sbinfocanada.about.com/cs/marketing/g/crm.htm – ACCESSED – 28/02/2011

http://www.nowsell.com/marketing-guide/technology-acceptance-model.html – ACCESSED -29/02/2011

http://www.netmba.com/mgmt/scientific/ – ACCESSED – 29/02/2011

http://www.management-hub.com/information-management-advantages.html – ACCESSED – 29/02/2011

http://www.whamtech.com/adv_disadv_dw.htm ACCESSED – 29/02/2011

book: Expert systems in business and finance – Paul R. Watkins and Lance B Eliot

book: Boddy, D. (2008) Management: An Introduction (4th Ed). Harlow: Pearson Education.

Book: Hannagan, T. (2008) Management: Concepts and Practices (5th Ed). Harlow: Pearson Education.