Examining The Development Of Information Systems Information Technology Essay

Distinguish between Information Technology (IT) and Information Systems (IS)? List Four Organization Functions that can be served by IS


Information Technology refers to the acquisition, development, installation and implementation of computer systems and applications (Longley & Shain, 1985).On the other hand, Information System (IS) is a combination of information technology and peoples activities using technology to support operations decision making and management (Definition of Application Landscape, 2009). In broad sense, they are various things that distinguish or differentiate Information Technology and Information Systems. The latter Information Systems refers to systems designed or created to store, manipulate and disseminate information. For example we use a computer and associate software to write or key in information. Historically, the term information system has been around longer than the term computers or Information Technology. However, its common misconception these two terms can be used interchangeably, which is a falsehood. The term Information system first appeared in 1958 article published in the Harvard Business Review written by Leavitt and Whisler saying that “the new technology does not have a name”, consequently, will be referred to as Information Technology. Information Technology has nothing to do with system but falls under information system. IT deals with technology behind the systems themselves.

Organization Functions

Information Systems play an important role in Accounting or Finance. Organization use Accounting Information System (AIS) like Sage, SAP and Oracle to manage and assist in decision making processes within the organization. Secondly, Information Systems are used in aiding the marketing function within an organization. The organization marketing strategy calls for aggressive marketing and promotion of its products and services. By using Marketing Information Systems (MIS) it is intended to bring different pieces data into a coherent body of information. Human Resource function within an organization of firm assist manager and employee develop and manage their human resource skills. Therefore, by using Human Resource Information System and organization will be able to better manage the organization Human Resource capital (Bureau of Labour Statistics, 2010). Research and Development is about an organization improving on the products a firm makes. Organizations rely on ideas from both their customers and other industries as means to foster and create innovation. To manage this Information System are used. For example automobile manufactures invest large sum of money to develop new vehicles models and Pharmaceutical companies are reliant on new drugs for growth.

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DIAD and Web-based tools have been used by UPS to achieve customer intimacy. Discuss this statement in terms of the two aspects: Effectiveness and Efficiency.

United Parcel Services (UPS) has heavily invested in Information Technology and Information System in order to make the business run efficiently and is more customers oriented. It has therefore used an array of information technologies to achieve this. The technology used by UPS consist of handheld mini computers that are common referred to as (DIAD), bar code scanners, wired and wireless communication devices, desktop computers, UPS server and storage devices, tracking devices and associated software (UPS, 2011). The Internet gateway is used by both the customer and staff to tack packages, calculate fees, maintain customer accounts and manage logistics. Through the use of DIADS UPS has been able to automatically capture customers’ signatures, pickup, delivery and time stamps information. The information system uses the data to track packages while being transported globally (Umar, 2004). Consequently, the solution provides high level services at a lower price against increasing competition. UPS has been known to use such strategies against mounting competition in the past “best services and lower rates” The technology allowed customers to track his/her package via the UPS website. Therefore, allowed a seamless flow of information throughout UPS and enable streamline workflow at the company. Thus, the technology described enabled the organization be more competitive, efficient and profitable. UPS philosophy of placing service to the customer first is clearly seen in the package tracking systems.

What is knowledge management? What types of knowledge might a company such as a taxi service have, and could a taxi service benefit from knowledge management?

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Information Systems

Information Management is used to refer to management of information so that it can be useful in the organization. It is from these, that terms such as Information Analysis and Information Planning came about. Just like information, organizations are starting to look at knowledge as a resource. Therefore there is need to seek ways of managing the knowledge in an organization. By using these resources the organization can perform Knowledge Analysis and

Knowledge Planning

Knowledge Management is a term used to describe the ability to manage knowledge by creating, gathering, storing, dissemination and application of the firm’s knowledge. Knowledge is the insights, practical know-how and understanding that we possess. (Malhotra, 2000) Types of knowledge that a taxi company may have are explicit knowledge such as maps and routes for various places. Tacit knowledge would involve the experience of drivers such as they are able to recognize the best route between two places and they are able to know the needs of the customers.

A taxi service would benefit from a system that would provide the driver with routes for a destination inclusive of the alternative routes the drivers may have found. It will also benefit from a learning management system that will provide training to the drivers on alternative routes, locations and destinations.

Why are organizations trying to integrate their business processes? List four key enterprise applications for organization-wide process integration.

The reason organizations are trying to integrate their business processes are due to the fact that it helps the organization focus on efficient management of resources and customer service. Its focus is on aligning the needs and wants of the customer together with the wants and needs of the customer. (Harmon, 2007) It helps the organization gain customer satisfaction, product quality and high delivery speed. Four key enterprise applications for organization-wide process integration are enterprise system, Supply chain Management system, Customer relationship management system and Knowledge Management Systems.

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Compare between Transaction Processing Systems (TPS) and Executive Support Systems (ESS) and what are the relationship among these systems.

Various systems in an organization exchange data with each other. Transaction processing system (TPS) is the major source of data for the other systems such as Management Information System (MIS) and Decision-support systems (DSS).( Laudon, &Laudon, 2000). Transaction processing systems (TPS) which is an operational-level system collect transaction data and provide data that is needed by MIS and DSS although they may use other data. DSS uses data from both TPS and MIS and MIS uses data mostly from TPS. ESS mostly receives data from lower-level systems therefore obtaining data mostly from MIS and DSS. Therefore ESS receives data indirectly from TPS.

A comparison between TPS and ESS is that ESS is a system designed to assist senior management make strategic decisions by gathering, analyzing and summarizing the most important internal and external information that is used in the business. On the hand TPS is a system that is used to process routine transactions efficiently.

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