Role Of Information System In An Organisation Information Technology Essay

Information systems are only one of an almost infinite variety of systems which may operate within an organization. An important prerequisite to understanding the specific role and operation of information system in an organization is therefore an appreciation of the significance of the term system and of the major components of any system, irrespective of whether the system relates to information or some other resource in the organization. (Information system in business, By- Bob Ritchie, David Marshall and Alan Eardlye).

An information system collects, processes, store, analyses and disseminates information for a specific purpose. Like any other system, an information system includes inputs. It processes the inputs and produces outputs that are sent to the user or the other system. A feedback mechanism that controls the operation may be included. Like any other system, an information system operates within an environment.


Information system and organizations influence one another. Information systems are built by managers to serve the interest of the business firm. At the same time the company must be aware of and open to the influences of information systems to benefit from new technologies. The interaction between information technology and organization is complex and is influenced by many mediating factors, including the organizations structure, business process, politics, culture, surrounding environment, and management decisions.




Mediating Factor




Business Process


Management Decision

Information system have become integral, online, interactive tools deeply involved in the minute-to-minute operations and decision making of large organizations. Over the last decade, information system have fundamentally altered the economics of organizations and greatly increased the possibilities for organizing work.


Senior management makes long-range strategic decisions about product and services as well as ensures financial performance of the firm.

Middle management carries out the programs and plans of senior management and operational management is responsible for monitoring the daily activities of the business.

Knowledge workers, such as engineers, scientists or architects, design products or services and create new knowledge for the firm. Where as data workers such as secretaries or clerks, assist with paperwork at all levels of the firm.

Production and service workers actually produce the product and deliver the service.

Middle Management

Scientists and knowledge


Senior management

Operational Management

Production and service workers,

Data Workers


Organizational information systems can be conveniently be placed into the following categories:-

Transaction Processing System (TPS) or Data Processing System

Management Information System (MIS)

Executive Information System (EIS)

Decision Support System (DSS)

Transaction Processing System (TPS) :-

In the beginning, computers were all rather limited, highly specialized machines which required a dedicated environment and specialist personnel to make them function correctly. Such machines were called ‘mainframes’ and the organization needed a computer department to provide the necessary data processing service to produce reports. The system which these computer installations supported was called data processing (DP) or transaction processing system (TPS). Some example of TPS systems in typical organizations are:-

A payroll system

A stock control system

An order entry system

Management Information System (MIS) :-

If the first phase of business computing was to automate the manual and clerical processes of business with the aim of increasing efficiency, the second phase was to emphasize the role of information.

Early management information systems sought to use the output from existing data processing system (and the data processing department) in some form which made it more suitable for middle management to understand.

Executive Information System (EIS):-

In spite of the success of MISs at the tactical level of management, it became apparent that IT had not produced any significant benefits for top-level executives. The strategic decision-making processes (e.g. new product development, changes in market position, growth by acquisition) were often noticeably ill informed. Many chief executives in the late 1980s had not used any form pf computer system at all. Because of this, it was apparent that new developments such as windowsâ„¢ and recent developments in human computer interaction (HCI) such as buttons and touch sensitive screen would form the basis of EISs.

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Decision Support System (DSS):-

Decision support systems were developing to overcome the rigidity of MIS-type reporting structures and the limitations of spreadsheets. In addition there were advances in corporate database technology and EIS-type interfaces on which to draw. DSS support nonroutine decision making for middle management. They focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advanced.

Bright Aspects of Information System:-

MIS facilitates planning: – MIS improves the quality of plants by providing relevant information for sound decision-making. Due to increase in the size and complexity of organization, managers have lost personal contact with the sense of operation.

It minimizes information overload: – MIS change the larger amount of data into summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

It encourages decentralization: – Decentralization of authority is possibly when there is a system for monitoring operation at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

It brings co-ordination:- MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other department. It connects all decision centers in the organization.

Dark Aspects of Information System:-

Hacker activities have broadened beyond mere system intrusion to include theft of goods and information, as well as system damage and cyber vandalism, the intentional disruption, defacement, or even destruction of a web-site or corporate information system.

No one knows the magnitude of the computer crime problem- how many systems are invaded, how many people engage in the practice, or the total economic damage. According to the 2007 CSI, Computer Crime and Security Survey of nearly 500 companies, participant’s average annual loss from computer crime and security attacks was $350,420 (Richardson, 2007)..

System malfunction if computer hardware breaks down, is not configured properly, or is damaged by improper use or criminal acts. Error in programming, improper installation, or unauthorized changes cause computer software to fail. Power failure, floods, fires, or other natural disaster can also disrupt computer system.

Vulnerability has also increased from wide spread use of e-mail, instant messaging (IM), and peer-to-peer file sharing programs. E-mail may contain attachments that serve as springboards for malicious software or unauthorized access to internal corporate systems.


In TCS a strong security system already exist and secures its systems from hacking. The world is filled with security threats, and boosting customer confidence must be the top priorities. TCS Data Privacy tools, such as Masketeer, a static data-masking tool, ensure that the customer’s data privacy needs are met optimally. Masks data use excellent and sophisticated masking techniques that ensure high data utility hand-in-hand with data security. In additional to this all, they are using the multiback up servers to protect their data. There are also several internal security levels for management and for the employees.

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TCS is an industry leader in cyber security and information sharing software products. TCS products and services offer easy way that helps government and commercial organizations to securely share information. While protecting important information assets. The company’s SecureOffice(R) products are installed and in operational use around the world today protecting our nation’s most sensitive digital information.

TCS and Associates take care to secure personal information given to them by their customers and applicants. It protects the personal information through various security practices and measures in order to prevent loss, misuse, alteration, unauthorized access or destruction. It also secures personal information. The information may be stored in manual or electronic systems with less access in order to protect information from loss, misuse or destruction. TCS works very hard to protect privacy while delivering innovative career development and staffing services. Its privacy principles ensure commitment that personal information is safe and secure.

TCS Trusted Linux will be main software components of a “trusted computing base”-a rigorously vetted system of software, hardware and firmware that together correctly enforces a unified security policy. TCS is among few information security companies in the world with the proven in-house engineering expertise to develop a Trusted Linux useful both for government and commercial markets.


TCS is using web-based solution of modern tax and revenue enterprises, and also tax payers. This makes simple and easy for the tax payer to pay their tax. It has totally integrated processes to support an endless number of tax types and business processes. With provisions for tax payer internal based registration, filling, paying and status inquires. TCS Tax Mantra helps in giving enhanced services to taxpayers and also raises their satisfaction levels while decreasing internal processing times.

TCS is also using authentication solution for web-based transactions which is digitally signed and authenticated providing data accuracy, security, and privacy.

Then there is another tool called eVOLv multimedia tool. This tool is simple to use, versatile that creates content modules easily and quickly. It also support graphics, audio, and video media formats, users may also make learning a rich and engaging experience for the audience. The tool doesn’t need any specialized programming skill or knowledge to operate. TCS evolv can be easily used on most learning management systems.


Clouding computing refers to a model of computing where firms and individuals obtain computing power and software applications over the internet, rather than purchasing their own hardware and software. Currently, cloud computing is the fastest growing form of computing, with an estimated market size in 2009 of $8 billion, and a projected size of $160 billion in 2012 (Gartner, 2008; Merrill Lynch, 2008).

Hardware firms IBM, HP, and Dell are building huge, scalable cloud computing centers which provide computing power, data storage, and high speed internet connections to firms who rely on the internet for business software applications. Software firms such as Google, Microsoft, SAP, Oracle, and sell software applications as services delivered over the internet. For instance, over 500,000 firms in 2009 will use Google Apps, a suite of internet-based desktop software applications such as word processing, spreadsheets, and calendars. (Hamm, 2008; King, 2008). In 2009, more than 43,000 firms world wide will be using’s customer relationship management software, some on their iphones.

Since organizations using cloud computing generally do not own the infrastructure, they do not have to make large investments in their own hardware and software. Instead, they purchase their computing services from remote providers and pay only for the amount of computing power they actually use (or are billed on a subscription basis). You will hear the terms on-demand computing or utility computing used to describe these services. The interactive session on and the chapter ending case on describe example of cloud computing hardware and software service providers.

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One of the best examples that how Tata Consultancy Service (TCS) offerings in Cloud Computing:

TCS is an IT services, business solution and outsourcing organization that deliver real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique global network delivery Modelâ„¢, recognized as benchmark of excellence in software development.

A part of the Tata group, India’s largest industrial conglomerates, TCS has over 143,000 of the world best trained IT consultants in 42 countries. The company generated consolidated revenues of US $6 billion for fiscal year ended 31 March 2009 and is listed on the National Stock Exchange and Bombay Stock Exchange in India.

TCS’s Service offerings in cloud computing:

Despite the challenges that exist today around Cloud Computing, TCS believes that Cloud Computing will become an increasingly viable option for enterprise IT.

TCS proposes a range of services to customers, beginning with an advisory role in helping customers identify opportunities for leveraging Cloud Computing to enabling new business models. As a part of the services, TCS will address key questions which its enterprise customers have been asking, and will provide unique solutions through its

TCS COINTM-based Cloud initiative.

Each service offering needs special competencies. Helping customers define a to-be strategy, devise a timeline, and a business case to move to the Cloud requires not just domain expertise but experience in end-to- end business transformation. Migrating Applications to the Cloud requires proven migration methodologies and toolsets which can rapidly cloud-enable applications. Fresh development of applications “for” the Cloud and “in” the Cloud requires a deep understanding of all the 3 Cloud delivery models – SaaS/PaaS/IaaS – as well as tools for rapid application development and deployment in the Cloud. Cloud management services presuppose an Application Driven Infrastructure Management approach, among other things.

TCS has been providing a mature IT-as-a-Service component as a part of its Small and Medium Business (SMB) offering, which has built a completely new business model and which leverages the mindset and technologies of the Cloud.

The potential of the new paradigm:

TCS believes that cloud computing will be very attractive to the enterprise to IT service providers, primarily due to the infinite opportunities around innovative business models. While the technology foundations of cloud computing can be considered as a gradual evolution, TCS firmly believes that the business models will prove to be potentially disruptive.

The TCS taxonomy for cloud computing is based on abstraction layers: – the infrastructure, the platform, the software and the cloud specific service layer. TCS believes that delivering a credible set of cloud computing offering to enterprises will require collaborative innovation across multiple player such as public cloud providers, software and service providers, product vendors and application vendors.

-K.Ananth Krishnan

Vice President and chief technology officer

Tata Consultancy Service.


It is clear that cloud computing is fast moving beyond the “hype” to being taken seriously in organization. Cloud computing is bringing us close to the dream of an efficient, centralized computing power and there are many niche player positioning their product in this space.

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