Jun 23, 2022

Information System Decision Making In Business Organisations

Information System Decision Making Business Organisation
Information System In Business Organisations

Information System Decision Making In Business

How Information Gives You Competitive Advantage for business Organisations, according to Michael E. Porter and Victor E. Millar, information revolution is sweeping economy. No business Organisations or company can escape from the effects of information system. information are changing the way to do business and managerial decision making. business organisations are using information systems for competitive advantage and managerial decision making globally. Investing in information system support or shape a business unit’s organizational strategy and managerial decision making to provide a competitive advantage. Any information system like Business Process Management (BPM), Electronic Data Interchange (EDI), Management Information System (MIS), Decision Support System (DSS), and Transaction Processing Systems (TPS) helps the business Organisations to deliver a product or service at a lower cost in a specific market segment. Business organisations use several different types of information systems, which serves a different level of decision-making operational, tactical strategy.

Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) Information Systems typically exchange of purchase orders and invoices by integrating suppliers and distributors via Electronic Data Interchange (EDI), which improve speed, efficiency, security, and reduce the resources required to manage relevant business information in the organization. Cleo, True Commerce EDI, Jitterbit, Go Any where MFT are some of the Electronic Data Interchange (EDI) Information Systems softwares that can be used in a data integration platforms and supply chain management.

Transaction Processing Systems (TPS)

Transaction processing systems (TPS) are computerized based information systems, which is developed for the processing of business organisation's large amounts of data for routine business transactions such as payroll, TPS process airline tickets reservations, employee performance records, accounts payable and receivable in the business. Transaction processing systems (TPS) examples are ATMs, credit card authorizations, online bill payments, and self-checkout stations at retail stores.Transaction processing systems (TPS) enables all of the above services in real-time.

Business Process Management (BPM)

Business process management is an automated data integration process that streamlines operations, reduce costs and improve customer service. Unlike EDI, BPM is used both internally and externally, between applications within the business and between companies. Big financial institutions like Bank of America use BPM to fasten, integrate, and automate different applications - credit card, bank account, and lending, so it results in delivery time for economic transactions from weeks to minute.

Management Information Systems (MIS)

Management information systems (MIS) tools and programs support decision making. MIS collects and stores its key data and use in need of analysis, control, and decision-making. For example, input from sales of different products can be used to analyze trends performing well and not. Managers use this analysis to make semi-structured decisions such as making changes in future inventory orders and schedules. MIS is focused to increase business value and profit.

Decision Support Systems (DSS)

Decision support system (DSS) is an informative computer system that supports tasks or norms of decision making, Decision Support Systems (DSS) analyze a vast array of information and producing comprehensive information. As technology continues to progress, DSS is not limited to only giant mainframe accountants. But now DSS applications can be loaded on large shelves, laptops, and even mobile devices. Decision Support Systems (DSS) example, is a GPS system that traverses the fastest and best route between two points by analyzing and comparing multiple route options and factors in traffic conditions. DSS can make decisions at different levels within the organization, from executive to senior managers, and helps people make decisions on a variety of problems, ranging from highly built decisions to shaped decisions.

Collaborative System

As technology began to develop, information systems emerged that allowed workers to cooperate differently. Using tools like video communication Email messages, common Word documents, social networks, discussions boards and video conferences to brainstorm ideas and collaborate together without the need for face-to-face physical meetings.

Cloud Services

Cloud Services represent a variety of services delivered to companies and customers on the internet without the need for internal infrastructure or hardware. The example of Cloud Services are GitHub Code hosting platform for collaboration between computer programmers, Microsoft Share Point Web based file management and collaboration, G-Suite Software as a service (Saas) developed by Google.Online Video Conference Services Zoom, Cisco Webex Business communications platform that connects video and audio, Skype for Business Microsoft's online meeting platform.