Strategic information system Essay Example | Topics and Well Written Essays - 3000 words

Strategic information system - Essay Example This study mainly focused on a business related company. An information system comprises of transaction processing systems, management information systems, systems for decision-making support as well as strategic information systems. The information itself consists of the processed data which is coded to the person using. A system refers to a set of elements that are designed to operate together so as to provide a common purpose Ramesh et al 1997). In information systems, the basic element is data which basically refers to raw, unevaluated details, figures, symbols, events and other resourceful facts concerning the origination’s needs. Hence data is converted by the processor which is mainly computers into meaningful information that is useful to the user who in turn uses it in making decisions. Good information should be relevant, be timely, accurate, cost-effective, reliable, usable, exhaustive, and have aggregation level. Information is only important if it is directed to i mprove decision making activities. It can also be important if it is able to reaffirm the previous decision. ... The data collected during the knowledge stage are then used by statistical methodologies and other models to forecast possible results for every alternative. Each alternative can also be studied in ensuring technological, behavioral, and economic viability. In making of the choice, the decision maker must choose the best alternative which is suitable contributing to achieving the goals of the organization. The choices made can in turn reviewed during implementation and monitoring so that the manager to can make necessary faults. Therefore, information is very critical in the four stages of decision making which only is made more effective by systems, Simon (1977). Strategic importance of information in organization through use of systems They are useful in supporting business processes and operations. Information systems help the manager in their daily routine operations so that they function properly and effectively. For instance accounts, payrolls, employee benefits data protection and so on. In particular, the managers are able to conduct their daily activities wit a lot of ease, timely, accurately by use of software. Secondly, IS are essential in decision-making processes for employees and managers. This is simply input of data, processing the finally generating information. Therefore, managers are able to use the information processed for finding various solutions to the organization. For instance, information systems are able to analyze existing historical data about the rate of flow of customers and make necessary improvements if the turn up is very low. They also provide support in making decisions critically for competitive advantages. Information systems can provide information concerning the type