When you tell your friends or even your own family that you’re taking an online class in information systems, do you readily explain what it’s all about? For the last several years, information systems have been taught as an Introduction to Information Systems class. However, many people do not know the first thing about information systems. In particular, very few people understand the concepts behind an information system and how to implement it within their organization. This is especially true when it comes to larger companies.
In business processes, there are two main categories of systems: information systems and transaction processing systems. Business processes fall into one of these categories based on how they work. Information systems are designed to improve the way your company does business. The term ‘business process’ encompasses a wide range of activities that improve your business effectiveness. Some of these include planning, product development, advertising, sales, and customer service. There are a wide variety of other activities as well, but we will focus on business processes within this article.
One of the primary purposes of information systems is to improve the way your business processes work. You can use this knowledge to streamline your operations and reduce errors. Streamlining your processes typically refers to reducing the number of individual transactions you must handle during the course of a typical day. Streamlining your information systems will help to:
Increase efficiency – Streamlining your information systems typically means streamlining your business processes. It also means that the number of people assigned to your chief information officer (CIO). A chief information officer, or CIO, serves as the company’s “Chief Technology Officer”. This individual represents the company at the highest levels of all technological aspects of the company. Because of this high level of responsibility, a CIO needs excellent skills in information security and information systems so he/she can effectively manage the technology aspects of the company.
Reduce error – Streamlining your business systems also requires that you have fewer errors in your data warehouses. Information technology transaction processing systems are the core of your information system. These data warehouses hold all of your data and allow you to quickly and accurately process transactions. If there are too many mistakes in these data warehouses, your information system may be slower than expected, or it might even cause your computer and/or database to crash.
Reduce customer service concerns – Modern business is very demanding and requires very fast response times. The speed of decision support systems and the speed of your information systems directly impact your customers. Your customers will judge your company by the response time that it provides them with. The operational speed of information systems and your decision support systems play a large role in how well your customers perceive your business and the services that you provide.
Provide competitive advantage – There are many advantages to using information technology for your business. One advantage is that your business can compete with other companies with the information systems research and implementation. Many companies are utilizing information technology to provide increased levels of productivity. Other benefits of a good information systems research and implementation include reducing communication costs and improving the productivity of management information systems.
Algorithmic Processes – Algorithms are one of the most important parts of a successful information systems. When using information technology, your computer science department will study these algorithms to improve your business processes. When designing your information systems, you should be sure that your algorithms not only process information quickly but also accurately. These algorithms can be used to improve everything from customer services to billing.