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Discussion on: Roles & use of Information System in your organization

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ShantaMilan

Information system (IS) and information technology (IT) are two different things but closely interlinked. The system is developed with the help of the technology. For example, excel is a technology while the financial statements produced with its help is the system. Let us look at the six primary roles that IS plays in an organization.

1. Decision making
In an organization or business the managers need to make decisions all the time. The decision must be backed by quality judgment of the situation and its implications. Data collected, compiled and presented in a simple way helps managers understand the position of the organization and take appropriate decisions. For example the final report of a company shows the companies sources of funds and it applications for return. If there is more source of funds available then the manger has to find good investment opportunities. Similarly restaurants can see the most ordered dish and beverage which helps the manger to promote it more.

2. Operations management
Information system is used to manage every day operation in an organization such as employee monthly salary, taxes, attendance, leave records, record income and expenses, receivables, procuring goods and inventory management to name a few. (Wallace, 2015) Daily tasks or operations management to keep records or follow up on supplies, creditors, and inventory is made easier with the help of IS. For example software used by IME money transfer helps people to send money from one place to another, department stores such as Bhatbhateni, big mart use software to track their stock and keep record of daily transactions.

3. Customer interactions
IS also helps in customer interaction. Few forms of customer interactions based on IS that I use are ATM machines, recharge card in mobiles, monthly bill or registering complains in the Nepal Telecom etc. Thus the implication of the use of IS for customer interaction is gaining more popularity. With online shopping in hamro bazar, sasto deal, flipcart etc. are some of the more successful organizations that have used IS for customer interactions.

4. Collaboration on teams
IS has made the world a smaller place. With connectivity available communication has increased a lot. People can conduct meeting from different countries through skype. Friends and family members can keep in contact through facebook, celebrities and even head of states can reach out to the general people through the use of Twitter. IS has made this possible.

5. Strategic initiatives
IS helps in taking strategic initiatives for competition in the market. For example here in Nepal, NCELL a private company had to face NTC, owned by the government, as a competitor. It was very difficult to get a sim from NTC. People waited in line whole day to get a sim card. NCELL provided sim cards in every small cyber shops. In addition various facilities like Rs. 20 loan, mms, call recording, 4G etc. were provided by NCELL. This increased its hold in the telecommunication market.

6. Individual productivity
Productivity is highly increased by IS but the user should be able to understand its effectiveness. For example excel is very useful for accountants and finance personnel but there are a lot of features in it. If people do not understand these they cannot make full use of it. Another example is our own Westcliff GAP website. Students login, have option to do research with LRIN, post assignments, track grades etc. This has made it very easy and increased individual productivity in this MBA course.

These are the six primary roles of IS in an organization.

Reference

Wallace, P. (2015). Information System in Action. In P. Wallace, Introduction to Information System (pp. 4-9). New Jersey: Pearson Education, Inc.