How Information Systems Support the Business Processes in an Organization

How information systems support the business processes in an organization.

Information System (IS) refers to a system of people, data and actions that process the information in an organization. An effective information system (IS) is one that minimizes data and maximizes information. A functional business information systems support the business functions of marketing, production, accounting, finance, and human resource management through a variety business operational and management practices. In every business there has been some type of information system in order to achieve production, quality and good customer service among many others. A business system is divided by managers, assistant managers and production workers. The organization management needs data to know how to do the right business planning. Also, the mid management needs even more precise information to guide and make sure that all the business actions are moving on the right track. Finally, the actual production staff needs this information to help them know exactly what needs to be done. This last part of the organization is the reflection of the good or bad decisions made by the business management.

The growth of technology during the past few decades have begun to show how important proper data processing management has become to most organizations. A brief look at information systems we can see they may use various technologies; Sage (1968) describes historical development of information system in organizations from Babylonian times. The system is not a new concept, but how it's implemented and supported will be an important aspect of any business process in an organization. The type of support received will vary depending on the structure or how the information system is designed to work for each organization. Based on the Encyclopedia of Computer Science information systems can be classified in different ways such as application area, type of services retendered, and by the type and degree of interaction with the user and/or environment in which the system is embedded. To better identify how information systems support the business process in an organization, we must first define information systems as a collection of people, procedures, and equipment designed, constructed, operated, and maintained to collect, record, process, store, retrieve, and display information (n.d. Information Systems). By expanding its definition there are multiple aspects of common procedures performed in organizations, which explains the co-relation between an organization's information systems and the business procedures or processes. A business will need to implement a system to perform many of their common tasks such as collecting data, processing information, data storage, inventory support, process transactions, and more. All of these noted task will be performed by whatever system is in place in an organization; making