Before the 1990’s, which was the year the internet really started to bloom, we used information systems in a different way than we use them now. Forty years ago the idea of information systems was to “maintain files and databases related to day-to-day operations” ( W. (2017, July 31). The Role of Information Systems in Running the 21st Century Organization). Since the development of the internet there is no longer a need for paper processes. Information Systems are continually helping modern organizations grow and develop. Businesses are investing upwards of $1 trillion on hardware, software and telecommunications equipment (Laudon & Laudon, 2014) to ensure they are staying competitive within their respective industries.
For example, Kroger uses information systems in various ways, being able to utilize their labor in the appropriate ways by tracking traffic patterns, as well as being able to monitor cold food storage temperatures (Laudon & Laudon, 2014). Information Systems is used every day, but what is it? It can be defined as “a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization” (Laudon & Laudon, 2014, p. 16). If we refer back to the example about Kroger we can see how being able to collect and store the appropriate data is making them one of the most successful grocery stores.
Bert Markgraf also states that companies recognizing the importance of information systems when these systems process their data and input the information used for better managing their daily operations Importance of Information Systems in an Organization). He breaks down 4 different processes and systems that are essential to the use of Information Systems: Communication Systems, Operations Management, Decision-Making and Record Keeping. Communication Systems will allow managers to become more efficient with communication information to employees.
127 our experts are availableright now
Operations Management can determine whether you get the cost advantage or provide better customer service. Using Information systems within the operations side of each business it will provide each business with the most “complete and recent information.” The flow of processes can also be essential to success. Communication Systems and operations management can lead to overall better decision making. With having all the necessary information it allows management to seek alternatives if need by or continue with as is. Lastly, record-keeping. Being able to have a system that stores all of this above information will lead to being able to recall any previous information and lead to more effective and efficient processes in the future. Technology and business are rapidly growing, so having the ability to adapt is important.
The use of Information Systems can be used in all aspects of modern organizations, one specifically being the online business. As the use of the internet has developed, so hasn’t the ways that we access it. Over 80% of the population has cell phones, with Apple having over 2 million apps and android having 3.8 million. With this accessibility it has allowed over 205 million Americans to shop online, with a large percentage of those to actually make the purchase (Laudon & Laudon, 2014). This is important to modern organizations because by 2021 the prediction is that of the total global sales, 17.5% of will be from online business (Duncan, E. (n.d.). Topic: E-commerce worldwide). This does not only effect the businesses that are producing the sales, but also companies such as UPS and FedEx. As previously stated part of Information Systems is having the ability to collect and store data. UPS using these systems to “respond to rapidly changing customer demand, reduce inventories to the lowest possible levels, and achieve higher levels of operational efficiency” (Laudon & Laudon, 2014, p. 7).
Information Systems and the technology help improve the processes that have been put in place for each business. Such as UPS, with the use of their systems they are able to analyze the trends of the customer demand. UPS starts out their long streamed process by using a scannable bar code, and this code is stored with different information to ensure the package ends up where it is supposed to. Without the use of communication systems, operations, decision making and record-keeping, this process for UPS would not run as successful as it has. However, UPS is not the only business that has the ability to use Information Systems to improve upon their processes. Each business first needs to recognize the importance of their processes and how to improve them to stay competitive within their industry.
As there are many different systems, one specifically that can play a significant role in any modern organization is the use of a Customer Relationship Management System. According to LinkedIn, “91% of companies with more than 11 employees use a CRM system, compared with 50% of companies employing few than 10 people” (Base CRM Follow. (2014, January 23). 18 Surprising CRM Statistics). This is important because as we look at the business processes, the CRM system is part of a business process. It will “coordinate all processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction and customer retention” (Laudon & Laudon, 2014, p. 55). For 3 years I worked at Best Buy in upper management and the use of our CRM system was essential to our day to day processes. As leadership we used this system to receive feedback about the good, the bad and the ugly. This helps lead to optimizing our revenue by taking the feedback from each customer and utilizing it to maximum customer service skills. This process then lead to higher customer satisfaction and customer retention. There is a place for different processes in every organization, but ensuring that Senior Management in every organization is analyzing their processes and changing what needs to be changed will lead to staying competitive in their market.
Information Systems plays a huge role in the job that I do every day. As an employee of The Sage Colleges I understand the importance of Information Systems. Each day I work with a system referred to as Colleague, and without this system there would not much work I would be able to get done. Just this past week, Colleague went down and within 5 minutes it was recognized, updated and back up. As a user of it I do not always think about who is ultimately responsible for ensuring these systems are running every day for us. Without this department it would be possible for our systems to have come back so quickly.
