Essay on Basic Role of Information Systems

2060 Words Sep 21st, 2012 9 Pages
Question No. 1: (a) Discuss basic roles of information systems. Support each role with an example.
I. Basic Roles of Information Systems
A. Outline:
1. Information Systems
a) Definition
b) Explanation
2. Components
3. Importance
4. Considerations
5. Roles
a) Information storage and analysis
b) Assist with making decisions
c) Assist with business processes
6. References
B. Information System
1. Definition “A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.” “An information system (IS) - is any combination of information technology and people's activities that support operations, management and decision making.
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Information systems store, update and even analyze the information, which the company can then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate data from various sources, inside and outside the company, keeping the company up to date with internal performance and external opportunities and threats. FOR EXAMPLE in banks and stock exchanges every transaction and every minor change is updated in real time environment and is available with statistical analysis of the authorities or investors.
2. Assist With Making Decisions The long-term success of a company depends upon the adequacy of its strategic plans. An organization’s management team uses information systems to formulate strategic plans and make decisions for the organization’s longevity and prosperity. The business uses information systems to evaluate information from all sources, including information from external references SUCH AS Reuters or Bloomberg, which provide information on the general economy. This analysis of and comparison to market trends helps organizations analyze the adequacy and quality of their strategic decisions.
3. Assist With Business Processes Information systems aid businesses in developing a larger number of value added-systems in the company. FOR EXAMPLE, a company can integrate information systems with the manufacturing cycle to ensure that the output it produces complies with the requirements of the

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