Question

Q3

Write an essay of 1000+ words on the topic ‘All information systems exist to support some form of decision-making’. [8 Marks]

NO PLAGIARISM PLEASE. DO NOT WRITE THE ANSWER - PLEASE USE WORD FORMAT.

Answer 1

Decision making is an important business function which is prevalent within every process at every level of an organisation. Gayatri decision making levels within an organisation the executive, the managerial, and the operational level. The executive level is involved with long term and complex decisions involving the business plan and strategy with decisions for the long term to ensure the goals and Mission of the organisation successfully achieved. Decisions at the managerial level maybe weekly or monthly on the basis of the process and organisational requirement and may involve both simple o Complex decisions on the basis of the situation to be managed. Complex decisions when required at managerial level may require involvement of the executive level for approval. The decisions that the operational level are mostly made on a daily basis and a structure decisions involving operational procedures and maintenance of the daily uniform regular business processes.

Whatever the level or type of decision making required it is entirely dependent upon the support from accurate information system to be accurate and efficient decision making undertaken in a rational manner on the basis of analysis of accurate data presented in a comprehensive manner. This is achieved by organisations a maintenance of efficient information management system in the form of executive information system, management information system and transaction processing system. The very classification and names provided to the information systems make it clear that the exist to support decision making at various levels and form the foundation for making sound decisions.

The information system is designed to enable and facility accurate and effective decision making why maintenance of the information in a manner as to facilitate decisions at the specified level in the quickest possible way with minimal scope of misunderstanding the information provided or inability to understand or analyse the data. As information systems are the backbone of the decision making system of the organisation at every level it is essential that the information be processed and maintained in a manner that is conducive to rational decision making. Executive information system requires summarised information of the entire business operations with accurate facts and numbers along with statistical tools and analysis for easy comprehension and quick decision making with accuracy. This requires ease of access to all information whether from internal or external sources. This information is combined into a comprehensive report form with various combinations of grouping product wise or department wise and many other formats as maybe required by the executive management.

The management information system consists of all reports used by managerial mid level managers presenting reports of overall internal controls with all required information to be utilised for decision making regarding various processes and activities undertaken at the managerial level. Key indicator reports and drill down reports are an example of management information system.

Transaction processing system are used at operational level of an organisation and are mostly the Source. Main internal information may be generated to a large extent with transactions being executed a manufacturing and other processes being undertaken. This information system is used for facilitating all transaction processing of an organisation and recording the data to be used in suitable forms at various levels of the organisation. This includes online processing of transactions. Payment of utility bill from the bank account comma transactions recording sales or placement of an order or transactions involving inventory are all examples of transaction processing system.

The information management system within an organisation is a combination of the hardware, software and network products which provide an integrated solution two organisations presenting data in a format which facilitates analysis, monitoring former reporting and informed rational decision making.

An information management system can change the way an organization stores in tracks its information by integrating them into one Central location by utilization of the internet or other available digital Asset Management software options. An organization can benefit in various ways by implementation of an information management system:

It helps an organization communicate more effectively by facilitating easier collaboration and subsequent cooperation among employees even across distant Geographic locations. The ability to have instant access to all information along with facilitation of sharing them through an online workspace environment such as an intranet allows all users to work as a team on the same or similar project resulting in subsequent enhancement of output achievement of results and optimization of data utility through effective management. Communication facilitates informed decision making at every level promoting rational and logical decisions based on Analysis of data presented in a formal written manner.

In large organizations maintenance of documents to constantly update information to ensure that all information flowing throughout the organization is accurate, so that decisions based on such information are correct, can be a struggle. An information management system facilitates simple and easy modification of information along with provision of monitoring and control system for track of information with updation and management facility online through the intranet. Users are only required to upload the information and manage all updates or other modifications online through various features of the information management system including an automated archive and cleanup function for better organization and maintenance of documents.

Information management system is an efficient tool providing exceptional intangible value to an organization by minimization of costly errors due to mis-management of information or non-availability of accurate information, or inability to access the required information at the required time resulting in poor or erroneous decisions. With the information management system every information is filed on the company intranet facilitating quick and easy location of the right information at the required time enabling the right decision making and access to all required information without extensive investment of time.

Ease of accessibility to information becomes a crucial factor for quick decision making in crisis situations or other situations requiring immediate response and is essential for people working from home or travelling for work. This is also critical for global organizations with offices scattered across geographical locations in different countries or continents. This also vastly reduces stressful situations due to having forgotten to carry important documents to a meeting, in another country. With an information management system productivity is greatly improved as it performs many routine tasks which are undertaken by staff such as uploading, editing, tracking and sharing of information on a daily basis. This results in employees being more productive and subsequently more efficient. The information management system allows all employees to remain constantly updated with all required communication and information within the organization without it having to be communicated individually or department-wise. Feature which facilitates acknowledgement through a read and agree box ensures that everyone has viewed the necessary information.

An efficient information management system facilitates effective management through accurate and efficient decision making at all levels along with ensuring all vital information is stored in a manner most suitable for addressing the unique decision making needs of the organization helping it to implement the right strategy due to formulation of the best plans based upon accurate data and reports leading to rational decision making.