Importance of information systems Essay


The undermentioned paper explains the importance of information systems in E-business and the restrictions of information systems on the E-business. The study explicates different information systems used in E-business. Besides the study gives the advantages and restrictions of E-business and its attendant architectures. The treatment in the paper is limited to the information systems architectures, Advantages, Limitations and does non include the schemes in it. ( hypertext transfer protocol: //www. )

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An Information system ( IS ) is a combination of calculating systems used in a administration and the activities performed on them in order to back up the administration and besides assist in determination devising procedure. In other footings IS is used to “ roll up, procedure, shop, analyze and disseminate information for specific intent ” ( Turban 2008, pg 13 ) .

Information systems have big function in the execution of E-business in the past decennary. Due to the increased complexness in the designs and the degree of complexness in the systems ( Information Technology ) used on Online markets are coercing E-business to utilize some logical architecture of Information systems in order to do the design, functionality and procedures look simpler and easiness. Information systems has non merely provided the degree of cost-efficient solutions but besides helped in footings of human work force i.

e. , combination of Information engineering and human engagement reduced the hazard of failures in E-business. For illustration EBay and Amazon are some of the E-business organisations that are successfully utilizing Information systems in their day-to-day concern activities. Information architecture is a physical program of how the information assets in an organisation are arranges which includes the physical designs of the edifices, hardware and other physical assets of the company. Information and Communication Technologies ( ICT ) is another country of survey that helps in processing and transportation of informations and information electronically that is used for information system and besides provides the substructure for intra- and inter-organisational information systems. ( hypertext transfer protocol: //www.turningcourse.

com/ukais/isdefn.pdf ) Below shown is the sample figure of the architecture of an organisation.The above figure illustrates the Information substructure in an On-line Airline Company. The image besides explains how the procedure in that organisation takes in their twenty-four hours to twenty-four hours activities. Whether running an air hose or an airdrome, the right information systems can hold a critical impact in the operating costs, runing effectivity, and client satisfaction. Some of the possible characteristics of Information Systems are:

  • Combine resources and collaborate with each other anytime, anyplace.
  • Increase the efficiency and effectivity of people working in a group in several locations.
  • Effective decision-making.

  • Reach planetary market expeditiously.

Information Systems in E-business:In order to understand E-business, we must foremost larn the definition of E-commerce. It is nil but purchasing and merchandising of merchandises and services over electronic webs ( Internet ) . While E-business focal points on the schemes, that gives more importance and to the functionalities that evolve are determined as possible characteristics of the Information systems in E-business. So, E-commerce is a subset of E-business ( Wikipedia, E-business ) . E-business can besides be described as integrating of concern schemes, procedures and engineerings. Some of the application countries of E-business are Customer Relationship Management ( CRM ) , Enterprise Resource Planning ( ERP ) , Supply Chain Management ( SCM ) and Human Resource Management ( HRM ) . The two basic schemes conducted over cyberspace are concern to client ( B2C ) and concern to concern ( B2B ) .

For an effectual and efficient E-business, Information systems are really important. Information systems simplifies the concern procedure involved, whether it is the minutess, determination devising, client relationships or the managerial issues ( hypertext transfer protocol: //

pdf? page=1 ) . Information systems are widely used in E-businesses these yearss.Electronic concern is a broad country where IS can be used in many procedures. IS are used in the minutess, services and schemes in the E-business therefore saying them as a anchor for any concern procedure. IS architecture are good understood but the conceptual specification of information systems for concern procedure integrating remains an unfastened methodological analysis in footings of managerial position. Some of the advantages of E-business are:

  • Worldwide Presence: One of the biggest advantages of advancing E-business online is its presence in the planetary market.

    For illustration, IBM was one of the initial companies to accommodate E-business in the countries of serving clients and join forcesing with different concern organisation around the Earth. Dell on the other manus has an efficient concern selling their merchandises all over the Earth through telephone and the Internet.

  • Cost Effective Marketing and Promotions: Buy being in the planetary market on the web enables the organisations to make their clients at normal monetary values or even discounted monetary values as the in-between adult male costs are reduces in this procedure. Advertising techniques like wage per chink advertisement guarantee that the advertizer merely pays for the advertizements that are really viewed. Affiliate selling, is another technique where the consumers are directed to the needed concern sites and in bend these site proprietors receive compensations which benefits both the parties. Organizations involved in e-business have to utilize cost effectual on-line advertisement schemes to their advantage.
  • Developing a Competitive Scheme: By being on the online market, many organisations can analyze their informations and develop a scheme to vie with other companies in the market with an effectual scheme by utilizing some of the information systems such as ERP.
  • Better Customer Service: By utilizing the CRM application has improves the client service.

    For illustration, on sing a site there is a dad up window that enables chat window. So the client can unclutter any uncertainties that he has. Besides by paying the merchandise cost online the client may non hold to go forth their house in order to have to merchandise.

Disadvantages of E-Business

  • Sectoral Restrictions: One of the major disadvantages of E-business is growing in some sectors such as nutrient industry for illustration. Customers do non desire to purchase nutrient merchandises peculiarly which are unpreserved because they have a fright of taint of the merchandise. Likewise, some other sectors are big constructional equipments ; Automobile and pharmaceutics are some of the sectors that E-business has restrictions.
  • You may non have what you believe you have purchased.

  • Security – Some of the kinks that a client or provider could confront in E-business is the security. The client faces hazards such as fiscal records, personal privateness and viruses whereas the provider face hazards such as viruses and hackers.

But it is evident that the advantages of E-business outsmart its restrictions. Therefore reasoning that every concern have to alter their manner of operation and follow E-business for its success and planetary range.hypertext transfer protocol: // Systems Architecture in E-business:Information systems architecture is in nil but the organisation development, system construction, proficient support, and merchandise bringing mechanisms for a concern information system.

Information architecture explains the physical design ( Hardware, Buildings and package procedures ) involved in it. E-business uses many information systems in order to better their concern efficaciously and expeditiously.The information systems used in E-business architecture are explained more elaborate in the undermentioned study.

Transaction Processing systems ( TPS ) :TPS supports the supervising the minutess and besides chilling, hive awaying, processing and sub-categorizing the concern minutess. The primary mechanism of this system is to supply the information needed by the organisation in order to run the concern more efficaciously. Generally information systems are designed within each functional country ( Support systems, External Systems ) therefore increasing its effectivity though proper integrating of information systems. The undermentioned diagram explains the flow of information among the map countries within the information systems through integrating. Integration is an of import constituent in TPS.For illustration An E-business organisation such as eBay has many minutess and if an electronic payment is made, the sum must be either both withdrawn from one history and added to the other history.

In instance of a failure forestalling dealing completion, the partly executed dealing must be rolled back by the TPS.Management Information Systems ( MIS ) :MIS is the system or method that delivers information needed in an organisation. This information is used in determination devising procedures and other of import functional countries. It covers each and every facet of the organisation such as studies, proficient information ( gross revenues studies, analyst ‘s studies ) in a concern to work out jobs such as merchandise costs, services and concern schemes. Some of the characteristics of MIS are:

  1. Procedures informations into information.
  2. Directed towards in-between directors.

  3. Information achieved is categorized consequently so that it is easy to analyse the information when used in determination devising.

Executive Support Systems ( ESS ) :ESS is besides called as Enterprise Information System ( EIS ) that is chiefly used by the senior degree directors. At the top degree direction EIS supports strategic planning that may sometimes alter the nature of the concern procedure. The EIS information is by and large Decision support system for the whole organisation that helps the senior executives to analyse and supervise the information in the determination devising procedure.Knowledge Management Systems ( KMS ) :KMS is a sort of support systems between top degree and middle flat direction. KMS is nil but extra staff in organisations who act as advisers for senior and in-between direction.

The construct of KMS is to assist employees in the company to readily entree the paperss, information beginnings and solution.KMS is besides responsible for happening new cognition for the organisation and incorporating it with bing cognition.


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