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Nowadays Information System (IS) has become a vital component of successful organisation particularly for manager in order for organisation to grow and survive.

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1.0 Introduction. 'As Information system (IS) can be defined technically as a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making, coordination, and control in an organization.' (Lauden, Lauden, 2003, pg7) However, Information System has to go through three basic activities, which include input, processing, and output in order to transform its raw data into essential information. Meanwhile, from the business prospective, IS represents an organizational and management solution based on information technology to a challenge posed by the environment. (Lauden, Lauden, 2003, pg31) Information System is useful for helping organizations to deal with changes in global economies and business enterprise. Firms use Information System on communication and analytic tools for conducting trade and managing business on a global sale. Besides that, Information System is the basic of service in knowledge economies; new knowledge based products and help firms manage their knowledge assets. By using Information System, a business can adopt flatter, more decentralized structures and more flexible arrangement of employees and managements. (Laudon, Laudon, 2003 pg30) Nowadays Information System (IS) has become a vital component of successful organisation particularly for manager in order for organisation to grow and survive. With Information System, it can provide companies with require practical and functional information that leads to efficient, operation, competitive advantage and effective management. On the other hand, Information System can critically damage and negatively effect it prospect as well as bring dissatisfaction and unable to fulfill all the requirements for success and survival if Information System appropriately sustain the business objective operation strategy of an organisation. Therefore, this report contains the result of research about a real case study. - " Cisco Systems: Poster Child for the Digital Firm?" Significantly, the purpose of this report is to critically analyze why an Information System is commonly designed to be efficient, as opposed to effective and thus evaluate why it fails to deliver in practice what business managers require from their system .It is particularly important in an attempt to increase the efficient and improve performance of Information System in organization's operation. ...read more.


The relationship becomes critical when management plans for the future. The business will depend on the systems capability in prospect of the businesses. Quality of information systems in the organization will expand on the market share, high-quality pr low cost producer, developing new products, and increasing employees' productivity. (Laudon and Laudon, 2003, pg15) 3.3 Learning to Use Information Systems: New Opportunities with Technology There are some source of problem, issue and challenge for managers although information systems have created several of exciting opportunities for both business and individuals. The Emerging Digital Firm Electronic Business Electronic Commerce Firms Figure 2: Electronic Commerce and Electronic Business in the Emerging Digital Firms. Illustrates above had shown that a digital firm creating intensive use of internet and digital technology for electronic commerce and electronic business. Information can flow easily among the company ad external unit such as, supplies, customers, and business partners. The organization will move towards to the digital firm vision as organization using internet, intranet, and extranets to manage their internal processes and their relationships with customers, suppliers, and other external entities . (Laudon and Laudon, 2003, pg23) 3.4 How Information System lead to the Successful of Cisco In early 2000, the valuations of Cisco reach $555 billion and stock price increases $80 per share. The use of Information System has lead to the successful of Cisco as the invention increase the sales forecast. Introducing Information System has reorganizing every problem factor to be solved and this has increased the work speed and efficiency. Information Systems that created by the technology market has helped the products and services to be more liquidity. Beside that, manufacturers and retailers are started to use information systems to create products and services that are custom- tailored to fit the specifications of individual customers from achievement of Cisco. 3.4.1 Strategy According to the case, the use of Information System and Internet has become the key of success of Cisco Company. ...read more.


3.) The Information Architecture and Infrastructure Challenge. (How can organizations develop an information architecture and information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly?) * Meeting the business and technology challenges of today's digital economy requires redesigning the organization and building new information architecture and information technology (IT) infrastructure. * Information architecture is a design for the business application systems that serves each functional specialty and level of the organization and the specific ways that they are used by each organization. (Refer to Appendix 3 for the "Chart of Major Elements of Information Architecture") 4.) The Information System Investment Challenge. (How can organizations determine the business value of information system?) * A major problem raised by the development of powerful inexpensive computers involves not technology but management and organizations. 5.) The Responsibility and Control Challenge. (How can organizations ensure that their information systems are used in an ethically and socially responsible manner?) * Managers will also face with ongoing problems of security and control. * Information systems are so essential business, government, and daily life that organizations must take special steps to ensure that they are accurate, reliable, and secure. * Information systems must be designed so that they function as intended and so that humans can control the process. Table 2: The Challenge of Information Systems: Key Management Issues Sources from: Lauden, KC, Lauden, JP, 2003, "Essentials of Management Information Systems', Prentice Hall 3.5 Positive and Negative Impacts of Information System Besides the strengths and limitations of Information Systems that exist in Cisco System which able to lead to its success and failure, there are still a number of positive and negative impacts of Information System in organizations as well as in individual aspects. The table below illustrates the positive and negative impact of Information System today. Benefit of Information Systems Negative Impacts. 1. Information can perform calculations or process paperwork much faster than people. 2. ...read more.

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