Computer technology started to develop in around 1940’s and by the late 1950’s transistors were also developed. In the next few years optical disks and microprocessors were developed and are still being developed up until now. IS are used in companies in different ways and for many reasons. It is used to keep the companies accounts and data and all the transactions that take place. It is easier to monitor production and sales and the retail cycle in general by using computers than manually. In the retail cycle computers are used to monitor stock in the warehouse and the stores, to automatically notify the staff for stock needed to make the orders and to monitor the deliveries. All the companies are using IS to control their costs and use the target costing (where they set a target in order to achieve that specific cost amount; this is usually a competitor’s costs). In the oil industry, companies at the moment are using 3D programs on the computers that help them locate areas where oil exists. This is actually the easiest less costly and most secure way in finding locations for oil production. Many companies also use the internet making it easier for their customers to access their products.
However, each company has its own methods of production and the labour is specialised in different ways according to what kind of company it is. Management also uses certain methods to organise and control the company. That
is why the IS used by each company has to be carefully developed or selected in cases the company wants to install an already existing application software. The software has to be one that will best suit the company’s activities and objectives in the future. In order for that to happen, the company’s systems have to be examined and then the proper IS to be selected or created.
After the appropriate IS is selected it has to be implemented by the lowest cost. However, some costs will definitely occur since the employees will have to be trained to use the new system and the new hardware has to be installed. For example the employees will have to learn to do their job by using computers and in some cases this is quite difficult. Furthermore, hardware like computers, monitoring cameras and computerised machines will be used instead of any other previous assets used. This will cost time and money to the company since it is a new kind of investment. The company will only have to undertake this kind of investment only if the management is sure that it will succeed; that is only if the company has made considerable measurements on the benefits and costs of the investment and had concluded that benefits will be larger than costs.
In order for the IS to be benefiting for a company it has to be implemented correctly. The employees and the staff of the company should be well informed about the new system so that they will be able to use it so that the system will become more efficient, which after all the goal of the company. Also this will avoid any unnecessary costs that might have created if employees were not well informed. The project should be tested before it is used to make sure that it will work. Besides, it is important that the IS used is well documented. Thus, in case someone needs to modify it, it will be easy to understand and flexible to the needs of the company. The IS has to be a reliable one that will provide the company with a stronger management system.
For an information system to be judged as successful, its design should be compatible with the structure culture and goals of the organization as a whole. Information should be provided on time and the overall system should improve organisational performance. In order to achieve all these, managers should fully comprehend the level of complexity and risk that implementing new systems involves, be fully aware of the threats and rewards of various technologies as they make their technology selections and maintain an appropriate level of users’ participation at all stages to avoid resistance by the members of the organisation.
We have therefore discussed that IS is a growing science used excessively in our days. It has grown fast in the last few years and it continue to grow at an even faster rate. It helps companies to increase profits, expand their activities and position in the industry and gain more power in the competitive market. However, the management of each firm has to consider some factors before using an IS to control the company. It has to make sure it is an appropriate IS for the company’s needs and that the employees that will use it are well informed about it. Otherwise unnecessary costs will definitely occur and the company will, first of all, lose its competition with the other companies in the same sector.
BIBLIOGRAPHY:
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Blokdijk, A. & Blokdijk, P, 1987, ‘’Planning and Design of Information Systems’’, Academic Press Inc. Ltd, London, UK.
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Laudon, K. & Laudon, J., 9th edition, 2006, ‘’Management Information Systems-Managing the digital firm’’, Pearson Prentice Hall, New Jersey, USA.
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Lucas, H. Jr, 1990, ‘’Information Systems Concepts for Management’’, McGraw-Hill International Editions, SINGAPORE.
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McLeod, R. Jr, 1993, ‘’Management Information Systems-A study of computer-based information systems’’, McMillan Publishing Company, New York, USA.
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McNurlin, B., Sprague, R. Jr, 1989, ‘’Information Systems Management in Practise’’, Prentice-Hall Inc., New Jersey, USA.
Management Information Systems, 9th edition, Laudon and Laudon, page 13.
