In this essay I will discuss about information system and the different types of information system, also I will talk about the information system that Dell Corporation is using which is Management information system. It will also explain the information processing tools for tactical, operational and strategical levels of the organisation. It will also discuss the inventory control system of the company.
Information system, an integrated set of components for collecting, storing, processing, and communicating information. Business firms, other organizations, and individuals in contemporary society rely on information systems to manage their operations, compete in the marketplace, supply services, and augment personal lives. For instance, modern corporations rely on computerized information systems to process financial accounts and manage human resources; municipal government rely on information systems to provide basic services to its citizens; and individuals use information systems to study, shop, bank, and invest.
“As major new technologies for recording and processing information have been invented, new capabilities have appeared. The invention of movable type in the mid-15th century and the creation of the portable typewriter at the end of the 19th century are but two examples. Each of these inventions led to a profound revolution in the ability to record and disseminates information. The first large-scale mechanized information system was Herman Hollerith’s census tabulator. Invented to process the 1890 U.S. census, Hollerith’s machine represented a major step in automation, as well as an inspiration to develop computerized information systems. One of the first computers used for such information processing was the UNIVAC I, installed in the U.S. Bureau of the Census in 1951 for administrative use and in General Electric in 1954 for commercial use. Beginning in the 1970s, personal computers brought some of the advantages of information systems to small businesses and to individuals, and the invention of the World Wide Web in the early 1990s accelerated the creation of an open global computer network. This was acompanied by a dramatic growth in digital human communications (e-mail and electronic conferences), delivery of products (software, music, and movies), and business transactions (buying, selling, and advertising on the Web).”
Types of information system
Transaction processing system (TPS)
It is a programmed system that records and performs everyday routine transaction which is important to the need of the business. TPS are the information systems which record resulting from the incident of business transaction. Example of this is production instruction and pay roll system. There are five stages of transaction processing. The first stage is data entry, second is processing that data, the third one is data maintenance, fourth document and report and the last stage is inquiry processing. There are two transaction processing systems, one is real and the other one is periodic. In real transaction system the transaction is done the at the time of sale is the point of sale while in periodic transaction system the transaction is could be done after some periods.
Management information system (MIS)
This kind of information system supply information for an organisation management. It summarises and extracts data from TPSS. It also allows the managers to direct and monitor organisation. It also provides correct feedback. On a scheduled basis it will also provide pre specified reports. Strategic decision will be making by top managers and tactical decision will be make by middle managers, also operational decision will be make be line managers. Knowledge employees also create and integrate knowledge and finally clerical employees use and direct information. Management information system provides data from internal and external resources, which helps management and decision making. In management information system we used to focus to use the capabilities of information system. Here we focus on information technology and taking work benefit from information technology to business problem and get help in decision making.
Decision support system (DSS)
This kind of information system is interactive kind of information which supply models, information and also data manipulation tools in order help make decision in unstructured situation and semi structured.DSS provides data to the management which make management to make decision easily like, sale managers can cheek customers views about their product while using touch screen. This kind of system is supporting analytical kind of work. Optimization and stimulation.
Stimulation model. It calculates the virtual result of assumptions and tentative decisions. Optimization model. It decides the best decisions based on criteria which is completed by mathematical search techniques, user and contains.
Decision support system (count)
Online analytical processing (OLAP)
OLAP is the use of information analysis tools to widen huge database of transaction data.
Data mining. It is again the use of analysis tools to discover pattern in the huge transaction database.
Executive information system
It is a greatly interactive information system that supplies a flexible access to information for monitoring results and all purpose business condition. It uses both competitive and internal information. Executive information system is between the executives of organisation system ,it keeps informed executives about the performance of the organisation to help them in decision making.
Strategic level system
The information system that supports the planning of organisation which are made for long term. It provides strategies to work on the plan and achieve organisation goal.
Michel founded dell in 1984 at first he bought inventory of Ram chips and desks driver and just he resold by advertisement components the components, at low price and in 1984 its total sale was about 80,000 a month, and then further and gradually Dell launch its new company. ( ford, Honeycutt, and simintires 2003). Dell is a big company which is making personal computers, computers software and hardware. Dell use internet to sell their products to the customers, all employees of Dell is encouraged to keep contact with customers. They keep effective management information system to keep customers satisfied
Dell new company start it manufacturing. It starts IBM- compatible computers because Dell advertises in a catalogs and magazines and sold it. Dell could price it producer less then sold through retails stores. In first year its company sale reaches to 34 million dollar and was leading mail Dealer Company in the United States. Dell create a great sale force and target large corporation and start to open offices at international levels to capture the market outside the united state, so company started to grow rapidly. Dell also started to sell capturing the market shares. It also start making notebook computers, but due to some inadequateness and quality problems the production planning influence the company to stop the production but in 1994 it start again a new level of notebook. Also it plans to start it on international level. Dell also starts to keep focused on market of services which are operating to run local area networks, and also kept their sales at every level year by year. Dell expand their networks at country level and so its become world no one company which direct seller of computers. Most of company transaction start through computer and about more the 50 % percent transaction take place through website, due to which their sale reached to more than 40 million a day that’s all was because to their strong management information system which support their company in every levels. So having a strong management information system make Dell world number one direct seller company. Management information system of Dell keeps sight on every aspect and targets the potential customer at national and international. Which increase day by day and reach to the position that more than 50% of its transaction occurs through internet and their revenues increase per day reached to about 40 million per day. So far every organisation its very important to have a good information system which will support them in every step of their decision making.
The information system that dell uses include computer, maps, the internet, models, spreadsheet and database. Maps are the most appropriate information processing tools for the operational level of dell. Decision can be initiated and made for how to operate the organisation by the said information tools. Maps can be used to find out which place/country information will be obtained from. It can also be used to find out how the information can be gathered as well as the demographic level of people. These information which are find out already can help to decide that how an organisation can be operated. However for the strategic level of Dell database are the most appropriate tools for processing information. Due to this information processing tools, organisation can find out the strengths and weaknesses of its company. Internet is the most appropriate information processing tools for the strategic level of Dell, other companies strategies and trends can be known by the internet, once they are found out and analysed an appropriate strategy will be made by the company.
Any business needs foremost and first, an efficient and competent. This means that the amount of inventory will provide the customers with whatever they needs and whenever they need. A successful inventory means to know an inventory mix that is most likely to satisfy customer needs. The inventory system of Dell is really reliable and up to date in order to prevent any problems that could arise. It also makes sure to the customers that whatever they need will be available to them at any time. This is also to make sure that if some products are still available or not proper use of the inventory may cause problems to the organisation.
As information systems have enabled more diverse human activities, they have exerted a profound influence over society. These systems have quickened the pace of daily activities, affected the structure and mix of organizations, changed the type of products bought, and influenced the nature of work. Information and knowledge have become vital economic resources. Yet, along with opportunities, information systems have exposed new threats.
Management information system involves the information system and the organization. Management information system is very beneficial to Dell Corporation and it makes Dell one of the strong company in the world. Management information also help Dell to create great and perfect strategies which will help the organisation to face any problem that could arise, also any threats that Dell can face from competitors. Management information system also help the organisation to process any information that are required. Management information system also helps a company to create and update the inventory control system.
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