Information Management Systems
Introduction
Information systems entails professional management of operational, strategic and managerial activities involved in processing, gathering, distributing, storing and the actual use of organizational information as well as the technologies associated with these activities. The management bridges technologies associated with these activities and other business functions and their relevant information. It mostly deals with computations and organizations’ information and it includes procedures, people, hardware, software and data.
Abstract
In most business organizations there is a necessity for a variety of information relating to the business. There are also multiple departments, with each requiring different types of information for different purposes. As a result, there has to be interconnection between departments so that this information can be shared. Workers with operational activities to effect require information to help them perform their role. The middle management of the company requires information to control and monitor business functions. On the other hand, the senior management team requires information to use in business decision-making and planning. Therefore, a business organization has to have several “information systems” to manage various sectors of the business and the information they require. This paper explores Riordan Manufacturing Company and its information systems and how they are interrelated. Riordan systems have to work simultaneously in order to be able to share information effectively. Therefore, this paper highlights and distinguishes the various types of information systems within Riordan.
Riordan Information systems
These main Riordan Information systems are outlined in a hierarchical order that is supportive of each other. The first Riordan information system is the Executive support systems. The (ESS) Executive support system assists the top management team in decision-making, strategizing and planning for the business organization. The system is used collecting, analyzing and summarizing the important external and internal information used in the business’ functions. The ESS can be likened to a plane’s cockpit in which the senior managers sit as pilots and access all information from all parts of the business units which can be likened to the instrument panel display showing results from instruments within the plane. ESS acts as an analysis center for information with modeling of analysis queries (Barker, 2004).
The second hierarchical system is the Management information systems (MIS). This system mostly works with concerns of internal information sources within Riordan. The system takes information from systems that process transactions, and thereafter makes summaries of the information into management reports (Barker, 2004). The reports generated from MIS are utilized by the operational supervisors in the factory and the middle management group of Riordan Manufacturing.
The third system is referred to as the (DSS) Decision support system. The DSS is designed to act as an assistant to the management in making decisions that are difficult because they may be shrouded in uncertainty and their outcomes are not well known. DSS is designed with techniques and tools that are used in gathering the required information and analyzing the data to show the possible alternatives and options available. DSS uses databases with ‘what if’ models and complex spreadsheets to generate options (Barker, 2004).
The fourth system is the (KMS) or knowledge management system. The system’s main application is in information sharing and creation. The system is applicable in Riordan’s sectors that generate new information such as research used in developing new expertise and knowledge. After creation of the information, it is then shared to relevant departments that may need it for the development of new business opportunities (Stair, et al, 2009). The system is built to effectively categorize and distribute information. Distribution may be done via intranets within the departments.
The fifth system is the (TPS) or transaction processing system. The TPS is developed for the purpose of processing Riordan’s daily transactions in an accurate and efficient manner (Stair, et al, 2009). Riordan has several TPS systems used for processing different types of transactions. These mini-TPS systems include systems such as stock control, billing, purchasing and production systems as well as tax and payroll processing systems.
The last system in Riordan Manufacturing is the (OAS) office automation system. The main purpose of the system is to enhance the levels of employee productivity for those that may need to process information and data. These may include common software systems such as Microsoft Office XP and many others; for example interconnected various forms of nets that may allow employees to work while on the move or at home (Stair, et al, 2009).
All these systems are important to the activities of Riordan Manufacturing, however; it is wise to note that the TPS system is the most important systems because it handles the real dealings of Riordan that involve money and cash transactions. This system is interconnected to all Riordan’s global suppliers, customers, banking institutions and other facilitating intranets as well as the internet. It records the supplies made and monitors payments effected to suppliers, employees as well as taxation. It also monitors all the sales made and it also bills their payment whilst keeping track of all bank balances. The system also monitors internet sales activities and transactions related to Riordan’s products that are procured online.
Any failures in systems due to natural crashes or external invasion; may hamper business dealings by slowing transactions and delivery of ordered goods and collection and monitoring of payments. Additionally, any external access may leak confidential information that may result to losing business’ finances (Barnes et al, 2002). As a result of its complexity and ultimate importance, the system needs great protection from any crashes or invasion by any parties that may need to acquire confidential information such as bank balances, transactions, employees records, purchases and sales as well as customers’ and suppliers’ details. This type of information is sensitive, and as such should be kept confidential and secretive (Barnes et al, 2002). If the system is not adequately protected and secured; it may be possible for malicious people to intentionally invade it to acquire important information that they can use in competing with the company, to sabotage it or steal funds from the company (Thuraisingham & Riet, 2001). The occurrence of any of these activities may affect the company’s performance, therefore; protection of this system is very essential.
References
Barker, C.W. (2004).Guide For Mapping Types of Information and Information Systems to Security Categories: Information Security, Volume 1. Diane Publishing Company.
Barnes et al, (2002).Protecting Information Systems and Data of Companies, Accounting information systems, University of Florida. Retrieved on 10th September, 2010 from www.unf.edu/~gfane/docs/sample_paper.pdf.
Stair, et al (2009). Principles of Information Systems, ninth edition.Cengage Learning.
Thuraisingham, M, B. and Riet, D, V, R. (2001). Data and applications security: developments and directions: IFIP TC11 WG11.3 Fourteenth Annual Working Conference on Database Security, The Netherlands, And August 21-23, 2000. Springer Publishers
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