One of the most effective ways to streamline the operations of a business is through computerizing the business operations themselves. In today’s world where the computer is fast emerging as an integral tool at the workplace, almost every organization needs to computerize their operations. In particular, an organization that majors in handling large volumes of repetitious or detailed information with limited periods of time has the greatest affinity of computerizing its operations. In this respect, a complete computer system will be able to provide an array of essential services to the organization which in turn will contribute to the general growth and reputation building. For an organization to reap the full benefits of computerization there must first be a clear comprehension of the organization’s short –and long-terms goals, the merits and demerits of all the available alternatives to a computer as well as the exact of objective desired to be achieved by the use of computer systems. The decision to computerize organization’s operations needs much input of key players from all levels of the organization itself. Special consideration must therefore be paid to decisions pertaining to purchase of computer hardware and software, need for specialized computer training together with a systematic approach to aspects of data entry and management. As such, there are a couple of key benefits that come with computerizing operations in an organization: (1) the database advantage, and (2) Reduced costs.
1). The Database advantage
One of the most significant benefits that an organization gets from its decision to computerize its operations is the database advantage. A database refers to an organized collection of information and facts, usually consisting of two or more data files that are related. A computerized database enables data to be managed to some degree of quality as measured in terms of availability, accuracy, resilience together with usability. Database use has become popular following the increased utilization of computer-based information systems across many industries since the 1990s. These systems are most popular in government agencies and non-profit organization around the world for a number of reasons. To a larger extent, these systems have the benefits of offering fast, centralized access to databases containing personnel information, best practices, reference reading, and on-the-job training, besides being customized to achieve the needs of the organization.
Typically, databases of most organizations contain information and facts relating to management, employees, customers, goods and services, competitor’s sales, online services among others. Most executives or managers of leading organizations in many industries regard a database as one of the most priceless elements of a computer-based information system. This for the reason that databases afford an organization the golden chance of storing data in large data centers, in computers of varied sizes, on the Internet, on small computing devices such ipads as well as in pocket-size cell phones. This means that databases give an organization the flexibility of manipulating and retrieving data from anywhere at any time when it is needed through online processing and multiprogramming.
In regards to databases, therefore, it is clear that computerization of operations in an organization go a long way to benefit in data centrality. Computerization helps in storing the organization’s details in one central point which in turn provides a “one-stop” location which the data can be found and accessed with ease and efficiency. Most large-scale organizations make use of central database in their management of user information, store information on products and track orders. Such central database include Microsoft SQL, PostgreSQL and MySQL.
In the same light, computerization through database benefits the organization in terms of information coverage. Information coverage is a big merit for any organization because having vast amounts of vital data from all departments serves to streamline accessibility and increases its productivity. Accessibility of networked information equals a digital library of common shared information to the workers and stakeholders of the organization, all aided by computerization of operations. Furthermore, more information capability has been provided to personnel thanks to the recent developments relating to database information systems where company information link with databases of professional and academic research.
2). Reduction in costs
Computerization of operations in an organization also serves to reduce the general costs in terms of increased speed, accuracy, flexibility, data processing, reduction in paper work, and reduced requirements for office space. While it is true that the initial investment for computerizing operation is high because the cost of achieving effective computer capabilities usually increases with time as compared with other costs. The high initial cost of investment always come in form of cost of hardware and software, software development, cost of creating of master data files, cost of data or information migration, expenses of training resources in the adopted new system, cost of change-management activities, and other relevant costs (Chemuturi & Cagley, 2010). Nonetheless, the benefits outweigh the costs because through well-planned, effectively implemented, and effectively-managed computer systems often tend to grow the overall productivity, competitiveness, and sustainability of the organization. As such, computerization leads to such benefits through rapid response to change, improved communication, better service/product differentiation, improved intelligence gathering, more thorough analyses, and better overall management. However, the cost reduction is tricky as thus demands the plan to move to computerized operations within an organization ought to be carefully planned and efficient (Sampson & Hair, 1990).
Information systems
An Information System (IS) refers to any particular integration of information technology and activities of people that support management, operations and decision making. It alludes to the interaction between technology, data, processes and people. It is thus the information and communication technology (ICT) used by an organization together with the way in which the human players interact with the technology to facilitated the operations of the organizations.
Organizations are characterized by several components such as departments, divisions, and work units which are designed in hierarchical levels. For instance, top managers would require information to assist with their respective business planning tasks. On the other hand, the middle management would need a different Information System because of their need for more detailed information in monitoring and controlling business operations. Similarly, employees tasked with operational roles would require a different customized information system to help them perform their specific duties. The decision for an organization to adopt more than one Information Systems is thus informed by the need to meet its various requirements for information at different levels and departments (Sampson & Hair, 1990). For these reasons, many organizations prefer to have a number of Information Systems in operation at the same time that are tailored for headquarters, divisions, functional departments, operating units, and individual employees.
Generally, the several Information Systems used in organizations have major varied capabilities. This include the ability to perform large-volume numerical computations at high speeds, provide quick, up-to-point communication and interaction within and among several organizations, and store large amounts of information in reduced, easy-to-access space. In addition, the Information systems enable fast and cost-effective access to great amounts of information across the globe which sells the organization more. They also have the merit of interpreting vast amounts of data efficiently and in record time which helps organization to respond appropriately to issues within acceptable time. Furthermore, the various Information Systems boosts the efficiency and effectiveness of workers in groups located at common places or from several locations. Finally, the information systems are able to not only automate the semiautomatic business process of an organization but also its manual tasks (Rainer & Cegielski, 2010).
Business organizations incorporate a variety of Information Systems namely: the Executive Support Systems (ESS), Management Information Systems (MIS), Decision Support Systems (DSS), Knowledge Management Systems (KMS), Transaction Processing Systems (TPS), and Office Automation Systems.
i) Executive Support System (ESS) – it is an information system tailored to help senior management in their strategic decision-making process. The ESS serves the function of gathering, analyzing, and summarizing the core internal and external information employed in the business. It typically entails a host of data analysis and modeling tools for example “what-if” analysis which come in handy for senior managers in strategic decision-making.
ii) Management Information System (MIS) – it is mainly deals with the internal sources of an organization’s information. It basically gathers data from the transaction processing systems and then summarizes it into desired series of management reports. MIS is often used by operational supervisors as well as members of the middle management.
iii) Decision-support systems (DSS) – these are purposely designed to assist management to reach decisions in scenarios where there is uncertainty regarding the consequences of such decisions (Sampson & Hair, 1990). It comprises the tools and techniques that help collect relevant information, analyze the alternatives to the available options. Complex databases and spreadsheets are used to create “what-if” models.
iv) Knowledge Management Systems (KMS) – these are integral in creating and sharing of business information. Business that favor KMS are those whose employers create fresh knowledge and expertise and shared with other in the organization to innovate additional commercial opportunities (Wigand et al, 2003). Law firms, accountancy and Management Consultancy organizations like the Knowledge Management Systems.
v) Translation Processing Systems (TPS) – these are custom-made to process routine transactions in an efficient and accurate way. They are often several TPS within a business such as Production and purchasing systems that compute raw material requirements, Billing systems that transfer invoices to clients, Stock control systems that track all movements into, within and without the business, and systems designed to calculate the weekly or monthly tax payments and payroll totals.
vi) Office Automation Systems – they are the information systems that strive to improve the overall productivity of the staff who require to process data and information. They include Microsoft XP and those systems that enable workers to while on the move or from the comfort of their homes.
Typical information systems are in line with the organizational structure: functional or departmental, enterprise-wide, and inter-organizational (Daft & Marcic, 2011). The functional/departmental information systems include manufacturing: accounting, marketing, finance and human resources; Enterprise Information System (EIS) attend to a number of departments if not the entire enterprise e.g. enterprise resources planning (ERP). Finally, the Inter-organization Systems (IOSs) join two or more organizations e.g. the world wide airline system that connects several systems of different airlines.
References:
Chemuturi, Murali, & Cagley M. Thomas. (2010). Mastering Software Project Management: Best Practices, Tools and Techniques. Florida, J. Ross Publishing.
Daft, L. Richard, & Marcic, Dorothy. (2011). Understanding Management. Connecticut, Cengage Learning.
Rainer, Kelly, R. & Cegielski, G. Casey. (2010). Introduction to Information Systems: Enabling and Transforming Business. New Jersey, John Wiley & Sons.
Sampson, Neil, R. & Hair, Dwight. (1990). Natural Resources for the 21st Century. Washington, Island Press.
Wigand, Mertens, Bodendorf, Konig, Picot, & Schumann. (2003). Introduction to Business Information Systems. New Mexico, Springer.
