The Role of Information Systems in Business Operations and Management

E-business and E-commerce are two terms that are often used interchangeably to refer to the internet technologies, tools and equipment that business firms and individuals use to carry out their businesses. E-commerce began in late 1990s with the invention of the internet. E-business information systems consist of computers, internet connectivity, Ethernet cabling, adapters and servers. Due to increased and faster internet connections across the globe, small and large companies are now doing business online. E-business helps them to carry out transactions and communicate with customers more conveniently and less costly (Laudon & Laudon, 2002). For instance, an intranet system enables employees to communicate securely and conveniently with each other within the same organization. E-business is also becoming a good strategy for companies to achieve competitive advantage because it gives customers more convenient options in their purchase decisions. Generally, E-business information systems help businesses to process orders, manage information, and connect with customers.

Figure: Information System in an Organization

From the figure above, an organization can use information systems to enhance solutions to its challenges. The organization, its people, and its technology infrastructure are integrated into an information system that is directed towards the solution of business problems facing the organization (Heuvel, 2007). Therefore, information systems help in managing people and other organizational resources to achieve the organizational goals and objectives such as increased sales, new product development, increased market share, higher competitive advantage, and market expansion.

Modern companies operating in the global business environment are leveraging management information system capabilities to stay competitive. Business organizations can use e-commerce systems to develop quality and affordable products and services to achieve customer satisfaction (Schultheis & Sumner, 1998). Businesses can also use E-business information systems to collect and analyse data for easy, faster and effective decision making. Information systems help companies to globalize, collaborate and integrate in order to deliver competitive business operations.

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References

Heuvel, W.J. (2007). Aligning modern business processes and legacy systems: A component-based perspective. Cambridge, Mass: MIT Press.

Laudon, K.C., & Laudon, J.P. (2002). Management information systems: Managing the digital firm. Upper Saddle River, N.J: Prentice Hall.

Schultheis, R. A., & Sumner, M. (1998). Management information systems: The manager's view. Boston, Mass: Irwin/McGraw Hill.

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