AS 2
Introduction
Bocij et,al. (2015), claims, that data is an unprocessed fact that can take the form
of numbers or statements, as a measurement or date. Through data transformation the
information is generated. According to Hardcastle (2008), a system is defined as a
combination of elements which work together to achieve a common goal. Based on the
previous descriptions of information and systems, an information system (IS), is described
as a collection of interconnected elements that gather, store, process, and share information
in an enterprise to support decision-making and control. IS provides data about an
organization and its surroundings. The knowledge required by organizations is generated by
three basic activities: input, processing, and output. (Loudon & Loudon, 2018)
(Laudon &Laudon, 2018)
Moreover, Bocij et, al. (2015), claims that hardware, software, data, network, people and
processes are the components that information system (IS) rely on. In addition, Loudon &
Loudon (2018), points out, that IS is separated into two wide categories, systems that
support an organization business processes, known as Operations Information Systems
(OIS), and systems that support management decision making, known as Management
Information Systems (MIS). Enterprise Resource Planning (ERP) is a method that
organizations are using to manage and integrate the important parts of the business.
(Loudon & Loudon, 2018).
The focus of this essay is on Information Systems (IS). Firstly, a discussion on the IS will be
presented in which the various types and categories of IS will be identified and described
with examples from supermarkets in the UK. Secondly, the ERP systems will be analysed,
highlighting the role they play in managing and coordinating an organization's information
stream; additionally, the potential benefits of these systems will be addressed. Furthermore,
the potential problems of deploying or using ERP systems will be discussed. Finally, all of
the findings will be summarized in a conclusion that includes potential solutions to the
challenges found.
, Categories and types of IS
Categories of IS
According to Bocij et. al, (2015), Operations IS and Management IS are the two main
categories of information systems. Operations IS support the business activities of an
organization with a general focus on process control, transaction handling, internal and
external communication and efficiency. Management IS supports decision-making in
management; in other words, provides feedback on organizational operations and supports
decision making for managers. It addresses the management decision making needs of all
levels. (Loudon & Loudon, 2018)
(Bocij et. al, 2015)
Al-Mamary (2014), argues, that these two categories are further classified in several types of
systems. Types of Operation Systems: Transactional Processing Systems (TPS), Process
control systems (PCS), Enterprise Collaboration Systems (EIS). Bocij et. al, (2015), claims,
that the primary function of these systems is to address routine questions and monitor
transaction flow across the organization. Types of Management Information Systems (MIS),
Decision Support Systems (DSS), Executive Information Systems (EIS). (Al-Mamary, 2014)
According to Loudon & Loudon (2018), these systems are for middle management support in
monitoring, decision-making, controlling and administrative activities. (see below diagram)
