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Information systems provide many benefits to organizations that justify investment in IS. They support business operations, aid decision making, and enable competitive strategies. IS help automate processes like customer check-ins and allow departments to easily share information. They also analyze internal and external data to generate reports and graphs that support management decision making. Finally, strategic IS can help organizations convert information into knowledge and provide innovative services that give them an advantage over competitors through increased sales, lower costs, strong branding, and customer relationships.

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36 views3 pages

Assigment A

Information systems provide many benefits to organizations that justify investment in IS. They support business operations, aid decision making, and enable competitive strategies. IS help automate processes like customer check-ins and allow departments to easily share information. They also analyze internal and external data to generate reports and graphs that support management decision making. Finally, strategic IS can help organizations convert information into knowledge and provide innovative services that give them an advantage over competitors through increased sales, lower costs, strong branding, and customer relationships.

Uploaded by

saurab dhakal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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If Investment in IS does not guarantee good returns, justify why should

Organizations invest in it?


Information systems play a vital role in an organizations’ overall performance. They provide

many advantages to their users which range from simple transaction processing at the operational

level to difficult tasks such as making important and competitive decisions at the strategic level

of the organization. Several roles played by information systems in an organisation can be

identified but O’Brien and Marakas (2008) have identified three fundamental roles played by

information systems in businesses. These are; Information systems support business processes

and operations. Secondly, they support decision making of employees and managers and lastly,

they support strategies for competitive advantage. These three fundamental roles encompass any

other roles played by information systems in an organisation.

Information systems support business processes and operations of an organization in many ways.

In a hotel for instance, customer check - ins and check-outs are done by computers and software

which makes work easy unlike the traditional method of using notebooks and paper to record

such information. Customers can now even make their own bookings through the hotels website

instead of visiting the hotel in person to do so, which may lead to pressure on front office staff.

Systems have now been developed to gather customer information easily and quickly. Now,

because of information systems, the various departments of an organization work together with

ease. The housekeeping department of a hotel can now inform the front office about which

rooms are ready for use and which are not, without personal interactions of staff as a result of

information systems. The running of an organization has now become smoother with well

integrated information systems.


Information systems also help employees and managers of a business to make well informed

decisions. This is because information systems have the capability of analyzing data that has

been collected from both within the organization and from external sources into useful

information which can be used by employees and managers in their decision making process.

Decision-making is an integral part of management and occurs in every function and at all levels.

Decisions are better made when accurate information is available which aids the decision maker

in making an objective decision (Terry Lucey 2005). Information systems types like

Management Information System (MIS), Decisions Support Systems (DSS) and Executive

Information Systems (EIS) are specially designed to help management of an organization in their

decision making process. These systems generate typical reports and graphs on issues such as

trend of orders, customer analysis, product profitability, finished stock positions and forecasts,

accident and absentee reports, job evaluation reports and many more. Managers and employees

use these reports and graphs as a basis for their decisions. For example, decisions on which

meals that need to be added or removed from a hotel menu may be taken by the food and

beverage manager after a typically analysis is made by the help of a Decisions Support System.

Finally, information systems also support strategies for competitive advantage. Competition in

today’s business is keen and what will become important is how quickly companies can convert

their reams of information they collect into knowledge so that they can provide services and

products that are ahead of their competitors. Strategic information systems can help provide

hospitality operations with the innovative mediums they need to provide products and services

that will give them comparative advantage over their competitors. Nhyiem et al (2005) observes

that, in the hospitality industry, competitive advantages may result in increased room sales

( through efficient reservation systems and organisational websites), decreased cost of goods
( through reduction in operating cost and less expensive distribution channels), brand awareness

(through effective advertising campaigns targeted at the appropriate customer and delivered

through the most appropriate cost effective medium), good customer-organisational relationship

(by keeping database of customers and their needs) and effective decisions making that are

timely.

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