To remain competitive in the fast-paced business world, businesses must stay on top of technological advances. The use of information systems in business gives managers the information they need to work efficiently and effectively. Beyond raw data, information systems can customize information to users’ specifications, which helps with decision-making and action planning.
What Are “Information Systems?”
Information systems are a combination of multiple resources, including hardware, software, computer system connections and end users. These resources help with the processing and dissemination of information. Information systems collect, store and process data for end users in various projects.
An important aspect of this technology is customization. Depending on the capabilities of the software, users can customize information to their needs. For example, a plant manager can generate reports that identify levels of productivity or get real-time data to pinpoint issues on the production line and determine if a shutdown is necessary.
Understanding the use of information systems in the professional world is important for business students. There are several types of information systems:
- Operations support systems, which includes transaction processing
- Executive information systems
- Decision support systems
- Management information systems
Information Systems for Management
Managers in decision-making roles may find that the use of information systems aids them in their work. However, while management information systems are helpful for managers to pull information and make educated decisions, managers must understand how to best utilize these information systems tools.
According to one article, self-checking and cross-checking features in these systems reduce the chance of errors and mistakes. Mangers who are informed and educated on various information collection tools can use them to propose and make decisions, approximate causes and effects of events, isolate certain data and analyze information.
Studying Information Systems
Students in an online Bachelor of Business Administration (BBA) in Management Information Systems program will likely take a course on the various types of information systems as part of the degree’s core curriculum. This course typically helps students understand the relationship between information systems and organizations as well as how database management systems organize information.
Students who study the use of information systems will also examine the role of the internet in electronic commerce. They will look at new business applications such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM) and Knowledge Management (KM).
Additionally, students will become proficient with spreadsheet and database application tools in developing information systems. One of these, SAP, is an ERP software that many Fortune 500 companies use. The world’s largest inter-enterprise software company and the fourth-largest independent software supplier, SAP was started in 1972 in Germany by five former IBM employees.
The Future of Information Systems
It is clear that computers have revolutionized business. As more companies turn to technology to analyze and disseminate data, the need for business professionals who understand the use of information systems will climb. A strong online BBA program that helps students learn and apply the principles of information systems will produce business professionals with a competitive edge at the top of their profession.
Learn more about Lamar University’s online BBA in Management Information Systems program.