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Information Systems and their impact on organizations

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" Information Systems and Their Impact on Organizations "

By María Eugenia Save Contardo







INTRODUCTION

It is no stranger to the Information Systems have changed the way in which organizations operate today. For un tiempo que las organizaciones han sido consideradas en sí mismas sistemas de información y la información se ha posicionado como un elemento primordial dentro de los recursos que posee una empresa. A través del uso de los Sistemas de Información se logran importantes mejoras en la gestión empresarial, pues automatizan los procesos operativos, suministran una plataforma de información necesaria para la toma de decisiones y, lo más importante, su utilización nos encamina a las tan cotizadas “ventajas competitivas”.

Sin embargo, estos constantes cambios y avances implementados al interior de la organización repercuten de diversas ways in the various components of it, bringing negative consequences that can affect the integrity of the organization.

From this premise and with the intention to look into this problem this essay aims to answer the following question:

What are the main disadvantages of implementing information systems within a company?

INFORMATION SYSTEMS AND BUSINESS

For several years, organizations are faced with increasingly complex environments where factors such as globalization markets, competitiveness and efficiency, encouraging them to adopt tools and implement structures to compete in this new era of knowledge and technology infused, known as information age.

Currently, in most cases, companies have realized the importance of information as one of its main resources. Those involved in decision making have begun to understand that the information is not only a result of corporate governance, but that also powers the business and may be one of many critical factors determining the success or failure them.

to obtain and exploit the benefits it provides "information", it must be handled correctly and efficiently, as well as other resources are managed are there in the organization. It should be noted, required a prior understanding on the part of managers regarding the costs associated with " the production, distribution, security, storage and retrieval of all information " which is managed in the organization. Because even though the information is all around us, we must understand that this is not free, and its use is strictly strategic advantageously positioned the company within an industry.

is here that plays a critical role information systems, understanding the concept as: "set formal processes, operating on a collection structured data according to the needs of a company, collect, process and distribute (part of) the information necessary for the operation such business and management activities and corresponding control, supporting at least in part, the decisions necessary to perform the functions and business processes of the company according to their strategy. "

Because there are different interests and specialties in organizations (various areas included in this) there are also different types of systems to provide the necessary information. We found four classes of information systems that serve different organizational levels : Operational Level Systems (operational management supports keeping abreast of the elementary activities and transactions of the organization, such as sales receipts, deposits, payroll, among others), Levels of Knowledge Systems (include support to meet and work with data in the company), Level Systems Administration (monitoring, control, decision making and administrative activities of middle management) and strategic-level systems (to help to senior management to develop and implement new strategies and long-term trends).

When the organization decides to manage and use information, Information System to be implemented (regardless of the level of the organization in which you want to integrate the system) must be a true reflection needs and business requirements. That is, not enough to have the information but requires the design of a "integrated system linking information obtained by the various applications of the company" . To do this we need to choose the Information Technology appropriate as a key component in the implementation of this system and in generating strategic advantages.

new technologies now make it possible for information to travel at high speeds anywhere in the world, incorporating our usual word terms such as: e-business, e-commerce, IT (Information Technology) , among others. This is because more and more companies dive into the world of information systems that not only opens the doors to business on the Internet, but also the intensive range of implementation possibilities in different areas inside of the organization, as are: Marketing, Sales, HR, Production, among others.

Implementing Information Systems intertwined with the appropriate IT gives us many benefits that are reflected in improvements such as optimizing the company's relationship with its customers, knowing how is responding undertaking inquiries and complaints (customer service), identifying who their customers really, know what customers buy, how and when, to detect new trends from shopping habits (marketing), the supplier receives the order information in a very short time, elimination of paperwork and faxes, as everything is done through software,
cost reduction, established integration of all business functions, ease of sharing
comprehensive information on the company, improved work process, increasing access to available data for decision making, timely and accurate
, rapid response to business operation and market conditions change, resulting in improved competitive advantage.


INFORMATION SYSTEMS AND DISADVANTAGES

The previous section presented the main applications and associated benefits the use and implementation of information systems within an organization. But when a company decides to make changes is the emergence of inherent resistance to change and therefore difficulties that threaten the organizational system.

information systems as mentioned above, improve management and professional effectiveness as part of a business strategy. However, and there are many advantages to implementing an information system, it is also true that they have certain disadvantages or problems with the implementation of such systems.

First, the mere fact of implementing an information system should include staff training costs, because if individuals do not have the skills to use the system, it creates inefficiency and exclusion within of the company.

Regarding the above, there is a threat associated with the failure of the projects implemented by the organization due to misuse of the information collected and the poor use to give undertakings to tools that give them information systems (such as databases).

There is also a difficulty related to the refusal of certain areas of the company to share information with others, which affects the fluid management of information within the organization.

Another obstacle that presents the implementation of information systems are the difficulties of changing traditional ways of doing business, which is directly associated with resistance to change primarily affecting small and medium enterprises.

Finally, there is a threat that relates to the management of data and appropriate confidentiality, which should always keep alert to guard the systems information organization, since there is no security in the management of information systems, there is a risk of foreign infiltration and loss of information.

CONCLUSION

When to weigh the advantages and disadvantages that provides implementation of information systems in the organization, we can not ignore the obstacles that arise due to resistance to change itself. However, demonstrating an apparent success of the companies that are able to understand the continued progress and dynamism of Information Technology and overcome resistance to change, making correctly identify problems and opportunities associated with the information which count towards the decision making process.

is important to note that Information Systems must serve the company and thus establish their focus or business strategy. For this to happen the information systems should be considered as one of the subsystems that make up the organization, ie, as a major functional area within the company, which is so important to business success as the functions of accounting, finance, operations management, marketing, and human resource management.

BIBLIOGRAPHY

ANDREU, R., RICART, JE and VALUE, J. Strategy and Information Systems, 2 nd Edition, McGraw-Hill, 1996.

Arribas, A. "Centralize or decentralize the information systems in business? FIELDS: Revista Andaluza de Communication, pp. 153-168, Sevilla Spain, 2000.

Marbella F. and Mielke H . information systems as tools for creating competitive advantage . Department of Management and Business Economics, University of León, 2002.

MARTINEZ, M. and Prieto, A. Information Systems in Organizations: A alternative management to improve productivity in Small and Medium Enterprises. Revista de Ciencias Sociales, Universidad del Zulia, pp. 322-337, Venezuela, 2004.

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