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Information System in Global Business Today

Components of Information System 
An information system depends on the resources of people (end users and specialists), hardware (machine and media), software (programs and procedures), data(data and knowledge base) and networks (communication media and network support) to perform an input, processing, output and storage and control activity that converts data, resources into information products.

The concept of hardware resources include all the physical devices and materials used in information processing. Specially, it includes not only machine, such as computers and other equipment, but also all data media that is tangible on which data is recorded from sheets of papers to magnetic disks. Examples of hardware in computer-based information system are: (i) Computer system, which consists of central processing unit containing microprocessor and a variety of inter connectional peripheral devices and (ii) Computer peripherals, which are devices such as  keyboard or mouse for input data and commands, a video monitor or printer for output of information, and magnetic disk or optical disk for storage of data sources.

Software resource includes all sets of information processing instructions. This generic concept of software consists of not only the sets of operating instructions called programs but also the sets of information processing instructions required by people called procedures. Example; System software, application software, procedure, etc.

Database consists of data organized in the required structure. Data is more than raw materials for information systems. Managers and IS professional have broadened the concept of data resources.  Data can take many forms including traditional alphanumeric data composed of numbers and alphabets that describe business transaction and other events and entities. Text data consists of sentences and paragraphs that are used in written communication. Image data consists of graphic shapes and figures. The data resources of information systems are organized into database that holds processed and organizational data.

Telecommunication networks like internet, intranet and extra net have become essential for the successful operations of all kinds of organizations and their computer-based information systems. Network resources include communication media and network support.

Users are required for the operation of all information systems. End user also called user or clients are the people who use an IS or the information it produces. They can be accountants, clerks, engineers, salespersons, customers and managers. Users consist of device operators, network administrators, programmer, and system specialist.
Information processing includes input, data process, data storage, output, and control. During input stage data instructions are supplied to the systems which during process stage are worked upon by software programs and other queries. During output stage, data is represented in structured format and reports.

Role of IS in Business
The role of IS in an organization can be compared to the role of the heart in the body. The information is the blood and MIS are the heart. The system makes sure that proper data is collected from various sources, processed and sent further to all the required destinations. The system is supposed to fulfill the information needs of an individual, group of individuals, managers, etc. MIS satisfies various needs through diverse systems such as query systems, analysis systems, modeling systems, decision support systems. It also helps in strategic planning, management control, and transaction processing. It helps junior management by providing operational data for planning, scheduling, controlling and also assists them further in decision making at the operational level to correct an out of control situation. It helps top management in short-term planning, target setting and controlling business functions. It also helps top management in goal setting, strategic planning and also evolving the business plans in addition to their implementation.

  • Improved decision making power
  • Global village (Example: Shopping websites like eBay, amazon, etc.)
  • Smart management (Example: video conference, teleconference)
  • Getting required information or attend any meeting not by gathering on same place but via internet.

Space shifting and Time Shifting

  • Transaction can be done 24 X 7 is called time shifting by the user of information system.
  • Login to the control system and perform task by sitting in any place such as traffic, restaurant, etc. not only from office is called space shifting.
  • Agency cost/transaction cost
  • Information system helps to reduce the cost that arises in the transaction.
  • In normal, we should visit the broker to perform transaction but now we can do oneself by visiting site and login and do it on own.

Competitive Advantage

  • Main improvement in Information system
    • Processing capacity
      Improvement in the processor of CPU like duel-core.
    • Storage Capacity
      At early period, there used to be maximum 1GB pen-drive. But now it has more capacity.
    • Networking capacity
      People are able to use internal form every nook and corner of country.
  • New in MIS Technology
    • Software on a Service (SaaS)
      In this, by the help of information system automatic software is set which help to give information about the system. Example: while calling if the phone is busy then it automatically gives information about the busy phone. And when the balance is low, then it alerts us.
    • Cloud computing
      It is a kind of internet-based computing in which shared resources, data and information are supplied to computers and other devices on-demand. It is a model for facilitating omnipresent, on-demand access to a shared pool of configurable computing resources. Cloud computing and storage solutions assist users and enterprises with various capabilities to store and process their data in third-party data centers.

Web 2.0
Web is huge collection of website. Semantic web displays the webpage according to the requirement of the user. The limitation of Web 2.0 is based on keyboard search system.

Smart management

  • Virtual meeting
    Example: Video conference, teleconference. Time zone is the factor which is its limitation.
  • Business intelligence
    Machine will use its own intelligence and provide notification according to the requirement. Example: If anti-virus is going to expire then it will give notification.
  • Organization
    Flatten organizational structure. Globalization challenges and opportunities


Laudon, Laudon, "Management Information Systems Managing the Digital Firm", twelfth edition


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