Question

1. Explain the impact of information systems on organization using business information value chain.

Answer 1

Information Systems are used by the organization to fulfill their needs in business processes, activities. These information systems are used in acquiring, transforming, distributing information for different business processes.

• Information systems convert the raw data given by the organization into standard format.
• These information systems are helpful in organization decision-making. It helps the organization to take better decisions in business.
• It also supports different operations , functions of business activities.
• Organizations using business information value chain which is defined as the series or set of activities to create a value of the firm involved in business.
• The information systems also a part to create a value of these business activities.

So the impact of information systems on organization using this information value chain as following as :

• It changes the economic impacts like cost and capital of production.
• It changes the quality of information.
• It reduces the labour costs, transaction costs because information systems are capable of doing their work like transactions etc.
• It reduces operational costs.
• It helps in faster decision-making.
• Faster distribution of information in timely manner.
• It reduces the large number of levels in business processes.
• It reduces the employees and managers who are assigned for different tasks.
• It changes the nature and structure of an organization.
• It solves the implications of design
• It provides benefits of production value in business.
• It adds the value of an organization.
• It makes the customer to focus on organization by providing benefits in supplying.

Therefore, the above al which are mentioned are the impacts of information systems on organization.