In: Operations Management
Using information systems effectively requires an understanding of the three dimensions namely, organisation, management and technology that are responsible for shaping the information system. Provide clarity on the three dimensions of an informatoin system.
20 Marks
The information system is a set of interrelated components that work to collect, process, store, and disseminate information. This information is later used in decision-making purposes.
Information systems are instrumental in conducting business today with a myriad of data coming from all ends. It not only provides decision-making abilities but also operational excellence, competitive advantage, etc.
Three dimensions of Information System include Management, Organisation, and Technology. A manager should understand these elements in order to better utilize the system.
Organizational Dimension - There is a growing interdependence between the Organisation and its Information System. This dimension involves hierarchy, functional aspects, business process, culture, political interest group, and data out of it. Powerful hardware and software are required to collate this information and provide insights. The information system has helped the organisation become more flexible and united in all their activities. An organization's success is depended upon how best they utilize this information system for its organizational purposes
Management dimension - This involves strategy, leadership, and management behavior. Here the system helps to make teamwork possible with a collaborative work environment.
Managers make use of this system to get information that can be used for making strategic changes, for allocating human and financial resources and coordinate amongst different departments. It drives both, daily operations and long term objectives. Providing a manager with a report generated out of it allows him to consider questions like future plans of the company, improvement scope, etc. This decision support system enables them to make a decision.
Technology dimension - This includes hardware, software, networking technology, etc. Management uses these technologies to collate information and draw insights out of it. Where hardware is used for input, processing, output activities. This operations are done by using various devices and physical media. Software consists of using these inputs to do operations and analysis upon them. Networking is used to share this analysis and ingsights with team members whereas storage technology to store this data in drives.
Overall the participation of all three elements completes the Information System, any one missing makes the process incomplete.