The Role of Information Systems in Business

Subject: Management
Pages: 3
Words: 619
Reading time:
3 min
Study level: College


The information systems are considered to be related components that work to collect, analyze, and store the information needed for the decision-making process, cooperation, and controlling the organization. There are two elements that the information systems usually focus on, namely the components and the role that they play in the process. It involves technology (data, hardware, and software), people, and processes (Heijden 3). The information systems show how significant data is proving that every element should be connected for the business to succeed.

Main body

It should be pointed out that the information systems consist not only of hardware (computers and drives) and software but also include people (programmers, system analysts) (Chaffey and White 13). However, the question may arise about how all the elements contribute to the organization. First of all, it should be stated that the primary goal of the information systems is to gather, organize, analyze, and distribute data; the data should be turned into information and information into knowledge (Hall 10). Due to the technical progress, this system emerged to be the base of any organization. It should be stated that the implementation of the information system will give a competitive advantage to the business. It will be easier for the company to manage the goods flow, analyze the progress, and make the right decisions.

Earlier computers were seen as machines to do calculations. Not every business could afford it. With the invention of the client-server everything changed (Beynon-Davies 21). Software companies invented applications that gave access to data to many users at the same time. Nowadays almost everyone has access to the Internet; the websites are now believed to be interactive (Kim and Solomon 37). Customers have an opportunity to buy goods online; this fact gave a strong push for the business to develop their online websites. However, there is no need to have a lot of travel agencies when everyone has Internet access. That is, some organizations got replaced with the Internet.

Information is an essential element for information generation (Koumpis 39). There are a lot of examples how companies use information systems to achieve success. Among the great variety of organizations, Wal-Mart is considered to be the dominant retailer worldwide. The company invested an enormous amount of money in the IT technology and communication system to track sales in every store. Due to the realization of the Retail Link (decision support system) the Wal-Mart company has a connection with its suppliers, can easily retrieve data on the development of the store, the information concerning inventory, and download the purchase orders. Using decision support systems suppliers can analyze the work of the store and give statistics on the sold products. Furthermore, Wal-Mart offers access to the network to suppliers for them to share thoughts concerning the inventory and work improvement.

However, being the leading company, Wal-Mart does not stop the optimization of the information systems. The Retailer Link system improves the work of the company and makes it more efficient. The information systems used in Wal-Mart provide up-to-date information concerning all the levels of inventory that helps to run the business more efficiently. The collaborative planning and forecasting allowed sharing sales data concerning the products per Internet on a real-time basis. It served for prolific cooperation between Wal-Mart and suppliers. The implementation of the information systems served for efficiency and cost minimization that contributed to the development of the store significantly.


In conclusion, it should be stated that due to the technical progress people receive new information every day; the business is not an exception. The only way for the company to succeed is to bring all the components together, and information systems are taken to their advantage in this situation.


Beynon-Davies, Paul. Business Information Systems. 2d ed. New York: Palgrave Macmillan, 2013. Print.

Chaffey, Dave, and Gareth White. Business Information Management: Improving Performance Using Information Systems. Upper Saddle River: Prentice Hall, 2011. Print.

Hall, James. Accounting Information Systems. 8th ed. Mason: Cengage Learning, 2012. Print.

Heijden, Johannes Govardus Maria Van Der. Designing Management Information Systems. Oxford: Oxford UP, 2009. Print.

Kim, David, and Michael Solomon. Fundamentals of Information Systems Security. Sudbury: Jones & Bartlett Learning, 2012. Print.

Koumpis, Adamantios. Management Information Systems for Enterprise Applications: Business Issues, Research and Solutions. Hershey: Business Science Reference, 2012. Print.