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impact of information systems management for organisation operation
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Content Introduction 2 I. Basic Information Systems Infrastructure for Business 4 1. The basic structure of information systems 4 II. The functions and contribution of internal information systems and external information systems for business operation 6 1. Internal organizational impacts of information systems use 6 2. Business process changed by efficient business application solutions 7 III. Issues and Consideration in Management of Information Systems 10 1. Advanced management tools versus Challenge and Risk 10 1.1 Background 10 1.2 Network management 11 1.3 Server performance management 13 2. IT managers’ consideration 14 2.1 Relationship between business sectors and IT department 14 2.2 Knowledge Management 15 2.3 Financial consideration---TCO & ROI 17 3. SLA-the measurement of the performance of IT department 18 3.1 What is SLA 18 3.2 How to create and implement SLA 19 Conclusion 21 Bibliography 22 Introduction Since 1990s, Information Technology (IT) has been widely used in many industries. Particularly, Information Technology has modified the way of people doing their job and has changed the process and nature of work both in the public sector and commercial organizations. As rapid growth of information systems and its complexity, the challenges facing managers in these organizations has been increasing significantly. In the information-based organizations, managers both in business department and IT department must learn and extend knowledge and vision of management of information systems. Through this text, I will provide the relevant understandings and theories that modify some issues and illustrate some solutions in order to deal with some challenges in information systems management in commercial organizations. This essay will introduce a brief overview of business information systems, and explain the relationship between business staff and IT operators, for instance the well communication and co-operation during the implementation of IT project that is related to the business sector. Moreover, this work identifies the main issues and considerations in information systems operation, and defines the theory and methodology of IT service management, such as service level management and return on investment. The purpose of this essay is to address several aspects in order to understand the importance of information systems operation, improve the quality of business service that based on information technology, and enhance the level of management of information systems. I. Basic Information Systems Infrastructure for Business 1. The basic structure of information systems Today it is widely recognized that most organizations need information systems to survive and succeed in the competitive business environment. Information systems can help companies extend their business range to far-away locations, offer new products and services, reform organization structure and work flows, and perhaps significantly change the way they operate business. What is the information system? Kenneth C. Laudon and Jane P. Laudon(2002; 47) defined that an information system can be defined technically as a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making, coordination, and control in an organization. By standing the side of information technology, a well-developed information system infrastructure is basically consist of telecommunication network systems, hard ware, software, and database. Kenneth C. Laudon and Jane P. Laudon(2002; 96) offered the following definitions about these main components in information systems. a) Telecommunication network system is constructed by physical devices and software that link various computer hardware components and transfer data from one physical location to another. b) Hardware, including clients and servers, is a general concept of the physical equipments that are used for input, processing, and output activities in an information system. c) Software is the detailed instructions that control the operation of a computer system. Software manages computer resources and acts as an intermediary between organization and stored information. There are two types of software that are system software and application software. d) Database is a collection of data organized to service many applications at the same time by storing and managing data so that they appear to be in one location. By establishing an efficient information system, many commercial organizations shift their business processes to be the E-mode instead of the traditional business model. II. The functions and contribution of internal information systems and external information systems for business operation 1. Internal organizational impacts of information systems use In recent decades, advanced information systems as a fundamental organizational component affects the internal organizational management that is related to organizational structure design and management control system, such as monitoring and evaluating workforce’s performance, controlling workflow. Information systems can serve managerial team to be effective and reduce management cost. For example, an advanced manufacturing system is able to assist a single manager to supervise the work of a large number of employees that resulted reduction of supervisor’s number. An obviously benefit will be seen that the cost of human resource in a commercial organization can be cut down. Information systems also plays a very important role that assist managers to monitor, evaluate the employees’ performance. Then, the employees will gain their salary and reward according to the judgment by information systems. For instance, a manager in customer support center can trace and monitor each process of customer service that has done by his or her subordination because the database of customer service records all relevant data, including customer’s questions, the question’s status, relevant solutions and feedback of customer’s attitude. As computerization in a company, the number of mixed-skilled workforce will increase and the organizational structure will be adapted and optimized. In the past, a traditional organizational structure generally is a hierarchical model. Keri E. Pearlson (2001; 37) explain that “hierarchical structures are those where individuals are part of a bureaucracy in which each person has a single supervisor.
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