Building and Operating IT Systems Challenges

Building and Operating IT Systems ChallengesInformation focussing flock be described as the collection and management of schooling from single or multiple sources and the dissemination of that info to one or more listeners. Often this involves people those who hand a stake in, or a right to that specific schooling. Management involves the administration of and control oer the structure, processing and delivery of acquaintance. The focus of this paper impart be on distinguishing between a behavioral and a technical snuggle to information transcriptions, identifying key management challenges winding in building, operating, and maintaining information systems today, and describing the capabilities of a digital firm. Additionally, I will be describing three types of information systems and explaining the quartet key enterprise applications for organization-wide process integration.Behavioral and Technical ApproachSeveral viewpoints on information systems illustrate that th e study of information systems is a field with multiple disciplines and therefore, no single theory or perspective governs. Generally speaking, the field give the sack be separated into behavioral and technical approaches. The behavioral approach finish be broken down even further into sub-categories to include economics, psychology, and sociology. The technical approach can also be broken down into sub-categories to include management science, computer science, and operations research.Behavioral ApproachA very important element of the information systems field is involved with behavioral issues that surface in the development and preservation of information systems. Problems like strategic personal line of credit design, implementation and utilization, and management can non be richly explored with the models using a technical approach. Behavioral disciplines such as economics, psychology, and sociology can also contri besidese vital concepts and processes. For example, economi sts study information systems mainly interested in what impact systems curb on speak to structures within the trading and within its particular market. On the other hand, Psychologists argon interested in how human last makers comprehend and use information. Finally, sociologists study information systems looking for how groups and organizations form the development of systems and also how these different systems affect individuals, groups, and organizations (Information Management, 2010).The behavioral approach does non completely give the axe technology. In accompaniment, information systems technology is frequently the reason for a specific behavioral problem or issue. But usually the heart of this approach is not normally geargond toward technical solutions. Instead it centers on modification in attitudes, management and organizational policy, and behavior.Technical ApproachThe technical approach to information systems puts violence on mathematically based models to stu dy information systems, in addition to the physical knowledge and abilities of these systems. The disciplines that play a role in the technical approach argon computer science, management science, and operations research. Computer science has to do with creating theories of comput aptitude, means of computation, and approaches to effective access and storage of entropy. Management science highlights the growth of models for decision-making and management procedures. Lastly, operations research deals with mathematical methods for optimizing argument issues such as inventory control, transportation, and action costs (Information Management, 2010).Key Management ChallengesBuilding, operating, and maintaining information systems in todays fast-paced care world can be very challenging. These key management challenges ar based on a multitude of problems such as information system investments, strategic business decisions, world(prenominal)ization, information technology infrastructu re, and ethics and security.Information System Investment ChallengeIf managed intelligently, investments in information systems can improve employees lives and a businesss boilers suit performance. For instance, over the past twenty years the Internet has developed form a technical innovation to a personal and business necessity. Some businesss have recognized considerable improvements in processing information by changing from mainframe computing to personal computers connected by local area networks (LAN). The ability of software applications to identify and correlate pertinent data in a data warehouse allows businesses to uncover unidentified monetary or physical alternative human relationships and therefore make available suitable financial aidance where there had been none. However, along with the ability to enhance lives and organizations, some information system investments can become risky, costly, wasteful mistakes. To overcome these challenges, senior management perso nnel study to be able to roaringly evaluate these investments to ensure the correct return on investment (ROI) (Laudon Laudon, 2006).strategic Business ChallengeYou can pick up any management book and you can read about the significance of developing a strategic blueprint, and ideas about how to both develop and implement your plan. On the other hand, you will also find articles that you imply that strategic readiness does not work because it is unachievable to develop a long term plan in this ever changing business environment. In my opinion, the truth lies somewhere in between.Strategic proviso can definitely help you get prepared on what you need to accomplish over the next years, what things you will need to accomplish those goals, and exactly how to go about accomplishing your goals. The trouble is that the benefits of strategic planning can be easily lost. These plans fail primarily because of what happens after the process of strategic planning. In general, a owing(p) effort goes into creating and developing a strategic plan, which is then quickly put a agency and forgotten, even by the people that created it. The goal of strategic planning lies not still in the development of the plan, but also in its implementation. Implementing the strategic plan will only work if you are clear about what this plan can bring to you and the organization.The strategic plan needs to have value, not only to the organization, but also to the employees. The bottom line is that the plan needs to be used by everybody. A strategic plan needs to be used as a decision-making tool from the top of the organization all the way to the bottom. Chief Executive Officers ought to be able to use it to make decisions on the direction of their business, mergers, or staffing. Managers should also be able to use it to make decisions for the priorities of their departments goals and objectives, and to adjust the work of their department with the overall goals of organization. Lastl y, every employee mustiness be able to use the plan to recognize his or her own goals, and where they fit in cosmic scheme of things. When implemented correctly, a strategic plan helps to add meaning and focus to not only every individual, but the organization as a whole (Information Systems, 2010).Globalization ChallengeThe globalization of information technology warrants special attention by business executives, government officials and scholastic researchers for a multitude of reasons. First, is that information technology and systems are high-technology industries of considerable size and with significant potential for stimulating economic growth and jobs. The im interrupt growth in global trade and the go up of an international economy require information systems that can sustain both the production and selling of goods and services in many different countries. Second, access to the about up-to-date computer and telecommunications technology is central to competitive succ ess in nearly all industries. Government policies which deliberately or inadvertently retard expert progress in the production and use of computers, information systems and telecommunications have important economic effects. Third, given language barriers, cultural, and political differences among dissimilar countries, this focus often resulted in confusion and the breakdown of central management controls (Laudon Laudon, 2006). To overcome these challenges, it is imperative for organization to develop global hardware, software, and information systems standards. Additionally, organizations must be able to create global accounting and reporting methods and design worldwide business processes.Information Technology Infrastructure ChallengeThis particular challenge for businesses deals with how organizations can develop information technology infrastructures that can sustain their goals when business situations are changing at a rapid pace. Aging infrastructure is obviously a huge is sue in many industries that only gets bigger as time goes on. Some equipment may have had external upgrades or facelifts, but in most cases, it is over 70 years old. more organizations are left with expensive and unmanageable IT platforms that cannot readily adapt to innovation and change. Additionally, a competitive business environment and the pressures of the global financial situation weigh increasingly on companies minds (Information Systems, 2010). To battle this challenge, some organizations may be required to redesign its organization and develop a new information technology infrastructure to survive in this competitive business world.Ethics and Security ChallengeOrganizations must always be cognizant that their information systems are used in both an ethically and socially responsible manner. Although information systems have provided many benefits, they have also created new ethical and security issues that must be addressed. Every improvement in information technology ca n be tied in with at least one ethical dilemma. From Facebook to parliamentary law merchandise online, computer users are ignorant of the delicate balance between ethical behavior and profits. Businesses, software and hardware developers, and individuals must think about what is ethically correct when using information technology on a daily basis. The master(a) issues essential to the world of information technology are the individuals expectation of privacy and the providers ethical duty to use its applications responsibly (Information Systems, 2010). The challenges organizations will face will be how to apply high-quality assurance standards to their information systems, as well as to their products and services. Additionally, they will have to develop information systems that are not only secure but that are still easy to use by most individuals.digital FirmsA digital firm can be described as, One in which nearly all of the organizations significant business relationships with customers, suppliers, and employees are digitally enabled and mediate (Laudon Laudon, 2006, p. 11-12). The firms primary business processes are performed through digital networks encompassing the whole organization or connecting some(prenominal) different organizations.A core or primary business process can be defined as the minimum single tasks to be completed to provide a certain level of reliableness in output, without any thought to hardware, software, or performance. When a core process is put into practice, anything can be added to make the process more efficient, but nil can be removed. On the other hand, a business process can be defined as, The set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated (Laudon Laudon, 2006, p. 12).Digital firms are extremely powerful because they can sense and react to their ever changing surrounding s much faster those traditions organizations. Because of their quick reaction and the fact that they are more adaptable than the traditional firm, digital firms are much more able to endure in unstable times. Because these new firms are completely digital, there exist much more opportunities for them in the global business word.The Internet is quickly becoming the information system infrastructure of preference for electronic commerce. It offers organizations an easy way to connect with other business and individual at an unbelievably low cost. Additionally, it offers a complete and uncomplicated set of technologies and technology standards that can be implemented by any organization. Organizations can use Internet technology to drastically cut their transaction costs, time searching for buyers and sellers, and gathering information on products or services. This information is at the fingertips of anyone with a computer and access to the Internet.One example of a powerful digital fi rm has to be EBay. Following 2001, there were a high number of dotcom businesses that failed, but there were a few that held their ground, like eBay. The success of eBay is based on its capacity to transform many splintered, predominantly local markets into global ones at a comparatively low cost to its users (Simonsohn, 2010). People have always had a basic need and an appeal in buying and selling used objects and collectibles items. anterior to eBay, people would have tried to sell their unwanted items through family garage sales, classified ads, and flea markets. Nevertheless, the amount of people accessible to sell these items to was limited due to the fact that face-to-face transactions were almost always required.Another great example of a powerful digital firm would be Google. Google isnt just legendary for producing and providing utilizable services, but it has also acquired a few innovative businesses and integrated them. These include YouTube, Blogger, Picasa and Jaiku. Google used its digital background to take advantage of opportunities in the global business world, making them one of the most powerful businesses to date (Google, 2010).Types of Information SystemsFor most organizations, there are many different requirements for data or information. Senior managers continually need up-to-date information to help aide in their business decisions. Mid-level managers may need a bit more detailed information to attend them in monitoring and managing a multitude of different business dealings. Lastly, supervisors and employees with functional roles need information in order for them to perform their everyday jobs. Consequently, organizations tend to have a number of information systems operating at the same time. The three I will be discussing are the management information system (MIS), decision-support systems (DSS), and the transaction processing system (TPS).Management Information SystemA management information system (MIS) management information system (MIS)System used to extract data from a database and compile reports that help managers make routine decisions. obtains data from a database to compose reports, such as detail reports, summary reports, exception reports, and financial statements to assist managers in making better decisions. The different types of reports depend on the specific information a particular manager may require. A MIS is largely involved with internal sources of information. MIS generally receive data from the transaction processing systems (TPS) and reduce it into a sequence of management reports. MIS reports generally are used by mid-level managers and operational supervisors (Laudon Laudon, 2006).Decision-Support SystemsA decision support system (DSS)decision support system (DSS)Interactive system that extracts, integrates, and displays data from multiple sources to help managers make nonroutine decisions. is an interactive system that gathers, displays, and combines information from sundry(a ) sources to help managers make non-routine decisions. DSS are explicitly designed to help management make decisions in circumstances where there is doubt about the potential results of those decisions. DSS are made up of tools and procedures to help gather pertinent information and analyze decisions and alternatives. DSS often requires the use of complex spreadsheets and databases to produce what-if models (Laudon Laudon, 2006).Transaction Processing SystemsThe majority of organizations periodical activities are documented and processed by its transaction processing system (TPS)transaction processing system (TPS)Information system used to record and process an organizations daily activities or transactions., which collect input data and changes them into output information meant for a variety of users. Input data are called transactions which are transactionsFinancial and nonfinancial events that affect a businessevents that affect a business. Transaction Processing Systems (TPS) are intended to process everyday transactions accurately and efficiently. A business may have several transaction processing systems to include billing systems, payroll and tax payments systems, production and purchasing systems, or stock control systems to cross all movements into and out of the organization (Laudon Laudon, 2006).Challenges Posed by Information SystemsAlthough the many different types of information systems are available to an organization and can be extremely beneficial to its growth, there are some management challenges. Some of these challenges include the tension related to designing and building the information systems, the need for training for both management and employees, and the need to impart which information systems is the most critical, therefore which system receives the majority of the funding. For an organization to overcome these challenges they need establish exactly what is needed in terms of information systems. Next, they need to schedule and provide proper training to all company personnel, so they are familiar with the systems. Finally, they need to develop a method of accounting for the cost of the systems and their priority.Key Enterprise ApplicationsMost organizations compete in an rapidly changing, aggressive, global environment. Operating in a global environment forces an organization to concentrate on the most cost-effective implementation of its processes, customer service, and speed at which their products or services are brought to market. To achieve these lofty goals, it is essential that the organization freely commuting useful information across different functions, levels, and business departments. By incorporating all its processes, the organization can more effectively exchange information between departments, customers, and suppliers. The four key enterprise applications are enterprise systems, supply range of a function management systems, customer relationship management systems, and knowledge m anagement systems.Enterprise SystemsEnterprise systems moderate the vital business processes of an organization into a separate software system. Data from a variety of functional areas are centrally housed and maintained where they can be retrieved and utilized by other functional processes. This alters an organizations work flow. Now information can effortlessly run throughout the organization, increasing synchronization, efficiency, and decision making. Enterprise systems are extremely tricky to employ successfully and once employed, are especially hard to change. Enterprise systems, also known as enterprise resource planning (ERP) systems solve problems by providing a single information system for organization-wide coordination and integration of key business processes (Laudon Laudon, 2006, p. 56).Supply Chain Management SystemsSupply chain management (SCM) can be described as an overseeing of resources, information, and finances as they move form supplier to manufacturer to wh olesaler to retailer and finally to the consumer. Supply chain management requires managing and integrating the information, goods, and services flow together within and amongst organizations. Supply Chain Management Systems (SCMS) are used to help an organization manage its relationship with suppliers to optimize the planning, sourcing, manufacturing, and delivery of goods and services. SCMS supply information to aide suppliers, purchasing organizations, wholesale distributors, and logistic companies coordinate, schedule, and control business processes for their products and services (Su Yang, 2010).Customer Relationship Management SystemsMany businesses make more profit from ongoing relationships with their customers than from the original sale. Customer relationship management (CRM) is a term applied to processes implemented by an organization to handle its contact with its customers. Customer relationship management systems (CRMS) concentrates on the coordination all of the bus iness processes encompassing the organizations with its customers in sales, marketing, customer satisfaction, revenue optimizing services, and customer retention (Laudon Laudon, 2006). In todays highly-competitive business surroundings, the success of an organization relies greatly upon maintaining and exceeding customer expectations for both service and value.Knowledge Management SystemsKnowledge management is the specific management of essential knowledge and information acquired by individuals so that it can be is effectively shared and made use of by other personnel in the organization. Through the successful sharing of corporate intellectual assets, Organizational Knowledge must be efficiently changed into business intellect.Personal knowledge concerning a business process must be converted into corporate knowledge ensuring it applied throughout consistently, ensuring maximum benefit to the organization. The main function of a Knowledge Management System (KMS) must be to make information obtainable to all authorized users (Laudon Laudon, 2006). However, implementing a straightforward information management system, file indexing and retrieval system is only the start. Securing corporate knowledge requires more than software and technology, it requires solid document management software and cultural alteration of how information is produced, handled, stored, and distributed.