How Information Systems Are Incorporated in a Business Setting

Subject: Tech & Engineering
Pages: 7
Words: 1877
Reading time:
7 min
Study level: College


This report aims to look at how information systems are incorporated in a business setting. The importance of various information system components within an organization thus contributes to the smooth running of a business. It is also important to note the various effects of information systems on individuals, groups and processes within an organization. This report aims at understanding all the major activities of information system, how they work together to ensure the smooth running of the business. The security issues that affect an information system and the ethical issues experienced within a company.

These issues represent the value of information systems and their importance in various sectors of an organization.


Information system deals with the flow and preservation of information that sustains a business or any other process. It involves information on important people, places and practices in a company. Business organizations and people within modern society depend on information systems to control the various operations, deal with competition in the market, and enhance individual needs. In this way there is the coordination of activities at various levels of business endeavors and within personal activities. It is important to have a well-defined information system to ensure the correct information is available within your reach. This allows for expansion and growth both in business and in information systems. (Monk &Wagner 2009)


There are several components of an information system that are incorporated within THUS plc Company. People are a major component of an information system. Their role is to ensure that various operations within the company are executed efficiently. They are the technical workers for example the system analysts, programmers, technicians, engineers, network managers and managers of information systems. Computer hardware represents the physical constituents of a computer where various programs can be installed to ensure the performance of the required functions. The hardware has its support tools which are input and output tools, storage tools and communication tools. The input hard includes keyboard and mouse, processing hardware such as processor and memory while output hardware is like monitor and printer. This ensures that various departments have the required components to execute various operations for the company. (O’Brien 1999)

Computer software is used to refer to digitally stored data like programs that can only be read or written by a computer. Programs are mainly stored in input or output tools such as compact disk or tape. These software applications are very essential within THUS plc since they allow for various company programs to be utilized efficiently. Such is like the operating system they use windows vista that provides for computing resources and allowing interaction with the employees. A procedure is another component of information system which is a sequence of standard measures that are carried out to accomplish something. A procedure involves various complex processes and tasks that include backing up, shutting down a system and patching software. A procedure allows THUS plc Company to carry out important practices within their network systems. Data is raw unstructured isolated details and numbers that could be important which are processed later on to produce information. This information that is gotten from the raw data is what the company uses to make informed decisions depending on the type of data. This ensures that there is coordination on the various company processes ensuring that the right information is used in the right way. (Turban et al 2008)

The various types of information systems help in the running of the communication company. An Executive Support Systems (ESS) is developed to assist the senior executive in making informed decisions. It collects and reviews the major internal and external requirements in the company. In THUS plc Company the senior management is taken through the various business process by a team of internal experts regarding various complex processes for helping expand the company. Management information systems (MIS) deals with internal forms of information. It mainly obtains data which is in the transaction processing systems and then sums it up into management reports. Operational supervisors in THUS plc Company use MIS reports to integrate a variety of modules within various departments. This allows for free flow of information within the company employees and management thus enhancing communication. (O’Brien 1999)

The Decision Support Systems (DSS) are generally developed to assist the management come up with decisions where there is uncertainty on the likely results from these decisions. They contain equipments and methods that will allow the appropriate information to be collected as well as examine the alternatives available. It mainly involves the use of advanced spreadsheets and databases to create alternative models. This is done by system analyst in THUS plc Company who ensures that all the necessary options have been considered. This allows for better decision making on the right processes the company need to take to achieve certain results. Office Automation Systems are meant to advance the efficiency of employees who necessitate processing of data and information. Many software are available that allow employees to work on flexible schedules. At THUS plc the employees have been provided with capabilities of Windows Vista that enables them to work from home or when they are sent out of office. They are able to work within their own set hours creating flexibility and conducive environment of freedom. This has open more opportunities for the company growth and expansion. (Monk &Wagner 2009)

Knowledge Management Systems (KMS) are designed to assist the company generates and share information. This occurs mainly where employees designed new skill and expertise which is later distributed to other individuals in the company. This allows for the creation of better market opportunities for the company. The system is designed in a manner that enables proficient categorization and sharing of skills. THUS plc uses the Intranet to allow information are available to everyone within the company. In this way many employees feel free to share and exchange information that is beneficial to everyone in the company. Transaction Processing Systems (TPS) are developed to enable processing of regular transactions effectively and correctly. There are several TPS in THUS plc for different activities. These include billing systems, systems for checking monthly or weekly payrolls and even taxes and production systems to check the raw materials in terms of information. (Lingham 2009)

Databases are used in THUS plc Company to enable the storage of information until it is retrieved for the right use. The databases are designed in such a way that employees who are authorized can be able to retrieve, add, update or remove information as necessary. This is very efficient in cases where database programs are developed for the users to add or remove information has required. The Company has incorporated a Database Management System that contains software that structures the stored data. It manages the design, maintenance and database storage organization among the users. The Company is able to delegate the organization of large database improvement to Database Administrators (DBAs) and other specialists. In this way it allows employees to add and retrieve information in an organized way. (Laudon & Laudon1988)

THUS plc Company has well organized managerial sector that allows for coordination in the company. The managers are responsible for decision making and their decisions affect everyone in the company. They are the leaders of the organization and act as role models for the employee in the company thus ensuring that coordination of activities and flow of information is fair and open. The executive are not blameless because they are responsible for all the decision that they make. They ensure that the decisions that are made are for the benefit of everyone in the company without discrimination or favors. This gives employee’s confidence in their work and the y work with motivation and support of the management. It is therefore important to note that the managers should treat employee with respect and protect their rights in the company. (Desouza, Chattaraj, & Kraft 2003)

The issue of information security is affected by many security threats. At THUS plc Company the system managers have increased the technology that regards to protection of information. They have been able to put all the considerations relating to the level of risk involved in losing information and the cost that is required to install security safeguards. They have managed to put security safeguards in sectors of departments regardless of the form of information available. This is because if a Company focuses on protecting small part of information they think is delicate then security breach will be found in the other systems. The basic ways of protecting information is through confidentiality, integrity and availability. Confidentiality deals with methods that lead to information access thus the policy is to make sure that information is not accessed by unauthorized persons. Integrity deals with correctness or dependability of information products and thus makes sure that it is protected from unlawful modifications. Availability is essential to ensure that information systems are able to be accessed when required. (Börje 1973)

The issues of ethics in information systems have been rampant in many companies and organization in the modern society. These include issue of ad-ware, spyware, unauthorized file sharing and pornography within the work environment. The right measures have been taken in THUS plc Company to minimize these issues and bring about coordination within the organization. These includes ensuring that such internet sites have been blocked from opening some information and tracking of any information that is being exchanged in and out of the organization. Social responsibility is an ethical activity that is followed strictly in THUS plc. This is important because it is returning to the society what they have been able to help you achieve. THUS plc Company values its ethical values within IT system and ensuring that people do not misuse their authority to hurt others. (Dhillon 2007)


Information systems are there to allow for the free distribution of information thus allowing employees t o have access to information easily many systems allow the employees to interact direct with each other and this improves productivity. Security feature are essential in a company and they should be incorporated to the full following all the required procedures. This will protect company information from any unauthorized access which could compromise a company’s success. Databases are designed in the right structures which ensure that information is retrieved and added by user when necessary. The company should also ensure that the ethical issues that affect the company are dealt with accordingly. This will ensure that all the concerned individual follow the right procedure. This also calls for punishment to those who will break company rules and this will ensure that employees adhere to the rule and regulations.


The information system should be updated with the latest technologies to ensure the company is always in track with various processes. Managers should ensure that the right components of information system are not neglected in order to help them analyze complex problems. This will allow production of new products thus ensuring a wide market is created. The information system should also be well integrated to allow for various departments to share information easily. This will ensure that transaction losses in inter-departmental communication decrease. This will ensure coordination thus enhanced transparency will increase allowing for better understanding towards each other.

References List

Börje L.1973, Theoretical Analysis of Information Systems, Auerbach.

Dhillon, G. 2007, Principles of information Systems security: text and cases, John Wiley & Sons.

Desouza, C.K, Chattaraj, & Kraft, G.2003, “Supply chain perspective to knowledge management: research propositions”. Journal of Knowledge management, Vol.7, no.3, pp.129-138.

Laudon, K.C, & Laudon, J.P.1988, Management information Systems, (2nd Ed), Macmillan.

Lingham, L.2009, Managing a Business-Management Information, Web.

Monk, E, &Wagner, B.2009,”Concepts in Enterprise Resource Planning” (3rd.ed), Course Technology Cengage Learning, Boston, Massachusetts.

O’Brien, J.1999, Management information Systems – Managing Information Technology in the Internet worked Enterprise, Boston: Irwin McGraw-Hill

Turban et al. 2008, Information Technology for Management, Transforming Organizations in the Digital Economy, Massachusetts: John Wiley & Sons, Inc., pp. 300-343