Business Information Systems - Essay Example

of Institute] of Discipline] Business Information Systems INTRODUCTION Technology is commonly defined as the use of computing equipment and communications services for getting a task done. "The technology involving the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data"(merriam-webster, 2012) Above is another manner of narrating what Information and technology do for the society as a whole. The advent and history of technology is not spanned over centuries as this is a comparatively newer concept dating back only to the last three decades. This report is aimed at assessing the nature of technology, its background, its importance within the business paradigm and its critical role in the existence of technology and the evolving of modern day businesses. BACKGROUND The advent of communications and information technology can be traced back to the onset of this century. The actual invention which however triggered a never-ending era of technological advancements was when the invention of a telephone came into existence. There was no turning back since then. If a comparison of the eras of the human society of today and that of three decades back is assessed it would be found that they are poles apart. "Since the development of the first computer in 1947 and the release of the personal computer 30 years later, businesses have invested countless dollars in implementing and upgrading information technologies (IT)." (Ahearne, Rapp, 2010) The advent and the prevalence of technology have been a driving source of change and facilitation that have not only digitized the human race but have also made it get on a road to constant advancement. "Literature from more than a decade of empirical research on inter- nationalization patterns experienced by technology firms indicates that a majority of ICT firms are built with a global focus from inception." (Vasilchenko, Morrish, 2011) It is a general notion that small businesses lack in technological knowledge and skills. The failure of small scale businesses is often attributed to their inability to incorporate the ever-changing modes of technology and to come in line with their competitors in the open market due to lack of technical knowledge and skill. This lacking in small scale businesses is often attributed to its leaders since it is said that it is actually their lacking of technology adoption that results in the dooming of the entire business as a whole. This is being narrated here with evidence that leaders of many small scale businesses rejected the idea of the importance and inevitability of technology and do not accept to the fact that its inclusion could have bought many potential benefits to their business. This also implied to the fact that if these leaders would be educated regarding the potential benefits of technology within their business they may actually be more willing to adapt to its inclusion and acceptance. (Hartono, 2012) THE IMPORTANCE OF TECHNOLOGY IN BUSINESS Business and Technology go hand and hand in the present times. The road to this point in time has though been tough but it has eventually given a whole new meaning to the existence of business in itself. The characteristics of technology that have had substantial impact upon organizational businesses have been discussed by Hubber (1990), "Basic characteristics are related to data storage capacity, transmission capacity, and processing capacity. Advanced information technologies, largely as a result of their digital computer component, usually provide higher levels of these basic characteristics." (Hubber, 1990) Technology changed the entire way businesses were being executed before it. From the times of barter trade to just before the advent and inclusion of technology within businesses only the physical means of business transactions were part of organizational environments. The only way to view a traders merchandise was to go to their retail outlet much unlike to the present ways of trading. Moreover, representatives of manufacturers would travel door to door from one consumer to the other showing sample of their products to the prospective buyers. This was a very time consuming and cumbersome task and has very intelligibly been replaced with propagation of products via social media, mobile marketing, e-advertising, advertising banners and e-mail messages. If a glance on the positive facts that technology has bought along with it for business then it is also substantial to mention that the economy of our world is an economy of transition. The intrusions of technology into businesses of such an economy have introduced a set of activities. These include: 1. The improvements of existing product and production processes 2. Innovation in range of activities 3. Involvement of new coherent technologies affecting growth of entire enterprise 4. Acceleration of time duration of product cycles 5. Growth of organization much rapid from that of its competitors neglecting use of technology. 6. Long term effects of technology adoption far more fruitful. Help in the maturing of organizational processes. 7. Ability of organizations to look up and mingle within new markets and potential competitors. 8. Organizational flexibility increases 9. Dependence on human man power reduces 10. Accuracy and timeliness enhances 11. Ability to adopt to changes in economic environment enhance. 12. Businesses already incorporating technology within their processes more flexibly adopt to ever-changing trends of technology and betterment in processes. 13. "The technologic factor includes the concept of the enterprise abilities to use new production processes, production of new products, creation of new organizational structures and the involvement in other networks." (Caca, Kushi, 2011) APPRECIATE ITS IMPACT ON THE BUSINESS PROCESSES. Impact of inclusion of technology in businesses has been immense. Studies conducted within the past decade have proven that the revenue spent on technology incorporation within businesses has led to the reduction of risks within the organizational processes: "Our study provides evidence that there is an association between reductions in downside risk and the announcements of strategic It investments. Moreover, the reduction in downside risk associated with announcements in strategic It investments is largely contingent on the timing of those investments by firms relative to their industry participants." (Otim, Dow, Grover, Wong, 2012) Business processes owe much of their organizational achievements as a result of advanced collaboration possibilities made possible only due the adoption of technology within the business environment. "tools and technology for group support range from simple cards and pencils for use in conventional paper-based workshops to complex collaboration software such as social networking systems (e.g., LinkedIn), collaborative editors (e.g., zoho writer, Google Docs) to group support systems (GSS) (e.g., facilitate.com, thinktank).” (Kolfschoten, et. al. 2012) INFORMATION SYSTEMS UNDERPINNING COMPETITIVE ADVANTAGE AND DEVELOPING STRATEGY. The developing strategies within businesses get naturally groomed with the businesses adoption to technological domains. This is understood better if business environments are considered as separate ecosystems that have their own set of rationale and processes. The better Technologys intrusion assists an organization, the better is the organizations ability to compete and develop strategically. “IT is generally recognized as a valuable instrument for creating, storing, and transferring information capital. A flagship, as a living company, adapts IT to conduct information sensing and responding. IT is also used to indicate a flagship’s healthiness as it allows for the creation of healthy business ecosystems" (HYEYOUNG, et. al., 2010) The advancements that are occurring as a result of strategic advancements being gained by use of technology are resulting in: “Increasing in scope and complexity, fuelled by intense business competition, ever improving technology, and complex organizational structures and processes" (Reich, Sauer, 2010) MANAGEMENT INFORMATION SYSTEMS And Their IMPORTANCE In The DECISION MAKING Process. Decision making and assisting human management in conducting organizational analysis are few of the major tasks that are efficiently done with the help of Management Information Systems. " Advanced information technologies are devices (a) that transmit, manipulate, analyze, or exploit information; (b) in which a digital computer processes information integral to the users communication or decision task; " (Huber, 1990) These systems take raw data and analyze it giving output in the form of analytical analysis that is the key to the making of further business decision making. Such Management Information Systems are often termed as Decision Support Systems that help businesses with their high level decision making. In the absence of such technology rich management information systems it was impossible for human beings to assess from sales figures whether their sales and production cycles were returning any benefits to the business or not. ROLE OF INFORMATION SYSTEMS IN THE EMERGENCE OF ELECTRONIC BUSINESS The phenomenon of the bridging of the gap between physical locations millions of miles away by the use of technology is termed as Globalization. The feel is as if the norms and identities of diversified cultural aspects spanned all over the world have integrated and become one owing much of their subsequent successes to no other factor as much as to technology. “Globalization reveals an imposing future for the managers of many firms. In numerous industries, globalization has already produced dramatic changes in key markets, major competitors, and products. Many of North Americans biggest firms have become relatively small players in the new global markets (i.e., "the Global 1000"), with industry leaders increasingly headquartered in Asia or Western Europe." (Ives, Jarvenpaa, 1991). Above is an excerpt from a study conducted in order to evaluate the effects of Technology, its global impacts and its implications on management. The emergences of technology have bridged the physical gaps that exist between places. With the prevalence of the internet and mobile communications networks it is now possible to remain connected at two miles apart physical locations in a manner that the virtual presence of both the parties is actually felt at each others places. This is mainly by virtue of video conferencing and VoIP (Voice over Internet Protocol) services. How globalization has been effective upon businesses has been impressive indeed. The capability to communicate instantly from just about anywhere in the world and get responses vice versa have led to the development of business being conducted taking advantage of this facility. As the reliability and strength of communications got stabilized, so did the idea of conducting business using this facility flourished. Businesses began to propose their products via virtual means of communications such as internet and mobile messaging. Websites would be constructed as if they were online shops (shops based on the internet). Each of the products of a manufacturer would be displayed via WebPages and their ordering and freight details would also be discussed along. Potential and prospective buyers would only need to log on to the webpage of the buyer in order to view the product line and decide the products they needed to buy. Advanced search capabilities on the internet and security of personal information being transferred over the internet were factors that strengthened the technology backbone laden form of business which was given the name of E-Business. E-Business (often referred to as Electronis Business) was not only limited to the characteristics concerned. An overview of its features can be narrated as follows: Use of Internet as a basic means of business conduction Ability of entire or partial business transaction conductivity via electronic transactions. Much larger and globalized customer base than a local physical brick and mortar store. E-Procurement usage for product tracking and managing of purchases. The above proposed excellence and capability of businesses to conduct corporate transactions electronically was made possible only after the integration of Information systems within them. As narrated earlier, information systems conduct the task of data handling for man and conducting it into useful information. Conducting electronic business is primarily about handling all sorts of data concerning business transactions via computing equipment. Initially it is the data concerning the products posed by the retailer on their website for buyers perusal. Then there is data regarding possible viewer traffic on website, selection and demand of certain particular type of products, checking of their availability, their fares, shipping prospects, shipping charges, overall transactions costs including variations in the sizes, materials, design of selected products and also the number of pieces being bought and possible discounts. All these and many other aspects of Electronic business transactions are handled without the involvement of men personally in them. All this is handled by predefined procedures within Information systems embedded just for the required purpose. The global marketplace has evolved in a manner that even the most needing of enterprises have opted for global ventures and have attained their requirements via networking with suitable global partners. Eventually the pattern being followed by businesses globally is moving along the road to prosperity and enhancement owing their most successes to technology and its sister innovations. CONCLUSION Conclusively it may well be said that technology has been an invention of man whose associated advantages are far more in weight as compared to vice versa. The inclusion of technology in businesses has given a whole new meaning to the corporate environment the likes of which were not to be seen had technology been absent. At the current pace of technological advancements it is proposed that businesses keeping up pace with it are prone to prosper and accelerate in productivity at massive rates. REFERENCES: Ahearne, M, Rapp, A 2010, The Role Of Technology At The Interface Between Salespeople And Consumers,-Journal Of Personal Selling Sales Management, 30, 2, pp. 111-120, Business Source Complete, EBSCOhost, viewed 2November 2012. 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