Positive & Negative Impacts of Information System

Positive Impact Negative Impact

It can perform calculations or process
paper-work much faster than people.
The Internet distributes information
instantly to millions of people across the
world.
IS have made possible new medical
advances in surgery, radiology & patient
monitoring.
IS can help companies learn more about
the purchase patterns and preferences of
their customers.
By automating activities that were performed
by people, IS may eliminate jobs.
The Internet can be used to distribute illegal
copies of software, articles and other
intellectual property.
Heavy users of IS may suffer repetitive stress
injury, techno-stress and various other health
problems.
IS may allow organizations to collect
personal details about people that violate
their privacy.

Characteristics of Information Processing Systems

Type
Information Information
of Processing Users
Inputs Outputs
System
TPS Transactions, Sorting, Listing, Detailed Reports, Operation
Events Merging, Lists Personnel
Updating
ECS Documents Scheduling, Schedules, mail Clerical
Communication workers
MIS High-volume data Routine reports Summary reports Middle
managers
DSS Low-volume data Simulations Special reports Professionals
EIS Aggregate data : Graphics, Projections, Senior
external & internal Simulations responses to queries managers

Information System From a Functional Perspective

IS can be classified by the specific organizational function they serve as well as by
organizational level.
1. Sales & Marketing Systems : It is responsible for selling the
organizational’s product or service. Marketing is concerned with identifying the
customers for the firm’s products or services, determining what they need or
want, planning and developing products and services to meet their needs, and
advertising & promoting these products and services. Sales is concerned with
 contacting with customers, selling the products and services, taking orders, and
following up on sales. Sales & marketing IS support all these activities.

Organizational
Role of Sales & Marketing IS
Level
It assist in locating & contacting prospective customers,
Operational tracking sales, processing orders, providing customer service
support.
Knowledge It support marketing analysis.
It support advertising & promotional campaigns, pricing
Management
decisions, analyze sales performance.
It monitors trends affecting new products and sales
Strategic opportunities, support planning for new products & services,
and monitor the performance of competitors.

2. Manufacturing & Production Systems : It deals with the planning,

developing and maintaining of production facilities; establishment of production
goals; acquisition, storage of production materials; scheduling of equipment,
facilities, materials and labor required to produce finished products.

Organizational
Role of Manufacturing & Production IS
Level
It controls the actions of machines & equipments and deals
Operational
with the status of production tasks.
It create and distribute design knowledge or expertise to drive
Knowledge
the production process.
It analyzes and monitors the manufacturing & Production
Management
costs and resources.
It deals with the firm’s log-term manufacturing goals, such as
Strategic where to locate new manufacturing plants, whether to invest
in new manufacturing technology.

3. Finance & Accounting Systems : It responsible for maintaining and

managing the firm’s financial records - receipts, disbursements, depreciation and
payroll; to keep track of firm’s financial assets and fund flows.

Organizational
Role of Manufacturing & Production IS
Level
It tracks the flow of funds through transactions like paychecks,
Operational
securities reports, receipts.
It support designing of right mix of investments to maximize
Knowledge
returns for the firm.
Management It help managers control the firm’s financial resources.
 It provide long-range forecasts of the firm’s financial
Strategic
performance.

4. Human Resources Systems : It support activities such as identifying

potential employees, maintaining records on existing employees and creating
programs to develop employees talents and skills.

Organizational
Role of Manufacturing & Production IS
Level
It tracks the employee training, skills & performance
Operational
appraisals.
It support analysis activities related to job design, training
Knowledge
& modeling of employee career paths.
It help to monitor and analyze the recruitment, allocation
Management
and compensation of employees.
It identifies the manpower requirements (skills,
Strategic educational level, type of positions, number of positions)
for meeting the firm’s long term business plans.