Information Systems Task T1.4
According to the Wikipedia article “Systems Theory”, systems theory can be defined as “an interdisciplinary theory about the nature of complex systems in nature, society, and science, and is a framework by which one can investigate and/or describe any group of objects that work together to produce some result.” (1) I agree with this definition and find it especially interesting because it emphasizes the point that systems theory not only applies to business and production, but many other aspects of the world we live in. Therefore, even for students like myself, who are not business majors but are taking this class either to fulfill an elective requirement or simply gain credit, can still apply the theories learned in the class to their own fields of study. In addition, applying systems theory to other disciplines can help students unfamiliar with business related concepts understand systems theory in contexts with which they are familiar.
Systems theory explains that individual parts can work together to form a whole that can achieve a goal or result more quickly and efficiently than parts working individually. Systems can be found in almost every area of study. However, in our course, Information Systems and their value to business and production operations are obviously emphasized. Information systems, according to both our course text and Wikipedia, are usually composed of a combination of “people, procedures, data, software, and hardware.” (2) In the Wikipedia article, “Information Systems (Discipline)”, the authors define information systems as being “implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization.” (3) The authors go on to state that “Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved.” (4) Thus, an information system can be useful in many stages of the “Value Chain”, from Upstream Management, such as inbound logistics and transportation, raw materials purchase, and raw materials storage, to production, and to Downstream Management, such as finished product storage, customer service, marketing, and deliveries and outbound logistics.
In different stages of the Value Chain, and different companies with varying needs, goals, and purposes, there are information systems specifically designed to improve efficiency and efficacy. In order to meet the needs of each element of the value chain, and various companies, there are many different types of information systems. For example, within the field of Information systems there are TPSs, DSSs, EISs, MISs, and OASs - also known as Transaction Processing Systems, Decision Support Systems, Expert Information Systems, Management Information Systems, and Office Automation Systems. (5) Each system has unique features, applications, and values within businesses.
Take for example, Transaction Processing Systems, or TPSs . Transaction Processing Systems have been employed since the 1970s and serve to organize several different sub-operations in order to preform transaction, such as buying an Ipod, with speed and convenience. (6) Transaction Processing systems coordinate several individual accounting operations (crediting the sellers account, and debiting the buyers personal banking account, for example) in order to complete a translation that will either succeed, or fail if one or more element in the systems fails or experiences an error. (7) Returning to the example of buying an Ipod, we can apply this example and information system to both the purchasing of the item, and its production. In the production of the Ipod itself, Transaction Processing Systems could have been used when Apple purchased it's land or buildings, paid bills such as utility bills, employee salary expenses, and other accounts payable, and bought equipment, raw materials, and other supplies. On the other hand, Transaction Processing Systems can also be used in the purchase of the materials created, in this case, an Apple Ipod. The customer could use a variety of methods, such as online purchase, or credit or debit card swipe in store, to automatically subtract funds from their personal banking account, and add that amount to Apple's account. Thus, TPSs can be used to increase efficiency in both Upstream, and Downstream management, and also affect production as a result of the necessity of purchased raw materials, buildings, land, equipment, employee salaries, and utilities to arrive at this element (Production) of the Value Chain.
- http://www.wisegeek.com/what-is-transaction-processing.htm
Reply to another students work:
I really liked how you compared value chaining and systems theory to the study of the human body and how individual organs work together to maintain homeostasis. This comparison helped me to better understand Information Systems by applying the same theory to another discipline entirely.
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