INFORMATION SYSTEMS IN CONTEMPORARY BUSINESSES

Introduction

In today’s dynamic business landscape, every enterprise requires information systems to gain a competitive advantage, streamline processes, and enhance efficiency. Moreover, information systems are fundamental tools that enable businesses to manage their operations more effectively. This article will delve into the needs of businesses for information systems, explore the transformations achievable through these systems, elaborate on the system development process, and delineate its stages in detail.

Business Needs for Information Systems:

Every business may have specific reasons for requiring information systems. These needs can be outlined as follows:

• Technology Tracking: Businesses aim to gain a competitive edge and adapt to market changes by staying abreast of evolving technology.
• Growth and Information Diversity: Business expansion and diversification of operations may necessitate integrating new types of information into their processes.
• Technology Costs: The current technology may escalate operational costs, and the emergence of more economical technology may drive the need to update information systems.
• Legal and Regulatory Changes: Alterations in legal regulations may require businesses to update their existing information systems.

System Development:

1. Identification of Problems, Opportunities, and Objectives:

• Enterprises identify the business opportunities they will gain through system development.
• Problems and objectives are identified as the foundation, and opportunities are presented.

2. Feasibility Studies:

• Four dimensions—technical, operational, scheduling, and economic feasibility—are considered.
• Feasibility studies result in a project plan and an estimated budget.

3. Analysis of System Requirements:

• Information needs are determined using techniques such as personal interviews, surveys, observations, and record reviews.

4. Proposed System Design:

• Output design, input design, database design, and interface design are detailed in a comprehensive plan.

5. System Implementation (Software Development and Documentation):

• Acquiring new hardware and software, software development, testing, and documentation processes are included.

Implementation and Transformation Strategies for New Systems:

1. Parallel Transformation:
   • Old and new systems are run simultaneously.
   • It may be costly but less risky.
2. Pilot Transformation:
   • The new system is implemented in a single department or branch.
   • It offers the advantage of controlling risks.
3. Phased Transformation:
   • The new system is implemented in stages.
   • It offers the advantage of managing risks and costs.
4. Staged Transformation:
   • Transitions between the old and new systems are done in a specific sequence.
   • It involves high risk but is cost-effective.

System Maintenance and Updates:

After the implementation of a new information system, continuous maintenance and update processes come into play. This involves fixing errors, improving performance, and adapting to the changing needs of the business.

Conclusion:

The information system needs of businesses should be continually met in an ever-changing environment. Therefore, the system development process must be managed to align with the goals and evolving needs of businesses. This process encompasses technical, economic, and organizational dimensions and, when effectively managed, can provide businesses with a competitive advantage.