An information system is a set of computerized components that are used to collect, create and store data. And also used to process the data into information and distribute it to the desired destinations.
It typically includes five major components: hardware components, software components, the data itself, system users and the procedures of manipulating the data into information (Peppard, 2016). Many organizations, businesses, institutions, and companies have adopted this for their smooth running of business activities.Information systems have over time evolved from being tools of work to being competitive advantage tools. They have proven to be contributors to growth in companies that have used them to perform their activities.Information systems have advanced with time into really efficient systems.
Their inevitable growth and development has not only led to improved performance of business activities but also has aided in the gaining of competitive advantage. Enterprises that have been in the urge to make use of the systems have grown noticeably. They have improved the systems into artificial intelligence computer systems that can even be used to forecast business performance (Cassidy, 2016).Some of the major functional advances that have been added in the information systems include customer relationship management, human resource relationship management, business intelligence and electronic commerce. Customers have been enabled to interact with organizations over information systems.
They submit their feedback over the systems. The workforce in the companies has been monitored by the use of computerized systems. Payroll systems to generate payments for all the human resource have proved very efficient in maintaining records (Peppard, 2016). Business intelligence has been incorporated into the systems. It includes a functionality where the system can do mathematical operations and present to the user of the system analysed data in graphs or pie charts. Electronic commerce has been widely used to sell both goods and services.
Customers have been able to access products and services on online platforms and make purchases.System developers have introduced open programming to ensure that new ideas on information systems are put into consideration. Object-oriented information has been used effectively to aid in the development of information systems.
The rapid growth in information system development and programming languages will aid in the future trends.Some functional requirements that may be introduced in the near future may include product lifecycle management, data warehousing, knowledge management systems and balanced scorecard. The already introduced system functionalities are expected to improve with time.
Technical trends that are most likely to be encountered include open software and mobile applications that will be used in m-commerce. Wearables are also expected to be integrated with information systems (Laudon, 2016). Android devices may be developed over time to cater for major management information systems capabilities.Information systems have proven to be an efficient tool in the conducting of business activities. Company management has been improved over time through the use of information systems. All the levels of management have embraced computerized information systems since they are more efficient in the performing of business activities.
Businesses have adopted the systems to gain a competitive advantage in their areas of specialization.