MANAGEMENT INFORMATION SYSTEMS 7
Ethicsrefers to the principle of either right or wrong that people use whenmaking decisions that guide their behaviors. Information systemsraise ethical questions on individual and the society because theygive rise to opportunities for social change that affect thedistribution of money, power, rights and obligations. Technologiessuch as electricity, telephones and information technology help inachieving social progress (Laudon et al., 2014). In contrast,information technology can also be used to commit crimes that cherishsocial values.
Ethicalissues in information systems are prioritized due to electroniccommerce and internet. Internet simplifies the method to integrate,assemble and distribute information at ease enhancing protection ofintellectual property and personal privacy. Further, ethical issuesestablished, as a result, of information systems include settingstandards to protect system quality that safeguards individual andsociety (Laudon et al., 2014). Information systems lead to changesfor which rules of acceptable code of conduct are to be developed.The increase in power, networking and internet leads to expansion ofindividual and organization actions by magnifying their impacts. Themain ethical, political and social issues raised by informationsystems are concentrated around information obligations, rights,accountability and system quality (Laudon et al., 2014).
Ethical,political and social issues are closely interrelated. The ethicaldilemma in information system is reflected in political and socialdebate. For instance, a society calm on a summer day, with theecosystem in a state of disequilibrium with individual, political andsocial institutions (Laudon et al., 2014). Individual know what isexpected of them because the social institutions such as educationfamily and organizations have rules of behavior that are supported bylaws implemented in the political institutions and prone to sanctionsafter violations.
Informationsystems are transforming businesses via their ability to shareinformation in a quicker way. Due to improved technology, businessesare growing at a rapid rate. For instance, conferences can now takeplace at a cost effective means such as the Skype that offer freeservices (Laudon et al., 2014). In addition, emails and conferencinghave become important tools for conducting business. Informationsystems have also facilitated fast supply chains. In the past,transfer and sharing of information between cities or countries wasvery expensive. Today long distance communication, sharing ofinformation and face to face meeting with business branches andheadquarters is economical, easier and cheaper (Laudon et al., 2014).Businesses save funds that could otherwise be used in the transfer ofinformation.
Informationsystems have led to the expansion of businesses globally. This isenhanced through internet that in most cases help breach the culturalbarriers. The internet allows businesses to sell, buy, advertise andconvince consumers online leading to instant feedbacks. People usetechnology to identify market niches and are able to do businessacross nations. The fast flow of information and globalization leadto new ways of doing business. Introduction of mobile phones, textmessaging and enhanced social networking has significantlytransformed the ways of running businesses through promotionalaspects (Laudon et al., 2014). Businesses try to be more competitiveby digitalizing their activities. The internet stimulatesglobalization by reducing costs of production, buying and selling atthe global market.
Differenttypes of information systems have different impacts on businesses andglobalization. Information system is at an increasing rate, and thishas resulted to new concepts that facilitate instant sharing ofinformation such as twitter. This is a short message like socialnetworking that enables businesses to inform the public of theirexistence (Laudon et al., 2014). This acts as a powerful element forchange and globalization. Further, cloud computing gives businessowners chance to sample software that are very expensive to buy andmaintain. They only pay servers certain information system servicesand information storage facilities. The pace, at which informationsystems are growing, will inspire, evolve and lead to globalizationof businesses setting high goals in the world market (Laudon et al.,2014).
Transactionprocessingsystems are computer-based systems that perform and record routinetransactions necessary in the operation of a business such aspayroll, sales order and employee record keeping. This helps managersand supervisors closely to monitor the operations and externalenvironment relations (Laudonet al., 2014).
Theother system is Decision support system. These systems supportnon-routine decision making for the middle management. They mainlyfocus on unique and rapid changes and the procedure used is anadvanced analytical model and data analysis techniques (Laudon etal., 2014). They answer queries like what is the impact onproduction if sales are doubled in the following period, and whatwould happen on the return on investment if delay occurs in afactory? Decision support systems provide sophisticated models anddata analyzing tools that enhance both unstructured andsemi-structured decision making processes. They also assist in thegeneration of what if analysis by using data from transactionprocessing systems and management information systems (Laudon et al.,2014). Further, these systems are user friendly and are developed foruse by users directly.
Executivesupport systems help senior management make important decisionsconcerning the organization. They help address non-routine decisionsthat require evaluation, and judgment as there is no clear way toarriving at a conclusion. They present solutions in different formssuch as graphs and charts using both internal and external sources(Laudonet al., 2014).This system is designed to incorporate information relating toexternal events like tax laws and competitors. It draws a conclusionfrom decision support system and management information system.
Laudon,K. C., Laudon, J. P., & Brabston, M. E. (2014). Managementinformation systems: Managing the digital firm.New York: Cengage learning press.