Strategic Management: Formulation and Implementation

Information Systems And Control - Summary

Computerbased information systems play a vital role in the operation, management, and strategic success of business firms and other organizations in today's information society.

The business firm should be viewed as a system in which economic resource (input) are transformed by various organizational processes (processing) into goods and services (output). Therefore, information systems play a vital role by providing information on the operation of the business (feedback) to management for the direction and maintenance of the firm (control).

Management information systems support the decisionmaking needs of strategic (top) management, tactical (middle) management, and operating (supervisory) management. To serve the needs of different organizational levels, there are four major types of information systems: (1) transaction processing systems, (2) knowledge work and office automation systems, (3) management information systems and decision support systems, (4) and executive support systems.

The information systems perform four major roles in an organization: support of business operations, support of management decision making, support of management control and support of strategic organizational advantages. Therefore, the information systems function is more that a helpful supplier of information and tools for decision making. The information systems function can help managers develop competitive weapons that use information systems technology to meet challenges from the competitive forces that confront any organization.