Strategic Information Systems

2567 Words11 Pages
Explain the use of transaction processing systems (TPS) and executive support systems in an organization of your choice. Also explain the role of IS led change in successful adoption of such systems. Introduction In recent years firms have become ever-more dependent on knowledge and information to compete effectively with their rivals. This change has been driven by the emergence of the global economy, decentralization of firms and a move towards an information based economy. “Information is the glue that holds together the structure of all businesses” (Evan and Wurster 1997) and so its importance has led to the recognition and growth of business information systems (BIS). “A BIS is a group of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organization” (Z Hussain, 2008, p44). “There are 3 main categories of information systems serving different levels: operational-level-systems, management-level-systems, and strategic-level-systems” (Laudon, 2004, p40). These systems help managers make decisions, forecast future trends, address strategic issues, and track transaction flows through an organization on a day-to-day basis. This is done through the four major types of system (Table 1). In this assignment the use of two of these systems, ESS and TPS, will be discussed using Tesco plc as an example. I will then discuss the role of IS led change in the successful adoption of these systems. Transaction Processing Systems “A transaction processing system is a computerised system that performs and records the daily transactions (ordering stock, invoices etc) necessary to conduct business” (Z. Hussain, 2008, p80).
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