Information systems
Why are information systems essential today for a business and / or company?
They are fundamental by fact of finding a regulation, automation, efficiency, control of both the personnel (employees, administrative, managers), as well as the technology with which they work and which makes productivity within the company or business remarkable and of quality or stagnant and poor quality. For this we must know, What are information systems? What is their function? As well as the areas of a company or business where some of the information systems can be implemented.
Before knowing the types of information systems we must know what information is and what an information system is:
What is information?
It is a set of organized and processed data that forms a message, instructions, operations, functions, or any type of activity that takes place in relation to a computer.
What is an information system?
An information system is a set of interrelated elements that collect, process and store, adapted to the procedure and administration of data and information, organized and ready for later use, created to satisfy a need or an objective.
These elements will be part of one of the following classes:
- People Data Work activities or techniques Material resources in general (generally computer and communication resources, although not necessarily).
Main types of information in organizations
- Executive Support Systems (ESS) Executive Support Systems Decision Support Systems (DSS) Decision Support Systems Management Information Systems (MIS) Management Information Systems Knowledge Work Systems (KWS) Knowledge Work Systems Office Automation Systems (OAS) Office Automation Systems Transaction Processing Systems (TPS)
Executive Support Systems (ESS) Executive Support Systems
Information system aimed at senior management since they allow speeding up the obtaining of data, whether internal or external to the company, more important and strategic for the organization, presenting them in the clearest possible way in order to be able to reach the factors critical of success (Mos, 2015).
Decision Support Systems (DSS) Decision Support Systems
A DSS is an interactive, flexible and adaptable computer-based information system, specially developed to support the solution of an unstructured management problem to improve decision-making. It uses data, provides a friendly interface and allows decision-making in the analysis of the situation itself (Turban & Aronson, 2005). It is found at the management and administration level within the pyramid of types of information systems. Management Information Systems (MIS) Management Information Systems.
They are the result of collaborative interaction between people, technologies and procedures, aimed at solving corporate and / or business problems (Laudon & Laudon, 2004). Like the DSS, the MIS is located at the management and administration level in the pyramid of types of information systems.
Knowledge Work Systems (KWS)
Professionals, such as scientists, engineers, and doctors serve as support in an effort to create new knowledge and thus be able to share it with companies, institutions or humanity (Kendall & Kendall, 2005).
Office Automation Systems (OAS) Office Automation Systems
They are any technological application of the information that leads to the increase of productivity of the information workers in the office, some examples are; word processing, email, design applications, document scanning.
Transaction Processing Systems (TPS)
Systems created to process large amounts of data regarding daily business operations, such as payroll, inventories. These systems eliminate the hassle when carrying out the company's operational transactions.
Below we describe the levels of the pyramid within a company:
- Strategic level: it is in charge of all the tasks of the top management and, therefore, the most important decisions for the organization. They are unscheduled and very complex decisions since they are ultimately decisions that affect the strategic approach of the organization. They are supported by executive support systems (ESS). Management or administration level: in charge of carrying out the tasks of supervision and control of all those tasks that have been taken at the operational level. You begin to have a broader view of the business. They are often pre-programmed decisions and are therefore more complex decisions than those made at the operational level. At the management or administrative level, it is supported by decision support systems (DSS) and management information systems (MIS). Level of knowledge:is responsible for facilitating operational activities for company workers, through one or more technological applications, in order to increase employee productivity. At the knowledge level, it is supported by office automation systems (OAS) and knowledge management systems (KWS). Operational level: handles the most routine tasks and executes operations. They are often programmed decisions. This makes decisions simple and easy to make. They are supported by transaction processing systems (TPS).is supported by office automation systems (OAS) and knowledge management systems (KWS). Operational level: takes care of the most routine tasks and executes operations. They are often programmed decisions. This makes decisions simple and easy to make. They are supported by transaction processing systems (TPS).is supported by office automation systems (OAS) and knowledge management systems (KWS). Operational level: takes care of the most routine tasks and executes operations. They are often programmed decisions. This makes decisions simple and easy to make. They are supported by transaction processing systems (TPS).
In Illustration 2 you can see graphically the pyramid according to the importance of the company.
Information systems in the company and levels of the information pyramid
What is smart business or Business Intelligence (BI)?
Business Intelligence is the expertise to convert data into information, and information into knowledge, so that the decision-making process in business can be perfected.
Information systems in the company and levels of the information pyramid
Illustration 2 Own elaboration
Associating directly with information technologies, Business Intelligence (BI) can be defined, as the set of methodologies, applications and technologies that allow gathering, debugging and transforming data from transactional systems and unstructured information (internal and external to the company) in structured information, for its direct exploitation (reports, analysis) or for its analysis and conversion into knowledge, and thereby support decision-making about the business.
Business intelligence acts as a strategic factor for a company or organization, which produces a great competitive advantage, which is none other than providing preferential information to solve business problems: such as offers, promotions, entering new products, as well as of suppliers, customers, financial control (sales, payroll, payments to suppliers, etc.) as well as elimination of expired information and no longer important for the business or company.
The main Business Intelligence products that exist today are:
- Balanced Scorecards Decision Support Systems Executive Information Systems
On the other hand, the main components of data sources in Business Intelligence that currently exist are:
- DatamartDatawarehouse
Therefore, to say that a solution measure for a complex BI must contain these points or questions as a basis:
Information systems in the company and levels of the information pyramid
Illustration 3 Own elaboration
Observe what is happening? Understand why it happens? Predict what would happen?
Collaborate what should the team do? Decide which way to go?
In this way, BI at a complex level will have an adequate and fruitful solution for leadership above the competition.
Document management
Set of technologies, standards, steps, techniques and practices that are used to manage the flow of documents in every company or business, from which information can be retrieved from them, determines the time of saving documents, also eliminates those that no longer they serve and certify the indefinite conservation of the most important documents for the company.
The main mission of a document management system is the tracking, storage and organization of electronic documents or images of paper documents. These documents, unlike the information stored in an ERP, do not have a clear organization of content, it is what is technically called unstructured information. Business organizations have to handle a large amount of information of this type in their daily management. In addition, for legal and internal operational purposes, these types of documents are often necessary. The main objective of document management is to rationalize the use of this type of information as far as possible.
Information system resources
The concept of INFORMATION SYSTEM is related to Information Technology (computer, computer network, data processing program and information processing). There are two types of information systems in terms of the type of processing: The centralized system in Mainframe and the decentralized system in integrated networks of microcomputers.
The trend is aimed at the distribution of local computer information networks that preserve the independence of each unit of the organization and connect it with a
corporate network of the organization, to ensure access to various volumes of information.
Information system concept
- It is an HR information system is a system used to gather, record, store, analyze and retrieve data on Human resources of the organization. Most of the HR information systems are computerized. HR information is a systematic procedure to gather, store, maintain, combine and validate data necessary for the organization in relation to its Human Resources and their respective activities, in addition to the characteristics of the organization's units. HRIS is planned to gather, process, store, and disseminate HR-related information so that managers can make effective decisions.
Information System for the ARH
It is the most comprehensive information system on the workforce and serves to carry out the analysis and undertake the actions of the people management area. Consequently, it meets the needs of Rh specialists knowing the information needs for people management, this system covers:
- Strategic Planning, Formulation of objectives and action programs. Records of personnel controls for purposes of payroll, absences, delays, discipline. Reports on compensation, salary incentives, benefits, recruitment and selection, professional career plan, performance training, hygiene, safety in a type of work, medical area Reports on positions and sections.
Some conservative companies limit certain information to the ARH body while innovative companies fully open the information to all users including employees. HR Management Information System:
The SIG is a system planned to gather, process, store and disseminate information in order for line managers to make effective decisions, this system occupies an important role in the performance of managers, in terms of leadership of subordinates.
To set it up, it is necessary to know what information the line manager needs, adapt the system to the needs of the line managers, and verify the information through written reports.
Information System for employees:
They also need to access and receive information related to themselves and their job, position, division, and organization. For this, the information system must be adjusted to the needs and convenience.
Implementation of the information system in planning
The HR department works together with other departments so that the S i is used appropriately and in order to make the organizational tasks more effective. The effective management of «human capital» becomes a necessary operation to The human resources professionals, just as it is important to do a preliminary study, it is also important to analyze the aspects that concern the development of the organization. VRS administration of the organization and then the implementation of the HRIS and its development.
Rh is an area in charge of collecting the data of each worker regarding their history and personal characteristics, their skills and abilities, even the most accessible data such as their salaries and their work in the company. The quantification of this data and the systematization for its treatment allows its subsequent handling by automated systems, reducing the manual treatment of operations, a costly source of errors.
The strategy of companies in terms of Human Resources is fundamental since it tells us where the actions of the companies are directed. A good strategy includes internal equity, external equity, a salary administration system, a performance evaluation system, variable compensation system, skills development, etc.
The Human Resources task is not simple and implies the implementation of objective systems that help us to have a good administration of our human capital. In other words, transform this data into coordination mechanisms and strategies for future organizational development, reducing operating expenses, and streamlining processes within organizations. Examples of using HRIS
Payroll
The payroll model automates salary management by gathering worker data about their work, attendance, calculating deductions and taxes, social contribution and periodically generating the payment order. It also allows the generation of data and statistics for all personnel related to these data. Sophisticated systems can establish accounts payable transactions, employee deduction, or produce checks. The payroll module sends the information to the general ledger.
Management of work benefits
The work benefits management module allows evaluating the time / work information of each employee. The analysis of the data allows a better distribution of work. This module is a key ingredient in establishing organizational cost accounting capabilities.
Management of social benefits
The module for the management of social benefits allows human resources professionals to better manage social benefits, compulsory or not, such as health insurance, occupational accident insurance, or supplementary pension systems.
Human resources management
The human resources management module covers other aspects of HR, includes fewer legal specificities and is more focused on a management policy. The system records management data, selection, training and development, capabilities, skills management and other related activities. Personal data (age, address, family…), skills and titles, training courses, salary levels, and the registration of data from the curriculum vitae are managed here.
Productivity indicators
To evaluate the productivity of each employee, it is necessary to quantify the time and activities that generate positive results within the organization. This becomes very complicated especially in service companies where intangible goods are produced. In these cases, it is necessary to "measure" the activities of each of the employees, separate the "Productive" activities (Those that are directly related to the company) from the "Personal" (Those that are not directly related to the company). In this way, it is possible to quantify the real cost (man hours) that each of them takes to carry out their tasks, as well as the tools they use to achieve the objectives.
Advantages (Díaz & Esquivel, 2009)
Bibliography
- Díaz, M. d., & Esquivel, J. (2009). Monographs.com. Retrieved on June 29, 2015, from human / sistema-informacion-Recursos-Human2.shtml Kendall, KE, & Kendall, JE (2005). Analysis and design of systems. Pearson. Laudon, KC, & Laudon, JP (2004). Management information systems: administration of the digital company. Pearson.Mos, SF (January 27, 2015). Retrieved June 26, 2015, from http://pertutatis.cat/que- son-los-Sistemas-de-Apoyo-a-los-Ejecutivos-ess / Turban, E., & Aronson, JE (2005). Decision Support Systems and Intelligent Systems. Pearson / Prentice Hall.
