Information Systems and Their Effects on the Business World
Information can be considered the ultimate resolution of uncertainty; it renders the answer of “what is” and so defines both the nature and essence of its attributes. The concept of information also has various other meanings in different contexts. In business terms information is data that identifies a particular object, category or situation, which is then used to make a decision in that particular context. Business information is therefore essential to the functioning of a business, especially in the modern economy.
Decision-making involves weighing up options, and so information is necessary if the decision-maker is to be justified in taking an action. For example: A businessperson decides to open a new shop in town. He seeks advice from experts about the feasibility of doing so, and compares the various options open to him. After carefully weighing up the pros and cons of each option, he finally decides to open the shop. He has not, however, communicated his decision to several people, who might have different views on the matter: This decision would be unjustified, because the differing views of the experts could not be compared with each other and so could not justify his decision.
Information systems provide a framework in which information about certain aspects of a domain can be communicated to decision-makers. Certain aspects are known and may be used by any user. Certain aspects are known and must be used by a selected sub-class of users. Decision-makers can gain access to such information systems as they need them, when and only if they are relevant for the decision-making process. The concept is thus simple: the more relevant the information systems are, the more likely decisions made in the context of those systems will be informed, and the more likely they will be timely and accurate.
The field of information technology is growing exponentially, with many people now relying on information systems for everyday activities. Even in the business world, information systems play an important role, since computers and their associated technologies permit decision-makers to make decisions that reflect their knowledge and experience more precisely than is possible without them. This is especially true in large companies, where the number of employees is rising every year; the need to make informed decisions about the way workers are assigned and managed, and how those decisions affect production is immense. No other form of information technology has so far provided this information as information technology sectors have.
There are three broad categories of information systems: Information systems designed to provide information and enable decision-making; information systems designed to support business, and information systems that are independent of both. All three fall under the broader term of information systems. Some industries fall into one of these three categories: Information technology, telecommunications, and management. This growing field is expanding at an exponential rate, due to the increasing need for decision-making processes that are more efficient, and the need to make sure that these processes do not become inefficient due to changes in technology or culture. Many people argue that human decision-making is much more prone to error than is scientific or technological decision-making. While scientific decision-making processes are quite good at picking the right information, when it comes to the area of business, information technology proves to be superior.
Information technology also helps businesses move their information from a single location in the business world to multiple locations. Moving information in this manner saves money, which in turn allows businesses to expand and grow. This expansion of information technology industries is helping to propel many into positions they would not have otherwise had, given their choices. With information systems playing such a big part in the modern business world, there is no wonder that so many industries are seeking information technology graduates.