Information System and Software Application in Business 5

INFORMATION SYSTEM AND SOFTWARE APPLICATION IN BUSINESS 5

Information Systems and Software Applications in Business Organization

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Information system and software application in business

An information system is an integrated set of computer based components which aid in gathering, processing, storing and communicating data and information within an organization. Software application involves the installation and utilization of specific computer programs designed for each activity in the business (Davies, 2004). The aim of these systems and software is to make the business activities easy to perform, increase efficiency, speed of action and accuracy. In other words, they increase the quality of business activities and the results. Information flow is the main point of focus for all these systems (Davies, 2004). With increasing technology, information systems have become sophisticated yet user friendly and easy to use. Computers have become a basic necessity in all business organization. The evolution of information systems and software goes in hand with the evolutional trends of computer and computer based technology. In modern times, diverse varieties of information systems and accompanying software have been developed to fit into different systems in business (Davies, 2004). Departments in business organizations that extensively apply information systems and software include finance, accounting, human resource, marketing and management.

In this research paper, we review the application and use of information systems and the accompanying software in three departments of a business organization as an example to show the effect and importance of their use. We therefore focus on marketing, human resource and finance departments as the case of study in this paper. The aim is to let the readers understand how computer based technology is applied in business activities within organizations. In this paper, detailed information on the varieties of software and information system available for use in business is provided for the readers.

Information system and software application in finance department

Finance department is the crucial section of business organizations which is mandated with management of organizations funds. The department manages and maintains data and records concerning funds (Davies, 2004). It gathers, stores, processes, maintains and communicates the financial information within the business organization. Therefore, it is necessary to apply the best information system in this department, in order attain accuracy and efficiency of data and information organization and flow (Davies, 2004).

Some of the most widely applied information systems in finance include is the Finance Information System (FIS). This information system is computer-based and employs the use of specific and general software (Czinkota, 2007). It is a subset of management information system (MIS). It tracks the financial events and summarizes the information, which guides in decision making process (Keyes, 2000). The activities in which the system is applied include cash management, committee control, accounts control, accounts payable, accounts receivable and the general ledger (Czinkota, 2007). The FIS is has three main components; financial accounting (FI), funds management (FM), and controlling (CO). The FI is the component that is used for central reporting purposes. The FM component is used to recognize sources of funding and control all the expenses. CO is used to track the revenues and expenses for reporting purposes.

Some of the financial information software which accompanies FIS includes FISAnalyst, GnuCash, LedgerSMB, ERP, SQL Ledger and Adempire among others. This is comprehensive and highly accurate computing software. FISAnalyst is comprehensive software for financial industry (Keyes, 2000). It is a powerful but easy to use. It has financial statement, contact information, performance ratios, and financial system ratings (Keyes, 2000). GnuCash is used for managing documents with double entries and is designed for small business organizations (Keyes, 2000). LedgerSMB is double-entry software for large business organizations; it is free online and can be installed on personal computers. SQL is powerful database management software that can be applied in business finance to perform almost all the functional activities in this department (Keyes, 2000).

Human Resource Management System and Software

The human resource information system is a subset of management information system which is applied for performing business activities relating to human resource management. Such activities include data entry, tracking, payrolls, management and accounting for human resource affairs (Rashid, 1999). This system is accompanied by the human resource information system software (HRISS). This software is installed into computer systems at central points of the in human resource departments (Rashid, 1999). There are several versions of this software, each depending on the strength of the function applied and the company of origin. Examples include the Cezanne, Project-Open, Sage GroupHRM, Lawson, Zoho Office Suite, and OrangeHRM (Rashid, 1999).

Marketing Information System and Software

This system is intended to incorporate distinct items of data into a rational organization of information (Czinkota, 2007). It aids in managing information and data relating to marketing. Specifically it is applied in the activities of marketing managers including coordinating, planning, organization, decisions and controlling (Kotler, 2008). It is composed of marketing research systems, decision making, and market analysis and market integration. This system is accompanied by specific software (Kotler, 2008). The most widely used and well developed software is the Expert system software, which performs most tasks associated with marketing managers functions mentioned above.

References

Czinkota, M. (2007). International business marketing. London, UK: Routledge.

Davies, D. B. (2004). Managing financial information. Washington, DC: CIPD Publishing.

Keyes, J. (2000). Financial services information systems. New jersey, NJ: Cengage.

Kotler, P. (2008). Marketing management: Analysis planning and control. New York, NY: Prentice- Hall.

Rashid, N. (1999). Human resource information system: An innovation in the HR department. Australia, Melbourne: Victoria university press.