Why is Information System Important for Growing Business?

Information system is a collection of methods, resources and guides to help companies and organizations build and regulate their system on performing different useful tasks like collecting, sharing information and many others. It basically simplifies and makes it easier for companies and their employees to carry on tasks with the information they are provided with. Management Information System is worthiest and particular type of system which is used for the management under different companies and organizations. 

The raw predominant form of the input is data, without it information will not be produced and without the information a company will find it terribly difficult to take steps for improvement or there also might be zero scope for improvement. While inputting the data, it is crucial to follow a logical way and be sure that it is fit for the purpose the data is being inputted for. Accurate data is the core need to build up a great information system because data is where the process starts. For example, our restaurant will need the data of total sale in order to calculate the net profit of the month! So, basically without primary or secondary data an information system cannot even be formed properly. 

Different sectors of the company uses information system and it is proven to be extremely useful without a doubt. For the administration sector, while recruiting the employees for the restaurant they are hugely being dependent on the information system. Collecting the CVs and analyzing the efficiency and experience of the applicants is the use of the information and the way the information is passed to the administrator is pretty much the use of information system. Other than administration sector, different other sectors use information system too, the finance department might keep the record of the bills paid for the meals we are providing for creating the financial record, IT department will need the information to update the website accordingly and all the other departments will need the information system at some point too.  

Hardware, software and telecommunication are the core materials which are used under information system and they actually enhance the communication and assist the company to bring out better output. 

Hardware: One of the most crucial components used under information system are the hardware. For restaurants like our company, computers are definitely the biggest help for the information system, the computers will without a doubt help to process the data into information and on the other hand, help us record the information and use it whenever they are needed. File server is another great add-on which without a doubt helps to store information, it basically allows the employees and employers check the information from wherever they want just by logging into the file server, without a doubt, it is a dynamic enhance to the portability of information. For our company having up-to-date hardware is important in order to bring the greatest output.

Software: An important thing software is needed for is networking, without networking building the technological information system within the company will be tough because connecting all the departments together in order to pass information will need networking. On the other hand, for management of the company different software of Microsoft Office might be needed, for example for storing data and keep them safely, Microsoft Access will be a huge help, on the other hand, for calculating and keeping the information safe for future use, Excel is going to be a help. Overall, having software boosts up the abilities of an information system.

Telecommunication: The sharing of information within different departments of our restaurant is critically crucial and for that telecommunication is extremely effective. It will boost up the speed of sharing information and on the other hand, help different departments get feedbacks about their work. Building an intranet is extremely safe and will help form a great network for telecommunication under our restaurant. Telecommunication is not only used in restaurant businesses but most other businesses too.

There different functions, which are used under information system in order to make the job a lot easier. The functions include, input, storage, processing and output. When restaurants like our one uses all these four function the efficiency of information system and its output gets improved immensely and getting a great output leads to a massive improvement for restaurants. 

Input: The data we use under information system is mostly the input. For processing a proper information as output it is mandatory to input a legit data, which is accurate and can benefit us with information beneficial for our company. Detailed data is used for getting a proper output. It is important for the information system to know what kind of analysis they should try doing in order to produce a proper output using the information provided. 

Storage: Storage is the place where the data are stored in order to later be analyzed and taken steps to process it to an information which can be beneficial for our restaurant. IT is critically crucial for the storage to be as detailed as possible because if later on the analyzer does not understand the data stored then how is he or she going to help it be processed into information. On the other hand, it is important for the storage to be safe and not be damaged, our restaurant can also backup the data in order to be cautious. Finally, data should only be passed to the authenticated ones. 

Processing: Throughout this function the data is processed into information in order to provide the administration or the restaurant something beneficial. For example, the net profit of the month, the total wage of the employees working and many more. The calculation processing falls under complex processing and all the forms of processing fall under general processing. 

Output: Output is the final processed information, which will eventually help us to benefit our company. It can be in graphical form which will include power point presentation or other kind of graphical reports. It can also be in text, for example, the detailed calculation of the gross income of the year or the net income of the year of our restaurant. For creating the financial statement of restaurants like our one, it is very important to use the output accordingly.

 

The word loop means a structure of a series from the beginning to the end on repeat. Feedback and Control Loops basically do the same job in Information System. After the processing of information system is done for the first time, using the loop will make the job easier for our company to produce the information for the information later in the business. Feedback loop is an extremely great feature which will assist our restaurant to analyze the output when there is something fishy and let us know and we can take steps if needed. This is a system which helps to repeat the work again and again to reduce employee effort. 

For restaurants like our one, it is important for the employees to know the difference between open and closed system. In Open system there are different options, which we can use in order to eventually bring out the final output of our information and present it in different various ways too. Open System actually gives us a vast amount of choices and are used mostly by the restaurants like our restaurant. On the other hand, in close system we cannot use all the types of formats and ways to produce the final output, for example, we might not be able to use graphical options to produce output and be stuck with textual ones. I would obviously suggest to go for the open system.