The Role of Different Types of Management Information System Applications in Business Development: Concepts, and Limitations

Abstract

Businesses are highly dependent on data to make critical decisions, manage operations, and simplify processes. Information systems equip businesses to gain benefits from data and provide easy and timely access to data through storing and processing input data from numerous resources. The majority of managers can deal with large amounts of data without letting it interfere with their ability to plan, organize, and control the organization. The disconnect between static information systems and evolving organizational structures is another primary factor contributing to information vulnerability. Organizational restructuring often necessitated revisions to preexisting information fixed systems to account for changing roles, responsibilities, levels of authority, and data requirements. An effective information system enables decision-makers in businesses to monitor trends, plan, predict measures prior to their competitors. The role of information systems to improve business performance has been investigated in studies considering the importance of relevant, accurate, and timely data. However, to increase the effectiveness of information systems, a comprehensive understanding of its applications and use cases of each type of information systems based on different organizational levels is required. This paper aims to provide concepts of information systems, present different applications of information systems, and discuss the main types of information systems based on their level of application. Specific types, roles, advantages, and limitations of information systems are also highlighted focusing on their impact on business developments. Besides, the impacts of different types of information systems on organizations and processes are provided.