Short note: Organizing information systems

Organizing information systems

Organizing an information system means arranging people, hardware, software, data, procedures and responsibilities in a structure so that the system provides the needed information to managers effectively. It decides who builds, runs and controls the system and how it is placed in the organization.

Main approaches

1. Centralized: All computing and data are controlled by one central department. Advantages: uniform standards, lower duplication, strong security. Disadvantages: less flexible, delays for remote units.
2. Decentralized: Each department or branch has its own system. Advantages: fast response, local control. Disadvantages: duplication, inconsistent data.
3. Distributed: Computers at different locations are linked in a network and share data and processing. Used by banks with branches all over Nepal.

Key elements

• A head such as Chief Information Officer (CIO) / IT manager.
• Units for system development, operation, data management, network and security, and user support.
• Steering committee of users and IT staff to set priorities.
• Policy for data standards, backup and security.

Steps

1. Identify information needs of managers.
2. Design the structure and assign responsibility.
3. Acquire or develop hardware and software.
4. Train users and run the system.
5. Monitor, evaluate and improve.

A well-organized information system gives timely, accurate information, avoids duplication and supports decision making.