Literature Review

Nowadays Information System has a versatile impact on organization. Laudon and Laudon (2016,
P-48) defined technically information system as a set of interlinked part that assemble ,practice,
stockpile and dispense information to support decision making and control in an organization. In
addition to backup decision making, management, and control, information systems may also help
decision makers and workers to evaluate the problems, figure out complex subjects, and
manufacture new products. Valacich and Schneider (2012, P-53) opined that information system
has five key apparatuses: human being, hardware, software, data, information and
telecommunications network. Actually an organization collect, retrieve and use data, information
for organizational decision making purpose.

The role of Management Information System can be compared to the role of the heart of a body.
The information is the blood and MIS is the heart. In the body, the heart plays a role of supplying
pure blood in the all function of body including the brain. The heart works faster and supplies
blood when needed. It controls and protects the coming of impure blood. MIS plays exactly the
same role in an organization. The system collects appropriate data from various sources, proceeds
it and sends further to the needy destinations.

This study is designed by the magician impact of information system on organization. Now the era
of information system which works like as boost for the versatility of the organization. Basically
information system improves the organization in various aspects. It changes about the overall
structure of an organization. There is a great sources of available works on this issues that unfold
the effect of information system on decision making, structure, customization and flexibility in an
organization.

Now it is tried to overview the previous literature and found what change occurred in an
organization due to the annexation of information system. The previous literature shows that
resulting the addition of information system with the regular activities of an organization, it creates
a magical impact on the organizations functions, performance and productivity that is presented
phrase by phrase with the citation of erstwhile literature.

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Laudon and Laudon (2016, P-45) opined that business firms invest heavily in information systems
to achieve six strategic business objectives: operational superiority, new yields, services, and
business representations; customer and supplier tenderness; enhanced decision making;
competitive advantages and survival.

Information system basically changes the structure of the organization. It is interested to note
based on earlier discussion on computer system and organization that evolved the computer
architecture and changed the structure of the organization from centralized to decentralized design.

The study of Mukherji (2015) indicated that the organization was centralized structure and decision
making process was steadier, strictly followed the rules and regulations by the manager or head of
the organization, but after implementing the information system in the organization, it turned into
decentralized structure and compiled into divisional structure, that was first followed by the DU
Pont and later was General Motors of United States of America. This movement away from
functional control to divisional control. The organization was changed into typical M-form that
would give the complete autonomy in their area. This changed took place to handle the competitive
advantages. In decentralized structured there is a high degree of freedom to operate their activities,
the most forefront quotation about decentralized structured that in which the power is maximum
and the protocol or rule are at minimal.

Actually in centralized structured organization, the decision making process is very lengthy, there
are some hierarchy or protocol followed by the authority that make laziness the decision making
process. Consolidated organization also the greatest barrier of creativity and innovation. No one
can make opinion without the prior consent of the authority. It protest coming of new idea about
innovation and implementation. In decentralized structured, no one can enjoy the full freedom of
speech in the organization. Obviously that works as barrier in case of innovation of new products
and services. Whenever information system annexes in the organization, it changed totally the
format and pattern of the organization. It fastens the decision making process, because it has a
huge volume of past and required data, it processed it and put forward to the destination needed.
The information exists ready that enabling flexibility the decision making process. It puts the
changed into divisional structured that enabling the complete autonomy to perform the activity in
their own division.

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Mukhetji (2015) also showed that information system changed the organization in five stages:
firstly, initiation, in this stage computer is invented that save costs and computers were looked
upon as labor saving device. Some typical activities nowadays such as payroll, accounts
receivable, accounts payable, customer billing is impossible without computer.

Secondly, expansion: In this phrase computer typically dealt with cash flow, financial statement
analysis, valuation of stock and bond etc. Computer keep the record of this information that is
helpful for decision making process.

Thirdly, formalization: here the applications developed by giving essence of organizational

controlling tool, especially in the area of production, planning and cost control system.

And finally, maturity: strategic planning is run by this stage. Application typically included
simulation, planning models, online query systems and complex data base management systems.

It is cleared that information system and organization evolved due to different reasons. Information
system evolved due to meet the demand of the age, but organization evolved due to cope with
environment, culture and recently invented technology.

Now it is presented the impact of information system on mass customization capability of

manufacturing plants. The mass customization production approach has found increasing interest
in the operation management literature. The most interesting and revolutionary effect of
information system in an organization on mass customization. Mass customization allows the firm
to provide products who are no longer satisfied with the standardized products. Mass
customization allows firms to satisfy these customers by manufacturing a relatively high volume
of different products for a market that demands customization without substantial tradeoffs in cost,
quality and delivery. Mass customization is a common concept which involves a number of
processes and functions.

Williamson et. al (2013) opined that an Mass Customization production system blends the benefits
of mass production and customization. It assures from the flexibility of accepting the product to
the global customers that saves cost effectively, for this reasons it is named as cost saving
efficiency.

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Kumar (2004) opined that while implementing mass customization it is thoughtfully needed
overall information about customer, on the basis of their locality, age, gender as well as all
necessary data and information.

The study of Gensheng et. al (2011) founded that manufacturers often take help from information
system to adopt design and build the needed product. They also take help from information system
related to order specifications, all types of supply of raw materials, assembly and finally delivering
the order. All types of these environment creates information rich environment for mass
customization. Because information technology is used to handle all types of these data efficiently
and successfully. Basically designing questionnaire, they try to collect the data about customers
need, demand, choice and preferences, then the hypothesized relationships are tested according the
preferences of customers and from the direction of this data it is tried to manufacture a large
portions of customized products. Actually this process is time consuming and cost enhancing, but
with the help of information system it is easier to collect data from locality, test it, and build
hypothetical relationships and finally manufacturing products to the direction of this information.
Information system processes the data into information easily and effectively.

Now it is tried to visualize how information system help decision making process. Decision is
basically selecting a best one among the alternative available. It best suited to choose alternative
from the alternatives available with the help of information system that is already keep in an
organization. Now in a constantly changing environment and competitive it is very difficult and
complex to make decision. Moreover many decision makers nowadays have to handle a mountain
of dissimilar and heterogeneous data. So they are not able to make correct and accurate decision
rapidly with the demand of situations. (kennerley and Mason, 2008).

Simon (1965) identifies three stages of decision making i, e., intelligence, design and choice;
Mintzberg et, al(1976) also focuses the three phrase differently named identification, development
and selection procedure; Newman (1971) suggested more forwardly that there are five different
phrase of decision making process that is recognition of situation or problem, identification of
alternatives, evaluation the alternatives, selection of alternative and finally implementing this
alternative.

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Whatever the phrases decision must handle a mountain of heterogeneous data in order to select the
alternative. In the process of decision making this secondary can be manipulated with sophisticated
hand. But with revolution of information technology it is easier to detect this manipulated one with
the diversity model suggested by the information technology. Information technology has an
immense of qualitative and quantitative indicators, the relatively medium and long version,
whatever that is needed that is used in information reflection of organizational performance.
(Laudon and Laudon, 2011)

The exploitation of information technology is formed between division of jobs among human
actors and technological systems. The latter play magical impact in this perspective. That is storing
the information specifically and analyzing large volume of data, obviously it help managers to find
solutions in the context of organizational problem. Planners and policy makers of an organization
use then this information smartly that is storing by the organizational information system (Harris
et.al., 2008)

Boulesnane (2013) opined that technologies and information system provide a lot of structured
information that help to support decision making very quickly according to the demand of
situation. In this regard, data mining, specialized software performed the genuine task. If there is
no information system in an organization then, decision making process become more complex.

Now it is tried to overview the literature about organizations e-business strategy. With the
development of information technology and rapid growth of information system, organization
emphasizes the development of e-business strategy. For instance, Hooft and Stegwee (2015)
introduced a procedure for improving e-business strategy, which works as the base of information
system. This model has a number of phrase: visualizing a vision of e-business, strategic formation,
selecting ground for strategic e-business software, blending strategic e-business software and
finally formulating e-business plans.

Li and Chang (2004) presented a strategic plan for e-business, emphasizing that e-business must
be dynamic, holistic and dialectical.

Pai and Yeh (2008) showed that the organization use information system to perform its strategic
planning and strategic e-business. As a result the development and implementing strategic e-
business information system perform a great work in this regard.

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Basically information system store all types of data and process it and further restore it for the
purpose of future use that is useful for strategic e-business planning.

Information system initiates to obtain powerful competitive advantages over their competitive
partners. Competitive advantage are regarded as abstraction, but it has a great visual impact on an
organization. All successful enterprise has some unique asset and liabilities that help them to gain
powerful competitive advantage over their partners named competitors, if the organization will
keep and grow these unique asset and liabilities it creates a strong position in the market. In
dynamic environment and complex situation it is totally impossible to gain this advantages without
the help of information system.

Ciborra (2009) emphasized that organization get help to attain competitive advantages from
information system of a particular organization. Information system help to collect the information
about how react about new product, what is the perception about the upcoming new product,
information system collect the data about the perception of customer and help the organization to
design the product according to this model, surely with the help of information system organization
can provide high quality product to fulfill the need and demand of customer at less price that move
forward the organization from their competitors. With the upcoming software of information
system it is easy to perform this task.

Information system also help to gain accounting adaptability, the study of Yigitbasioglu (2016)
indicated that organization perform accounting adaptability in the broader time frame, the study of
Hemmer and Labro (2008) indicated information system as a facilitator in this regard and Innes
and Mitchel (2015) indicated the information system as a motivator or catalyst in this manner.

Now it is tried to overview and the difference about early and delay adaptation of information
system in an organization. The result of the study of Yang and Lee et.al (2015) indicated
interestingly there is a great discrepancy between early and late adaptation in an organization.in
this regard it can be presented the interest and age of manager or chief executive officer is liable.
Attractively there is no difference between organization resources and corporate strategy forces of
organization. Furthermore the study also found that organizational characteristics i.e., sales volume
or resources may create differences between early and late adaptation.

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The study indicated the delayed to implement new technology in an organization may be the
limitation of an organization. So this study message the information technology vendors also.
There are may be several reasons why the chief executing officer delay to adapt new technology,
the reasons may be the attitudes and interest of CEO. In this regard the hieratical matter can be
neglected. It can be mentioned that organizational management style can be the big factor.
Information technology initiation and growth period can be considered in this regard. If the attitude
and interest of CEO change the acceleration may be occurred about early adaptation of new
technology.

Secondly, contrary to the personal interest of CEO cases, organization that is considering to adapt
Information technology that are affected by the organization which are already adapted by
information technology. In order to make early adaptation the propulsive forces of CEO is
essential. Promoting information communication technology from the head office also reinforces
the adaptation process in terms of centralized and decentralized organization. Finally it can be
concluded that adaptation may be different in case ICT adaptation. This findings may provide a
handful resources for the organization which are considering ICT adaptation and which will adapt
new ICT in the near future.

Now the phrase is presented the flexibility ensuring in an organization with the help of information
system. Flexibility ensures the organization to adapt current market environment as well to cope
with the upcoming future competitors environment. It provides the means to attain organizational
goal. It is argued information system make a great contribution to ensuring organizational
flexibility. But it is not claimed that increased flexibility in an organization has been gained or will
be gained only the help of information system employing in an organization.

Henry et. al (2015) indicated that there are three major ways of altering flexibility in an
organization. Firstly, information technology can alter the time and space of an organization, now
it can be hard to separate employees workplace, home and entertainment space, each and every
time the employee can be active by technology even though being in home or in sea for
entertainment. Secondly, it changes the pace of work by spreading up the information process and
finally it enables the organization to respond quickly with the changing market conditions.

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Communication technology helps to reduce the barrier of quickly in decision making situation.
Technology and information system in an organization speed the processing of information, so
that timely decision can be made.

Human resource department is considered nowadays the most powerful tool for organizational
efficiency and effectiveness. Because employees are considered the blood of an organization. If
the manpower is efficiently processed the half job of an organization has been done. Good
employee behaves citizenship behavior of an organization and citizenship behavior is the
discretionary behavior of employees that are not the part of employees contractual task but that
support the psychological and cultural environment of workplace. Good employee also dont try
to make withdrawal behavior that is the employee try to separate themselves from the attachment
of an organization. So human recruitment process is so much important to hire efficient employee.
Information system can perform this task efficiently and effectively within the human resources
department of an organization. For this regard majority of the organizations have understood the
importance of information system. A lot of research have been conducted to observe how modern
information technology help in ensuring effectiveness of human resource functions. For this reason
a new phenomenon has come to our face, that is human resource information system (HRIS). The
addition of information technology to the human resource industry has developed the fashionable
workplace. Human resources scholars now have an increased capability in the field of gathering,
storing, retrieving information timely and real manner.

Kovach et.al (2011) opined that human resource information system is considered as the
systematic model for gathering, storing, maintaining and using the information by an organization
about their human recruitment activities, data base personnel activities and organizational
characteristics.

Benefits of human resources information system is appropriate for the implementation of Human
resource information system varies from organization to organization. Some organization use it
for reducing cost, another use it for better communication and others use to facilitate the human
recruitment process. The data collected from HRIS is used for decision making tool. The available
human resource data save cost of organization, for this reason Parry (2010) indicated the HRIS as
cost efficiency tool. The most important advent of human resource information system it faster the
decision making process regarding the human recruitment activities.

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It is very difficult to ascertain the value added by the human resource information system directly
on the revenues and profits of an organization, these result merely identify the job satisfaction and
performance of employees in an organization. HRIS is very beneficial for decision making process.
Mayfield et.al (2003) came to a similar conclusion that administrative activity can be reduced and
due to information system turnover reduced as much as possible. But it is difficult to link between
human resource information system and the benefit of an organization.

Information system today facilitates the decision making process. Data today are considered as the
lifeblood of an organization. Organizational strategy is effective and efficient way to manage the
integral part of data. So successful organization collect and restore high quantity of data that leads
to ample source of information and that facilitates the decision making process. Thats way for
successful and effective managerial decision making process, it is unavoidable to provide accurate
and authentic as well as timely and relevant information to decision makers. Management
information system is such kind of information system that collect and restore ample amount of
internal data that is typically presented to management in form of report that facilitates the
managerial decision making process. Management information system merely improve the quality
of data that subsequently affect the managerial decision making process. By converting the data
into information management information system communicate each level of management. As the
success of effective and efficient decision making, is considered the heart of management and
management information system perform this task very purely (Nath & Badgujar, 2013).

Moreover, management information system is established the base of decision making process by
its systematic powerful tool. Timely and accurate, authentic decision make is not so easy task. This
job is completely performed by the organization with the hand of information system.

It is more important to notice that the capability and completeness of an organization is totally
depends on the good managerial decision making process (Lingham et. al., 2006)

For this above reasons management information system is so crutial for an organization. Actually
management information system and decision making process are totally complementary
nowadays for the organizations. So it cannot be neglected safety, if it has done it can be harmful
for an organization in terms of survival. In recent times the survival of an organization are
completely substitute of an organization. If one firm cannot handle and adapt the information
system properly it is faced the question for its survival.

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It is considered a university student who has symphony D55i and who has smart phone, obviously
the they are not same in terms of remaining up to date with the changing world. The thing is similar
in case of organization nowadays. Basically management information system can be compared the
heart of the body. It supplies the blood needed and protect the impure blood. The management
information system can be compared and exactly play the same role in an organization. It collects
the appropriate data from various sources and proceed it and send further to the destination needed.

Now it is tried to conclude the summary of previous literature review about the impact of
information system in an organization. Organization was vertical centralized structured after
implementing the information system it turn into divisional structure that was followed by the DU
pont and latter was General Motors of USA.

This change took place to handle the competitive environment. In decentralized structure, there is
a high degree of freedom to share the resources.

Email, telecommunications network are used to be sent the messages that ensures the quality,
quantity and reliability of the system to process information. The impact of information system on
mass customization cannot be neglected, by considering the Coca cola of USA and Bangladesh it
can be found that the USA coca cola has huge amount of caffeine citrate, citric acid, vanilla extract.
In our countrys perspective the exact Coca cola of USA face the greatest protection, because our
religious domain will not support the alcohol mixed product. Here information plays magical
impact to collect information and manufacturing customized product resulting the satisfaction of
local customer.

Information system facilitates the decision making process, data are considered as the lifeblood of
an organization. Successful organization will collect data which can be converted by the
information system that facilitates the decision making process. Information also ensures the
flexibility of an organization. Flexibility enhances the capability to cope with the external
environment. Besides human resources process nowadays totally depends on information system.

It is known like the light of sun that the old aged men are more conservative that can be understood
by remembering the face of our grand people.

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Ahsan Habib the Bengali poet said angrily, hope aspiration and ambition are illusion we say, but
they say (the youngest) ambition is life and the purely the beauty of life. The thing is similar in
case of an organization with implementing the new technology. The old aged CEO are very
conservative to implement the upcoming technology in his organization about early adaptation.
But there are also some factors such as limited resources and unexperienced manpower which are
negligible in case of old age CEO& CIO.

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