Informatics Transaction Processing System

Questions: 1. Discuss how an information system, of your choice, works (take a case) and how such a system can enhance a companys performance.2. Identify the challenges that informatics can present to organizations and societies technical, cultural, and ethical. Answers: 1. Presently the information system is the most common concept for developing the economic growth as well as improving the structure of the organization. In todays business world, various type of information systems such as expert system, decision support system, transaction processing system, management information system and office automation system. This system has a different role in an organization hierarchy and their operation. Now the impact of the information system is being defined through the evolution of information system in the Walmart (DeMarco, Paul Kilpatrick, 2015). Presently Walmart has enhanced their business as the biggest retailer all over the world. They have earned $15.2 billion on sales of $ 443.9 billion in 2012. This retailer presently serves 200 million clients in seven days this kind of success achieved by their supply chain management system. The Walmart implemented this information system in the mid-1980s, which allows the direct access to their inventory levels as well as information regarding sales of their at any store. This information system allows the supplier to analyze the sales record of their product, this information is generated by a range of reporting option (Pearlson, Saunders Galletta, 2016). This advance option provides the advancement in terms of managing their inventory levels. If any supplier thinks that their product is selling out very quickly, then they can inf orm the Walmart for raising their inventory level. According to this study, it can be assumed that this kind of significant process to inventory management has given the allowance to the supplier and Walmart to carry out the respond towards the market forces and drive the price down. 2. Technical Challenges: The use of informatics have resulted in giving rise to some technical challenges for Walmart. The information system had become complex, and it has increased the probabilities of making errors. The information data for the operations of Walmart is huge in number. Apart from it, the use of informatics would also lead to increase in time taken for deploying the system (Pearlson, Saunders Galletta, 2016). Hence, the management of such amount of information would give rise to some technical mistakes or errors. Cultural Challenges: The use of informatics would give rise to some cultural problems in Walmart. The employees who lack the knowledge of using the informatics would be terminated from the organization. The overall interaction among the employees while transferring the information would be nullified, as the information and data can be transferred easily by using the informatics system (DeMarco, Paul Kilpatrick, 2015). This lack of interaction would give rise to cultural differences and growth of tension among the workers at the organization. Ethical Challenges: The use of informatics for the operations of Walmart would also generate some ethical issues. The informatics had also provided chances for the growth of technology for misusing the information stored at the informatics database. The hackers and the cyber criminal could hack the system and extract information from the system by using the advanced tools and techniques. The data and information might be misinterpreted for harming the flow of operations of Walmart. Moreover, the rival companies can use the stolen information for capturing the market and gaining supremacy over the Walmart. Reference DeMarco, S. S., Paul, R., Kilpatrick, R. J. (2015). Information system technologies role in augmenting dermatologists knowledge of prescription medication costs. International journal of medical informatics, 84(12), 1076-1084. Pearlson, K. E., Saunders, C. S., Galletta, D. F. (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley Sons.