Three major roles of information systems

Information system also help store managers make better decisions and attempt to gain a strategic competitive advantage. For example, decisions on what lines of merchandise need to be added or discontinued, or on what kind of investment they require, are typically made after an analysis provided by computer-based information systems. This not only supports the decision making of store-managers but also helps them look for ways to gain an advantage over other retailers in the competition for customers.
Three major roles of information systems:

1. Support of Strategic Advantage (Competition strategy)
2. Support of Managerial decision-making
3. Support of Business Operation

Gaining a strategic advantage over competitors requires innovative use of information technology. For example, store managers might make a decision to install computerized touch-screen catalog ordering systems in all of their stores, tied in with computer-based telephone ordering systems and an Internet-based computer shopping network. This might attract new customers and lure customers away from competing stores because of the ease of ordering merchandise provided by such innovative information systems. Strategic information systems can help provide strategic products and services that give a business organization a comparative advantage over its competitors.

The New Role of Information Systems in Organizations

Information systems cannot be ignored by managers because they play such a critical role in contemporary organizations. Digital technology is transforming business organizations. The entire cash flow of most Fortune 500 companies is linked to information systems directly affect how managers decide, how senior managers plan, and in many cases what products and services are produced (and how). They play strategic role  in the live of the firm. Responsibility for information systems cannot be delegated to technical decision makers.
Why Business Need Information Technology, Information Technology is reshaping the basics of business. Customer service, operations, product and marketing strategies, and distribution are beavily, or sometimes even entirely, dependent on IT. The computers that support these functions can be found on the desk, on the shop floor, in the store, even in briefcase. IT, and its expense, have become an everyday part of business life.
Information system perform three vital roles in any type of organization:

1. Support of business operations.
2. Support of managerial decision-marking.
3. Support of strategic competitive advantage.

Let'stake a retail store as an example to illustrate this important point. As a consumer, you have to deal regularly whit the information systems that support business operations at the many retail stores where you shop. For example, most retail stores now use computer-based information system to help them record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. Store operations would grind to a halt without the support of such information systems.