Information Systems and Cloud-Based Computing - Report Example

Student’s name Institution Course Lecturer Date Introduction Recent advancements in computing technology involve shift from the old traditional computing models to cloud computing. This advancement has had extensive effects on management and security of the company’s data. Cloud computing involves the virtualization of storage of data by an organization such that they can be accessible anywhere in the world. It incorporates servers, multiple companies and manifold networks. The difference between cloud computing and network computing is that, in cloud computing cloud services and storage can be accessed via an internet connection anywhere in the world. In network computing, accessibility of the companies’ services and storage is only possible via company’s network (Gillam, 2010). Cloud computing therefore implies to systems software, hardware and applications delivered as services over the internet (Gillam, 2010). Operation on stored data and computation is in the ‘clouds’, which can either be private or public. A cloud is a group of servers and computers linked together to form a network and they are accessible to the public through the internet. A ‘cloud’ can be termed as public if its availability is pay as you go and has no restrictions in terms of its accessibility. Private cloud has its infrastructure being operated by the organization. However, the two can co-exist at the same time being both private and public, and this is termed as hybrid. Improvement in access speed of the internet and a weak economy among other factors have accelerated the interest towards cloud computing. Management Information Systems Applications Management information system offers the information necessary for effective management of organizations’ management (Sadagopan, 2004). It can be differentiated from other management systems in that, they are purposely created for analysis of company’s operational activities. Recent advancements in technology have contributed to the move to advanced management information systems applications. Today's businesses have been busy investing in advanced Management Information Systems applications over the past decade. Many have installed: Enterprise Resource Planning Software Accounting Information Systems Customer/Constituent Relationship Management Systems Supply Chain Management Systems Human Resource Information Systems Investing in advanced management system applications has benefited the companies in many ways. It has provided an effective and efficient means through which the company’s departments coordinate in terms of access to relevant data and documents and faster referencing. In addition, it has provided assistance in day to day operations of a company for example; accounting, stock control and payroll management. These advanced management information systems have increased the speed at which various functions can be processed and its accuracy. Enterprise resource planning system has helped in reducing the costs incurred by integrating business functions across departments onto a single unit (Sadagopan, 2004). Its direct benefits which lower operational costs include lower production costs, reduced costs of marketing and inventory control. Accounting information systems have helped in enhancing the speed of processing accounting tasks. In addition, safety and security of the data is heightened. Customer relationship management system on the other hand has helped in the provision of better services to the customers, thus increasing customer satisfaction. Costs of operation have also been reduced by this system in terms of lowering the number of customer support staff. Supply chain management system has helped various companies to be responsive and rapidly capitalize on emerging opportunities. Communication is also enhanced which enables the company to meet customer needs. The efficiency of human resource department is bolstered by human resource management systems. It has automated various activities in the human resource department for example the payroll, hiring records, and tax information and employee attendance. When these systems work together, an organization will benefit from robust management system. A good example on how these systems can work together is when human resource information systems responsible for managing a firm’s workforce, provides relevant data for payroll processing on the employees’ information to the accounting information systems. One system’s input is another system’s output. If data is not shared throughout the organization, it can be bring in detrimental effects. Organizations have linked together these systems by coming up with enterprise of applications. This enterprise of applications helps companies to become more flexible and dynamic by coordinating the firms’ activities more closely. In addition to this, it helps an organization by incorporating different units together. Any information that can have an effect on other departments, should be disseminated automatically them. Therefore, these systems must work together to provide a robust management system to an organization. One system’s failure will render the whole organization paralyzed. The common thread carried throughout all these systems has been inter-connectivity that supports greater levels of communications and collaboration among all parties inside and outside the traditional operations of a business. As the demand for cloud computing increases which bears a lot of risks in terms of security, companies should be well versed with technologies for protecting their data. Increase in the sharing of data within organizations through enterprising of applications also compromises the security of companies’ data. Unrelenting protection technologies are therefore needed to protect them from unauthorized access. The best protection technologies are the data encryption technologies. Sensitive information which is regularly sent to third parties through public networks should be encrypted. They are supported by powerful identity and access controls that help in protecting clients’ and employee information stored in the data bank. Other data protection technologies include the rights management technologies. An example of this is the digital rights management technology used by hardware manufacturers and publishers against digital content copying and conversion to other formats. Rights management technologies safeguards sensitive data such as the customer data, confidential emails, financial reports and products specifications from accidental access. When choosing a good data protection technology, the best initiative should consider data availability to the right persons while maintaining security. A challenge that is ever present on the mind of business managers and executives often focuses on how to move these initiatives forward with a careful consideration of data availability, while maintaining the highest level of privacy and security technologies to protect the company. Management Information System Cloud Industry Management information system cloud industry has been increasing in the recent years. The industry participates in offering of cloud services such as the management information systems to companies. One of the most interesting trends in the growth of Management Information Systems has been the explosion of companies that sell corporate applications as a service, and not as self contained software. These companies sell products that are made available in the "Cloud" (Lucey, 2004). Instead of a onetime purchase they essentially rent out infrastructure space and application software with assurances of sophisticated security and privacy. Their software often runs in a browser over a secure Internet connection. Cloud computing has helped many organizations by providing management services at any point of the planet without prior need to move. Both staff and customers are able to access information but basing on security granted to them. What can be accessed by the staff is different from what the clients’ access. Like any other innovation, cloud computing industry has weaknesses and strengths. However, the strengths outnumber the weaknesses, and this can be ascertained from the fact that this industry is seeing significant growth. Cloud computing has gained more trust in terms of data security as compared to when it was inaugurated. Businesses can regulate disclosure threats presented by backup disks and computers full of data. The centralized storage and more efficient security software provided by cloud computing, enhances easy monitoring and protection of data. Furthermore, this venture is gaining prominence because it is cheap. Companies have resorted to it, rather than buying storage hardware and software. Access to data in cloud computing do not need any software or hardware but only the internet connection. Management information systems clouding being a point of concern to modern management have some weaknesses. One of the major setbacks of clouding management information systems is complexity of integrating new softwares and hardware. Development of a system that can integrate the requirements may be costly and complex in its operations (Sadagopan, 2004). It can even change the objective of shifting to provision of management information systems in the cloud. Another major problem which has continued to generate debates is security. Cloud computing has never guaranteed total security on data kept. Although several measures have been taken to reduce the problem, it has not been eradicated in totality. Performance is also another problem which hinders clouding management information systems. This could result from network outage and inconveniences. Cloud services provided by different cloud companies are almost the same. Perfect examples of these cloud service providing companies include the Netsuite and myERP companies. Their platforms provide to suppliers and customers. Their common services are the accounting software, inventory management software, customer relationship management software and the ecommerce software. Each of them provides an interface where the customer is able to create a profile, after which he or she will be able to access all the cloud services offered by these cloud companies. Unlike traditional computing, all services are accessible only through an internet connection and can be accessed anywhere in the world. Netsuite Company for example offer cloud development tools, applications and infrastructure that enables clients to discover its capabilities (Netsuite Platform). They provide infrastructure as a service (IaaS), Platform as a service (PaaS) and software as a service (SaaS) to various business companies and individuals. There is also a guarantee of security of companies’ data provided by role based access, strong encryption technology and strong password policies. Their security to data is also provided by robust monitoring of and restrictions to access to certain IP addresses. myERP’s user interface is somehow different from that of Netsuite in that a client has to create a profile , and in within the company’s profile, various services are available. However, the services offered by the two are the same. Company Profiles Netsuite Cloud Computing Company This company was started in 1998 and its headquarters is in Silicon Valley of Californian United States. When it was inaugurated, its mission was to provide web-based integrated business systems with the power of applications employed by world’s enormous companies, while reducing costs and complexity of operation. The company provides cloud based business management software, which assists companies manage essential business processes through a single fully incorporated system encompassing financial, customer relationship management, ecommerce and Suite flex. It has more than 12,000 large and midsized companies using their software to provide business management solutions at lower costs. The operations are automated, streamlined and have real-time access from any part of the world at any time. It also offers other services, which include wholesale distribution, manufacturing and softwares. The common softwares that are offered by the company are either for sale or made available as a service. They include the revenue recognition, recurring revenue management, financial analysts and reporting, financial management, order and billing management, global business management, customer relationship and sales force integration softwares. These softwares are offered as a service and one can only access from his or her profile. The accounting application has the revenue recognition software which has the capability of assigning flexible and customizable schedules on a per item basis. It has automated revenue calculation and reporting which was initially done using complex spreadsheets prone to error risks. Customer relationship management software has the capability of automation of sales force, marketing, customer support and service and flexible customization. It is even more advantageous because all these services are provided in one place. Company that has ventured into this cloud service will benefit from clear visibility, improved sales performance and increase in customer service productivity. The strengths of this company basing on experts assessment shows that being a solid company, it provides a relatively strong accounting solution, has a very nice ecommerce storefront engine and front office customer relationship management. However, it possesses some weaknesses which include its July 2007 admission that it had no backup data centers for customer data and services. Expert’s assessment also shows that it has a weak customer relationship management and help desk support. myERP cloud computing company myERP was launched in 2008 in San Francisco as a new SaaS ERP based on Google toolkit and integrated with Google Apps. It is cloud based software as a service enterprise resource planning solution, which was developed to allow clients get cloud services. Since the time of inception, it has had more than 45,000 users from various countries. Cloud services are provided by the use of applications like, customer relationship management software, project management software and accounting software. Its user interface is also similar to Netsuite’s, only that the customer has to login on order to access the main page. It has one application that provides small business solutions including customer relationship management, invoicing, project management, accounting, and inventory to small enterprises. The user interface has been designed to imitate the Google search bar. By typing any activity in which the customer, he or she will be redirected to the activity. This has simplified the use of this application thus; making its adaptability possible. All the functions inside this application are designed to work together and this minimizes double entry errors. Furthermore, integration of Google Apps is possible for new companies who already have customers and suppliers’ data there. The application allows an investor to track the company’s financials and create a report. Success of myERP is based on its ability to run on various operating systems and languages. In addition to this, there is the presence of collaborative community to offer support services to clients even during the out of business period. The integration with other Google apps has also given an advantage in terms of saving of time. However, presence of too many choices on the same interface can be time consuming and this can be a setback to this application. In conclusion, technological advancements in cloud computing has impacted to a great extent on the operation of businesses today. Small business investors can have their businesses managed in the clouds in a short time and this has reduced the need for them to spend a lot in buying, installing and maintenance of some software and hardware (Marks & Lozano, 2010). Cloud computing has assisted businesses and companies to improve in terms of profitability due to extended network provided by cloud computing. In addition, cloud computing has a robust security monitor system that reduces the risks of loss and entry of data into wrong hands. Small companies can also get sophisticated technology at lower costs because they are able to share with other companies. As a result, overhead costs of licensing the software or purchasing the servers will reduce to a great extent. In addition, it offers a way of reducing information technology infrastructure costs by employing pay as you go idea.(Marks & Lozano, 2010) Before a company or organization ventures into looking for a good cloud service provider, business leaders should understand the services being offered by that cloud computing company. The services being offered should comply with the needs of the company. Some cloud providers are suitable for small businesses while others are good for established businesses, the company leaders should put this into consideration. References Gillam, L. (2010). Cloud Computing: Principles, Systems and Applications. New York: Springer. Lucey, T. (2004). Management Information Systems. Cengage Learning EMEA. NetSuite Platfom - SuiteCloud: The Ultimate Business Cloud ... (n.d.). Retrieved from http://www.netsuite.com/portal/platform/main.shtml Marks, Eric A., & Lozano, B. (2010) Executive's Guide to cloud Computing. New York: John Wiley & Sons. Sadagopan, S. (2004). Management Information Systems.PHI Learning Pvt. Ltd. Read More