Business Drivers of Information Systems


The business information system refers to technological resources integrated to spread information desired in an organization. This System is essential for decision making in any organization with the aim of the achievement of set objectives.  In the world today, growth in technology has led to the emerging of several free digital programs, growth of online software and also, growth in cloud computing, which an online platform used by businesses to carry out their daily activities over the internet. The current development in business information systems is rapid technological growth, cloud computing popularity, generation of more efficient computers with storage devices, an increase in software as a service, and the emergence of a digital platform as a business system.  A digital platform is an online system that allows the organization’s tasks and interaction with its employees done digitally. ABC company’s new project is the installation of an online order for renting playing games. This paper will explain the benefits of the System, the risks associated with the System, and mitigation solutions for the risks identified.

Technology is dynamic to meet the continual demand of the market. Information Systems (IS)leads to revenue maximization and cost reduction by making available business information relevant to making critical business decisions. ABC company’s new project of installing a new internet system accompanied by several factors considered before installation. The focus of the company is to allow online playing of games and to rent out the gaming products.  Businesses should consider the objectives before deciding on whether to install a system.

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Business Drivers of Information Systems

  1. Operational Excellence –the System should improve efficiencies in operation to realize higher profits. ABC’s new System will target a more substantial number of people, especially youths, as the games are now accessible on the online platform. This will increase the number of people playing as they do not have to visit the company premises to play physically. Additionally, the company can rent games through this platform. This diversifies the sources of income for the company.
  2. New Products, Services, and Business Models – New information system is associated with changes in the daily routines. ABC company should develop quick adaptability to the expected change due to the new IS. The ability to change translates to the company offering new products and services to customers at an increased rate.
  3. Customer and Supplier Intimacy – ABC should carry out a background check to ensure that their customers and suppliers have access to the internet. Understandingcustomers leads to their satisfaction, and this translates to long-lasting relationships with customers and suppliers.
  4. Improved Decision Making – Decisions made should be on real-time following the new IS as the results are tracked online through the System
  5. Competitive Advantage –customer satisfaction, the convenience of the gaming product, accessibility, and customer response will increase the ABC competitive advantage over other competitors.

For the IS system to be successful, ABC must have a business culture that supports efficiency and effectiveness in operations, working business processes, decentralization of control, and a strong team for IS development (management system department). The organization staffing process should also be based on technical experience and specialization; this maximizes the output productivity with limited input.

Impacts of IS in Organizations and Business Firms

IS eliminates the need for middle managers and clerical employees as the System substitutes human-intensive labor. IS reduces the labor cost paid to workers to carry such tasks. Over time, the managers will prefer to invest more IT other than other capital intensive investments due to the reduction in costs. IS helps the firms to reduce transaction costs by reducing the purchase of items or services that are now made by the IS. The transaction cost theory states that firms and people want to reduce transaction costs as they do on production costs. IS has led to a reduction in the number of employees in the firm by contracting external suppliers and outsourcing services, which relatively less expensive compared to recruitment to employees. As the transaction costs reduce, the size of the firm reduces, and internal management costs also reduce.

The new IS in ABC company will reduce the size of the company as the clients do not need to visit the premises to play games; hence some of the playing stations will close down following the online launching of gaming. Additionally, the IS also has a new database of storing their games, and this, too, will reduce the necessity to have many storage hardware. The System has connecting software that will connect the new System with their old System, and this will translate to a reduction in costs related to manual shifting of data.  Game rental will increase the coverage area to ensure that those with no access to the internet can as well visit the nearest rental cities to play games. The Agency theory states that as a firm continues to grow in size and coverage, agency costs increase due to the need to increase the number of employees.

            Risk Assessments of Information System Security Risks

Information Systems are exposed to numerous threats and uncertainties such as hacking, loss of data, unauthorized system access, physical damage, among others. Risks are the probability of an event that will lead to a loss in case it occurs. Risks are subject to the vulnerability of the System. The occurrence of risks interferes with the secrecy of data, integrity, and accessibility of IS. Risk management and assessment are essential tools of Information Security Management(ISM). Risk management is a vital process in protecting the IS. Therefore, ABC Company must have a deeper understanding of risk management and assessment significance and fundamentals.

Risk Management Fundamentals

Risk management consists of identification, examination, and evaluation of risks in IS within allowed scope. Every organization or company with IS has to account for and manage risks to a certain given level. Risks management plays a vital role in protecting the objectives and the equity of an organization. The risk management process involves four aspects, which include; formulating risks, evaluating risks, respond to threats, and systematic review of risks. Vulnerabilities in the System pinpointed using various ways. The organization can start by listing the common weaknesses encountered daily, and with the help of the system expertise, they can identify other vulnerabilities and threats. A relationship between these vulnerabilities is discussed, and it’s used to measure the extent of harm that would be felt if the risks occur.

Formulating risks helps with the formation of a risk management strategy and approach used for evaluating and monitoring the uncertainty in the stage identified. Evaluating risks aids in determining the extent to which damage would occur in case the risk occurs. It is useful in identifying danger, weaknesses, and measure the effectiveness of risk occurrence in an organization. After risk identification and assessment, the next step is to address and respond to the threat by formulating alternative control measures for the threats. The last component, which is monitoring risks, continually confirms that the response put in check has been utilized and monitors the effectiveness of the actions outlined. A good system maintains the principles of information, which are confidentiality, integrity, and availability of data when needed. This ensures that the data is reliable, and reports are timely.

A standard risk assessment methodology comprises four main principles; the process of risk assessment, Risk model, approaches to risk assessment, and approach to risk analysis. The risk assessment approach can be an expression of the numerical value assigned to each method used. Also, it can be qualitative whereby the assessment expresses the degree of impact or harm given the uncertainty and possibility available. On the other hand, the analysis focuses on the effects associated with risk occurrence.

ABC Company System Analysis and Mitigation of Security Holes

Based on the research above, I will perform a detailed analysis of the company’s new System with examples of possible risks associated with the new website, new database, the new CRM, and the game product. The new IS relies on the use of the internet. Therefore, it’s exposed to several numbers of threats as follows;

  1. Inferior technology with unreliable security- With the release of technology daily, new hardware and gadgets that have access to the internet without any form of protectionhave increased. Therefore ABC Company should ensure that the System is not subject to such devices, which might compromise the system performance. The MIS department should ensure each connection is secured to reduce such vulnerability.
  2. Attacks from social media- cybercriminals are discovering new ways to tap even the heavily secured networks globally. They are using social media as a medium of distribution to distribute water holing, which is a complicated geographical attack on websites with the most targeted audience. The company should mitigate this risk by securing each connection and restricting access to unauthorized people.
  3. Third-party entry- this risk results in the access of Systems to carry out unethical tasks by the third parties. The company should only issue access to reliable people.
  4. Neglecting quality configuration- lack of proper configuration of the System makes it vulnerable to cybercrimes. All functionalities needed for the performance of the System should be configured to avoid risks.
  5. Outdated security software- The Company should continuously update the System to protect the database. Updates can curb threats that are known and identify other upcoming vulnerabilities. An outdated security system will not detect new threats, which might lead to loss of data.
  6. A system without encryption- the company, should ensure each gadget that uses this System is encrypted. Lack of encryption lowers the security of the System, and this means that the safety of the data can be compromised easily.
  7. Company’s data on personal devices- technology today has allowed people to access systems from work through their mobile phones and tablets. The company should come up with management tools that limit the extent of data that one can access work.
  8. Inadequate security Technology –the company should invest in software that signals alert incase the System is compromised. There has to be a person to address the warnings whenever there is a signal. This ensures the safety of data at all times, and confidentiality of data is also upheld.

Following the above, ABC Company will be in a position to monitor the IS installed, and this will ensure the new database is maintained and kept secure from the high threats. The new System will increase the profitability of the organization as it targets a broader market now, which is the online fraternity. The risk assessment measures put in the company should as well safeguard the game products to avoid other people from duplicating the product. The company, through monitoring of the System, will not encounter incomplete data that might affect the decision making process.


In conclusion, the Information System is crucial in the performance of a business. IS increases productivity and reduces costs. Companies with a sound system have competitive Advantages in the market. A sound system promotes confidentiality, integrity and prevents loss of data.  For a company to avoid the risks associated with IS, it must understand the concept of risk management and assessment fundamentals as they form an integral part of the system protection. By having an understanding of the risk assessment procedures, the company can identify possible threats and vulnerabilities. A response to the identified threats is formulated, and measures are put in place to address the vulnerabilities. Risk assessment is not a one-time thing but a continuous evaluation.



































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