Evolution of Information Systems in the Organizations

Globalization and evolving competitive standards have necessitated significant digital changes in business. The digital transformation demands that businesses enhance their efficiency while continuously reformulating their digital objectives and strategies. The rapid technological changes have been transforming the business into a constantly evolving digital environment where information management is very crucial.

Many companies are boosting their efficiency, productivity, and profitability by strategically utilizing IT and consolidating technological standards. For a long time, IT departments were the stars of digital transformation. While they remain leaders, the landscape has changed. Today, everyone in the company is involved in information systems because we all are going digital.

However, the constant, ongoing, and seemingly never-ending digital modifications in business can directly and overwhelmingly affect employees. The rapidity, complexity, and unpredictability of our digital environment are truly remarkable.

Historical Development of Information Systems

In the past, companies used systems to store vital data, but these systems lacked search mechanisms and efficient data transfer capabilities. The introduction of integrated systems led to fragmented information, making it difficult to obtain consolidated data and resulting in inconsistent, redundant data across multiple systems.

Let’s take a look at simplified timeline of key developments:

• 1960s: Digitalization focused on inventory control with customized software to address traditional inventory issues.

• 1970s: Shifted attention to MRP (Material Requirement Planning), which handled all production-specific planning through the Master Plan.

• 1980s: Expanded MRP to MRPII (Manufacturing Resource Planning), incorporating administrative activities, business planning, financial planning, marketing planning, and strategy simulation. IT began to serve not just as support but also to meet plant requirements.

• 1990s: Systems suppliers developed additional modules to integrate with manufacturing modules, surpassing manufacturing limits. This led to the creation of the term ERP (Enterprise Resource Planning).

By  definition, ERP implementation  is  a set  of  solutions which  enables  the planning  and  the  financial ,  logistical  and productive  follow-up  of  a  company,  in  an  integrated way.

ERP Systems  (Enterprise Resource Planning)  are trying to  solve fragmented data problems  by aggregating in  one integrated system function  which can support the activities of the various processes  of the company's business..

Integration is  the key-word of  ERP, and its aim  is to promote  the quality and agility  of information within  the company and integrate all work processes, from raw material to the final selling transaction.

But time didn't stop in the '90s.

• 2000s: The focus shifted to CRM (Customer Relationship Management). Service became superior to product, emphasizing customer experience over internal processes. ERP systems, being product-related, consolidated internal processes but were insufficient for handling diverse customer and employee interactions:

Companies began using various tools to manage customer experience, which included customer relations, product experiences, and interactions with the brand, service, and company. This era saw the rise of digital experiences and the need for agility.

Employee experience also became crucial for achieving a good customer experience and fostering growth. Companies needed to provide the tools and resources for employees to succeed.

However, these tools needed to be embraced and utilized effectively, bringing user experience into play. Besides ERP, businesses needed digital solutions for sales management, marketing, e-commerce, collaboration, and project management.

Companies initially adopted many different products from various suppliers for each requirement, leading to the use of dozens of solutions. This approach proved insufficient, highlighting the need for a new vision.