Importance of an information system Essay

1. Introduction

The importance of an information system ( IS ) for the operation of any administration or concern presents is widely recognized. The purpose of implementing an information system is to better the efficiency/effectiveness of an administration, Harmonizing to Beynon ( 2009 ) , an information system is a communicating and interaction between people. Information systems and the administrations they support are complex, unreal, and purposefully designed. They are composed of people, construction, engineerings, and fork systems ( Bunge et al. , 1995 ) .

This study looks at the economic forces driving the usage and execution of IS in the sheep industry in the United Kingdom ( UK ) . Although some husbandmans in the UK already use comparatively sophisticated IS to back up their whole concern ( e.g. the electronic tagging ) , most of the husbandmans do non utilize the computerised system, instead they prefer to do usage of paper record.

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The chief purpose of the electronic tagging system is non merely to supervise the sum of sheep in the UK, but besides to command harmful diseases that may hold lay waste toing consequence if they should happen and are non decently managed which in bend will impact the economic system of the state. Another benefit of the trailing system is the ability to path animate beings through a production system, which can assist minimise the extent of a disease outbreak probe. Harmonizing to Smith et Al. ( 2005 ) ”Tracking ” has been defined by some as the ability to follow the way of an point ( sheep ) as it moves downriver from get downing to stop ; ( birth to reap or decease ) . The system is already in usage in states like Australia and the United States and till day of the month it has been a immense success to the economic system of these states. . A important fact is that in 2007, the UK sheep industry was deserving & A ; lb ; 628million in entire ( Barclays, 2007 ) ; it is of import therefore to hold an effectual computerised system for diseases supervising and control.


The demand to hold an IS has become progressively of import, information system has so become really of import for any administration to execute efficaciously in its every twenty-four hours activity. An effectual IS is an built-in portion of any concern or administration. An information system should be designed in the sense that the cardinal characteristics of such system need to be determined prior to the building and execution of the system, the followers are some benefits of an effectual IS.

  • Accuracy: Increase the truth of information
  • Quality: Supply better quality information
  • Serviceability: Supply more utile information
  • Flexibility: Ability to utilize information more flexible
  • User satisfaction: Increase work satisfaction
  • Dependability: More dependable service
  • Productiveness: Increase degree of working
  • Speed: Geting information quickier
  • Volume: More information can be stored

Beynon Davies ( 2009 ) , explained information system as a system which involves the communicating of people, and besides the aggregation, procedures and airing of information. The new system proposed by the European Union ( EU ) under the directing 21/2004 to hold all sheep tagged by 1st Jan 2010 will travel along manner in covering with future disease eruption and impact the economic system of the UK in a positive manner. The chief ground of the proposed system was because of the old diseases outbreak. An illustration happened in the twelvemonth 2001, when there was a eruption of foot-and-mouth disease ( FMD ) , the impact of the disease was felt in France, the Republic of Ireland, the Netherlands and Northern Ireland, but the impact was greatly felt in Britain ( Scott et al, 2004 ) .

The negative consequence of the eruption caused the UK Department for Environmental, Food, and Rural Affairs ( DEFRA, 2003 ) to print a preliminary cost survey of the execution of EC 21/2004 in the UK ; it was concluded that the usage of the electronic designation has a lower cost than the conventional system ( Saa et al ) .The demand for sheep to be identified and traceable is really of import both for disease control and to the client.

The designation system for sheep in the UK prior to the EC/21/2004 has its drawbacks. Examples of mistakes that occur are incorrect informations entry in a paper-based system ; besides it might decelerate down farm animal market selling procedure. The new system says that all sheep must be identified under DEFRA, and must hold a alone figure. This will let DEFRA cognize the sum of sheep on a peculiar farm, and besides in the state. DEFRA usage a specific ear tagging system ( dual tagging ) for the current cows system in the state. The benefits of the system are really important for the agricultural and stockbreeding countries. The United Kingdom has the highest population of sheep in Europe, presently there are about 34million sheep in the state ( Defra, 2009 ) , the economic benefits of the system will hold a immense impact in the state compared to other states, presently there are 150,000 sheep identified electronically in Saudi Arabia by Shearwell Data limited, states with a sheep population of over 600,000 threshold will be affected by the electronic designation ordinance.


The European Union ( EU ) has issued a ordinance for following every motion and beginning of a peculiar animate being ( sheep ) . The UK authorities will implement the usage of EID labeling system to supervise the motion of sheep in and out of the state from 1st of January 2010. An Information system with a cardinal database will be implemented.

The execution of any new information system will come with some issues ; Examples of some of the issues that may originate will be user opposition to the new system due to immense execution cost. The Radio frequence designation ( RFID ) will be used, today RFID is referred to as a generic term for engineerings that use wireless moving ridges to automatically place people or object ( Robert, 2006 ) . The system nevertheless might hold some jobs due to incorrect installing. Electronic intervention, for illustration from metal poles, tracks, and electronic motors, can impact the operation of the EID system. To avoid the job the aerial works best when installed on wooden tracks. The EID ticket is a micro chip that can be reads electronically in a affair of seconds by manufacturers who have the panel reader. The transponder is placed in the carnal ear, when the transponder in the animate being is read, it so reassign the reading to a distant computing machine which is located at the cardinal database. Some of the records that are kept in the database are, weight gained or lost, engendering history, birth history, e.t.c. These informations are necessary for the stakeholder in determination devising.

1.2 Cardinal Database:

The intent of the cardinal database in this instance is to hive away information related to the direction of animate being trailing and to supervise the information at a cardinal degree. The cardinal database will hold all the informations of a farm that are registered to the animate being utilizing the RFID trailing device ( system ) . The cardinal system will heighten communicating with the local subsystem which will be located on each farm.

2. Discussions and Analysis:

Economic forces are really of import in the execution of an information system. ‘Information systems are critical to the administration public presentation in economic markets ‘ ( Davies, 2009 ) . An of import option in fixing for a possible eruption of an infective farm animal disease is to originate an carnal trailing device system. Apart from giving critical information about animate being motion, the chief purpose is to better disease direction.

  • Economic Efficiency:
  • The system has a batch of advantages ; the economic efficiency of an animate being tracking system will greatly depend on factors such as inter herd contact rates. The economic factor of implementing the system is really of import. In a instance of extremely infective carnal disease eruption, the system will understate economic losingss.

    A survey looked into the economic effect of the food-and-mouth disease eruption in the United State and concluded that, with increased degree of sheep traceability and surveillance the entire client and manufacturer combined losingss from the disease would worsen from $ 266.3billion to $ 50.3billion and the depopulation rate would increase from 30 per centum to 60 per centum of latent infective herds, which was attributed to increased carnal traceability ( usda, 2009 ) .

  • Improvement in The Beef Market:
  • Another economic factor is the fact that, consumers may be willing to pay more for a meat merchandise that are traceable. Harmonizing to Golan et Al ( 2004 ) husbandmans whose sheep are traceable on a system possess otherwise unobservable properties, such as current inoculations and, appropriate eating process, and would potentially be able to sell their animate beings for higher monetary value.

  • Trade Relation:
  • This will besides impact the trading facet with other states as the presence of a good information system on farm animal will pull a immense sum of trading with other states. Further, consumers may besides be willing to pay for other features beside traceability, which can be verified utilizing animate being ( sheep ) tracking system, such as humane animate being intervention. Due to globalization, people now trade internationally ; the new system will non merely better trading between states in Europe, but will besides heighten merchandising with states from different continent ; presently the UK has 34million sheep. If the new EID system is implemented successfully it will positively impact the economic system of the state in the country of planetary market extension, productions, distribution along with ingestion are activities that deliver legion values, which operates both within and between economic histrions. The economic histrions are the providers, regulator, clients and the rivals. Beynon ( 2009 ) depict an economic system as the manner in which groups of worlds organise their stuff provisioning, and basically involves the coordination of activities concerned with this. The EID enables better coordination of the activities of sheep husbandmans and hence signifiers portion of an economic system which is being operated within a wider economic environment.

  • Enhance Employment Rate:

The new system will increase employment rate in the state, as husbandmans will look to hold an IT specializer about and the addition in gross revenues will take to increase in employment in the supply concatenation. Information system is really critical in administration public presentation in economic markets, as assorted systems directors will be needed on each farm for care of the system.

Apart from the economical factor, other factors can drive the usage of IS, such as political forces, societal forces and the proficient forces, but the economic forces is the most critical amongst all. The essay will besides look into some facet of cost execution of the proposed system.

Porter and Millar ; ( 1985 ) have used a relationship between four of the types of economic histrions to explicate an economic environment,

Competitive construction of the industry:

The issue of pricing will happen due to the execution of the electronic system, therefore it is critical for the state to hold a good system in order to be at the bow forepart of the industry. The most critical function that highlights the function of Information Technology ( IT ) in competition is ” value concatenation ” . The value concatenation of a merchandise is measured by the sum clients are willing to pay ( Porter and Miller, 1985 ) . An organisation will hold a competitory advantage if it operates at a lower cost.

  • State of technological deployment in the environment
  • The usage of the EID system will hike the market ; in some markets the usage of engineering is of import to the fight of the industry. Harmonizing to Porter and Miller ( 1985 ) companies that anticipate the power of Information Technology IT will be in control of event. Therefore, the deployment of engineering is necessary in the economic environment for greater competition. The successful execution of the system utilizing the EID engineering will impact the economic system of the state in a positive manner through farther development of new engineering to better better the operation of the current system.

  • Footing of competition

The footing of merchandise and service will be the chief manner in which the administration competes in the economic environment. Organization will vie in the economic environment by cut downing meat production, thereby increasing monetary value of beef in the long tally. Organizations besides engage in the fleece. A market study commissioned by meat South in south West of England regional development revealed that in the twelvemonth 2005 natural lambskin wool on export realized & A ; lb ; 2.6m per million teguments ( x9.74m ) and & A ; lb ; 4.9m per million for natural wool-on fleeces ( x2.54m )


The execution of the new system would hold its scabiess. The undermentioned factors if non properly dealt with will impact the successful execution of the new system.

  1. Farmers across the United Kingdom ( UK ) will necessitate sufficient preparation in order to utilize the new system suitably. However for the success of the preparation plan can non to the full guarantee a successful execution. The initial stage of any new system is really of import to the overall operation.
  2. The electrical device used will hold its consequence. The conditions of the conditions will travel a long manner in finding the success of the new system. The electrical device used ( EID ) should be built in a manner to accommodate to any conditions status.
  3. The new systems will besides increase the duty of each husbandman, which may do user opposition.
  4. The deficiency of system proving and a immense execution cost.
  5. The deficiency of good communicated purposes and aims amongst stakeholders.

4. Concern TO THE FARMERS:

Farmer says the current system in the UK is simple and efficient ( Defra, 2009 ) , and that the new system will be excessively expensive and that they would non be able to afford it. There is hence a signifier of opposition on the portion of the husbandmans and this can be narrowed down to the execution cost. One of the ways to contend against such opposition is to subsidize the monetary value of the EID equipment. Below is a study snapshot tabular array.

Derfa ( 2009 ) came up with an analysis refering husbandman ‘s income which was between & A ; lb ; 5,900 and & A ; lb ; 8,700. They estimated that the EID equipment will cut down 40 % off the husbandman ‘s income overnight. The issue of developing comes up and if non treated desperately will impact the successful execution of the system. The authorities should subsidise the monetary value of the equipment and should besides present a preparation class for the husbandmans ; a clear vision of the system should besides be made known. The proposed labeling systems as tonss of benefit to the famers and to its economic environment, though the husbandmans are defying the system, but the benefit will be seen at the long tally.


This study highlights the economic factors behind the successful execution of an information system in the sheep industry. The execution of the new system will come with immense benefits to the sheep industry and to the state. A major point noted in the study was the impact of trading between states and besides the worth of the UK sheep industry, which every bit at 2007 was deserving & A ; lb ; 628million. During the Foot and Mouth disease eruption, the impact was felt more in the UK. With the debut of the new system and in an event of disease eruption, the system will efficaciously heighten the disease direction which in bend will understate the impact of such eruption on the economic system of the state. Therefore with the new system in topographic point and with appropriate direction by the stakeholders, the income of the sheep industry will increase enormously. The paper besides suggested the decrease of the EID equipment and demand for sufficient preparation on behalf of the husbandmans to avoid opposition. The full execution of the system will do the sheep industry in the UK a moneymaking concern for the state.


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