The Role of Information Systems in Data Management and Organizational Decision-Making: A Review

Abstract

The rapid digital transformation has made information systems (IS) the backbone of data management and decision-making in almost all types of organizations, whether in business, government, or education. Even though there’s plenty of literature on management information systems (MIS), there’s still a gap in understanding how the components, types, and latest IS technologies, like cloud computing, big data analytics, ERP, and CRM, interact and affect the quality of decision-making, as well as the related data security challenges. This article aims to answer two research questions: how the components and types of information systems play a role in supporting organizational data management and decision-making, and what challenges and opportunities organizations face when implementing information systems in the digital era. This study uses a qualitative literature review method by interpretatively and narratively examining various reputable journal articles published from 2020 onwards. The review results show that information systems, through the integration of hardware, software, data, people, and procedures, significantly improve the accuracy, relevance, and timeliness of information supporting managerial and strategic decisions. Cloud computing technology and big data analytics expand an organization's analytical capacity, while ERP and CRM enhance business process integration and customer relationship management. However, data security challenges, human resource competency gaps, and resistance to change remain significant obstacles