This report helps to develop a clear picture of the importance of managing information systems and the impact of IT technology system. In this context, therefore, most of the organizations are in the process of adopting these changes in their IT systems to maximize on quality production, meet customer expectations, to ease the workload of using the filing system and most importantly to have a competitive edge over its competitors. ANZ Bank is one of the leading banking organizations in Australia and New Zealand. It is one of the organizations that has adopted IT and IS support system that ensures smooth bank operations. Components of an Information system, strategically organized concepts of effective management of information systems provide a robust framework for understanding the roles, critiques, risks imposed by information systems and the dangers of using information systems according to Xu & Quaddus (2013).

    Despite the many positive outcomes of adopting the IT technology information systems, there is a significant concern in cybersecurity that can quickly tarnish the image and reputation of an organization or even a loss of critical data. Therefore, as organizations are busy making considerations to use these information systems, they should ensure that there are efficient IT experts who can put up a reliable firewall to secure the interests of ANZ bank from individuals with evil intentions hence ensuring that the acceptable code of ethics is adopted and respected (Béranger, 2015).


    In recent years, there is a divine purpose of keeping the bank’s information systems updated and at par with the competing companies. Not only do companies need to adopt this information system, but also it must keep it updated at all times because technological changes occur daily. Information system (IS) is defined as an integrated, coordinated network of components put together to convert data into information (Schirrmeister, 2013). Through IS, organizations can improve efficiency in data management, boosting productivity. In this context, ANZ (Australia and New Zealand) bank has made a substantial technological change in securing its information systems by using some of the best banking software. Being one among the largest banks in the continent, this is of considerable significance because control of data will be more natural hence having a competitive advantage in the market. The report focuses on the role of IS and IT systems and ways it assists in mitigating the risk in organizations basing the discussion on ANZ. It further reflects on the way companies benefit from the wide variety of IS and IT systems. 

    Components of an Information System

    A sound information system is primarily composed of five parts that include the hardware, software, database, network, and people, that come together to perform input, process output, feedback and control of data (Wang, 2014).

    The hardware consists of the physical output or input devices, processor, the operating system, and the media devices. The software is a set of programs and procedures installed in the hardware. The database consists of organized data in the required design, and the network refers to the hubs, communication media, and other network devices. The people are the operators and network administrators of the information system.

    In every organization, IS can be classified based on how the information is used and can be therefore divided into operations support systems or management support system.

    Operations support system

    The end user does input of data in an organization. It is processed to produce information like reports that can be utilized by internal or external users. At ANZ bank, this is critical because it is easier to perform audits determining what is working and what is not. The principal purpose of this operations support system is to facilitate and control business transactions, management of internal and external communication hence update the organization’s central database.

    Transaction processing systems (TPS) – this is a component of the operations support system used by ANZ and other banks, where transactions involve different departments like accounts, sales, or finance. Its primary purpose is to categorize such transactions into batch transactions processing and real-time transaction processing.

    Process control system – some errors may be made by computers without involving any human. Therefore, the relevant information is fed to this system on a real-time basis hence enabling more natural process control (Zeng, Qiu & Cui, 2015).

    Enterprise collaboration system – this type of operations support system enables collaboration efforts through improving the sharing of data and communication. For instance, use of Navision software by ANZ bank provides end-to-end encryption of the bank’s operations. Besides, using the Enterprise Knowledge Portal (EKP), the bank workers and other users can share information more reliably.

Management support systems

 This strategy facilitates a more straightforward decision-making scheme for managers. They are classified into a management information system, decision support, expert support system, and accounting information systems.

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