Essay Sample on Data Processing Systems

Published: 2023-01-23
Essay Sample on Data Processing Systems
Type of paper:  Essay
Categories:  Data analysis Business management Information systems
Pages: 3
Wordcount: 768 words
7 min read

The success of modern organizations relies on their ability to leverage available technologies to align their information management to customer needs. Efficient management is achieved through the use of information systems to gather and synthesize data to inform sound management. There exist at least four data resources and processes which provide value to modern companies. Organizations derive their competitiveness from the efficiency obtained from the proper use of information management and data processing resources. The four critical data resources and processes address the various aspects of the complex modern organizations.

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Transaction processing systems are useful resources that aid in the assemblage, storage, and processing of data, and their presentation in a manner that is understandable (Wingerath, Gessert, Friedrich, & Ritter, 2016). These resources collect data and provide easily interpretable outputs. Hotel reservation and airline booking systems are such resources. The second digital resource which is essential for modern businesses is the customer relationship management system. These systems help organizations to determine synergy between marketing and sales (Rahimi & Kozak, 2017). They track consumer trends as well as collect consumer feedback. Such feedback helps to understand consumer needs and enables value co-creation, which is vital for the sustainability of modern organizations.

The third resource that is vital for modern business organizations is the business intelligence system. These systems automate data extraction and analysis in a manner that is helpful for the desired operational capacity and the decision-making processes. These tools help organizations to predict the future sales and consumption patterns as well as predict revenue levels (Yeoh & Popovic, 2016). One vital area where these resources are helpful is in the design of credit risk models. Risk management is essential for the realization of the sustainability potential for an organization and helps in the planning processes. The last category of the crucial data resources is knowledge management systems. These tools help organizations to organize and scrutinize knowledge. They also help in the redistribution of such expertise within the organization (Cerchione & Esposito, 2017). Knowledge management systems are essential for the innovation and creativity that is required of modern organizations.


Modern organizations, irrespective of their sizes, operate within a globalized environment. As a result of the globalization of the market, there is increased consumer power and ease of entry into any particular business niche. Organizations have to ensure that consumers have products and services that meet their needs at their convenience. Consistency is essential for retaining customers and attracting more. Understanding consumer needs and consumption trends help to anticipate appropriate product qualities as well as to involve customers in product development. Data analysis makes decision-making easy and allows organizations to avoid risks. The highlighted data processing resources are useful in achieving such convenience.

Applicability of These Tools

Transaction processing systems will be used for the design of customer reservation environment that will ensure that customers can order product and services at their convenience. A customer relationship management system will be used as a customer feedback environment to engage customers on their satisfaction levels. The business intelligence system will be applied at the management level to predict risks and changes in consumer needs. Knowledge management systems will be used in the organization's research and development section, given the innovation and creativity needed.

Short-Term and Long-Term Issues That Could Arise

Two long-term issues could arise in the use of these resources to provide the services stated. First, there could be downtimes that could deny customers the convenience and efficiency desired of the system. Secondly, there could be breaches that may expose customer information to misuse. The long-term issues associated with these resources are security and unethical access to personal information. Inadequate data security measures may lead to exposure to large volumes of client information. Weak data-handling laws may mean overdependence on operators of data-collection tools to secure personal information. However, rogue officials may share such information with criminals.


Cerchione, R., & Esposito, E. (2017). Using knowledge management systems: A taxonomy of SME strategies. International Journal of Information Management, 37(1), 1551-1562.

Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1), 40-51. Retrieved from

Wingerath, W., Gessert, F., Friedrich, S., & Ritter, N. (2016). Real-time stream processing for Big Data. it-Information Technology, 58(4), 186-194. Retrieved from

Yeoh, W., & Popovic, A. (2016). Extending the understanding of critical success factors for implementing business intelligence systems. Journal of the Association for Information Science and Technology, 67(1), 134-147. Retrieved from

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