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TABLE OF CONTENTS

SECTION A
A1.
a)
Importance of MIS in College Information System
Management Information System (MIS) is used for assisting management of
an organization or enterprise in capturing, processing, storage and retrieval
of relevant, up-to-date and demand driven data and information for
management functions. It includes follow up on daily activities of the
organization. This became completely necessary with the introduction of
computers or with the development of a computer supported working
environment. Most functions and activities of an organization today are
carried out or assisted with the increasing use of computer applications.
There is increasing need to capture, process and retrieve data/information to
the different layers of management to allow them carry out decisions and
other related management functions.
In the field of education where there are managers, policy makers, teachers,
and students, thus certainly this demands the exchange and sharing of vital
information among them in either the execution of duties, policy direction
and further to deliver data and information to guide in decision making and
to yield valuable statistics. As an example student enrolment, course
schedules, admissions, examinations, recruitment, promotions and provision
of exam results. In To create this collaborative environment there is a need to
create a local, wide or virtual information/electronic network to facilitate the
creation of joint databases, platforms and hubs of data/information that
could easily feed and serve all the people involved in the field of education.
This would certainly have several requests for the relevant information from
all the stakeholders. MIS has over the years increasingly grown to include
almost all the functions/areas of management of an enterprise in all fields of

knowledge and practice. Therefore MIS efficiently and effectively works in a

computer assisted environment unlike those days when paper records were
the mode of communication and storage of data/information.
Records management in the olden days used paper based storage and
processing facilities that had a lot of disadvantages including huge volumes
of data/lack of storage space and difficulty in retrieval of relevant
information. Thus the beginning of computer facilitated use of electronic
information processing/management that eventually led to development of
MIS. Collaboration amongst all stakeholders has been increasing, application
and promotion of computer-based environments where speed, accuracy,
retrieval and computational aspects of information processing have
benefited. Therefore the use of MIS in the field of education cannot be
stressed since this applies to almost all fields of knowledge and it is practiced
throughout the world.
The following are some key importance of MIS,
MIS can record, process, route & organize all important transactions. As
need arises the organization is able to incorporate the needed changes &
improvements in the area of concern.
MIS enables informed decision making. It usually represents a number of
options from which one can choose the best.
The top management analyses whether its resources are being utilized
optimally.
A two way communication flow is greatly enhanced by the MIS. The
management freely tells the jobs responsibilities to its employees. The
employees in return discuss their doubts & grievances.

MIS supports the planning & controlling function of managers in the

organization. Managers use past/historical data as well as the current data to
analyses the performance & hence apply controlling measures.
MIS encourages decentralization in the organization. Decentralizations
possible when there's a system to measure operations.
It brings coordination. It facilitates integration of specialized activities by
keeping each department aware of the problems & requirements of other
departments (Tyagi, 2015).
b).
Data

Data is/are the facts of the World. For example, take yourself. You may be 5ft
tall, have brown hair and blue eyes. All of this is data. You have brown hair
whether this is written down somewhere or not.

In many ways, data can be thought of as a description of the World. We can

perceive this data with our senses, and then the brain can process this.

Human beings have used data as long as weve existed to form knowledge of
the world.

Until we started using information, all we could use was data directly. If you
wanted to know how tall I was, you would have to come and look at me. Our
knowledge was limited by our direct experiences.
InfogineeringInformation

Information allows us to expand our knowledge beyond the range of our

senses. We can capture data in information, then move it about so that other
people can access it at different times.

Here is a simple analogy for you.

If I take a picture of you, the photograph is information. But what you look
like is data.

I can move the photo of you around, send it to other people via e-mail etc.
However, Im not actually moving you around or what you look like. Im
simply allowing other people who cant directly see you from where they are
to know what you look like. If I lose or destroy the photo, this doesnt change
how you look.

So, in the case of the lost tax records, the CDs were information. The
information was lost, but the data wasnt. Mrs Jones still lives at 14
Whitewater road, and she was still born on 15th August 1971.
http://www.infogineering.net/data-information-knowledge.htm
First Things First: Data vs Information

Theres a really simple way to understand the difference between data and
information. When we understand the primary function of the item we are
looking at, we quickly see the distinction between the two.

Heres a simple way to tell one from the other:

Computers need data. Humans need information.

Data is a building block. Information gives meaning and context.

In essence, data is raw. It has not been shaped, processed or interpreted. It is

a series of 1s and zeros that humans would not be able to read (and nor
would they want to). It is disorganised and unfriendly.

Once data has been processed and turned into information, it becomes
palatable to human readers. It takes on context and structure. It becomes
useful for businesses to make decisions, and it forms the basis of progress.

While the bigger picture is slightly more complex, this gets us part way
towards understanding what data means.
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Data... data is raw. It simply exists and has no significance beyond its
existence (in and of itself). It can exist in any form, usable or not. It does not
have meaning of itself. In computer parlance, a spreadsheet generally starts
out by holding data.

Information... information is data that has been given meaning by way of

relational connection. This "meaning" can be useful, but does not have to be.
In computer parlance, a relational database makes information from the data
stored within it.
http://www.systems-thinking.org/dikw/dikw.htm
Despite many attempts at the definition of Data, Information, and
Knowledge, there still seems to be a lack of a clear and complete picture of
what they are and the relationships between them. Although many
definitions are relevant, they are far from being complete. It is not the
intention of this paper to criticize those whom have paved the way to better
understanding of the topic. Rather, the goal is to provide a different or new
perspective in the context of business and knowledge management. Below is
a table of various definitions of Data, Information, and Knowledge from
different authors. The table also includes definitions from Websters
Collegiate Dictionary. Most if not all of the definitions shared a common
anomaly; they are defined with each other, i.e. data in terms of information,
information is defined in terms of data &/or knowledge, and knowledge is
defined in terms of information. If we are just describing the interrelationships, that is all very well. However, with regard to definitions, this is
a logical fallacy i.e. circular definitions or argumentations. (It is in Philosophy
101 Critical Thinking and Reasoning).

http://www.tlainc.com/articl134.htm
Both information and data are types of knowledge, a concept for which
English has numerous words. The various words are used in different ways,
according to context, but heres an effort to differentiate some of them.

information knowledge obtained from investigation or communication.

Detectives and journalists gather information. Just the facts, Mam.

data [dt, dt, dt] reliable information based on observation and

record-keeping. Scientists, marketing specialists, and government agencies
gather data. For a discussion of datum and data, see this DWT post on Latin
plurals.
http://www.dailywritingtips.com/data-and-information/

A2.
Types of information at business level
Transcript

1. SYSTEM The term system is generally used for a group of actions,

personnel and procedure, used for processing data. It is a set of activities
may or may not involve computers. System is group of inter related
components working together towards a common goal by accepting inputs
and producing outputs in an organized transformation process.
2. Functions of systems 1. INPUT 2. PROCESSING 3. OUTPUT 4. CONTROL
5. FEEDBACK

3. Types of Systems from a Functional Perspective 1. Sales and Marketing

Systems 2. Manufacturing and Production System 3. Finance and Accounting
Systems 4. Human Resources Systems
4. 1. Sales and Marketing Systems The sales and marketing function is
responsible for selling the organizations product or service. Marketing is
concerned with identifying the customers for the firms products or services,
determining what they need or want, planning and developing products and
services to meet their needs and wants. Systems that help the firm identify
customers for the firms products or services, develop products and services
to meet customers needs and wants.
5. Information systems are used in sales and marketing in a number of
ways. STRATEGIC LEVEL : Sales and marketing systems monitor trends
affecting new products and sales opportunities, support planning for new
products and services, and monitor the performance of competitors.
MANAGEMENT LEVEL : sales and marketing systems support market
research, advertising and promotional campaigns, and pricing decisions.
They analyze sales performance and the performance of the sales staff.
6. KNOWLEDGE-LEVEL : At this, sales and marketing systems support
marketing analysis workstations. OPERATIONAL LEVEL : Sales and
marketing systems assist in locating and contacting prospective customers,
tracking sales, processing orders, and providing customer service support.
7. 2. Manufacturing and Production Systems The manufacturing and
production function is responsible for actually producing the firms goods and
services. Manufacturing and production systems deal with the planning,
development, and maintenance of production facilities Systems that deal
with the planning, development, and production of products and services,
and with controlling the flow of production

8. STRATEGIC-LEVEL : manufacturing systems deal with the firms longterm manufacturing goals, such as where to locate new plants or whether to
invest in new manufacturing technology MANAGEMENT LEVEL :
manufacturing and production systems analyze and monitor manufacturing
and production costs and resources. KNOWLEDGE LEVEL : manufacturing
and production systems create and distribute design knowledge or expertise
to drive the production process, OPERATIONAL LEVEL : manufacturing and
production systems deal with the status of production tasks.
9. 3. Finance and Accounting Systems The finance function is
responsible for managing the firms financial assets, such as cash, stocks,
bonds, and other investments in order to maximize the return on these
financial assets. The accounting function is responsible for maintaining and
managing the firms financial records receipts, disbursements,
depreciation, payrollto account for the flow of funds in a firm The
accounting function is responsible for maintaining and managing the firms
financial records receipts, disbursements, depreciation, payrollto account
for the flow of funds in a firm
10. STRATEGIC-LEVEL : Systems for the finance and accounting function
establish long-term investment goals for the firm MANAGEMENT LEVEL :
Information systems help managers oversee and control the firms financial
resource KNOWLEDGE LEVEL : Systems support finance and accounting by
providing analytical tools and workstations for designing the right mix of
investments to maximize returns for the firm. OPERATIONAL LEVEL :
Systems in finance and accounting track the flow of funds in the firm through
transactions such as paycheques, payments to vendors, securities reports,
and receipts.
11. 4. Human Resources Systems The human resources function is
responsible for attracting, developing, and maintaining the firms work force.
Human resources information systems support activities such as

identifying potential employees, maintaining complete records on existing

employees, and creating programs to develop employees talents and skills.
Systems that maintain employee records; track employee skills, job
performance, and training; and support planning for employee compensation
and career development.
12. STRATEGIC-LEVEL : Human resources systems identify the
manpower requirements (skills, educational level, types of positions, number
of positions, and cost) for meeting the firms long-term business plans
MANAGEMENT LEVEL : Human resources systems help managers monitor
and analyze the recruitment, allocation, and compensation of employees.
KNOWLEDGE LEVEL : Systems for human resources support analysis
activities related to job design, training, and the modelling of employee
career paths and reporting relationships. OPERATIONAL LEVEL : The
recruitment and placement of the firms employees.
http://www.slideshare.net/dannymusthafa/different-types-of-informationsystem-from-functional-perspective
3 level pyramid model diagram of information systems types
A three level pyramid model of different types of Information Systems based
on the type of decisions taken at different levels in the organization. The first
level represents transaction processing systems focused on operational
decisions. The second level represents management information systems
focused on tactical decisions. The third level represents executive
information systems focused on strategic decisions.
This diagram was redesigned using ConceptDraw PRO diagramming and
vector drawing software from Wikimedia Commons file Three-Level-Pyramidmodel.png. [commons.wikimedia.org/wiki/File:Three-Level-Pyramidmodel.png]
This file is licensed under the Creative Commons Attribution 3.0 Unported
license. [creativecommons.org/licenses/by/3.0/deed.en]
This triangle chart example is included in the Pyramid Diagrams solution
from Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/solution-park/marketing-pyramid-diagrams
Page1

4 level pyramid model diagram of information systems types

A four level pyramid model of different types of Information Systems based
on the different levels of hierarchy in an organization. The first level
represents transaction processing systems for workers. The second level
represents management information systems for middle managers. The third
level represents decision support systems for senior menegers. The fourth
level represents executive information systems for executives.
This diagram was redesigned using ConceptDraw PRO diagramming and
vector drawing software from Wikimedia Commons file Four-Level-Pyramidmodel.png. [commons.wikimedia.org/wiki/File:Four-Level-Pyramid-model.png]
This file is licensed under the Creative Commons Attribution-Share Alike 3.0
Unported license. [creativecommons.org/licenses/by-sa/3.0/deed.en]
This triangle chart example is included in the Pyramid Diagrams solution
from Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/solution-park/marketing-pyramid-diagrams
Page1

http://www.conceptdraw.com/examples/types-of-information-system-indiagram

b)

Role of IT in business

nformation Technology & Its Role in the Modern

Organization
by Chris MacKechnie, Demand Media

Information technology (IT) has become a vital and integral part of every business plan. From
multi-national corporations who maintain mainframe systems and databases to small businesses
that own a single computer, IT plays a role. The reasons for the omnipresent use of computer
technology in business can best be determined by looking at how it is being used across the
business world.
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Communication
For many companies, email is the principal means of communication between employees,
suppliers and customers. Email was one of the early drivers of the Internet, providing a simple
and inexpensive means to communicate. Over the years, a number of other communications tools
have also evolved, allowing staff to communicate using live chat systems, online meeting tools
and video-conferencing systems. Voice over internet protocol (VOIP) telephones and smartphones offer even more high-tech ways for employees to communicate.
Inventory Management
When it comes to managing inventory, organizations need to maintain enough stock to meet
demand without investing in more than they require. Inventory management systems track the
quantity of each item a company maintains, triggering an order of additional stock when the
quantities fall below a pre-determined amount. These systems are best used when the inventory
management system is connected to the point-of-sale (POS) system. The POS system ensures
that each time an item is sold, one of that item is removed from the inventory count, creating a
closed information loop between all departments.
Related Reading: Information Technology & Its Uses in Business Management

Data Management
The days of large file rooms, rows of filing cabinets and the mailing of documents is fading fast.
Today, most companies store digital versions of documents on servers and storage devices. These
documents become instantly available to everyone in the company, regardless of their
geographical location. Companies are able to store and maintain a tremendous amount of
historical data economically, and employees benefit from immediate access to the documents
they need.
Management Information Systems
Storing data is only a benefit if that data can be used effectively. Progressive companies use that
data as part of their strategic planning process as well as the tactical execution of that strategy.
Management Information Systems (MIS) enable companies to track sales data, expenses and
productivity levels. The information can be used to track profitability over time, maximize return
on investment and identify areas of improvement. Managers can track sales on a daily basis,
allowing them to immediately react to lower-than-expected numbers by boosting employee
productivity or reducing the cost of an item.
Customer Relationship Management
Companies are using IT to improve the way they design and manage customer relationships.
Customer Relationship Management (CRM) systems capture every interaction a company has
with a customer, so that a more enriching experience is possible. If a customer calls a call center
with an issue, the customer support representative will be able to see what the customer has
purchased, view shipping information, call up the training manual for that item and effectively
respond to the issue. The entire interaction is stored in the CRM system, ready to be recalled if
the customer calls again. The customer has a better, more focused experience and the company
benefits from improved productivity.
http://smallbusiness.chron.com/information-technology-its-role-modernorganization-1800.html

The role of information technology systems in a business environment can be

classified into four broad categories. These categories include function
performance, communication through networking, management and
enterprise roles.
Information technology provides commercial and industrial systems for
businesses. These systems enable businesses to function effectively and

efficiently.
Function IT Systems
Function IT systems are applications that allow individuals to function
effectively in the workplace. Examples of common IT systems that enhance
workplace functions are word processor applications, spreadsheet
applications, statistical analysis software and computer aided design (CAD)
programs. Employees can work and perform their task individually or
collectively using these specialized software technologies.
Network IT Systems
Network IT systems allow effective communication within and outside an
organisation. Examples range from simple e-mail (electronic mail) to blogs,
wiki sites, IM (instant messaging) and electronic conferencing systems.
These types of technologies promote interaction and collaboration among
working groups and also facilitate quick information flow at all levels.
Management IT systems
Management IT systems(MITS) can be defined as planned applications that
are designed to process data and transform the processed data into useful
information for management decision making.
It should be noted that Management Information systems (MIS) are subsets
of Enterprise IT systems (this is explained later on in this article). However,
because of the vital role MIS play in a business environment, it is considered
here as a major information technology for businesses.
In a typical scenario, management operates at different levels and so it is

possible to apply management information systems at these varied levels.

Basic examples of management information systems are human resources
management systems, financial management information systems and
marketing management information systems.
Enterprise IT Systems
Enterprise IT systems are technologies designed to integrate and manage
entire business processes for large organisations. Typically, enterprise
application software is hosted on large servers over a computer network.
Transmission of information can either be internal or external.
Examples of enterprise information systems may be accounting software,
health care specific software or Electronic Data Interchange (EDI). Another
good example of software application within this category is Customer
relationship management software (CRM).
The role of Information technology in business is wide and varied. It can be
said that IT provides a huge range of capabilities that enhance management
performance at all levels. It is therefore important to understand the four
major categories of IT systems and their functions and roles in a business
environment.
http://patriotvoices.blogspot.com/2012/06/role-of-information-technologyin.html

Operational Research
MayAugust 2003, Volume 3, Issue 2, pp 137-154

The role of IT in business process-oriented organisations

Kostas Chalikias,

George Valiris,

Panagiotis Chytas

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Abstract
The scope of this work is to investigate the role of information technology (IT) in business
process-oriented (BPO) organisations. Moving away from the traditional organisational
structures based on functional departments towards the adoption of a Business Process
Orientation, organisations have to consider the significant effect on IT/IS systems designed to
serve individual departmental requirements. The aim of this paper is to propose a model for the
role of IT/IS supporting companies moving towards becoming BPO organisations. The model
broadly encompasses three levels The first level stresses the need for an appropriate strategy
portfolio that will be formulated based on the principles of the business process concept. The
second level highlights a portfolio of IT/IS features that Business Process-Oriented organisations
should seek. Finally, the third level proposes some technologies and applications that can assist
the realisation of the IT/IS features of the second level.
http://link.springer.com/article/10.1007%2FBF02940282

The Role of Information Technology in Business

While information technology obviously sounds familiar to most of us, still we only take it for
granted without realizing its crucial role in every aspect of our life. In business for example,
there are increasing trends that companies leverage on information technology to stay ahead of
competition and increase their productivity and efficiency in business. But again, what role does
exactly information technology play in business all these times? Even if it does have beneficial
impacts on your business, is it the same for everyone else and will it continues in the future?
Only time can tell. For the meantime, let's travel back in time and find out what kind of role does
information technology have for us.

The term information technology only comes to use after its first appearance at later years in
Harvard Business Review. Despite the fact, the core concept of information technology has
actually been applied since prehistoric period where people have started using symbols and
drawings as a means of communication. After all the basic idea of information technology itself
is to use technology and information to make your life easier and communications are certainly
part of it. You may also want to note that technology we are talking here include any inventions
to help do something or solve problems. Earlier information technology applications include
numbering systems and calculator. So guess what, it really has something to do with numbers
(and of course business and money) in the first place. After the invention of first computer on
1948, information technology starts to gain its momentum and keeps evolving until present time.
Since computers can be considered as the key innovations to the development in information
technology, from that time on information technology is literally defined as tool, application,
systems or simply products which are based on computer-processed information.
In general, information technology whatever it takes form, has one thing in common - they
enhance our life in any aspects including in business. However, in business and organization
context, it takes central role especially thanks to seamless flow of information between parties
involved. Among others, it allows us to better connect with other people from anywhere, anytime
and thus faster decision making process. But again, as any other things, these benefits in business
also comes with price. The application of information technology, depends on the its flexibility
and scalability, needs a substantial capital to start with. Usually, the greater size of your
organization, the greater investment you need. The investment itself will not only consist of the
technology itself but also time and human resources. If you think it worths, then go ahead. Only,
make sure to spend wisely and effectively. After all, the information technology exists in the first
place to help making money not wasting it right? Above all things, there is no doubt that
information technology play a very important role in business in that it creates more opportunity
while saving more money and time.
The Value of Information Technology in Your Business
Increased Productivity
If anything, the role that information technology takes up in your business is to make everything
run faster. Compare if you count wages manually, just how many days it will take, not to mention
if there is miscalculation. Machines, computers, and any other artificial entities obviously win
over manual method and human being when it comes to accuracy and calculation. The reason is
because they use programmed algorithm and exact data. In many ways, automation with
information technology in business help us to cut down stages in work flow because
technologically advanced machines/computers are capable of handling and processing a lot of
data or tasks at once without a hitch. Also, unlike human, they are less susceptible to ambient
interruptions and thus be able to work more effectively and efficiently in shorter time.

With so many amazing innovations in information technology for the past decades, there are
simply a lot of different ways to become more competitive in your business. You can send and
get information in every way possible. Internet, smartphones, tablets, notebooks, video
conference, TVs, video call and many more. In the case of cloud computing technology, you can
retrieve, process, store, and access data and information faster and more efficient thanks to cloud
computing technology. As such, important documents and credentials related to your business
will also be safer since everything is kept on the cloud. You will also need less or perhaps no
more physical space and resources to manage all the data and information related to your
business.
Another role of information technology in business which is no less crucial is to minimize costs.
In the first place, automation will reduce even eliminate the need for human power to do certain
tasks. On different occasion, information technology application in business can help alleviate
overall operating costs because you do not have to make frequent close or distant trip to see and
talk with customers, clients, business partners, or even your own colleagues. In the same way,
you can also make the most of your time thanks to mobile devices. You can practically work
from anywhere, anytime. Sending emails, editing documents, and doing presentations while on
the go. Now your office can tag along wherever you go. You no longer have to be confined to the
office and still become more productive in business.
Better Communication
Along with faster flow of information from and to diverse communication channels, you can
easily distribute and retrieve important information as well as receiving responses in real-time.
For instance, you want to launch new products but not sure if they will sell. One possible
solution with information technology is to create social media-based campaign or post video on
YouTube before it really gets into the market to drive buzz and interest among prospective
customers. This way, you can more or less analyse how the market will respond to your products
and make necessary actions. Or if your superior is away for business trips and the client need to
close the deal, you can simply use video conference system to settle things. Thanks to the
advance of information technology, you can accelerate decision making process and most
importantly, brings money into your business.
Previously, your products and services are only exposed to certain group of people within your
network. However, with the advance of information technology, you now can reach a wider
audience than you ever expected. Instead of words of mouth, recent information technology
products such as social media or social games promotes viral marketing where messages are
passed like domino effects to unidentifiable amount of audience which may or may not be your
target audience. In one way, you can deliver messages of your business to greater amount of
audience without making much effort. However, it is argued that most of the time this method
just does not work due to its anonymous nature.

Last but not least, information technology also assume a role in improving your business because
of the insight and understanding it offers. Like previous example of creating buzz prior to new
product launch, you can actually gain significant data of your target audience buying behavior as
well as general market insight. By better understanding market demand and consumer buying
behavior, you will be able to tailor a more specific, if not well-suited solutions and hopefully,
boosting sales or performance.
http://www.esco.co.id/information-technology.html
The Role of Information Technology in Business
6

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Page Contents

Suggested Reading
IT as an Enabler - A Competitive Advantage
IT as a Facilitator to New Markets
IT to Provide Agility
IT to Enhance Decision Making
Information Technology supporting IT Systems
IT to Engage Customers
IT to Reduce Risk

Information Technology is an enabler of business functions. The benefits of a

well implemented IT system can include efficiency, capacity, speed,
scalability or accuracy to a business process. But it is a common
misconception that these benefits should apply to the Information
Technology system itself. In fact, the benefits should apply to the business
function itself and should be measurable in terms of business output. In
other words the system should make the business better in some way.

One such example is a Point of Sale (POS) system. The implementation of a

good POS system should be measurable in speed, accuracy or capacity. The
benefit is clearly to the business, not the POS system itself.

This example is a good introduction to the role of Information Technology in

business. Information Technology (IT) enables businesses to solve problems
in ways and scales that were previously inconceivable.
Suggested Reading

The following links summarize the results of a skills and duties analysis of
over 2500 IT jobs grouped into three categories based on similar skill sets
and competencies.

What Employers Seek from Process Driven Roles

What Employers Seek from Customer Service Roles

What Employers Seek from Management Roles

IT as an Enabler - A Competitive Advantage

Business can realize a competitive advantage from IT systems through many

avenues. Whether it is increased sales, better customer service, improved
customer relationships, faster service, more efficient service, diversity,
reduced costs or higher quality products there is little debate that IT systems
can be used to improve traditional business functions in order to provide a
competitive advantage.
IT as a Facilitator to New Markets

It is not just the wide reaching international tentacles of the Internet that can
open new markets to business. Different demographics can also be reached
through the use of trendy and popular media. In this instance, IT plays the
role of facilitator because it acts as a go-between between the business itself
and the new market.
IT to Provide Agility

The economy, events, trends and circumstance play a part in business

survival. Once upon a time computer games were the domain of children and
teenagers. Today many adults are consumers of gaming software. This
transition in demographics meant that software companies needed agility to

cater to their new market. Not just in terms of the type of software that they
produce, but also in terms of service, availability and ease of use.

Information Technology systems can be used to give business additional

agility in many areas that include, but are not limited to, disaster recovery
and business continuity, service delivery, scalability, customer service,
growing or shrinking product range and access to customers.
IT to Enhance Decision Making

The massive volume of information available today both on the Internet and
through corporate networks can be used as reference material to make or
justify decisions. The benefits of ample and accurate information have been
known and well understood by the military for hundreds of years. Modern
businesses are also apt in these skills and Information Technology is at the
forefront of this communication.

But most importantly, the role of Information Technology should always be

measured through benefit to its masters. Whether the benefit is realized
financially, socially, through reduced risk, by better efficiency or an improved
product it is important to continue to focus on the benefits that pertain to the
core business itself. Too many times today businesses become confused by
focusing on benefits to the technology.
Information Technology supporting IT Systems

No doubt that occasionally the IT systems themselves will need upgrading,

maintenance or replacement. Sometimes the benefit to the business may be
something that is not tangible such as reduced risk to other systems. Backup
systems are a good example of this kind of benefit.
IT to Engage Customers

Social media has been adopted by most world known brands in order to
engage customers, to gain feedback and/or to build a sense of community.
IT to Reduce Risk

The reduction of risk from the adoption of IT systems is almost a paradox.

Yes, many risks that existed using the traditional paper systems can be
mitigated however a brand new set of risks have been introduced. Some elite
IT systems, however, have been developed as fail safe systems. These are
deployed as mission critical systems and have the primary task of reducing
the risk of failure to an infinitely small percentage.

More affordable, commercially available systems are also available as risk

mitigation, they are not as effective as mission critical systems but can be
very effective nevertheless. These are often seen in the form of stacks,
clusters or farms.

http://www.it-pathways.com/role-of-information-technology-in-business.html

The Role of IT in Business

By Tyler Lacoma
eHow Contributor

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10 Found This Helpful

IT systems allows businesses to communicate and analyze data.
leave a message image by Nevena Kozekova from Fotolia.com

Businesses are constantly evolving, seeking new ways to improve their

practices, increase their efficiency, and make larger profits. To succeed at
this, businesses are always looking for ways to organize data and
communicate with potential customers, partnering businesses, and
employees in-house. IT systems help businesses do this, and in some larger
companies IT is important enough to have its own department.
Other People Are Reading

Role of Information Technology in Business

The Role of Information Technology in Business World

What is IT?

IT stands for information technology, and IT systems refer to all the

computers and software that the business uses to reach its goals and fulfill
its strategies. Hardware like desktops, laptops, cell phones, and scanners are
very important parts of IT, but even more valuable are the programs
themselves. Some businesses develop their own IT programs, while others
buy the license to use software created by others. Small businesses may use
only free, open-source technology.
Communication

One of the most important jobs of the IT system is to facilitate

communication. Once an IT system is in place, it will be used to
communicate between employees, customers, and other businesses more
than any other medium. Email, social networking and teleconferencing are
all part of effective IT systems. A good system will allow easy communication
and remove any distance barriers.
Marketing

Marketers create advertisements and brands, but they need data to

work with. IT systems supply that data. Marketers use IT systems to collect
information on what consumers are buying from the company, what kinds of
things they are buying, why they are buying them, and what can be done to
encourage them to buy more or to increase customer loyalty. These analysis

programs can be complex and are charted through IT programs. Graphic

design and advertising campaigns are also created within the IT system.
Data Management

IT systems affect the basic structure of data in a business. If a manager

must access a file, what part of the computer does the manager look at?
What does the manager search for? Does the manager need to enter a
password to look at the file? What about lower employees? IT systems decide
how data is organized and what security protocols are applied to it. IT
systems also control workload and work processes.
Accounting

IT systems control the software accountants use to tabulate the

financial status of the company, and how accountants can share this data
with other members of the company. A good IT system will allow an
accountant to check for errors, run automatic analysis programs, and send
effective data sheets and charts to the proper people in a timely manner.

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A3.
Different types of IT systems in business

Types of Information Systems in a Business Organization

by Billie Nordmeyer, Demand Media

Information systems aggregate and disseminate data to meet needs of managers, staff and
customers.
Related Articles

The Best Office Organization Systems

Business Systems Planning

About Management Information Systems

The Information Systems & Information Management Needs of a Small

Business or Organization

Types of Information Systems in an Organization

What Are the Benefits of Effective Communication in the Workplace?

Small businesses must be concerned with producing quality goods or services and also with
turning mountains of data into actionable information. To contain costs and achieve a
competitive advantage, many small-business leaders consider information systems as they
formulate corporate, tactical and operational strategies. To best leverage data as a company asset,
the business must adopt an information strategy, which may require the implementation of a

variety of business information systems that process business transactions and empower business
leaders to make more informed and faster decisions.
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Transaction Processing System
A small business processes transactions that result from day-to-day business operations, such as
the creation of paychecks and purchase orders, using a transaction processing system, or TPS.
The TPS, unlike a batch system, requires that users interact with the system in real time to direct
the system to collect, store, retrieve and modify data. A user enters transaction data by means of a
terminal, and the system immediately stores the data in a database and produces any required
output. For example, a small-business owner may direct a bank system to debit a savings account
for $500 and credit the company's checking account for $500. Because of constant system
updates, a user can access current TPS data, such as an account balance, at any point.
Management Information System
Small-business managers and owners rely on an industry-specific management information
system, or MIS, to get current and historical operational performance data, such as sales and
inventories data. Periodically, the MIS can create prescheduled reports, which company
management can use in strategic, tactical and operational planning and operations. For example,
an MIS report may be a pie chart that illustrates product sales volume by territory or a graph that
illustrates the percentage increase or decrease in a product's sales over time. Small-business
managers and owners also rely on the MIS to conduct what-if ad hoc analyses. For example, a
manager might use the system to determine the potential effect on shipping schedules if monthly
sales doubled.
Related Reading: The Importance of Information Storage & Retrieval Systems in an
Organization
Decision Support System
A decision-support system, or DSS, allows small-business managers and owners to use
predefined or ad hoc reports to support operations planning and problem-resolution decisions.
With DSS, users find answers to specific questions as a means to evaluate the possible impact of
a decision before it is implemented. The answers to queries may take the form of a data summary
report, such as a product revenue by quarter sales report. To conduct an analysis, business
owners and managers use an interface -- a dashboard -- to select a particular graphic

representation of a key performance indicator that measures the progress toward meeting a
specific goal. For example, a manufacturing dashboard might display a graphic representing the
number of products manufactured on a particular line.
Executive Support System
The executive support system, or ESS, contains predefined reports that help small-business
owners and managers identify long-term trends in support of strategic planning and nonroutine
decision making. System users click on any icon displayed on the ESS screen and enter report
criteria to view individual predefined reports and graphs, which are based on companywide and
functional department data, such as sales, scheduling and cost accounting. The ESS reports brief
the business manager or owner on an issue, such as market trends and buyer preferences.The
ESS system also offers analysis tools used to predict outcomes, assess performance and calculate
statistics based on existing data.
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Types of Information Systems in an Organization

by Julie Davoren, Demand Media Google
Organizations use information systems to guide business decisions.

Organizations use information systems to guide business decisions.

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Type of Information in a Customer Service Management System

About Management Information Systems

Successful organizations large and small leverage available technologies to

manage business activities and assist in making decisions. They use
information systems to collect data and process it according to the needs of
the analyst, manager or business owner. Businesses operate more efficiently
by using varied information systems to interact with customers and partners,
curtail costs and generate revenues.
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Transaction Processing Systems

Transaction processing systems meet the data collection, storage, processing

and outputting functionalities for the core operations of a business. TPS
information systems collect data from user inputs and then generate outputs
based on the data collected. An example of TPS system could be an online
air ticket booking system. In such a system, travelers select their flight
schedule and favorite seats (the input), and the system updates the seats
available list, removing those selected by the traveler (the processing). The
system then generates a bill and a copy of the ticket (the output). TPS
information systems can be based on real-time or batch processing, and can
help business owners meet demand without acquiring additional personnel.

Customer Relationship Management Systems

Business owners use customer relationship systems to synchronize sales and

marketing efforts. CRM systems accumulate and track customer activities,
including purchasing trends, product defects and customer inquiries. The
capabilities of typically CRM information systems allow customers to interact
with companies for service or product feedback and problem resolutions.
Businesses may also use CRM systems internally as a component of their
collaboration strategies. As such, CRM information systems allow business
partners to interact with each other as they develop ideas and products.
Collaboration can occur in real time even when business partners are in
remote locations.

Related Reading: About Management Information Systems

Business Intelligence Systems

Business intelligence systems can be complex as they identify, extract and

analyze data for various operational needs, particularly for decision-making
purposes. BIS information systems may provide analyses that predict future
sales patterns, summarize current costs and forecast sales revenues.
Business intelligence systems collect data from the various data warehouses
in an organization and provide management with analyses according to lines
of business, department or any breakdown that management desires. For
example, financial institutions use BIS systems to develop credit risk models
that analyze the number and extent of lending or credit given to various
sectors. These systems may use various techniques and formulas to
determine the probability of loan defaults.

Knowledge Management Systems

Knowledge management systems organize and dissect knowledge and then

redistribute or share it with individuals of an organization. The purpose of
these information systems is to bring innovation, improve performance, bring
integration and retain knowledge within the organization. Although KMS
information systems are typically marketed to larger enterprises, small
businesses can also benefit from harvesting knowledge. KMS information
systems serve as a central repository and retain information in a standard
format. These systems can help business owners maintain consistency and
enable speedy responses to customer and partner inquiries.
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15.3 Types of Information Systems
Learning Objective
1. Discuss ways in which an IS can be designed to meet the needs of
individuals at various organizational levels.
As we saw earlier, different managers, operational units, and functional areas have different
information needs. Thats why organizations often tailor information systems to meet particular
needs. Harrahs IT group, for example, developed the Player Contact System [1] to help its casino
salespeople connect to top customers on a more personal basis. Working from a prioritized list of
customer names displayed on a computer screen, the salesperson clicks on a name to view
relevant information about the customer, such as background and preferred casino activities.
Theres even a printed script that can be used to guide the conversation. Such a system isnt very
helpful, however, to middle or top-level managers, who need systems to help them carry out their
oversight and planning responsibilities. To design marketing programs, for instance, marketing
managers rely on summary information gleaned from a dedicated customer-relationship
management system. Lets look at some of the widely available information systems designed to
support people at the operational and upper-management levels.

Operations Support Systems

Operations support systems are generally used by managers at lower levels of the organization
those who run day-to-day business operations and make fairly routine decisions. They may be
transaction processing systems, process control systems, or design and production systems.
Transaction Processing Systems
Most of an organizations daily activities are recorded and processed by its transaction
processing system (TPS), which receives input data and converts them into outputinformation
intended for various users. Input data are called transactionsevents that affect a business. A
financial transaction is an economic event: it affects the firms assets, is reflected in its
accounting statements, and is measured in monetary terms. Sales of goods to customers,
purchases of inventory from suppliers, and salaries paid to employees are all financial
transactions. Everything else is a nonfinancial transaction. The marketing department, for
example, might add some demographic data to its customer database. The information would be
processed by the firms TPS, but it wouldnt be a financial transaction.
Figure 15.6 "Transaction Processing System" illustrates a TPS in which the transaction is a
customers electronic payment of a bill. As you can see, TPS output can consist not only of
documents sent to outside parties (in this case, notification of payment received), but also of
information circulated internally (in the form of reports), as well as of information entered into
the database for updating.
Figure 15.6 Transaction Processing System

Process Control Systems

Process control refers to the application of technology to monitor and control physical processes.
Its useful, for example, in testing the temperature of food as its being prepared or gauging the
moisture content of paper as its being manufactured. Typically, it depends on sensors to collect
data periodically. The data are then analyzed by a computer programmed either to make
adjustments or to signal an operator.
Harrahs uses process-control technology to keep customers happy. At any given point, some slot
machines are down, whether because a machine broke or ran out of money or somebody hit the
jackpot. All these contingencies require immediate attention by a service attendant. In the past,
service personnel strolled around looking for machines in need of fixing. Now, however, a
downed slot machine sends out an I need attention signal, which is instantly picked up by a
monitoring and paging system called MessengerPlus and sent to a service attendant.
Design and Production Systems
As we saw in Chapter 11 "Operations Management in Manufacturing and Service Industries",
modern companies rely heavily on technology to design and make products. Computer-aided
design (CAD) software, for instance, enables designers to test computer models digitally before
moving new products into the prototype stage. Many companies link CAD systems to the
manufacturing process through computer-aided manufacturing (CAM) systems that not only
determine the steps needed to produce components but also instruct machines to do the necessary
work. A CAD/CAM system can be expanded by means of computer-integrated manufacturing

(CIM), which integrates various operations (from design through manufacturing) with functional
activities ranging from order taking to final shipment. The CIM system may also control
industrial robotscomputer-run machines that can perform repetitive or dangerous tasks. A CIM
system is a common element in a flexible manufacturing system (FMS), which makes it possible
to change equipment setups by reprogramming computer-controlled machines that can be
adapted to produce a variety of goods. Such flexibility is particularly valuable to makers of
customized products.
Management Support Systems
Mid- and upper-level managers rely on a variety of information systems to support decisionmaking activities, including management information systems, decision support systems,
executive support systems, and expert systems.
Management Information Systems
A management information system (MIS) extracts data from a database to compile reports, such
as sales analyses, inventory-level reports, and financial statements, to help managers make
routine decisions. The type and form of the report depend on the information needs of a
particular manager. At Harrahs, for example, several reports are available each day to a games
manager (whos responsible for table-game operations and personnel): a customer-analysis
report, a profitability report, and a labor-analysis report. [2]
Decision Support Systems
A decision support system (DSS) is an interactive system that collects, displays, and integrates
data from multiple sources to help managers make nonroutine decisions. For example, suppose
that a gaming company is considering a new casino in Pennsylvania (which has just legalized
slot machines). To decide whether it would be a wise business move, management could use a
DSS like the one illustrated in Figure 15.7 "Decision Support System". The first step is to extract
data from internal sources to decide whether the company has the financial strength to expand its
operations. From external sources (such as industry data and Pennsylvania demographics),
managers might find the data needed to determine whether theres sufficient demand for a casino
in the state. The DSS will apply both types of data as variables in a quantitative model that
managers can analyze and interpret. People must make the final decision, but in making sense of
the relevant data, the DSS makes the decision-making process easierand more reliable. [3]
Figure 15.7 Decision Support System

Executive Information Systems

As we observed in Chapter 6 "Managing for Business Success", senior managers spend a good
deal of their time planning and making major decisions. They set performance targets, determine
whether theyre being met, and routinely scan the external environment for opportunities and
threats. To accomplish these tasks, they need relevant, timely, easily understood information.
Often, they can get it through an executive information system (EIS), which provides ready
access to strategic information thats customized to their needs and presented in a convenient
format. Using an EIS, for example, a gaming-company executive might simply touch a screen to
view key summary information that highlights in graphical form a critical area of corporate
performance, such as revenue trends. After scanning this summary, our executive can drill
down to retrieve more detailed informationfor example, revenue trends by resort or revenue
trends from various types of activities, such as gaming, hotel, retail, restaurant, or entertainment
operations.
Artificial Intelligence
Artificial intelligence (AI) is the science of developing computer systems that can mimic human
behavior. Ever since the term was coined in 1956, AI has always seemed on the verge of being
the next big thing. Unfortunately, optimistic predictions eventually collided with
underwhelming results, and many experts began to doubt that it would ever have profitable
applications. [4] In the last decade, however, some significant advances have been made in AI
albeit in the area of game playing, where activities are generally governed by small sets of welldefined rules. But even the game-playing environment is sometimes complex enough to promote
interesting developments. In 1997, for example, IBMs Deep Bluea specialized computer with
an advanced chess-playing programdefeated the worlds highest-ranked player. [5]

More recently, several AI applications have been successfully put to commercial use. Lets take a
brief look at two of these: expert systems and face-recognition technology.
Expert Systems
Expert systems (ES) are programs that mimic the judgment of experts by following sets of rules
that experts would follow. Theyre useful in such diverse areas as medical diagnosis, portfolio
management, and credit assessment. For example, youve called the customer-service department
of your credit-card company because you want to increase your credit line. Dont expect to talk
to some financial expert whos authorized to say yes or no. Youll be talking to a service
representative with no financial expertise whatsoever. He or she will, however, have access to an
ES, which will give you an answer in a few seconds. How does it work? The ES will prompt the
representative to ask you certain questions about your salary and living expenses. It will also
check internal corporate data to analyze your purchases and payment behavior, and, based on the
results, it will determine whether you get an increase and, if so, how much.
At Harrahs, an ES called the Revenue Management System helps to optimize the overall
profitability of both hotel and casino operations. When a customer requests a room, the program
accesses his or her profile in the database and consults certain rules for assessing the
application. [6] One rule, for example, might be: If the customer has wagered more than
$100,000 in the past year, add 10 points. Eventually, the system decides whether your
application will be accepted (and at what rate) by adding up points determined by the rules.
While a tightwad may not get a room even when there are vacancies, a high roller may get a
good rate on a luxury suite even if the hotel is nearly full.
Face-Recognition Technology
Harrahs uses another particularly interesting, and sophisticated, application of AI. In the hotelcasino business, its crucial to identify and turn away undesirable visitors. One tool for this task
is a digital camera-surveillance system that uses face-recognition technology. Using this
technology, a program classifies a persons face according to the presence/absence or extent of
certain unique features, such as dimpled chins, receding jaws, overbites, and long or short noses.
If theres a match on, for example, fifteen features between a person being scanned and someone
in the company database, a staff member decides whether the two people are the same. If a
security manager then concludes that the face belongs to a skilled card-counter, the customer will
be discouraged from playing blackjack; if it belongs to a known cheater, the individual will be
escorted out of the casino. The system, however, does more than spot undesirables. It can also
identify high rollers and send information about customers to managers on the floor. Thats why
a Harrahs manager can greet a preferred customer at the door with his favorite drink and a
personalized greeting, such as Hi, Bill! Hows Karen? Did you ever get that vintage Corvette?
Here, have a gin rickey on the house. [7]
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ICT - types of information system

Author: Jim Riley Last updated: Sunday 23 September, 2012
For most businesses, there are a variety of requirements for information. Senior managers need
information to help with their business planning. Middle management need more detailed
information to help them monitor and control business activities. Employees with operational
roles need information to help them carry out their duties.
As a result, businesses tend to have several "information systems" operating at the same time.
This revision note highlights the main categories of information system and provides some
examples to help you distinguish between them.
Informatio
n System

Description

Executive
Support
Systems

An Executive Support System ("ESS") is designed to help

senior management make strategic decisions. It gathers, analyses and
summarises the key internal and external
Informatio Description
n System
Executive An Executive Support System ("ESS") is
Support
designed to help senior management make strategic
decisions. It gathers, analyses and summarises the key
Systems
internal and external information used in the business.
A good way to think about an ESS is to imagine the senior
management team in an aircraft cockpit - with the
instrument panel showing them the status of all the key
business activities. ESS typically involve lots of data
analysis and modelling tools such as "what-if" analysis to
help strategic decision-making.
Managem
ent
Informatio
n Systems

A management information system

("MIS") is mainly concerned with internal sources of
information. MIS usually take data from the transaction
processing systems (see below) and summarise it into a
series of management reports.
MIS reports tend to be used by middle management and
operational supervisors.

DecisionSupport
Systems

Decision-support systems ("DSS") are

specifically designed to help management
make decisions in situations where there is
uncertainty about the possible outcomes of
those decisions. DSS comprise tools and
techniques to help gather relevant information
and analyse the options and alternatives. DSS
often involves use of complex spreadsheet and
databases to create "what-if" models.

Knowledg
e
Managem
ent
Systems

Knowledge Management Systems ("KMS") exist to help

businesses create and share information. These are
typically used in a business where employees create new
knowledge and expertise - which can then be shared by
other people in the organisation to create further
commercial opportunities. Good examples include firms of
lawyers, accountants and management consultants.
KMS are built around systems which allow efficient
categorisation and distribution of knowledge. For example,
the knowledge itself might be contained in word processing
documents, spreadsheets, PowerPoint presentations.
internet pages or whatever. To share the knowledge, a KMS
would use group collaboration systems such as an intranet.

Transactio
n
Processin
g Systems

As the name implies, Transaction Processing Systems

("TPS") are designed to process routine transactions
efficiently and accurately. A business will have several
(sometimes many) TPS; for example:
- Billing systems to send invoices to customers - Systems
to calculate the weekly and monthly payroll and tax
payments - Production and purchasing systems to calculate
raw material requirements - Stock control systems to
process all movements into, within and out of the business

Office
Office Automation Systems are systems that
Automatio try to improve the productivity of employees
n Systems who need to process data and information.
Perhaps the best example is the wide range of
software systems that exist to improve the
productivity of employees working in an office
(e.g. Microsoft Office XP) or systems that allow
employees to work from home or whilst on the
move.
information used in the business.
A good way to think about an ESS is to imagine the senior management
team in an aircraft cockpit - with the instrument panel showing them the

status of all the key business activities. ESS typically involve lots of data
analysis and modelling tools such as "what-if" analysis to help strategic
decision-making.

Manageme
nt
Informatio
n Systems

A management information system ("MIS") is mainly

concerned with internal sources of information. MIS usually take data from
the transaction processing systems (see below) and summarise it into a
series of management reports.
MIS reports tend to be used by middle management and operational
supervisors.

DecisionSupport
Systems

Decision-support systems ("DSS") are specifically designed

to help management make decisions in situations where
there is uncertainty about the possible outcomes of those
decisions. DSS comprise tools and techniques to help gather
relevant information and analyse the options and
alternatives. DSS often involves use of complex spreadsheet
and databases to create "what-if" models.

Knowledge
Manageme
nt Systems

Knowledge Management Systems ("KMS") exist to help businesses create

and share information. These are typically used in a business where
employees create new knowledge and expertise - which can then be shared
by other people in the organisation to create further commercial
opportunities. Good examples include firms of lawyers, accountants and
management consultants.
KMS are built around systems which allow efficient categorisation and
distribution of knowledge. For example, the knowledge itself might be
contained in word processing documents, spreadsheets, PowerPoint
presentations. internet pages or whatever. To share the knowledge, a KMS
would use group collaboration systems such as an intranet.

Transaction As the name implies, Transaction Processing Systems ("TPS") are designed
Processing to process routine transactions efficiently and accurately. A business will
have several (sometimes many) TPS; for example:
Systems
- Billing systems to send invoices to customers - Systems to calculate the
weekly and monthly payroll and tax payments - Production and purchasing
systems to calculate raw material requirements - Stock control systems to
process all movements into, within and out of the business

Office
Automatio
n Systems

Office Automation Systems are systems that try to improve

the productivity of employees who need to process data and
information. Perhaps the best example is the wide range of
software systems that exist to improve the productivity of
employees working in an office (e.g. Microsoft Office XP) or
systems that allow employees to work from home or whilst
on the move.

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A4.

A5.

Conclusion:

Works Cited
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