AMA COMPUTER COLLEGE CAVITE

Ara Vista Subd. Brgy. Biclatan Gen. Trias Cavite

INFORMATION MANAGEMENT
ASSIGNMENT #1

Name: Mary Jane E. Espino

Course: BSIT
Instructor: Mr. Danny Albay
Information System

is an academic study of systems with a specific reference to information and the complementary
networks of hardware and software that people and organizations use to collect, filter, process,
create and also distribute data. An emphasis is placed on an information system having a
definitive boundary, users, processors, storage, inputs, outputs and the aforementioned
communication networks.
Any specific information system aims to support operations, management and decision-
making. An information system is the information and communication technology (ICT) that an
organization uses, and also the way in which people interact with this technology in support of
business processes.
Some authors make a clear distinction between information systems, computer systems,
and business processes. Information systems typically include an ICT component but are not
purely concerned with ICT, focusing instead on the end use of information technology.
Information systems are also different from business processes. Information systems help to
control the performance of business processes.
Alter argues for advantages of viewing an information system as a special type of work system.
A work system is a system in which humans or machines perform processes and activities using
resources to produce specific products or services for customers. An information system is a
work system whose activities are devoted to capturing, transmitting, storing, retrieving,
manipulating and displaying information.
As such, information systems inter-relate with data systems on the one hand and activity systems
on the other. An information system is a form of communication system in which data represent
and are processed as a form of social memory. An information system can also be considered a
semi-formal language which supports human decision making and action.

Differentiate im from Information system

Information management

As we know it today, includes both electronic and physical information. The organizational
structure must be capable of managing this information throughout the information lifecycle
regardless of source or format (data, paper documents, electronic documents, audio, video, etc.)
for delivery through multiple channels that may include cell phones and web interfaces.

According to Wikipedia, Information management (IM) is the collection and management of

information from one or more sources and the distribution of that information to one or more
audiences. This sometimes involves those who have a stake in, or a right to that information.
Management means the organization of and control over the structure, processing and delivery of
information.
Advantage of Information system

Communication – with help of information technologies the instant messaging, emails, voice
and video calls becomes quicker, cheaper and much efficient.

Globalization and cultural gap – by implementing information systems we can bring down the
linguistic, geographical and some cultural boundaries. Sharing the information, knowledge,
communication and relationships between different countries, languages and cultures becomes
much easier.

Availability – information systems has made it possible for businesses to be open 24×7 all over
the globe. This means that a business can be open anytime anywhere, making purchases from
different countries easier and more convenient. It also means that you can have your goods
delivered right to your doorstep with having to move a single muscle.

Creation of new types of jobs – one of the best advantages of information systems is the
creation of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and
Software developers and Web designers are just some of the many new employment
opportunities created with the help of IT.

Cost effectiveness and productivity – the IS application promotes more efficient operation of
the company and also improves the supply of information to decision-makers; applying such
systems can also play an important role in helping companies to put greater emphasis on
information technology in order to gain a competitive advantage. IS has a positive impact on
productivity, however there are some frustrations can be faced by systems users which are
directly linked to lack of training and poor systems performance because of system spread.

Capabilities of Information Systems

Information systems offer a set of capabilities that can be exploited to achieve business results.
Drawing on these capabilities by implementing systems that suit specific business needs enables
a firm to respond to the demands of its environment. The principal capabilities of information
systems are:

1. Fast and accurate data processing, with large-capacity storage and rapid communication
between sites.

2. Instantaneous access to information.

3. Means of coordination (brings parts of an organization, or several collaborating organizations,
together in a common effort).

4. Boundary spanning (systems through which an organization receives intelligence about its
environment and provides computerized information for its customers, suppliers, and the public
at large).

5. Support for decision making.

6. Supporting organizational memory and learning (means by which knowledge from the past
exerts influence on present organizational activities. Increasingly, elements of the organizational
memory are contained in the software and in the data and knowledge bases of the corporate
information systems).

7. Routinizing organizational practice.

8. Differentiation of products and services.

9. Modeling (a simplified representation of a real object or phenomenon that helps to understand

or develop the modelled object).

10. Automation (replacing human labor, for example, with information systems).

People behind Information system

Dave Bourgeois and David T. Bourgeois

Learning Objectives

Upon successful completion of this chapter, you will be able to:

 describe each of the different roles that people play in the design, development, and use
of information systems;
 understand the different career paths available to those who work with information
systems;
 explain the importance of where the information-systems function is placed in an
organization; and
 describe the different types of users of information systems.
Introduction

In the opening chapters of this text, we focused on the technology behind information systems:
hardware, software, data, and networking. In the last chapter, we discussed business processes
and the key role they can play in the success of a business. In this chapter, we will be discussing
the last component of an information system: people.
People are involved in information systems in just about every way you can think
of: people imagine information systems, people develop information systems, people support
information systems, and, perhaps most importantly, people use information systems.

The Creators of Information Systems

The first group of people we are going to look at play a role in designing, developing, and
building information systems. These people are generally very technical and have a background
in programming and mathematics. Just about everyone who works in the creation of information
systems has a minimum of a bachelor’s degree in computer science or information systems,
though that is not necessarily a requirement. We will be looking at the process of creating
information systems in more detail in chapter 10.

Systems Analyst

The role of the systems analyst is to straddle the divide between identifying business needs
and imagining a new or redesigned computer-based system to fulfill those needs. This individual
will work with a person, team, or department with business requirements and identify the
specific details of a system that needs to be built. Generally, this will require the analyst to have
a good understanding of the business itself , the business processes involved, and the ability to
document them well. The analyst will identify the different stakeholders in the system and work
to involve the appropriate individuals in the process.
Once the requirements are determined, the analyst will begin the process of translating these
requirements into an information-systems design. A good analyst will understand what different
technological solutions will work and provide several different alternatives to the requester,
based on the company’s budgetary constraints, technology constraints, and culture. Once the
solution is selected, the analyst will create a detailed document describing the new system. This
new document will require that the analyst understand how to speak in the technical language of
systems developers.
A systems analyst generally is not the one who does the actual development of the
information system. The design document created by the systems analyst provides the detail
needed to create the system and is handed off to a programmer (or team of programmers) to do
the actual creation of the system. In some cases, however, a systems analyst may go ahead and
create the system that he or she designed. This person is sometimes referred to as a programmer-
analyst.
In other cases, the system may be assembled from off-the-shelf components by a person
called a systems integrator. This is a specific type of systems analyst that understands how to get
different software packages to work with each other.

To become a systems analyst, you should have a background both in the business and in
systems design. Many analysts first worked as programmers and/or had experience in the
business before becoming systems analysts.

Programmer

Programmers spend their time writing computer code in a programming language. In the case of
systems development, programmers generally attempt to fulfill the design specifications given to
them by a systems analyst. Many different styles of programming exist: a programmer may work
alone for long stretches of time or may work in a team with other programmers. A programmer
needs to be able to understand complex processes and also the intricacies of one or more
programming languages. Generally, a programmer is very proficient in mathematics, as
mathematical concepts underlie most programming code.

Computer Engineer

Computer engineers design the computing devices that we use every day. There are many types
of computer engineers, who work on a variety of different types of devices and systems. Some of
the more prominent engineering jobs are as follows:

 Hardware engineer. A hardware engineer designs hardware components, such as

microprocessors. Many times, a hardware engineer is at the cutting edge of computing
technology, creating something brand new. Other times, the hardware engineer’s job is to
engineer an existing component to work faster or use less power. Many times, a hardware
engineer’s job is to write code to create a program that will be implemented directly on a
computer chip.
 Software engineer. Software engineers do not actually design devices; instead, they
create new programming languages and operating systems, working at the lowest levels
of the hardware to develop new kinds of software to run on the hardware.
 Systems engineer. A systems engineer takes the components designed by other engineers
and makes them all work together. For example, to build a computer, the mother board,
processor, memory, and hard disk all have to work together. A systems engineer has
experience with many different types of hardware and software and knows how to
integrate them to create new functionality.
 Network engineer. A network engineer’s job is to understand the networking
requirements of an organization and then design a communications system to meet those
needs, using the networking hardware and software available.

There are many different types of computer engineers, and often the job descriptions overlap.
While many may call themselves engineers based on a company job title, there is also a
professional designation of “professional engineer,” which has specific requirements behind
it. In the US, each state has its own set of requirements for the use of this title, as do different
countries around the world. Most often, it involves a professional licensing exam.

Other types of Information system

Types of Information System: TPS, DSS & Pyramid Diagram

A typical organization is divided into operational, middle, and upper level. The information
requirements for users at each level differ. Towards that end, there are number of information
systems that support each level in an organization.

This tutorial will explore the different types of information systems, the organizational level that
uses them and the characteristics of the particular information system.

In this tutorial, you will learn the different Classification of Information.

 Pyramid Diagram of Organizational levels and information requirements

 Transaction Processing System (TPS)
 Management Information System (MIS)
 Decision Support System (DSS)
 Artificial intelligence techniques in business
 Online Analytical Processing (OLAP)

Pyramid Diagram of Organizational levels and information requirements

Understanding the various levels of an organization is essential to understand the information

required by the users who operate at their respective levels.

The following diagram illustrates the various levels of a typical organization.

Operational management level

The operational level is concerned with performing day to day business transactions of the
organization.

Examples of users at this level of management include cashiers at a point of sale, bank tellers,
nurses in a hospital, customer care staff, etc.

Users at this level use make structured decisions. This means that they have defined rules that
guides them while making decisions.

For example, if a store sells items on credit and they have a credit policy that has some set limit
on the borrowing. All the sales person needs to decide whether to give credit to a customer or not
is based on the current credit information from the system.

Tactical Management Level

This organization level is dominated by middle-level managers, heads of departments,

supervisors, etc. The users at this level usually oversee the activities of the users at the
operational management level.

Tactical users make semi-structured decisions. The decisions are partly based on set guidelines
and judgmental calls. As an example, a tactical manager can check the credit limit and payments
history of a customer and decide to make an exception to raise the credit limit for a particular
customer. The decision is partly structured in the sense that the tactical manager has to use
existing information to identify a payments history that benefits the organization and an allowed
increase percentage.

Strategic Management Level

This is the most senior level in an organization. The users at this level make unstructured
decisions. Senior level managers are concerned with the long-term planning of the organization.
They use information from tactical managers and external data to guide them when making
unstructured decisions.

Transaction Processing System (TPS)

Transaction processing systems are used to record day to day business transactions of the
organization. They are used by users at the operational management level. The main objective of
a transaction processing system is to answer routine questions such as;

 How printers were sold today?

 How much inventory do we have at hand?
 What is the outstanding due for John Doe?

By recording the day to day business transactions, TPS system provides answers to the above
questions in a timely manner.

 The decisions made by operational managers are routine and highly structured.
 The information produced from the transaction processing system is very detailed.

For example, banks that give out loans require that the company that a person works for should
have a memorandum of understanding (MoU) with the bank. If a person whose employer has a
MoU with the bank applies for a loan, all that the operational staff has to do is verify the
submitted documents. If they meet the requirements, then the loan application documents are
processed. If they do not meet the requirements, then the client is advised to see tactical
management staff to see the possibility of signing a MoU.

Examples of transaction processing systems include;

 Point of Sale Systems – records daily sales

 Payroll systems – processing employees salary, loans management, etc.
 Stock Control systems – keeping track of inventory levels
 Airline booking systems – flights booking management

Management Information System (MIS)

Management Information Systems (MIS) are used by tactical managers to monitor the
organization's current performance status. The output from a transaction processing system is
used as input to a management information system.
The MIS system analyzes the input with routine algorithms i.e. aggregate, compare and
summarizes the results to produced reports that tactical managers use to monitor, control and
predict future performance.

For example, input from a point of sale system can be used to analyze trends of products that are
performing well and those that are not performing well. This information can be used to make
future inventory orders i.e. increasing orders for well-performing products and reduce the orders
of products that are not performing well.

Examples of management information systems include;

 Sales management systems – they get input from the point of sale system
 Budgeting systems – gives an overview of how much money is spent within the
organization for the short and long terms.
 Human resource management system – overall welfare of the employees, staff
turnover, etc.

Tactical managers are responsible for the semi-structured decision. MIS systems provide the
information needed to make the structured decision and based on the experience of the tactical
managers, they make judgement calls i.e. predict how much of goods or inventory should be
ordered for the second quarter based on the sales of the first quarter.

Decision Support System (DSS)

Decision support systems are used by senior management to make non-routine decisions.
Decision support systems use input from internal systems (transaction processing systems and
management information systems) and external systems.

The main objective of decision support systems is to provide solutions to problems that are
unique and change frequently. Decision support systems answer questions such as;

 What would be the impact of employees' performance if we double the production lot at
the factory?
 What would happen to our sales if a new competitor entered the market?

Decision support systems use sophisticated mathematical models, and statistical techniques
(probability, predictive modeling, etc.) to provide solutions, and they are very interactive.

Examples of decision support systems include;

 Financial planning systems – it enables managers to evaluate alternative ways of

achieving goals. The objective is to find the optimal way of achieving the goal. For
example, the net profit for a business is calculated using the formula Total Sales less
(Cost of Goods + Expenses). A financial planning system will enable senior executives to
ask what if questions and adjust the values for total sales, the cost of goods, etc. to see the
effect of the decision and on the net profit and find the most optimal way.
  Bank loan management systems – it is used to verify the credit of the loan applicant and
predict the likelihood of the loan being recovered.

Artificial intelligence techniques in business

Artificial intelligence systems mimic human expertise to identify patterns in large data sets.
Companies such as Amazon, Facebook, and Google, etc. use artificial intelligence techniques to
identify data that is most relevant to you.

Let's use Facebook as an example, Facebook usually makes very accurate predictions of people
that you might know or went with to school. They use the data that you provide to them, the data
that your friends provide and based on this information make predictions of people that you
might know.

Amazon uses artificial intelligence techniques too to suggest products that you should buy also
based on what you are currently getting.

Google also uses artificial intelligence to give you the most relevant search results based on your
interactions with Google and your location.

These techniques have greatly contributed in making these companies very successful because
they are able to provide value to their customers.

Online Analytical Processing (OLAP)

Online analytical processing (OLAP) is used to query and analyze multi-dimensional data and
produce information that can be viewed in different ways using multiple dimensions.

Let's say a company sells laptops, desktops, and Mobile device. They have four (4) branches A,
B, C and D. OLAP can be used to view the total sales of each product in all regions and compare
the actual sales with the projected sales.

Each piece of information such as product, number of sales, sales value represents a different
dimension

The main objective of OLAP systems is to provide answers to ad hoc queries within the shortest
possible time regardless of the size of the datasets being used.