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Unit 6 - Information Systems

The document discusses information systems, their components, and how they support businesses. It covers hardware, software, data, processes, people and how they interact as part of an information system. It also discusses different types of information systems and how businesses use technology.

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19 views6 pages

Unit 6 - Information Systems

The document discusses information systems, their components, and how they support businesses. It covers hardware, software, data, processes, people and how they interact as part of an information system. It also discusses different types of information systems and how businesses use technology.

Uploaded by

lucky dolphin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit 06: Information Systems

Going over the technologies in the past and how it has evolved to the
technologies we have in the present gave us an idea of what is possible in the future.
It is with the creativity and ingenuity of us, human beings, that we are able to make
sense of technological developments and turn them into productivity boosting tools.

But technologies are not developed to match exactly what every person needs.
After all, each person has something different to do and to work on. It is thus important
for these technologies to be transformed into something that is geared towards making
every person productive despite the difference in their needs. Technologies are being
specialized. So how exactly does these technologies work?

Companies use information as a weapon in the battle to increase productivity,


deliver quality products and services, maintain customer loyalty, and make sound
decisions. Information technology can mean the difference between success and
failure. Information technology (IT) is the application of a combination of hardware and
software used to retrieve, store, transmit and manipulate data, often in the context of
a business or other enterprise.

Data are facts that are recorded and stored. Information is processed data used
in decision making. The value of information is the benefit produced by the information
minus the cost of producing it.

A System is a set of two or more interrelated components interacting to achieve


a goal.

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Information Systems
● Set of interrelated components
● Collect, process, store, and distribute information
● Support decision making, coordination, and control
● May also help analyze problems, visualize complex subjects and create new
products

Information System Components

● Hardware – tangible aspect of a computer system


● Software – programs and other operating information used by a computer
(systems, application, enterprise, horizontal system, vertical systems, legacy
systems)
● Data - is the raw material that an information system transforms into useful
information
● Processes - describes the tasks and business functions that users, managers,
and IT staff members perform to achieve specific results. Processes are the

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building blocks of an information system because they represent actual day-to-
day business operations.
● People - those who have an interest in an information system are called
stakeholders. Stakeholders include the management group responsible for the
system, the users (sometimes called end users) inside and outside the company
who will interact with the system, and IT staff members, such as systems
analysts, programmers, and network administrators who develop and support
the system.

Who develops Information Systems?


● Traditionally, a company either developed its own information systems, called
in-house applications, or purchased systems called software packages from
outside vendors.
● Today, the choice is much more complex. Options include Internet-based
application services, outsourcing, custom solutions from IT consultants, and
enterprise-wide software strategies.

Systems Analysis and Design


Systems Analysis and Design is a step-by-step process for developing high-
quality information systems.

Systems Analyst plans, develops, and maintains information systems.

Business and Information Systems

With the different technological advancements, businesses have adopted newer


processes and have upgraded their business models
● Brick-and-mortar - refers to a traditional street-side business that offers
products and services to its customers face-to-face in an office or store that the
business owns or rents.
● Click-and-mortar - Click and mortar is a type of business model that has both
online and offline operations, which typically include a website and a physical
store.

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● Click - Click-only companies are those companies who have a website/online
presence without a physical store. They sell their products through their
website only.

The Internet has drastically reduced the intermediaries within a transaction. Internet-
based commerce is called e-commerce (electronic commerce) or I-commerce (Internet
commerce). The E-commerce includes two main sectors: B2C (business-to-consumer)
and B2B (business-tobusiness).

B2C (Business-to-Consumer)
● Using the Internet, consumers can go online to purchase an enormous variety
of products and services. This new shopping environment allows customers to
do research, compare prices and features, check availability, arrange delivery,
and choose payment methods in a single convenient session.

B2B (Business-to-Business)
● Business-to-business (B2B), also called B-to-B, is a form of transaction between
businesses, such as one involving a manufacturer and wholesaler, or a
wholesaler and a retailer.

Business and Information Systems

In the past, IT managers divided systems into categories based on the user
group the system served. Categories and users included office systems (administrative
staff), operational systems (operational personnel), decision support systems (middle-

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managers and knowledge workers), and executive information systems (top managers).
Today, traditional labels no longer apply. For example, all employees, including top
managers, use office productivity systems. Similarly, operational users often require
decision support systems. As business changes, information use also changes in most
companies. Today, it makes more sense to identify a system by its functions and
features, rather than by its users.

Examples of Information Systems according to support provided


● Inventory Control (TPS)
● Reservations (TPS, MIS)
● Customer Order Processing / Point-of-Sale (TPS)
● Warranty Claim Processing (TPS)
● Records Management (MIS)
● Enrollment System (TPS)
● Attendance Monitoring (MIS)
● Payroll (TPS)
● Queuing (TPS)

WHAT INFORMATION DO USERS NEED?


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Corporate organizational structure has changed considerably in recent years. As
part of downsizing and business process reengineering, many companies reduced the
number of management levels and delegated responsibility to operational personnel.
Although modern organization charts tend to be flatter, an organizational hierarchy still
exists in most companies. A typical organizational model identifies business functions
and organizational levels, as shown in the figure below. Within the functional areas,
operational personnel report to supervisors and team leaders. The next level includes
middle managers and knowledge workers, who, in turn, report to top managers. In a
corporate structure, the top managers report to a board of directors elected by the
company’s shareholders.

Top managers
● Strategic plans

Middle Managers and Knowledge Workers


● Middle managers provide direction, necessary resources, and performance
feedback to supervisors and team leaders
● Knowledge workers include professional staff members such as systems
analysts, programmers, accountants, researchers, etc.

Supervisors and Team Leaders


● Oversee operational employees and carry out day-to-day functions

Operational Employees
● Operational employees include users who rely on TP systems to enter and
receive data they need to perform their jobs.

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