Unit 2

Chapter 14 (Ferreira):
The Role of Information
Systems
 Chapter content
• Components of the information systems
triangle

• Security of information systems

• Information systems and the Internet

The information systems triangle cont.

The information systems triangle consists of

three core components that interact with
information systems
1. Organisations
2. Technology
3. People
The information systems triangle

Organisations
• Business processes
• Data
• Files and databases

Information
systems
triangle
Technology
• Hardware People
• Software • Internal factors
• Telecommunications • External factors
 The information systems triangle cont.
• The goal of an information system is to collect, process, store,
analyse and disseminate information for a specific purpose

• It does this by making use of IT to perform a specific task

• The IT that forms part of the information system is made up of

the hardware, software, data and telecommunications that
the system needs

• An information system can then be broadly described as the

integration between an organisation, people and technology
working together to towards a specific goal
 The information systems triangle cont.
• One common problem that an information specialist could encounter in an
organisation is the islands problem
• It occurs when there are difficulties in making information available to users
timeously so that they can make an informed decision

There are two types of islands problems:

1. The islands of information problem – arises due to the departmentalisation
of organisations, the islands of information occur when two or more
departments have similar information stored, and duplication occurs, which
makes updating all of the records with the same changes difficult
2. The islands of automation problem – arises from a lack of integration of
information systems between various hardware platforms, which impedes
the sharing of information – this occurs when one departments’
information systems do not or cannot communicate with another’s due to
the lack of similar technologies
 Organisations
• Organisations are quite diverse, even those in the
same industry

• Some functions will be the same, but the way in

which the business processes occur and how the data
is managed are very different

o Business processes
o Data
o Files and databases
 Organisations – Business processes
• A business process can be defined as the predefined
activities and operations that an organisation carries out
to complete a specific task

• Improving a business process involves examining where

problems might be occurring and finding ways to
eliminate them

• Business processes are not department specific, but

rather use information from various departments for
decision making – this is where islands of information
becomes a potential problem again
 Organisations – Data
• Data is a collection of raw facts in isolation

Key points relevant to data are:

• Data constitutes the building blocks of an organisation
• Information is produced by processing data
• Information is used to reveal the meaning of data
• Accurate, relevant and timely information is the key of
good decision making
• Good decision making is the key to organisational
survival in the global environment
 Organisations – Data cont.
• When using an information system we are not
interested merely in raw facts, but rather in what
data describes and the information that arises
from the descriptions

• See Figure 14.2 Page 317 which depicts how data

is changed into information

• There is a sequential flow of input, processing,

output, and a returning feedback loop
 Organisations – Files and databases
• The information processing diagram includes storage
(e.g. database servers) which is an important aspect of
any information system
• Storage plays a vital role, as it allows information to be
accessed quickly when it is needed

Traditionally data was stored in files – typical problems

arising from file-oriented systems are associated with:
• Data redundancy
• Data integrity
• Rigid data structure
Organisations – Files and databases cont.
• Databases attempt to counteract the potential
problems of a file-oriented system, because
they are a collection of interrelated files

• A database management system (DBMS) (e.g.

Microsoft Access; Oracle) is a software
application that is used to create, maintain and
provide controlled access to the organisational
data stored in the database
 Organisations – Advantages and
disadvantages of a DBMS
ADVANTAGES DISADVANTAGES
They reduce the occurrence of redundant or There may be size considerations associated
duplicated data with the space needed to install the DBMS

They reduce the occurrence of The level of complexity of a DBMS might

inconsistencies in stored data require additional staffing or training
Data can be accessed and shared from a The cost of purchasing and managing a
central source DBMS has the potential to be very high
It is easier to control the data and how it is A DBMS may require additional computer
used resources
Standards can be enforced on data, that There is a higher impact of failure (data loss),
prescribes how data will be captured and because data is located in one place
stored

Security can be applied on the data to ensure There may be speed performance problems
that it is not compromised experienced by end users when accessing
the same data
Organisations – Files and databases cont.
• A data warehouse offers the opportunity to store data that can be
used for information generation in order to make decisions that are
either tactical or strategic

The data warehouse is a useful means of ensuring that data is:

• Integrated
• Subject-oriented
• Time-variant
• Non-volatile

The accumulation and management of data in a data warehouse thus

assists in providing a holistic view of the data in an organisation, which
in turn, assists in minimising the islands of information problem
 Technology
• The computer and its peripherals continue to evolve at an
alarming rate

• Organisations are often unable to afford new technology and

attempt to prop up their old systems in the hope that they
will be able to maintain some level of competitiveness

The administrative profession need not be an expert but should

have a basic understanding of the technological elements of:
o Hardware
o Software
o Telecommunications
 Technology - Hardware
• The hardware element of technology refers to the physical
equipment used for the input, processing and storage work of
the information system

Examples of hardware for the various parts of an information

system:
• Input – keyboards, touch screens, barcode scanners
• Processing – CPU (the main processing component of a
computer system)
• Output – generate by monitors, printers, speakers,
• Storage – computer memory (primary storage unit), secondary
storage units include flash drives, external hard drives, optical
disks
 Technology - Software
• Software are those computer programs that control the
computer’s operations

• There are an abundance of different software program

packages on the market, which cover a wide range of
uses

There are two types of software:

1. Application software – E.g. Office/Google Chrome
2. System software – Operating systems such as Microsoft
Windows/utility programs such as anti-virus software
 Technology - Telecommunications
• Communication is the transmission of a signal by means of a communication
channel from a sender to a receiver - the signal contains a message consisting of
data and information

• Telecommunication refers to the electronic transfer of signals to accomplish

some form of communication including telephone, radio and television

• Data communication is a subset of telecommunications that includes the

electronic collection, processing and distribution of data – typically between
computer hardware devices, with the aid of software

• The telecommunication channel or medium refers to anything that carries an

electronic signal and interfaces between a sending device and a receiving device
– can either be physical or wireless

• Telecommunication systems and electronic communication is discussed in detail

 People
Just as the information systems within an organisation vary,
so too do the people who make use of such technologies

People can be simply categorised into:

• Operational employees
• Knowledge workers
• And various organisational levels of management

Each of these different types of people place internal

demands on the information system. However external
factors also impact on the organisational information systems
 People – Internal factors
• The success of the information systems in an organisation depends largely
on the support received from middle and top management

• The power to make changes to these systems usually lies with the IT
department and not the departmental managers

• In many organisations the IT department is seen as the gatekeeper of

technology – information systems either do not change as required, or
change without prior notification

• This can have a large impact on the effective and efficient operation of the
people in an organisation

• This raises the issue of suitable training - as well as the importance of

user involvement when changing information systems
 People – External factors
• The explosion of technology places great demands on the organisation
as it needs to ensure that it keeps up to date with the technological
changes - At the same time, organisations must be careful not to
change technology so drastically that it affects the business processes
negatively and encourages the islands of automation problem

• Organisations are finding that they need to increasingly compete with

competitors to keep their existing customers – a good CRM system can
help here

• Government rules and regulations with respect to good governance

requirements for organisations will also affect how people perform
their jobs – and these requirements need to integrated into
information systems
 Information systems security
• Computers are used productively on a daily basis
to gain access to valuable information within the
organisation, and yet at the same time can be used
to steal vast amount of information or money

• Many companies are not willing to report

computer crimes because of the threat of losing
potential customers, suppliers or business partners
who think that their data may not be secure
Information systems security cont.
A computer can be the tool that is used to commit the crime or
the object of the crime itself – Administrative professionals
and others in the organisation need to guard against the
computer becoming the object of a crime:
• Illegal access and use
• Data alteration and deletion
• Spyware
• Information and equipment theft
• Safe disposal of personal computers
• Patent and copyright violations
• Computer-related scams
• International computer crime
 Information systems and the Internet
• Consumers are placing growing pressure on organisations to take their
businesses online - already banks and many other service industries
allow consumers to do transactions over the Internet

Electronic commerce – “ describes the process of buying, selling,

transferring, or exchanging products, services, or information via computer
networks, including the Internet”

Electronic business – “a broader definition of e-commerce that involves not

just buying or selling, but also servicing customers , collaborating with
business partners, and conducting electronic transactions within an
organisation”

Mobile commerce – involves the use of an application on a mobile device

to transact with an organisation
 HOMEWORK
• Read through Unit 3 – Chapter 3 Ferreira –
Information and Knowledge Management