Cos 101 Lecture Six

COS 101 LECTURE SIX
INFORMATION SYSTEMS
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OBJECTIVES
 This chapter focuses on providing students with the basic
knowledge of the state-of-the-art in developing
information systems to support organisation’s business
operation and processes. Specifically, students should be
able to:
 define information systems clearly.
 list and explain the roles of information systems in
relation to business enterprise.
 list and explain the various types of information systems.
 understand how the choice of information systems
should align with managerial level processes in decision
making within an organisation.
 list and discuss the technology drivers that give rise to
business prospect within the organisation
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 familiarise with process of developing information
systems.
INFORMATION SYSTEMS
 A system is made up of a number of
connected, clearly defined entities that are
cooperating to accomplish a common set of
objectives.
 There are different ways system can be
typified but for the purpose of this chapter,

the system’s classification is based on the
following:
 Physical or abstract;
 Open and closed;
 Subsystem and supersystem; and
 Natural and man-made. 3
INFORMATION SYSTEMS CONTD.
 The physical system consists of actual objects that can
be static or dynamic in character while abstract system is
the concept or model of physical system.
 A closed system is shielded from environmental
influences, an open system interacts with the
environment continuously.
 The supersystem is thought of as a large and complex
system, the subsystem is a component of the overall
system.
 There are systems that exist in their natural habitat or
environment made by nature and is referred to as natural
systems (ecosystems), and there are systems made by
people and are referred to as man-made systems.
 Examples include transportation systems, network and
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communication systems, and other systems.
 Information is the processing of raw facts or
data into a form that is meaningful and
useful to take actions or decisions.
 For example, assume there is a set of data
which is inventory of product items in

supermarkets for sales and the information
that may relate to the data is the sales of
that product items on daily, week, monthly
and yearly basis.
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 An organisation or business operates as a system, and each of
its components can be divided into smaller systems.
 The business can be broken down into the following systems:
operations, personnel, financial, commercial or marketing and
information, in accordance with organisational theory.
 Information has value only on the basis of using it for the
organisation’s objectives and purpose.
 The information flow must be well coordinated within the
organisational processes for good organisational performance.
 An information system (IS) is a formalised collection of
interconnected processes that operate from a set of data that
has been formatted to meet the needs of the organisation.
 IS then distributes the information and processes the data as
necessary for the business's operations and the accompanying
management and control activities. This acts as the decision-
making process required for the firm to carry out its operations 6
in accordance with its strategy.
ROLES OF INFORMATION SYSTEMS IN
BUSINESS ENTERPRISE
 Support for the Business Process:
 Input logistics, appropriate operations, output logistics, use of
marketing, service.
 A Support for Operation of a Business Enterprise:
 To provide quicker and more reliable information, information systems
are hosted in a computerised environment.
 A Support for Decision Making:
 Information systems assist employees in making decisions for their
daily tasks.
 Strategies for a Business Enterprise:
 Every company in the modern world operates in a market that is
competitive.
 To compete favourably in the global economy, businesses must be able
to use information technology tools to their fullest potential.
 Strategies for a Business Enterprise:
 Every company in the modern world operates in a market that is
competitive.
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 To compete favourably in the global economy, businesses must be able
to use information technology tools to their fullest potential.
TYPES OF INFORMATION
SYSTEMS
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TYPES OF INFORMATION SYSTEMS CONTD.
 Executive Information System
 A top-level executive of an organisation can plan and manage workflow
and make business decisions with the aid of an executive information
system (EIS), often referred to as an executive support system (ESS).
 Decision Support System

 The organisation's management uses a decision support system (DSS)
to analyse the data before making a decision.
 The sources of the data can be internal or external.
 For instance, management may use information from external sources,
such as market prices, when determining the prices of a product.
 Management Information System
 The management uses the management information system (MIS) to
offer routine summary information so they can make choices.
 Different types of data are processed, including those related to sales,
purchases, and production that are consolidated in MIS.
 Transaction Processing System
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 The transaction collection, update, and retrieval procedure are
automated by the Transaction Processing System (TPS). It successfully
handles ordinary transactions.
PERSPECTIVES OF INFORMATION SYSTEMS
 Technical perspective
 It focuses on the hardware, software, and network components of the system.
 It emphasises the design, development, implementation, and maintenance of
the system to ensure its optimal performance and reliability.
 Behavioural perspective
 It focuses on the human aspects of the system, including how people interact
with the system and how the system affects people.
 It emphasises the social, psychological, and organisational factors that influence
the use and adoption of the system.
 Managerial perspective
 It focuses on the managerial and administrative aspects of the system.
 It emphasises the role of the system in supporting managerial decision-making,
planning, and control.
 Strategic perspective
 It focuses on the strategic use of information systems to achieve organisational
goals and objectives.
 Societal perspective
 The societal perspective of information systems focuses on the broader societal
implications of the system. 10
 It emphasises the ethical, legal, and social issues that arise from the use of the
system.
THE BUSINESS DRIVERS
INFLUENCING THE
INFORMATION SYSTEM
 Operational efficiency
 Competitive advantage
 Business growth
 Regulatory compliance
 Customer satisfaction
 Risk management
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THE TECHNOLOGY DRIVERS
USED BY INFORMATION SYSTEM
 Moore's Law
 Cloud Computing
 Internet of Things (IoT)
 Artificial Intelligence (AI)
 Big Data
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THE PROCESS FOR DEVELOPING
THE INFORMATION SYSTEM
 Planning and Analysis

 Design
 Implementation
 Testing
 Deployment
 Maintenance
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BUSINESS VALUE OF
INFORMATION SYSTEM
 Improved operational efficiency
 Enhanced decision-making
 Increased competitiveness
 Improved customer service
 Better collaboration
 Reduced costs
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COS 101 LECTURE SIX

typified but for the purpose of this chapter,

which is inventory of product items in

 Decision Support System

 Internet of Things (IoT)

 Artificial Intelligence (AI)

 Planning and Analysis

 Improved customer service

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