Information System for

Business
 IS
• An information system (IS) is an interconnected set of components
used to collect, store, process and transmit data and digital
information. At its core, it is a collection of hardware, software, data,
people and processes that work together to transform raw data into
useful information.
• An IS supports a variety of business objectives such as improved
customer service or increased efficiency.
• People often use the term "information system" interchangeably with
"computer system," but these systems are not the same. While
computer systems are part of an IS, they do not encompass all the
components and processes that make up an IS, such as people and
processes.
• "Information technology" (IT) is another similar term, but IT focuses
on the technical aspects of the hardware and software that support
enterprise computing.
• An IS, on the other hand, focuses on how people use IT and data to
manage and make decisions within an organization.
 source

https://www.techtarget.com/whatis/
definition/IS-information-system-or-i
nformation-services
 The Purpose of an Information
System
• Information systems reduce human error through tech
automation and algorithms. In addition, with
information systems, you can gather large quantities of
data from customers, vendors, marketers, competitors,
and industries.
• Effectively, information systems give you an edge over
others regarding conducting accurate research. This
research, therefore, helps you optimize available time
for data collection and analysis, thereby improving
customer relationships and increasing revenue.
Information systems also aid the generation of
knowledge or data for decision-making.
 source

https://zapier.com/
blog/what-is-infor
mation-systems/
 Examples of Information
Systems
Information systems come in various forms. We
will briefly examine three of them:
1. E-commerce
2. Collaboration
3. Content Management
 E-Com - Today, IS Collaboration - Content

Ex : 3
Ex : 1

Ex : 2
have paved the way for
Organizations and teams
thrive on quality
Management –
business owners to set up collaboration. With the An organization can
online shops instead of growth in tech, which share data and
brick-and-mortar ones. includes information
The combination of information with only its
systems, collaboration members through its
hardware, software, and
telecommunications improves. IS help give intranet. Also, these
networks allows business organizations the employees can get up-
owners to display platform to come to-date news, articles,
products digitally, receive together to brainstorm research, or
sales orders, sell, and and solve problems announcements about
process transactions. As collectively.
their organization. In the
you carry out these Information systems have same vein, an
actions, you also have the given birth to numerous
opportunity to gather organization can share
collaboration tools in the data with and receive
customer data and use
them for remarketing, market. These tools aid data from its customers
building relationships, productivity increase, through its public
running targeted ads, etc enhanced efficiency, and website.
quick feedback sharing.
 How to Build an Information
System
• Building an information system requires the
SDLC (software development life cycle).

• The SDLC helps tech teams to build and design

information systems in phases
 SPECIFICS

• High Level Design Defines Major Requirements

HL • System Modules, Interactions and Data Flow
D
• Low Level Design Defines Internal Structures, Algorithms and Data
LL Structures
• It Delves into implementation specific details and technologies
D
so • https://www.shiksha.com/online-courses/articles/difference-between-hld-and-lld-blogId-161423
#:~:text=HLD%20defines%20the%20major%20functional,implementation%2Dspecific%20details
ur %20and%20technologies
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 What is Information
Needs?

https://www.lisedunetwor
k.com/information-needs/
#:~:text=To%20address%
20information%20needs%
• Information needs refer to the specific
requirements or desires individuals or
organizations have for obtaining information to
fulfill a particular purpose or achieve a specific
goal.
• Information needs can arise in various contexts,
such as personal, professional, educational, or
societal, and they can be driven by various
factors, including curiosity, decision-making
processes, problem-solving endeavors, research
objectives, or the need to stay informed about a
particular subject.
• Similarly, a business professional may need
information about market trends, competitor
analysis, or customer preferences to make
informed decisions.
• To address information needs, individuals or
organizations typically engage in information-
seeking activities. This involves searching for,
accessing, and evaluating information from
various sources, such as books, articles,
databases, websites, experts, etc. The
information sought should be relevant, reliable,
and credible to ensure its usefulness in meeting
the identified needs.
“Effectively addressing information needs requires
critical thinking skills, information literacy, and the
ability to evaluate and synthesize information from
multiple sources. It also involves understanding the
strengths and limitations of different information
resources and being aware of the ethical
considerations involved in accessing and using
information”
 • Visceral needs refer to individuals’ actual but unexpressed information
needs. These needs may arise from personal experiences, emotions, or
Ne a f intuitions. Individuals may sense that they lack information or
s n
rm o
ed t i o Visc
f o el s

understanding in a particular area, even if they precisely articulate or

eral
In Lev

define their needs

• Conscious needs represent an ill-defined area of decision or

Con uncertainty where individuals recognize the need for
scio information but cannot clearly articulate it
us

• Formal needs emerge when individuals can express their

For information needs concretely
mal

C
o • Compromised needs occur when the original information
m
pr
needed is translated into what the available resources and
o information systems can deliver.
mi
se
d
TYPES OF MANAGEMENT DECISIONS

• Management decision-making identifies

problems, evaluates alternatives, and makes
choices to attain organizational goals.

• It's a crucial aspect of running a business or

organization effectively, as management
decisions can significantly impact various
sides such as operations, finances, human
resources, and overall performance
 Factors Influencing Management
Decision-Making
Internal External
• ORG CULTURE • ECONOMIC CONDITIONS
• ORG STRUCTURE • MARKET DECISIONS
• RESOURCES • LEGAL & REGULATORY
• LEADERSHIP STYLE ENVIRONMENT
• RISK TOLERANCE (MGMT • TECHNOLOGICAL CHANGES
WILLIGNESS – RISK - AFFECTS) • POLITICAL ENVIRONMENT
• INFO AVAILABILITY – IN-TIME .
RATIONAL DECISION MAKING VS. INTUITIVE
DECISION MAKING
RATIONAL INTUITIVE
• systematic analysis and logic • gut feelings, instincts, and experience
• Step-by-step approach involving • Often involves quick, unconscious
gathering, analyzing, and processing of information without
evaluating information conscious deliberation
• Emphasizes logical reasoning, data • Relies on intuition, pattern
analysis, and problem-solving recognition, and past experiences
techniques • Incorporates both factual
• Relies heavily on factual information and subjective
information, data, and evidence perceptions
• Effective for quick decisions in
• Effective for complex decisions
situations where time and resources
requiring thorough analysis and are limited
consideration of multiple factors
 Rational Decision Making vs. Intuitive Decision Making
RATIONAL INTUITIVE
• time-consuming and • efficient in situations
resource-intensive due to where quick decisions are
extensive analysis needed
• Aims to minimize • More comfortable with
uncertainty by making uncertainty, often making
decisions based on known decisions in ambiguous or
information and uncertain situations
probabilities
• Outcomes may be less
• Generally leads to more predictable due to
predictable outcomes due reliance on intuition and
to systematic analysis subjective judgments
https://www.simplilearn.com/management-dec
ision-making-article
D
• ecision Making in Management: Importanc
e, Types, Process (knowledgehut.com)

•https://www.knowledgehut.com/blog/proje
ct-management/decision-making-in-manage
ment
Characteristics of Decision Making in Management

Rational-
thinking Process

Selective Purposive

Positive Commitment

Evaluation
 all forms of value
that determine the
health and well-
being of the firm in
the long run
Types of Decision Making in
Management
Routine And Basic Decision-making
• Some decisions are more complex and require more
thought. For instance, you may need to decide what to
wear to a job interview or how to handle a difficult
customer at work.
• In these situations, it is important to take the time to
carefully consider your options before making a
decision. Basic decision-making skills involve
considering the potential consequences of each option
and choosing the one that is most likely to lead to the
desired outcome.
Types of Decision Making in
Management
Personal and Organizational Decision-making
Decision making is a key component of both personal and
organizational success. When making decisions, it is important to
consider all of the potential options and their consequences.
In some cases, there may be a clear best choice, while in others, the
decision may be more difficult. However, the ability to make sound
decisions is essential for both individuals and organizations.
Types of Decision Making in
Management
Individual and Group Decision-making
Individual decision-making process in project management typically
occurs when the stakes are low and the impact will be limited to a single
person.
Group decision making is necessary when the stakes are high or the
impact will be felt by multiple people. In general, group decision
making is more effective than individual decision making because it
allows for a greater diversity of perspectives and more thorough
deliberation
Types of Decision Making in
Management
Programmed and Non-Programmed Decision-
making
• Non-programmed decisions making in operation
management are unique and not repetitive. Typically,
they are made in response to an unforeseen event or
opportunity. Programmed decisions, on the other hand,
are routine and often based on established rules or
procedures. Because they are more predictable.
• programmed decisions are typically less risky and easier
to make. However, non-programmed decisions often
require more creativity and judgment, and can be more
difficult to reverse if they turn out to be wrong.
Types of Decision Making in
Management

Policy and Operating Decision-making

-
Strategy Level and Operational Level
Types of Decision Making in
Management
Policy and Operating Decision-making
Policy and operating decision making are two important aspects of any
business. Policy decisions are made at the strategic level and focus on
long-term issues, such as the overall direction of the company.
Operating decisions, on the other hand, are made at the operational level
and focus on short-term issues, such as which products to produce and
how to staff the production process.
Types of Decision Making in Management
Tactical and Strategic Decision-making
This is an essential type of managerial decision making. Tactical
decision making is important because it helps organizations to respond
quickly to changes in the environment. However, too much emphasis on
tactical decision making can lead to a lack of focus on long-term goals.
Strategic decision making is important because it helps organizations to
establish a clear direction and make informed choices about resource
allocation. Both tactical and strategic decision making are necessary for
an organization to be successful.
involve sourcing decisions, production
decisions, scheduling, transportation and
logistical contracts, and planning process
definition
Types of Decision Making in
Management
Planned And Unplanned Decision-making
There are two types of decision making in management:
planned and unplanned. Planned decisions are those that are
made in advance, after considering all the options and their
possible outcomes.
Unplanned decisions, on the other hand, are those that are
made on the spot, without any prior consideration. Both types
of decision making in management have their own advantages
and disadvantages
Types of Decision Making in
Management
Organizational and Interdepartmental Decision-making
Organizational type of managerial decision making is the process of
identifying and choosing the best course of action to achieve
organizational goals. It includes both formal and informal methods of
decision making, and it occurs at all levels of an organization. This is
one of the managerial decision-making examples that managers have to
be great at.
Interdepartmental decision making is the process of identifying and
choosing the best course of action to achieve interdepartmental goals. It
occurs at all levels where two or more departments interact.
System classification Elements of system,
input, output, process and feedback

https://www.slideshare.net/slideshow/element-of-system/248974595#4
 UNIT – IV
BUSINESS APPLIATION
SOFTWARE
BUSINESS APPLICATION
SOFTWARE
• Application software is a type of computer program that performs a
specific personal, educational, and business function. Each application
is designed to assist end-users in accomplishing a variety of tasks,
which may be related to productivity, creativity, or communication.
• Business Application Software is a subset of the application software.
These programs are built to facilitate certain business functions and
improve the accuracy, efficiency, and effectiveness of operations by
saving time and enhancing productivity.
(Reference : https://www.quickbase.com/articles/application-software-basics)
OBJECTIVES
 Business Applications software accomplishes end user tasks such as word processing,
spreadsheets, database maintenance, and accounting functions.
 All business application software runs on top of the operating system software and uses
the basic input, output, and data storage functions of the operating system.
 Any accounting software is considered application software. Application software
represents another entry point through which unauthorized users or hackers could gain
access.
 The business application software has security, confidentiality, availability, and
processing integrity risks.

(Reference:https
://www.oreilly.com/library/view/accounting-information-systems/9781118162309/c04-24.ht
ml#:~:text=Applications%20software%20accomplishes%20end%20user,functions%20of%20the
%20operating%20system
.)
IMPORTANCE
1. Calculations become easier:
A business requires lot of difficult calculations. If the calculation is not done
in right manner then your business will face huge loss. So calculations are must.
2. Business gets arranged:
Now with a good software your business seems more arranged and
organized. You do not need to search huge files to know about any details.
Everything is within a click.
3. Documents become simple:
Your documents are arranged simply so your documents are very simple
and well arranged. You tend to worry less and feel happy that everything is under
your control.
4. No forgetting:
You do not forget anything. Even if you forget your software is
there to help you remember things. This is the easiest and simplest way
you can arrange and get on with your business.
5. No haphazard:
There is nothing haphazard anymore. You find everything at one
place and you calculate all at one time. Life as well as business gets
simpler.
(Reference:
https://www.gospeedy.co.in/blog/what-is-the-importance-of-application-software-in-business)
AREAS OF APPLICATION

(Reference: https://www.fingent.com/blog/a-detailed-guide-to-types-of-software-applications/)
DIFFERENCE BETWEEN READY TO USE AND
CUSTOMER ORIENTED SOFTWARES