Information Systems Quiz

Information Systems and Systems Analysis and Design

• Information systems are a combination of people, procedures, software, hardware, data, and the internet.
• These components work together to provide the information needed for an organization to operate effectively.
• Computers are used in organizations to maintain records of events and support decision-making.

Learning Objectives, Chapter 4

• Explain the parts of an information system (people, procedures, software, hardware, data, and the internet).
• Explain the organizational functional viewpoint and describe each function.
• Describe management levels and their corresponding informational needs.
• Discuss information flow within an organization.
• Discuss computer-based information systems.
• Differentiate transaction processing systems, management information systems, decision support systems, and executive support systems.
• Differentiate between office automation systems and knowledge work systems.
• Explain the distinction between data workers and knowledge workers.

Introduction

• An information system is a collection of people, procedures, software, hardware, data, and the internet, all working together to provide essential information for an organization's operation.
• Organizations use computers to maintain records of events.
• Users need to understand how information flows within an organization.

People

• People are an essential part of information systems, often overlooked.
• Personal computers are designed to increase individual productivity.
• People are involved in information systems in diverse roles, including creators, developers, support personnel, and users.

Procedures

• Procedures are the rules or guidelines for using software, hardware, and data.
• These procedures are typically documented in manuals written by specialists.
• Software and hardware manufacturers provide documentation in printed or electronic format.

Software

• Software consists of step-by-step instructions for computers.
• Software converts data (raw facts) into information (processed facts).
• A payroll program, for example, takes hours worked and pay rate (data) to calculate pay (information).

Hardware

• Hardware is the equipment that processes data to create information.
• It includes smartphones, tablets, keyboards, mice, displays, system units, and other devices.
• Hardware operation is controlled by software.

Data

• Data refers to raw, unprocessed facts, including text, numbers, images, and sounds.
• Processed data becomes information.
• Accurate, timely, specific, and organized data is essential for useful information.

Internet

• Virtually all information systems connect to other users and computers via the internet.
• Internet connectivity enhances the utility and capability of information systems.

Why Computers are Used in Organizations

• Organizations use computers to maintain records of events and to aid in decision-making.
• For example, a point-of-sale system records sales and salesperson details, enabling sales managers to determine bonuses based on performance.

Organizational Information Flow

• Information flow within organizations is complex, extending both vertically and horizontally.
• Information systems support this flow, facilitating internal communications and external interactions.
• Information flows among various functional areas and management levels.

Five Functions of an Organization

• Accounting: Tracks all financial activities, produces financial statements (including budgets, forecasts), and reports on financial performance.
• Marketing: Manages planning, pricing, promoting, selling, and distribution of goods and services.
• Human Resources: Manages hiring, compensation, and benefits, overseeing workforce performance.
• Production: Turns raw materials into finished products (or services) in a manufacturing or operations setting. At HealthWise, this department purchases materials for exercise equipment.
• Research: Conducts basic research, aiming to relate new discoveries to current/future products. At HealthWise, this department works on developing new exercise machines based on research findings from exercise physiologists.

Management Levels

• Management is typically categorized into three levels: top management, middle management, and supervisors.
• Top management is responsible for long-range planning, middle management for tactical planning, and supervisors for operational matters.

Information Flow (Page 1 and 2)

• Each management level has specific information needs.
• Information flows vertically and horizontally across management levels, and can also involve external sources depending on the needs of top management. Top managers require vertical (from lower levels), horizontal (with other managers), and external information.
• Middle managers require both vertical and horizontal information.
• Supervisors primarily need vertical information.

Computer-Based Information Systems

• Executive Support Systems (ESS): Support top management by providing access to internal and external data for summarizing, presentation and analysis to improve decision-making. These systems will typically help support long range planning decisions.
• Decision Support Systems (DSS): Support middle managers by offering flexible analytical tools for assessing unexpected situations. DSS support information for both tactical and strategic decision-making, as well as generating reports in a flexible format, not a fixed one like those found in MIS systems.
• Management Information Systems (MIS): Support middle management through structured reporting tools based on data acquired from Transaction Processing Systems (TPS). Management Information Systems (MIS) systems typically display static reports to aid in assessing performance to sales goals.
• Transaction Processing Systems (TPS): Support operational managers by recording daily transactions. These systems are used to record, track, and monitor day-to-day activities.

Question to be answered.

• What is a transaction processing system? How does it aid supervisors?
• What is a Management Information System (MIS)?
• What is a Decision Support System (DSS)?
• How are MIS different from DSS?
• What is an Executive Support System (ESS)? Who uses it? What is it used for?

Transaction Processing Systems (TPS)

• Records day-to-day transactions within a database.
• Frequently referred to as data processing systems (DPS), the five-stage data cycle includes data entry, transaction processing, file and database processing, document and report generation, and inquiry processing.
• Includes applications like order entry, hotel reservations, payroll, employee records and others.

Examples of TPS Systems

• Sales order entry
• Hotel reservation systems
• Payroll
• Employee record keeping
• Automated teller machines
• Credit card authorizations
• Online bill payments
• Self-checkout stations
• E-commerce transactions.
• Other e-commerce activities

Examples of TPS systems (for accounting)

• Sales order processing
• Accounts receivable
• Inventory and purchasing
• Accounts payable
• Payroll
• General ledger

Management Information Systems (MIS)

• Uses information technology, people, and business processes to record, store, and process data, which decision-makers use to make daily business decisions.
• Provides structured reporting tools for decision making to aid managers in assessing and monitoring daily operations performance.

The Need for MIS

• Provides decision-makers with necessary information.
• Serves as a communication channel improving communication inside and outside the organization.
• Maintains records of business transactions, acting as a reference point.

Management Information Systems (MIS)

Produces standardized reports supporting middle management decision-making. Summarizes database details in structured formats for easier analysis. Includes predetermined reports, periodic reports, exception reports, and demand reports.

Examples of MIS Systems

• Process control
• Office automation
• Enterprise resource planning
• Finance systems
• Management reporting

Decision Support Systems (DSS)

• A flexible analytical tool, aiding managers in generating answers to previously unresolved, unexpected problems.
• Reports don't adhere to a fixed format, being customizable to the user's needs. Microsoft Access is often used for easy user interface development.
• It aids managers in assessing scenarios and unexpected circumstances.

Parts of a DSS

• User: Decision-maker
• System software: Operating system, easy to use software
• Data: Internal data, external data
• Decision models: Strategic (long range), tactical (operations), operational (daily operations)

Examples of DSS

• GPS for route planning
• Crop planning (supporting farm decisions)
• Enterprise Resource Planning (ERP) dashboards
• Clinical decision making

Executive Support Systems (ESS)

• Designed for top management using sophisticated yet user-friendly software, providing immediate access to key performance indicators.

Other Information Systems

Information Workers

• Data workers
• Knowledge workers

Office Automation Systems (OAS)

• Supports data workers
• Includes project management programs, video-conferencing

Knowledge Work Systems (KWS)

• Uses specialized software like CAD/CAM.

Enterprise Systems in Organizations

• Business organizations have become complex.
• Information systems are critical to organizational success, and organizational needs often involve multiple levels of management in a wide range of functions.
• Common business functions include accounting, human resource management, marketing, finance, customer service, and operations.

Careers in IT

• Information systems managers oversee programmers, computer specialists, and other professionals, requiring strong technical and leadership skills.
  • Managers in this field usually earn from RM 49,200 to RM 73,600 annually.
• Systems analysts' responsibilities include planning and designing new systems, following a systems life cycle.
  • Typically have a Bachelor's degree (Computer Science or Information Systems).

Looking to the future

• Staying competitive requires incorporating new technologies.
• Prototyping/RAD is becoming more common instead of traditional life-cycle methods.
• Consulting outside the organization for support may increase with the growing complexity of organizations.

Open-ended Questions

• Define a system, explain the six phases of the systems life cycle, and why corporations implement these processes.
• List the analysis phase tools, summarize the top-down analysis process, and explain how it is used.
• Explain system maintenance and when it is needed.
• Define and describe prototyping and RAD, and provide examples of how they could be used in an organization.

System Analysis and Design (6 Phases)

• Phase 1: Preliminary Investigation
• Phase 2: Systems Analysis
• Phase 3: Systems Design
• Phase 4: Systems Development
• Phase 5: Systems Implementation
• Phase 6: Systems Maintenance

Prototyping and Rapid Application Development (RAD)

• Alternatives to the systems life cycle.
• Prototyping: Building a model system for evaluation.
• RAD: focuses on faster development processes.

Test your knowledge on information systems and their functions within organizations. This quiz covers various aspects of software, hardware, management levels, and the characteristics of data conversion. Dive in to understand how information systems support decision-making and operational processes.