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Course LM01-BABA Packet...

Course LM01-BABA Packet 03 0113 companies, businesses of all sizes could not survive without information systems to perform accounting and finance operations. Regardless of your Key Points: college major or chosen career, information systems are indispensable tools Course Packet 03 to help you achieve your career goals. Learning about information systems can In this part, you may help you land your first job, earn promotions, and advance your career. provide the key points of Why learn about information systems in organizations? What is in it for you? the topics being presented Learning about information systems will help you achieve your goals. Let’s get in this particular Course Packet. started by exploring the basics of information systems. The key points may be Pre-Assessment bulleted like this: __________________1. A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect,  Key point 01 manipulate, store, and process data into information.  Key point 02 __________________2. It is called if any business transaction executed  Key point 03 electronically between parties. __________________3. Systems development: the activity of creating or modifying existing business systems Definition of Terms: __________________4. It’s give the computer the ability to make suggestions and act like an expert in a particular field. You may provide __________________5. An organized collection of people, procedures, software, definition of terms to facilitate better databases, and devices used to support problem- specific decision making. understanding of the __________________6. A set of interrelated components that collect, concepts being presented. manipulate, and disseminate data and information, and provide feedback to meet an objective. You may adopt this __________________7. A set of elements or components that interact to format: accomplish goals. Term. Its definition, __________________8. An organized collection of people, procedures, software, mostly technical. databases, and devices used to record completed business transactions. Term. Its definition, __________________9. A set of integrated programs that manages the vital mostly technical. business operations for an entire multisite, global organization. Term. Its definition, __________________10. Simulation of a real or imagined environment that can mostly technical. Term. Its definition, be experienced visually in three dimensions. mostly technical. __________________11. An organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience. __________________12. Gain a clear understanding of the problem to be solved Hazard Alerts: or opportunity to be addressed This may be in a form of __________________13. Terms in knowledge of computer systems and notice, caution, or equipment and the ways they function. warning. __________________14. Check and modify the system so that it continues to meet changing business needs Include appropriate __________________15. Types of Data Represented by Numbers, letters, and hazard alert where and other characters. when needed. Note: You need to search from internet for some question in the pre assessment This should appear before the conduct of an Lesson Proper activity. 1. Information Concepts 1.1 Data, Information, and Knowledge 1.2 System Concept Learning Module: Fundamentals of Business Analytics 54  Course LM01-BABA Packet 03 0113 2. Information System 2.1 Input, Processing, Output, Feedback 2.2 Manual Information Systems Course Packet 03 2.3 Computer-Based Information Systems 2.4 Information Technology VS Information System 3. Business Information System 3.1 E-commerce 3.2 Transaction Processing Systems 3.3 Enterprise Resource Planning 4 Management information system (MIS) 5 Decision Support System Review. Database A database is an organized collection of structured information, or data, typically stored electronically in a computer system. A database is usually controlled by a database management system (DBMS). Together, the data and the DBMS, along with the applications that are associated with them, are referred to as a database system, often shortened to just database. Data within the most common types of databases in operation today is typically modeled in rows and columns in a series of tables to make processing and data querying efficient. The data can then be easily accessed, managed, modified, updated, controlled, and organized. A spreadsheet has always been a strong analogy for a database. A database has tables, which is like a single spreadsheet. Imagine a spreadsheet for tracking RSVPs for a wedding. Across the top, column titles like First Name, Last Name, Address, and Attending?. Those titles are also columns in a database table. Then each person in that spreadsheet is literally a row, and that’s also a row in a database table (or an entry, item, or even tuple if you’re really a nerd). It’s been getting more and more common that this doesn’t have to be an analogy. We can quite literally use a spreadsheet UI (User interface) to be our actual database. That’s meaningful in that it’s not just viewing database data as a spreadsheet but making spreadsheet-like features first-class citizens of the app right alongside database-like features. Activity. What is the hierarchy of data in a database? What is DBMS? Learning Module: Fundamentals of Business Analytics 55  Course LM01-BABA Packet 03 0113 Processing of the Activity. Course Packet 03 The importance of organizing data in a business organization. Brief Lesson 1. Information Concepts Information is one of an organization’s most valuable resources. Information is different from data 1.1 Data, Information, and Knowledge Data consists of raw facts, such as an employee number, total hours worked in a week, inventory part numbers, or sales orders When facts are arranged in a meaningful manner, they become information. Information is a collection of facts organized and processed so that they have additional value beyond the value of the individual facts. For example, sales managers might find that knowing the total monthly sales suits their purpose more than knowing the number of sales for each sales representative. Turning data into information is a process, or a set of logically related tasks performed to achieve a defined outcome. The process of defining relationships among data to create useful information requires knowledge. Knowledge is the awareness and understanding of a set of information and the ways that information can be made useful to support a specific task or reach a decision. Figure 3.1: The Transformation Process Information is data that has been processed in such a way as to be meaningful to the person who receives it. A report showing total sales in the day, or which are the best-selling products. So, the data concerning all shop transactions in the day needs to be captured, and then processed into a management report. 1.2 System Concepts System is a set of elements or components that interact to accomplish goals. Learning Module: Fundamentals of Business Analytics 56  Course LM01-BABA Packet 03 0113 Components of a system Course Packet 03 Input Processing Output Feedback 2. Information System As mentioned in Course Packet 2, an information system (IS) is a set of interrelated elements or components that collect (input), manipulate (process), store, and disseminate (output) data and information and provide a corrective reaction (feedback mechanism) to meet an objective (see Figure 3.2). The feedback mechanism is the component that helps organizations achieve their goals, such as increasing profits or improving customer service. Figure 3.2: The Components of an Information System 2.1 Input, Processing, Output, Feedback Input In information systems, input is the activity of gathering and capturing raw data. In producing paychecks, for example, the number of hours every employee works must be collected before paychecks can be calculated or printed. Processing In information systems, processing means converting or transforming data into useful outputs. Processing can involve making calculations, comparing data and taking alternative actions, and storing data for future use. Processing data into useful information is critical in business settings. Processing can be done manually or with computer assistance. In a payroll application, the number of hours each employee worked must be converted into net, or take-home, pay. Storage involves keeping data and information available for future use, including output, Output In information systems, output involves producing useful information, usually in the form of documents and reports. Outputs can include paychecks for employees, reports for managers, and information supplied to stockholders, Learning Module: Fundamentals of Business Analytics 57  Course LM01-BABA Packet 03 0113 banks, government agencies, and other groups. Feedback Course Packet 03 In information systems, feedback is information from the system that is used to make changes to input or processing activities. For example, errors or problems might make it necessary to correct input data or change a process. Consider a payroll example. Perhaps the number of hours an employee worked was entered as 400 instead of 40. Fortunately, most information systems check to make sure that data falls within certain ranges. For number of hours worked, the range might be from 0 to 100 because it is unlikely that an employee would work more than 100 hours in a week. 2.2 Manual Information Systems A manual-based information system does not use any computer devices. All data would be kept in other ways, mainly paper. As a few examples: Before accounts, payroll and spreadsheet applications, people would have worked out this kind of information on paper. Another example some investment analysts manually draw charts and trend lines to assist them in making investment decisions. Tracking data on stock prices (input) over the last few months or years, these analysts develop patterns on graph paper (processing) that help them determine what stock prices are likely to do in the next few days or weeks (output). 2.3 Computer-based information system (CBIS) A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information The components of a CBIS are illustrated in Figure 3.3. Information technology (IT) refers to hardware, software, databases, and telecommunications. Telecommunications also includes networks and the Internet. A business’s technology infrastructure includes all the hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. The technology Learning Module: Fundamentals of Business Analytics 58  Course LM01-BABA Packet 03 0113 infrastructure is a set of shared IS resources that form the foundation of each computer-based information system. Key Points: In this part, you may Course Packet 03 provide the key points of the topics being presented in this particular Course Packet. The key points may be bulleted like this:  Key point 01  Key point 02  Key point 03 Definition of Terms: Figure 3.3 Components of a CBIS You may provide Hardware definition of terms to Hardware consists of the physical components of a computer that facilitate better perform the input, processing, storage, and output activities of the computer. understanding of the concepts being presented. Software You may adopt this Software consists of the computer programs that govern the operation format: of the computer. Term. Its definition, Databases mostly technical. Term. Its definition, A database is an organized collection of facts and information, typically mostly technical. consisting of two or more related data files. An organization’s database can Term. Its definition, contain facts and information on customers, employees, inventory, competitors’ mostly technical. sales, online purchases, and much more. Term. Its definition, mostly technical. Telecommunications, Networks, and the Internet Telecommunications is the electronic transmission of signals for communications, which enables organizations to carry out their processes and Hazard Alerts: tasks through effective computer networks. This may be in a form of People notice, caution, or People are the most important element in most computer-based warning. information systems. They make the difference between success and failure for Include appropriate most organizations. Information systems personnel include all the people who hazard alert where and manage, run, program, and maintain the system including the CIO(chief when needed. information officer), who manages the IS department This should appear before the conduct of an Procedures activity. Procedures include the strategies, policies, methods, and rules for using the CBIS, including the operation, maintenance, and security of the computer. For example, some procedures describe when each program should be run. Learning Module: Fundamentals of Business Analytics 59  Course LM01-BABA Packet 03 0113 2.4 Information Technology VS Information System One of the reasons people may not distinguish between IS and IT is that they assume all information systems are computer-based systems. An information Course Packet 03 system, however, can be as simple as a pencil and a piece of paper. Separate, the objects are just tools. Used together, they create a system for recording information. – (Ashftord University) Information System refers to an entire set of information: not only the technology involved but the people and process as well. Information Technology is the study, design, implementation, support or management of data within an information system. Comparison of Information System and Information Technology Information system and information technology are similar in many ways but at the same time they are different. Following are some aspects about information system as well as information technology.  Origin: Information systems have been in existence since pre-mechanical era in form of books, drawings, etc. However, the origin of information technology is mostly associated with invention of computers.  Development: Information systems have undergone great deal of evolution, i.e. from manual record keeping to the current cloud storage system. Similarly, information technology is seeing constant changes with evermore faster processor and constantly shrinking size of storage devices.  Business Application: Businesses have been using information systems for example in form of manual books of accounts to modern TALLY. The mode of communication has also gone under big change, for example, from a letter to email. Information technology has helped drive efficiency across organization with improved productivity and precision manufacturing. Learning Module: Fundamentals of Business Analytics 60  Course LM01-BABA Packet 03 0113 3. Business Information Systems With the previous definitions of information and systems we can now Course Packet 03 define a business information system as a group of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organization. 3.1 Electronic and mobile commerce systems E-commerce involves any business transaction executed electronically between companies(business-to-business, or B2B), companies and consumers (business-to-consumer, or B2C), consumers and other consumers (consumer-to- consumer, or C2C), business and the public sector, and consumers and the public sector. Figure 3.4 E-Commerce Transaction Processing System (TPS) A transaction is any business-related exchange such as payments to employees, sales to customers, or payments to suppliers. Processing business transactions was the first computer application developed for most organizations. A transaction processing system (TPS)is an organized collection of people, procedures, software, databases, and devices used to perform and record business transactions. If you understand a transaction processing system, you understand basic business operations and functions. One of the first business systems to be computerized was the payroll system. Learning Module: Fundamentals of Business Analytics 61  Course LM01-BABA Packet 03 0113 Course Packet 03 TPS is Decentralized systems means don’t have one central owner. Enterprise Resource Planning Enterprise Resource Planning (ERP)systems are core software programs used by companies to integrate and coordinate information in every area of the business. ERP (pronounced “E-R-P”) programs help organizations manage company-wide business processes, using a common database and shared management reporting tools. ERP is a set of integrated programs that manages the vital business operations for an entire multisite, global organization It is integrated internal and external management information across an entire organization. ERP automate this activity with an integrated software application. It can replace many applications with one unified set of programs, making the system easier to use and more effective ERP is in a centralized system which all users are connected to a central network owner or “server”. The central owner stores data, which other users can access, and also user information. Learning Module: Fundamentals of Business Analytics 62  Course LM01-BABA Packet 03 0113 Course Packet 03 About SAP Business Processes included in SAP ERP are Operations (Sales & Distribution, Materials Management, Production Planning, Logistics Execution, and Quality Management), Financials (Financial Accounting, Management Accounting, Financial Supply Chain Management), Human Capital Management (Training, Payroll, e-Recruiting) and Corporate Services (Travel Management, Environment, Health and Safety, and Real-Estate Management) "Systems, Applications & Products in Data Processing" Some of products SAP Business One SAP Business All-in-One About NetSuite NetSuite is a business technology vendor based in San Mateo, California. Its portfolio includes applications for enterprise resource planning (ERP), financial management, e-commerce, omnichannel commerce, customer relationship management (CRM) and professional services automation (PSA). The vendor sells cloud-based applications and software as a service (SaaS) products and is commonly viewed by users and experts as a leading alternative to on-premises ERP. 4. Management Information System A management information system (MIS)is an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers. An MIS focuses on operational efficiency. Manufacturing, marketing, production, finance, and other functional areas are supported by MISs and linked through a common database. MISs typically provide standard reports generated with data and information from the TPS or ERP. Learning Module: Fundamentals of Business Analytics 63  Course LM01-BABA Packet 03 0113 An information system that evaluates, analyzes, and processes an organization's data to produce meaningful and useful information based on which the management can take right decisions to ensure future growth of the Course Packet 03 organization. Considered a subset of IS. This subset is most relevant when securing and delivering information required to help corporate managers make operational, strategic and proactive decisions. 5. Decision Support System A decision support system (DSS)is an organized collection of people, procedures, software, databases, and devices that support problem-specific decision making. The focus of a DSS is on making effective decisions. Whereas an MIS helps an organization “do things right,” a DSS helps a manager “do the right thing.” Focus of a DSS is on decision-making effectiveness. DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions. Enhancement Activity. Refer to Activity Sheet No. 03. Generalization. Learning Module: Fundamentals of Business Analytics 64