MI4007 Week 03 Lecture 01 PDF

MI4007 Wk.03 Lec.01 System: A set of elements/components that interact to accomplish goals. A system: Takes inputs and transforms them to outputs Exists in but is separate from the environment Has sub-systems Uses feedback from its environment to control Information Sy...

MI4007 Wk.03 Lec.01 System: A set of elements/components that interact to accomplish goals. A system: Takes inputs and transforms them to outputs Exists in but is separate from the environment Has sub-systems Uses feedback from its environment to control Information Systems/Services (IS): A set of interrelated elements/components that input, process and disseminate data and information and provide a feedback mechanism to meet an objective. - Input: Gathering and capturing data - Processing: Converting/transforming data into useful outputs - Output: Useful information, usually in the form of documents and/or reports Information Systems have six equally important components: 1. Hardware: Devices that work together to accept, process and show data and information, e.g. monitor, printer, keyboard. 2. Software: Computer programmes and the manuals, if any, that support them. Computer programmes are machine-readable instructions that direct the circuitry within the hardware parts of the system to function in ways that produce useful information and data. 3. Data: Facts used by programmes to produce useful information, generally stored in machine-readable form until needed. 4. Telecommunications/Networks: The electronic transmission of signals for communication. It enables organisations to link computer systems into effective networks. 5. People: Usually the most important element. Includes those who manage, run, programme and maintain the system. 6. Procedures: Include the strategies, policies, methods and rules for using the IS. Types of Information Systems: Transaction Processing System (TPS): A type of IS that collects, stores, modifies and retrieves the data transactions of an enterprise, e.g. sales, payroll. It is ideal for routine, repetitive tasks. Requires 6 steps to process a transaction:  o Data entry o Validation o Data Processing o Storage o Output Generation o Query Support They are vital for the business to ensure customer satisfaction, to form better plans and to link the organisation and external entities. Management Information Systems (MIS): One that uses data collected by the TPS to create reports in a way that managers can use to make routine decisions and to respond to problems. They typically serve middle managers and have little analytical capability. Decision Support Systems (DSS): An interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. Simply, any computer application that enhances a person’s/group’s ability to make decisions. E.g. Excel. Executive Support Systems: These are used by top management to make executive, non-routine decisions that require judgement, evaluation and insight. Typically designed to incorporate data about external events such as competitors. EES employ the most advanced graphics software and can present graphs and data from many sources. All the above systems are usually interdependent, so it is advantageous to integrate all of them if possible. Other Types of Information Systems: Expert Systems: Knowledge based systems that provide expert advice and act as expert consultants to users. E.g. credit application advisor. Knowledge Management Systems: Knowledge based systems that support the creation, organization, and dissemination of business knowledge within the enterprise, e.g. customer problem resolution systems. Strategic Information Systems: Support operations or management processes that provide a firm with strategic products, services, and capabilities for competitive advantage, e.g. shipment tracking.  Functional Business Systems: Support a variety of operational and managerial applications of the basic business functions of a company, e.g. accounting systems. Benefits of Information Systems: → Gathering large amounts of data quickly, easily and reliably → Store and organise large amounts of data → Manipulate data quickly, accurately and consistently → Retrieving and communicating information in a variety of forms → Enforce business rules Business Information Management: The collection and management of information from one/more sources and the distribution of that information to one/more audiences. Its purpose is to capture, store and deliver the right information to the right people at the right time. It helps individuals get access to the information they need so that they can use it effectively to add to the value of the organisation. Having an Information Management strategy helps businesses in the following ways: They can be more competitive and strategic Their employees are better informed so they can complete their tasks They get a sense of what is happening in the external environment and can respond appropriately They can research demand for now products/services They can exchange information with partners like suppliers They can communicate messages about brands and products internally and externally They can improve their customers’ experience They can reduce costs by being more efficient, e.g. automation They can uncover new ways of doing things  Types of IS References: Notes based on MI4007 Lecture Slides Image 1: Chris-Kimble.com