INFORMATION SYSTEM In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes. Strategic role of information system in business? support business process and operations. IS helps manager to conduct their daily activities and functions properly. e.g. in bank different activities like account creating, withdrawal of money, statement generation etc take place. IS help mangers to conduct such activities accurately and timely manner with the help of software. support decision making for employees and managers. IS can simply be defined as input -> process -> information. IS takes data as input and processes them and generate information. Managers can use these information for the betterment of their organizations. e.g. IS can analyze existing historical data about customers in bank and generate informations like good customers, bad customers etc. Managers can use this information while deciding to provide loan for new customers. support in making strategic decision for competitive advantages. IS can give informations like which items to launch in which location by analyzing data collected from different sources such that company can have advantage by using these information over their competitors. IS also can help business houses in conducting their business process differently than thier competitors. The Changing Role of Management in Information Systems That management involvement in information systems (IS) development is correlated with success in IS . Management found it difficult to become involved much beyond the front end of IS development because of the extreme difference between the methods and languages of the management and data processing (DP) worlds. One of the most important developments that have enabled management to participate more fully in IS development has been the information analysis methodologies. These have enabled the data and processes of business systems to be analyzed in purely logical terms, producing a logical data model independent of any DP terminology or hardware considerations. Types of Information Systems Information systems differ in their business needs. Also depending upon different levels in organization information systems differ. Three major information systems are 1. Transaction processing systems 2. Management information systems 3. Decision support systems shows relation of information system to the levels of organization. The information needs are different at different organizational levels. Accordingly the information can be categorized as: strategic information, managerial information and operational information.
Strategic information is the information needed by top most management for decision making. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. This information is not required by the lower levels in the organization. The information systems that provide these kinds of information are known as Decision Support Systems.
- Relation of information systems to levels of organization The second category of information required by the middle management is known as managerial information. The information required at this level is used for making short term decisions and plans for the organization. Information like sales analysis for the past quarter or yearly production details etc. fall under this category. Management information system (MIS) caters to such information needs of the organization. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system. The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. This kind of information is required at the operational level for carrying out the day-to-day operational activities. Due to its capabilities to provide information for processing transaction of the organization, the information system is known as Transaction Processing System or Data Processing System. Some examples of information provided by such systems are processing of orders, posting of entries in bank, evaluating overdue purchaser orders etc. Transaction Processing Systems TPS processes business transaction of the organization. Transaction can be any activity of the organization. Transactions differ from organization to organization. For example, take a
railway reservation system. Booking, canceling, etc are all transactions. Any query made to it is a transaction. However, there are some transactions, which are common to almost all organizations. Like employee new employee, maintaining their leave status, maintaining employees accounts, etc. This provides high speed and accurate processing of record keeping of basic operational processes. These include calculation, storage and retrieval. Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization. Management Information Systems These systems assist lower management in problem solving and making decisions. They use the results of transaction processing and some other information also. It is a set of information processing functions. It should handle queries as quickly as they arrive. An important element of MIS is database. A database is a non-redundant collection of interrelated data items that can be processed through application programs and available to many users. Decision Support Systems These systems assist higher management to make long term decisions. These type of systems handle unstructured or semi structured decisions. A decision is considered unstructured if there are no clear procedures for making the decision and if not all the factors to be considered in the decision can be readily identified in advance. These are not of recurring nature. Some recur infrequently or occur only once. A decision support system must very flexible. The user should be able to produce customized reports by giving particular data and format specific to particular situations.
What is meant by a system? A system is a group or set of components that interact and work together to complete a specific task. OR System may also be defined as orderly grouping of interdependent components linked together according to a plan to achieve a specific objective. E.g.: PC itself is a system, which has component like CPU, Monitor,Keyboard and other devices, which together interact with each other and process the data. Study of the System concept has three basic implications: • A System must be designed to achieve predetermined objective. • Interrelationship and inter-dependence must exist among the components. • Objectives of the organization as a whole have higher priority than the objectives of its sub-systems. Define the system types. Physical Systems: - Physical systems are tangible entities that may be static or dynamic in operation. Example of static - Office desk, Chair. Example of Dynamic - Programmed Computer. Abstract Systems: - Abstract systems are conceptual or non-physical entities that may be as straightforward as formulas of relationships among sets of variables or models – the abstract conceptualization of physical situations. Open system: - To perform certain task or to achieve any purpose system has to interact with the entities outside the environment. They are called open system. Closed System: - The system which do not interact with their environment are called closed system. The entire system exit on the world is open system. Thus closed system is a concept only and cannot be realized in fact. Man-made Information Systems Human being has developed a few systems for their business practice. Major information systems are: Formal Information System (FIS): This system is based on the organization represented by the organization chart. The chart is a map of positions and their authority relationships. Informal Information System (IIS): It is an employee-based system designed to meet personnel and vocational needs and help in the solution of work-related problems. Computer Based Information Systems (CBIS): This category of information system depends mainly on the computer for handling business applications. There are four (4) types of CBIS – Transaction Processing Systems (TPS), Management Information System (MIS), Decision Support System (DSS) and Office Automation Systems (OAS).
What are the components of a System?
1) Inputs and Outputs: - Inputs are the elements that are entered into the system for processing. Major objective of a system is to produce an output that has value to its user. 2) Processor(s): - It is an element of a system that performs actual transformation of input into output. It is the operational component of a system. Processor may modify the input depending on the specification of the output. 3) Control: - Control element guides the system by stipulating policies. It is the decisionmaking sub-system that controls the pattern of activities governing input, processing and output. 4) Feedback: - Control in a dynamic system is achieved by feedback. Feedback measures output against standard in some form. After output is compared against performance standards, changes can result in the input or processing and consequently, the output. 5) System Interfaces and boundaries: - The boundary of a system determines what belongs to the system and what not. A system is to be defined by its boundaries – the limits that identify its components, processes and interrelationships and interfaces with another system. Component of an Information System: 1. 2. 3. 4. 5. Physical Components: Hardware, Software, database, procedures. Inputs: Data and Instructions. Processing functions: process transactions, maintain master files, reports. Outputs: Reports, transaction documents. Storage: Provides centralized storage of data and information
SDLC—System Development life Cycle.
The Systems Development Life Cycle (SDLC) is a conceptual model used in project management that describes the stages involved in an information system development project from an initial feasibility study through maintenance of the completed application. It is a sequence of activities carried out for development of a system. Preliminary Investigation \\ \\ System Analysis \\ \\ System design \\ \\ System testing \\ \\ System Implementation \\
System Maintainence Steps of SDLC
Stages of System Development Life Cycle (SDLC)
The System Development is the interactive process which consists of the following stages
Preliminary Investigation(SYSTEM STUDY): One of the most tedious task is to recognize the real problem of the pre-installed system. The analysis has to spend hours and days for understanding the fault in the system. This fault could have however overcome if the Preliminary Investigation before installing the system was properly done. This is the first stage of the development of the system. In this stage the analyst makes a survey by gathering all the available information needed for the system elements and allocation of the requirements to the software.
Analysis of the requirement: The analyst understands the nature of the information and the functions of the software which is required for the system. The analyst makes a brief survey of the requirements and tries to analyze the performance of the system which is to be developed. He also makes sure that he gets enough information and resources for building the appropriate system.
System Design and System Coding: The analyst actually makes number of designs of the system on paper or on the computer and sees to it that the rough image made of the system comprises of all the requirements or not. Once this is done, the analyst selects and finalizes a best suited design for the development of the system. The analyst translates the code or the programs in such a way that they become in machine readable form. The coding step is
System Testing: Once the analyst is through with the coding stage he tests the systems and sees to it that it is working as per the expectations or not. He corrects the flaws in the system if any.
System Implementation: This is one of the most vital phase as in this phase the analyst actually gives the system to the customer and expects for a positive feedback.
System Maintenance: The last stage of the SDLC is that the analyst needs to maintain the system and see to it that it working within the standards set. He needs to maintain the system by removing the defects of flaws occured.
What attributes add value to quality information? Ans:- Quality information we mean the information is very much accurate, timely and relevant. So accuracy timeliness and relevancy are the key attributes of quality information. 1) Accuracy – means that information is free from mistakes, free from error. Information is very much clear to all the user. Information reflects the similar meaning to the user in which it builds. Information is full of pictorial diagram, chart rather than statistic of data. 2) Timeliness - it means whether the information reached to the user on that time frame or not. We can say like user getting the information when they need that. 3) Relevant – it is a subjective matter. It means that a particular information sometimes very useful to a group of user but at the same time it is not that much useful to a particular group. 4) Completeness – information communicated to manager should be complete and meet all his needs. Incomplete information can mislead you and manager can take wrong decision. In case if comprehensive information is not feasible then manager must aware of that fact, so that incomplete information is used with caution. 5)Promptness of availability and updation – Decision is to be taken within a time frame and therefore, information must be available within desired frame.Such information, if provided promptly can help manager to make quick decision. Updating the information is thus a regular activity in any good information system. Nowadays information system are build in such a way that information whenever entered into the system that updated automatically and immediately.
Disadvantages of information system Many benefits can be derived from information system and technologies by the organizations. However at times the same systems and technologies can have negative effects on people and organization. 1. Deskilling the workers – Introduction of new technology, especially for automation sometimes render obsolete the existing skills of some workers. Many industries such as the automobile, steel, insurance industries, banks have gone through periods of massive layoffs because of intense automation efforts. 2.Information overload – Generation of excessive amounts of information can overwhelm managers who must digest it and used it to make decision. At times this improvements also has its downside 3. Employee mistrust – Employee sometimes fear that computers will eventually replace them. They may view information systems with skepticism, unless they are assured that their jobs are not in danger. 4.Increased competitive pressure - There is increased pressure on small and medium-scale industries failing which they are steadily being pushed out of the marketplace by large companies. 5.Security breaches – When organization introduce new and sophisticated technologies, they must also find new ways to protect these assets from theft, pilferage and security breaches. Therefore computers and information systems actually increasing the operating cost of the organization.
Information used for decision-making is often categorised into three types: (1) Strategic information: used to help plan the objectives of the business as a whole and to measure how well those objectives are being achieved. Examples of stategic information include: - Profitability of each part of the business - Size, growth and competitive structure of the markets in which a business operates - Investments made by the business and the returns (e.g. profits, cash inflows) from those investments (2) Tactical Information: this is used to decide how the resources of the business should be employed. Examples include: - Information about business productivity (e.g. units produced per employee; staff turnover) - Profit and cash flow forecasts in the short term - Pricing information from the market
(3) Operational Information: this information is used to make sure that specific operational tasks are carried out as planned/intended (i.e. things are done properly). For example, a production manager will want information about the extent and results of quality control checks that are being carried out in the manufacturing process.