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Question no 1: a. What is Information System? Business information systems or just Information System (IS) deal with the conceptualization, development, introduction, maintenance and utilization of systems for computer-assisted information processing within companies and enterprise-wide networks. Central components of such information systems are firm’s application systems. They assist the user in the firm to accomplish tasks.
A long-term goal for information systems is to automate anywhere in the enterprise and in the economy where a task may be executed by a computer systems at least as well as by a person. When such automation cannot be achieved, information systems nevertheless are at least to support specialist and executives as effectively as possible. An ‘Information System’ is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities those were planned and executed.
According to Philip Kotler ; “A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. ” As information systems have enabled more diverse human activities, they have exerted a profound influence over society. These systems have quickened the pace of daily activities, affected the structure and mix of organizations, changed the type of products bought, and influenced the nature of work. Information and knowledge have become vital economic resources.
Information systems support different types of decisions at different levels of the organizational hierarchy. Major types of Information systems include structural databases and information management software that can include the followings; • Transaction Process Systems (TPS) • Enterprise Collaboration Systems (ECS) • Management Information Systems (MIS) • Decision Support Systems (DSS) • Executive Support Systems (ESS) • Expert system (ES) Question no 2: b)Write the importance of Information System in today’s business. Information systems are the foundation for conducting business today.
In many industries, survival and even existence without extensive use of information technology is inconceivable, and information technology plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage. The system provides information on the past, present and project future and on relevant events inside and outside the organization .
It may be defined as a planned and integrated system for gathering relevant data, converting it in to right information and supplying the same to the concerned executives. The main purpose of information system is to provide the right information to the right people at the right time. All medium to large organizations depend on Information technology for their continued survival. Consider organizations like Petronas, Telecom Malaysia, Tenaga Nasional Berhad (TNB) and others the Power and Water companies having to manually calculate, millions of customer bills every month or quarter!
Clearly the clerical effort involved would make it difficult if not impossible for the organization to make a profit. Similar arguments apply to many other organizations such as banks, central and local government. Without information system and information technology, I believed that many large organizations could last no longer than 24 hours without IT support! There should be little wonder that attitudes to the development of information systems have changed over the years from an ad hoc almost traditionally approach to a professionally managed, disciplined, planned, engineering approach.
In the past, end-users interacted with systems via the system analyst or programmer who translated the user requirements into system input in order to generate the output required for the end-users’ analysis and decision making process. However, now end-users are more directly involved with the systems as they navigate themselves typically via an interactive user interface, thus assuming more responsibility for their own applications. Therefore, the ability to capture and measure end-user atisfaction serves as a tangible surrogate measure in determining the performance of the IS function and services, and of Information System (IS) themselves. Besides evaluating IS performance, it is also important to evaluate whether IS in an organization meet users’ expectations. Effective management information systems are needed by all business organization because of the increased complexity and rate of change of today’s business environment .
For Example, Marketing manager need information about sales performance and trends, financial manager returns, production managers needs information analyzing resources requirement and worker productivity and personnel manager require information concerning employee compensation and professional development. Thus, effective management information systems must be developed to provide modern managers with the specific marketing, financial, production and personnel information products they required to support their decision making responsibilities.
Information technology can change the way businesses compete. The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company strategic advantages over the competitive forces it faces in the global marketplace. This creates strategic information systems, information systems that support or shape the competitive position and strategies of an enterprise. So a strategic information system can be any kind of information system that helps an organization; 1.
Gain a competitive advantage 2. Reduce a competitive disadvantage 3. Meet other strategic enterprise objectives 4. Customer and supplier intimacy 5. Improve operational excellence 6. Improved decision making An Information System also provides the following advantages :- 1. It Facilitates planning: Information System improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. . In Minimizes information overload: Information System change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. Information System Encourages Decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. Information System is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4.
It brings Co ordination: Information System facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . 5. It makes control easier: Information System serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost. 6. Information System assembles, process, stores, Retrieves, evaluates and Disseminates the information.
Question no 3: c. Discuss in detail about the types of information System that support the business functionally. For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management need more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties. As a result, businesses tend to have several “information systems” operating at the same time.
My assignment note highlights the main categories of information system and provides some examples to help us distinguish between ours. [pic] The main kinds of information systems in business are described briefly below: |Information |Description | |System | | |Executive Support |An Executive Support System (“ESS”) is designed to help senior management make strategic decisions.
It | |Systems |gathers, analyses and summarises the key internal and external information used in the business. | | |A good way to think about an ESS is to imagine the senior management team in an aircraft cockpit – with | | |the instrument panel showing them the status of all the key business activities. ESS typically involve | | |lots of data analysis and modelling tools such as “what-if” analysis to help strategic decision-making. | |An Executive Information System (EIS) is a type of management information system intended to facilitate | | |and support the information and decision-making needs of senior executives by providing easy access to | | |both internal and external information relevant to meeting the strategic goals of the organization. It is | | |commonly considered as a specialized form of a Decision Support System (DSS). | |The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong reporting | | |and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives | | |analyze, compare, and highlight trends in important variables so that they can monitor performance and | | |identify opportunities and problems. EIS and data warehousing technologies are converging in the | | |marketplace. |Management Information |A management information system (“MIS”) is mainly concerned with internal sources of information. MIS | |Systems |usually take data from the transaction processing systems and summarise it into a series of management | | |reports. | | |MIS reports tend to be used by middle management and operational supervisors. | | |Information is what is used in the act of informing or the state of being informed. Information includes | | |knowledge acquired by some means.
In the 1960s and 70s, it became necessary to formalize an educational | | |approach to systems for business so that individuals and work groups and businesses who crossed boundaries| | |in the various operations of business could have appropriate information. Technical developments in | | |computers and data processing and new theories of systems analysis made it possible to computerize | | |systems.
Much of this computerization of systems was an out growth of basic research by the federal | | |government. | | |Management is usually defined as planning, organizing, directing, and controlling the business operation. | | |This definition, which evolved from the work of Henri Fayol in the early 1900s, defines what a manager | | |does, but it is probably more appropriate to define what management is rather than what management does. | |Management is the process of allocating an organization’s inputs, including human and economic resources, | | |by planning, organizing, directing, and controlling for the purpose of producing goods or services desired| | |by customers so that organizational objectives are accomplished. If management has knowledge of the | | |planning, organizing, directing, and controlling of the business, its decisions can be made on the basis | | |of facts, and decisions are more accurate and timely as a result. | |Management information systems are those systems that allow managers to make decisions for the successful | | |operation of businesses. Management information systems consist of computer resources, people, and | | |procedures used in the modern business enterprise. The term MIS stands for management information systems. | | |MIS also refers to the organization that develops and maintains most or all of the computer systems in the| | |enterprise so that managers can make decisions.
The goal of the MIS organization is to deliver information| | |systems to the various levels of corporate managers. MIS professionals create and support the computer | | |system throughout the company. Trained and educated to work with corporate computer systems, these | | |professionals are responsible in some way for nearly all of the computers, from the largest mainframe to | | |the desktop and portable PCs. |Decision-Support |Decision-support systems (“DSS”) are specifically designed to help management make decisions in situations| |Systems |where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and | | |techniques to help gather relevant information and analyse the options and alternatives. DSS often | | |involves use of complex spreadsheet and databases to create “what-if” models. | |The primary components of a decision support system are a database management system (DBMS), a model-base | | |management system (MBMS), and a dialog generation and management system (DGMS). An appropriate database | | |management system must be able to work with both data that are internal to the organization and data that | | |are external to it. Model-base management systems provide sophisticated analysis and interpretation | | |capability.
The dialog generation and management system is designed to satisfy knowledge representation, | | |and control and interface requirements | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |- A simple example of DSS program, to decide “salutation”. | |Knowledge Management |Knowledge Management Systems (“KMS”) exist to help businesses create and share information. These are | |Systems |typically used in a business where employees create new knowledge and expertise – which can then be shared| | |by other people in the organization to create further commercial opportunities. Good examples include | | |firms of lawyers, accountants and management consultants. | | |KMS are built around systems which allow efficient categorization and distribution of knowledge.
For | | |example, the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint | | |presentations. internet pages or whatever. To share the knowledge, a KMS would use group collaboration | | |systems such as an intranet. | | |The idea of a KM system is to enable employees to have ready access to the organization’s documented base | | |of facts, sources of information, and solutions. For example a typical claim justifying the creation of a | | |KM system might run something like this: an engineer could know the metallurgical composition of an alloy | | |that reduces sound in gear systems.
Sharing this information organization wide can lead to more effective | | |engine design and it could also lead to ideas for new or improved equipment. | | |KMS systems deal with information (although Knowledge Management as a discipline may extend beyond the | | |information centric aspect of any system) so they are a class of information system and may build on, or | | |utilize other information sources. Distinguishing features of a KMS can include: | | |Purpose: a KMS will have an explicit Knowledge Management objective of some type such as collaboration, | | |sharing good practice or the like. | |Context: One perspective on KMS would see knowledge is information that is meaningfully organized, | | |accumulated and embedded in a context of creation and application. | | |Processes: KMS are developed to support and enhance knowledge-intensive processes, tasks or projects of | | |e. g. , creation, construction, identification, capturing, acquisition, selection, valuation, organization, | | |linking, structuring, formalization, visualization, transfer, distribution, retention, maintenance, | | |refinement, revision, evolution, accessing, retrieval and last but not least the application of knowledge,| | |also called the knowledge life cycle. | |Participants: Users can play the roles of active, involved participants in knowledge networks and | | |communities fostered by KMS, although this is not necessarily the case. KMS designs are held to reflect | | |that knowledge is developed collectively and that the “distribution” of knowledge leads to its continuous | | |change, reconstruction and application in different contexts, by different participants with differing | | |backgrounds and experiences. | | |Instruments: KMS support KM instruments, e. g. the capture, creation and sharing of the codifiable aspects| | |of experience, the creation of corporate knowledge directories, taxonomies or ontologies, expertise | | |locators, skill management systems, collaborative filtering and handling of interests used to connect | | |people, the creation and fostering of communities or knowledge networks. | | |The term KMS can be associated to Open Source Software, and Open Standards, Open Protocols and Open | | |Knowledge licenses, initiatives and policies. | |Transaction Processing |As the name implies, Transaction Processing Systems (“TPS”) are designed to process routine transactions | |Systems |efficiently and accurately.
A business will have several (sometimes many) TPS; for example: | | |- Billing systems to send invoices to customers | | |- Systems to calculate the weekly and monthly payroll and tax payments | | |- Production and purchasing systems to calculate raw material requirements | | |- Stock control systems to process all movements into, within and out of the business | | |E. g. if an electronic payment is made, the amount must be either both withdrawn from one account and added| | |to the other, or none at all. In case of a failure preventing transaction completion, the partially | | |executed transaction must be ‘rolled back’ by the TPS. While this type of integrity must be provided also | | |for batch transaction processing, it is particularly important for online processing: if e. g. n airline | | |seat reservation system is accessed by multiple operators, after an empty seat inquiry, the seat | | |reservation data must be locked until the reservation is made, otherwise another user may get the | | |impression a seat is still free while it is actually being booked at the time. Without proper transaction | | |monitoring, double bookings may occur. Other transaction monitor functions include deadlock detection and | | |resolution (deadlocks may be inevitable in certain cases of cross-dependence on data), and transaction | | |logging (in ‘journals’) for ‘forward recovery’ in case of massive failures. | |Expert Systems |The primary goal of expert systems research is to make expertise available to decision makers and | | |technicians who need answers quickly.
There is never enough expertise to go around — certainly it is not | | |always available at the right place and the right time. Portable with computers loaded with in-depth | | |knowledge of specific subjects can bring decades worth of knowledge to a problem. The same systems can | | |assist supervisors and managers with situation assessment and long-range planning. Many small systems now | | |exist that bring a narrow slice of in-depth knowledge to a specific problem, and these provide evidence | | |that the broader goal is achievable. | |These knowledge-based applications of artificial intelligence have enhanced productivity in business, | | |science, engineering, and the military. With advances in the last decade, today’s expert systems clients | | |can choose from dozens of commercial software packages with easy-to-use interfaces. | | | | | | | |Office Automation |Office Automation Systems are systems that try to improve the productivity of employees who need to | |Systems |process data and information.
Perhaps the best example is the wide range of software systems that exist to| | |improve the productivity of employees working in an office (e. g. Microsoft Office XP) or systems that | | |allow employees to work from home or whilst on the move. | Bibliography :- 1. Books / Journal a. Principles of Marketing, Prentice – Philip Kotler, Hall, 1980. b. Introduction to business information systems By Rolf T. Wigand, Peter Mertens, Freimut Bodendorf, Wolfgang Konig, Arnold Picot, Matthias Schumann, Springer-Verlag Berlin-Heidelberg, 2003 c. 2. World Websites a. http://www. management-hub. om/information-management- advantages. html. (Date retrieval : 23rd Sept. 2009) b. http://www. management-hub. com/information-management- advantages. html. (Date retrieval : 23rd Sept. 2009) c. http://tutor2u. net/business/ict/intro_information_system_types. html (Date retrieval : 24th Sept. 2009) d. http://www. bettscomputers. com/expertsystems. html. (Date retrieval : 24th Sept. 2009) ———————– * People are expensive * You need lots of them * They get sick * They get bored * They make mistakes * They’re are independent and have ideas Why Information System & Information Technology is so important ;