Information systems notes
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Information SystemsUnit 3
Aim and purpose
• To ensure that you understand how organisations use information
• To know about information systems and develop the skills necessary to produce management information.
Learning Outcome
Understand how organisations use business information
Understand the issues related to the use of information
Know the features and functions of information systems
Be able to use IT tools to produce management information
1. Understand how organisations use business information
6Information flows
1Types of informat
ion
2Purposes
of informat
ion3Sources
of informat
ion
4Good
information
5Business functional areas
• Qualitative• Quantitative• Primary• Secondary
1Types of
information
• Monitoring and controlling activity
Operational support e.g.
• To identify patterns or trends;
Analysis e.g.
• Operational• Tactical• Strategic
Decision making
Gaining commercial advantage
2Purposes of information
– financial, – personnel, – marketing, – purchasing, – sales, – manufacturing, – administration;
• government, • trade groupings,• commercially
provided, • databases, • research;
RELIABILITY OF DATA SOURCES 3Sources of
information
Internal External
valid reliable timely fit-for-purposeaccessible cost-effective sufficiently
accurate relevant
having the right level of detail
from a source in which the user hasconfidence
understandable by the user
4Good
information characteristics
Sales
Purchasing
Manufacturing
Marketing
Finance
Personnel
Administration
5Business
functional areas
Internal information flows
Information flows to external bodies
Information flow diagrams
6Information
flows
Legal issues
Ethical issues
Operational issues
2. Understand the issues related to the use of information
Legal issues
Rele
vant
dat
a pr
otec
tion
legi
slati
on e
g Data Protection Act 1998,
Freedom of Information Act 2000;
Oth
er re
leva
nt le
gisl
ation
eg
Computer Misuse Act 1990
Copyright & Patent Act
Ethical issues
• Use of email• Internet• ‘whistleblowing’; • Organisational
policies;• Information
ownership
Codes of
practice eg on
Operational issuesSecurity of
information;
Backups
Health and Safety
Organisational policies
Business continuance plans
Costs eg Additional resources
required,Cost of
development;
Impact of increasing
sophistication of systems eg
More trained personnel,
More complex software
Features of information systems
Functions of information systems
Transformation of data into information
Types of information system
Management information systems (MIS)
3. Know the features and functions of information systems
Data People Hardware Software Telecommunications
Features of information systems
Input
Storage
Processing
Output
Control and feedback loops
Closed and open systems
Functions of information systems
Dis
tincti
on b
etw
een
data
and
in
form
ation
;
collection
storage
processing
manipulation
retrieval
presentation
Transformation of data into information
Management Information
Systems; Others eg
marketing
sales performance,
competitors etc
financial
financial costs,
investment returns etc
human resources (HR)
staffing,
professional development etc
Types of information system
Features
Benefits
Effectiveness criteria eg
accuracy, sustainability,Response
times, confidence
Management information systems (MIS)
Tools
Gather information
Analyse information
Management information
4. Be able to use IT tools to produce management information
Tools
Software eg
Databases
Artificial Intelligence and Expert systems
predictive modellingInternet
Others data mining systems
Gather information
Define the requirement
Establish sources of
information
Define other factors to be considered e.g.• constraints;
Select information
Analyse information
Quality e.g.
Validity Accuracy Currency Relevance Identify alternatives
Management information
Reports
Sales report, College
enrolment statistics,
Marketing analysis (brick versus click)