Posted at 12.13.2018
It is the combo of Information Technology and people using it to carry out operations and management. In a large sense it is frequently used with in people to process data and technology. Additionally it is refer to Information and Communication Technology (ICT), which is utilized in organization, where people use this to support business processes.
There is a clear different between information system, ICT and business process. IT is very different from information system, information system contain ICT component. Information system helps to control the performance of business process.
Information system is a special kind of work system, which produces products for customer, where human and machines perform work using ICT and resources. Information system purpose is to process information.
Information system is a system which represents data and process as a form of social memory. Information system supports human decision making and action.
IS helps managers to execute their day to day activities and functions properly, for example, in bank, creation of accounts, statement generation etc happen; and it is helps managers control such activities with greater accuracy and regularly by making use of software.
IS takes data as input and then processes it to create information; simply defined as Input Process Information. These details is utilized by the managers for the improvement with their organizations, for example, existing historical data about customers in bank can be analyzed by IS and important information can be made like bad customers and good customers, etc. This information can be used by managers while deciding whether to approve loan for clients or not
By analyzing data collected from different sources, IS provides valuable information such as which items to launch where location; so that the company can have advantage over their competition using these details. IS can also help business houses; in undertaking their business processes differently than their competitors.
IS promises Operational excellence: In order to achieve higher profitability, businesses improve their operations' efficiency. Managers make use of IS running a business operations to attain higher levels of productivity and efficiency. An excellent example is the utilization of the RetailLink system at Wal-Mart; this system digitally links every one of the Wal-Mart's stores with its suppliers; the supplier is monitoring the things and as soon as an item is purchased, the supplier knows a replacement must be shipped to the shelf.
IS helps create services, business models and services: In firms, Information system is a crucial tool in creating new services and new business models. Business models describe how the companies produce, deliver and sells something or service to be successful. An example is Apple Inc; it transformed an old business model which was based on its iPod technology platform that included iPod, iPhone and the iTunes music service.
IS helps monitor & increase Supplier/Customer intimacy: Whenever a customer is served well with a business, he usually responds by returning and purchasing more from the business enterprise; this raises the profits and revenues of the business enterprise. The more the business engages its suppliers, the better the suppliers are able to provide essential inputs; which in turn lowers costs. An example is the high-end hotel, Manhattan's 'The Mandarin Oriental' and other such high-end hotels; they illustrate the use of IS and technology to achieve better customer intimacy. They track guests' preferences using computers, such as their preferred tv programs, check-in times and room temperatures.
IS helps making better decisions: Many managers operate in an information bank plus they do not have the relevant information at the right moment to make a learned decision; poor outcomes like these loose customers and raise costs. Managers may use real time data while making decisions; IS allow managers to work with real-time data from industry while making decisions. An example is the Verizon Corporation, which runs on the Web-based digital dashboard that provides managers accurate real-time information on customer complains and network performances. By using this information, managers can rapidly inform customers of the repair work, assign repair resources to the involved areas, and restore service promptly.
Competitive advantage: When the firms achieve the business objectives, for example, customer intimacy, operational excellence, improved decision making, new services, products and business models, than it is most like they have achieved a competitive advantage already. Accomplishing these exact things finer than their objects, responding to suppliers and customers in real time, charging less for premium products all add up to higher profits. An example is the Toyota Production System which mainly focuses on organizing work to make continuous improvements, eliminating waste; Toyota Production System is dependant on what the clients actually ordered.
Computers are used for almost any task. We check email with it, watch media, bank and more. Information is the life of organization, damaged or lost data can cause financial loss, law suits, etc. Information system contains hardware, software, data, applications, communication and people. It helps a business to control and secure its critical corporate, customer and employee data. Information system improves work process and gives lot of other benefits. A good example is the Transaction Processing System (TPS) which is utilized in a single functional section of an enterprise; it process routine transactions more accurately and efficiently. TPS has many sub-species which can be directly linked to their respective functional areas, for example, there exists Finance and Accounting Systems for the functional regions of accounts and finance, Human Resource System for the Human Resource area, etc.
Transaction Processing System (TPS): TPS is a basic business system and it handles the tracking and processing of transactions. A transaction is simply a meeting which is of interest to the business, for example, a railway booking system where Booking, Cancellation, etc are all transactions; or a sale at a store. TPS is very helpful and has many functions and it
Serves the most elementary day-to-day activities of a business.
Is frequently imperative to the survival of the organization
Usually has high volumes of output and input
Needs to be fault-tolerant
Supports the operational level of the business
Supplies data for higher-level management decisions
Can have strategic consequences, for example, airline reservation system
Deals with well-structured processes.
A Transaction processing system has many sub-species, a few of which are:
Sales and Marketing Systems: These are systems that support the sales and marketing functions by easing the movement of services and goods from producers to customers. For example, a Store's sale system would automatically record and total purchase transactions and print a packing list; this might improve customer service and keep maintaining customer data.
Manufacturing and Production systems: These systems supply data to use, control and monitor the production processes, such as shipping, receiving, purchasing, scheduling, engineering, resource management, quality control, etc. For instance, a system in factory that measures samples of products and gets information from that; then statistically analyses the samples and shows when the operators should take corrective action.
Human Resource System: These systems deal with performance evaluation, compensation, placement, career development and recruitment of the firm's employees. Types of HRS include training and skills, applicant tracking, personnel record keeping, positions, benefits.
Finance & Accounting System: These systems maintain records which concern the flow of funds in the firm and they also produce financial statements, such as income statements and balance sheets. E. g for General Ledger; Budgeting, Billing: Cost Accounting, Accounts Payable/ Receivable; Funds management systems, payroll. These systems were among the initial to be computerized. Examples of Financial systems are loan management, cash management, securities trading and check processing.
Management Information Systems (MIS): They assist lower management in problem solving and making decisions. MIS often takes data from the transaction processing system and summarizes it into a series of management reports which should be used by the center management and operational supervisors. MIS is a set of information processing functions and queries should be handled by it as quickly as they arrive. Database is an important component of MIS. MIS simply provides managers with feedback on daily operations; it also provides information and support for effective decision making. An example of MIS can be an twelve-monthly budgeting system.
Decision Support System (DSS): DSS provides information, models or analysis tools to the senior managers and strategic management staff to help them make decisions. DSS are used for support of unstructured decisions and they're for analytical work mainly, for example, creating of "what-if" models using spreadsheets & databases. A good example job for a conclusion Support System would be a 6 year operating plan.
Office Automation Systems (OAS): They are used to enhance the productivity of employees who need to process data information & for reducing "paper warfare". For example, Microsoft Office XP improves the productivity of employees working in an office or system that allow employees to home based or whilst on the road. OAS software tools are often integrated and are designed for easy functions (for example, a graph from a spreadsheet can be imported in the term Processor).
Executive Information System (EIS): Also called Executive Support System (ESS) and it provides information to the executives in a readily accessible, interactive format. EIS (or ESS) usually allow summary of the entire organization and also allows drilling down to specific degrees of detail. EIS also use data which is made by ground level Transaction Processing System therefore the executives can gain a synopsis of the whole organization. EIS require intensive staff to operate and are incredibly expensive to run and are used by top level (strategic) management.
Data Warehouses System: A Data Warehouse is a location where data is stored analysis, security and archival purposes. A data warehouse is usually the single computer or a giant computer system formed by tying many computers together. Besides storing large amount of data, they must also own the systems in place that could make it accessible the data and use within day-to-day operations. It is also sometimes described be considered a major role player in DSS, or Decision Support System.
Management Information system (MIS) generally takes the data from TPS (Transaction processing system) and summarizes it into a series of management reports, which are being used by operational supervisors and also by the middle management.
Decision-Support Systems are made to help management make decisions, when there may be uncertainty about the possible outcome. DSS gather relevant information by making use of tools and techniques and analyze the options and alternatives. DSS often create "what-if" models with the use of databases and spreadsheets.
Knowledge Management Systems (KMS) helps business create and share information. This helps employees who creates and shares knowledge and expertise, which is shared in organization to build further commercial opportunities. KMS allows efficient categorization and distribution of knowledge. For example knowledge might maintain word documents, spreadsheets, power point or internet etc, to talk about KMS would use collaboration system like intranet.
Transaction Processing Systems (TPS) process routine transaction accurately and efficiently; and businesses may have many TPS, for example
Invoices are delivered to customers using the Billing systems
Systems that calculate monthly and weekly payroll and tax payments
Calculations of raw materials using Production and purchasing systems
Using Stock control systems to process of all movement within the businesses
Office Automation Systems (OAP) improves the productivity of the employees that process data information. For instance, Microsoft Office XP increases productivity of employees that work within an office or system that enable employees to work on the move or from your home.
The Information system department provides various tools and techniques to solve problems and the main ones are:
Data Warehouses: Their main purpose is to establish a data storehouse that makes operational data available in a form which is readily acceptable for analytical processing activities like Decision Support or EIS. Data Warehouses have many different characteristics such as Organization (data are organized), Time Variant (data kept for 5-10 years so that it can be used for forecasting and comparisons), Non-Volatility (data aren't updated once it's been entered in the warehouse), Consistency (data are coded in a steady manner) and Client/Server (the info warehouse provides the end user a fairly easy access to the data by using the clients/servers).
The Data in the warehouses is organized for less confusion;
The Data is stored for a long period, allows for forecasts and comparisons;
Takes raw data and codes it in a regular matter for easy analysis
Provides the end user an easy access to its data
The data warehouse uses a relational structure
The data are situated in one place, allows data to be reached quickly
Web browsers can be used to allow end users to reach data easily
Data Mining: the process of analyzing data from different views and then summarizing it into useful information. Such information could be used to spend less, raise earnings or both. For a long time, companies have used very powerful computers to sift through large volumes of supermarket scanner data and analyze market research reports. Data Mining is currently being used in areas like Retailing and Sales, Banking, Insurance, Airlines, HEALTHCARE, SOFTWARE APPLICATIONS & Hardware, etc.
Data mining automates the process of discovering predictive information in large databases;
Data mining tools identify previous hidden patterns in just one step
Can are powered by unprocessed or even unstructured information.
Text & Web Mining: Text mining is the use of data mining to less structured text files. Web Mining are mining tools which is often used to analyze huge amounts of data on the net (like what customers are doing on the web).
Groups documents by common themes, making them much easier to locate & sort
Finds the hidden content of documents and also additional useful relationships
Geographic Information System (GIS): this is a computer-based system which is used for capturing, checking, storing, manipulating, integrating and displaying data using digitalized maps.
Every digital object or record has an discovered geographical location
Branch performances can be monitored, analyzed and compared
Volume and traffic patterns of business activities can be monitored
Geographical area served by each Bank branch can be viewed, to plan if new banks are needed or not.
Data Visualization: This is the presentation of data by technologies like digital images, graphical user interface, 3-d presentations and animations, geographical information systems, virtual reality, multidimensional graphs & tables.
Presents various types of data into a typical, understandable method for better & more accurate analysis; reduces errors too.
On-Line Analytic Processing: this is the technology that allows users of multidimensional databases to generate on-line comparative summaries of data and other analytical enquiries; OLAP can be built-into corporate databases systems.
OLAP facilities allow managers and analysts to monitor the performance of the business enterprise or market.
The end-results of OLAP technologies can be quite simple (frequency tables, etc) to make the data much easier to understand and analyze.
This is an essential part of making a powerful decision. The more good options that you consider, the more inclusive your final decision will be.
You force you to ultimately reach deeper and you also look at problems via different angles, when you generate alternatives. Utilizing the mindset 'there must be other solutions out there, ' you have more chance to help make the best possible decision. If you haven't got other reasonable alternatives, then there's not much of an decision to make!
Below is a summary of some of the top techniques and tools to help teams develop good alternatives.
Brainstorming is most likely the most well known method for generating ideas.
Reverse Brainstorming works very much the same. But, it works by asking people to brainstorm of how to attain the opposite result from the one required, and then simply reversing those actions.
The Charette Procedure is a systematic process and it gathers and develops ideas from many stakeholders.
Crawford Slip Writing Technique generates ideas from a large number of people. This method is incredibly effective and means that ideas from everyone are heard and weighed equally irrespective of the person's power in the business.
You need to judge the potential risks and implications of each choice when you are completely satisfied to have a good selection of realistic alternatives.
There's more often than not some degree of uncertainty in decision making process that may lead to risks, inevitably. You are able to determine if the risk is manageable of not only by evaluating the potential risks involved with your options.
Risk Analysis allows you to look at risks impartially. It assess threats and evaluates the likelihood of events occurring utilizing a structured approach their management costs.
You can consider the actual consequences of each of your options
Six Thinking Hats, after viewing the alternatives from 6 different perspectives, you can evaluate the consequences of an decision.
Impact Analysis, useful way of brainstorming the 'unexpected' outcomes that may mount from a decision.
After assessing different alternatives, the following step is choosing between them. The decision could be very obvious, but if it is not, then your tools below will help:
Grid Analysis (or decision matrix), is an extremely useful tool for this kind of evaluation. It can help bring different factors along the way of decision making in a reliable way, therefore this tool is invaluable.
Paired Comparison Analysis help decide the importance of differing factors and can help you compare factors that are unlike and decide those should influence your own preference the most.
Decision Trees are of help in deciding between options. These bring the likelihood of project failure/success in the decision making process and help you lay out the various possibilities to you.
Information systems are made out of components that can be assembled in a variety of congurations resulting in a variety of information systems and applications, much as construction materials can be assembled to generate different homes. The size and cost of a home rely upon the purpose of the building, the availability of money, and constraints such as ecological and environmental legal requirements. Equally there are many different types of houses, so there are many different types of information systems. We classify houses as single-family homes, apartments, townhouses, and cottages. Similarly, it is useful to classify information systems into groups that share similar characteristics. A classication such as this can help in identifying systems, analyzing them, planning new Information Systems Congurations
Organizations are made of components such as divisions, departments, and work units, organized in hierarchical levels. For instance, most organizations have functional departments, such as production and accounting, which report to plant management, which are accountable to a division head. The divisions report to the corporate headquarters. Even though some organizations have restructured themselves in progressive ways, such as those predicated on cross-functional teams, today the vast majority of organizations still have a normal hierarchical structure. Thus, we can nd information systems built for headquarters, for divisions, for the functional departments, for operating units, and even for individual employees. Such systems can stand alone, but usually they are interconnected. Typical information systems that follow the organizational structure are functional (departmental), enterprise-wide, and inter-organizational. These systems are organized in a hierarchy in which each higher-level system consists of several (even many) systems from the level below it. A departmental system supports the functional areas in each company. At a higher level, the enterprise-wide system supports the complete company, and inter-organizational systems hook up different companies.
The major functional information systems are organized around the traditional departments- Finance IS Finance IS Accounting IS Accounting IS Human Resources Human Resources Corporate a System Electronic Market Electronic Market Corporate B System Marketing IS Marketing IS Production IS Production IS Administrative IS Administrative IS Corporate C System