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Chapter 1 An overview of information systems (1) - Coggle Diagram
Chapter 1 An overview of information systems (1)
Why do companies use computers and information systems?
-Reduce costs
-Competitive advantage
Information literacy
Understanding information to generate business intelligence
Major components of information systems
Database
Collection of all relevant data organised in a series of files
What is a database management systems (DBMS) used for?
-Create, organise and management of a database
Processing
Information which can be generated:
-Transaction processing reports
-Models for decision analysis
A good information system has models which support all levels of decision making
Process generates the most useful type of information for making decisions from data
An information system should be able to grow with the business
Data
Consists of raw facts
Two sources of data:
Internal data
information obtained from within the organisation
-e.g. sales records and personnel records
External data
information obtained from outside the organisation
-e.g. customers, suppliers, government and economic
conditions
Considered the input to the system
Information
Output of an information system
Consists of facts that have been processed / analysed and are useful to the MIS user
Quality and usefulness of information:
-Information is useful if it helps users to make correct decisions in a timely manner
Useful information is:
-Timely
-Integrated with the other data and information
-Consistent and accurate
-Relevant
Information which does not comply with quality standards leads to:
-Wrong decisions
-Misallocation of resources
-Missed opportunities
How does a computer and information system help organisations?
-Assists employees to complete tasks more effectively
-Increases the productivity of employees
Computer literacy
Using computers to increase productivity
Management information system (MIS)
An organised integration of items to produce timely, integrated, relevant, accurate ad useful information for decision making
Elements of MIS:
-Hardware - input, output, and memory devices
-Software - in-house development or purchase
-Data
-Processes - methods used to execute a task
-Human intervention - users, programmers and system analysts
Data versus information
Data
-Input to the system
-Consists of raw facts
-Unprocessed
-Difficult to use for decision-making
Information
-Output of the system
-Consists of analysed facts
-Processed
-Assist with decision-making
Why is an information system important?
-Timely, relevant and accurate information is a critical tool to improve a company's competitive position in the marketplace
-Information system manages 4 M's of resources - manpower, machinery, materials, money
-Various types of information systems are being used/developed to manage resources
Transaction processing systems
Applied to structural tasks:
-Record keeping
-Simple clerical operations
-Inventory control
When is it used?
-When operations are repetitive
-Minimal human involvement
-Automated systems are in place
Focus on data collection and processing data
Benefits
-Reduces costs