CS507

Information Systems

Lesson # 6

Systems vs. Procedures

Procedure

• Procedure is a defined set of instructions aimed at describing how to proceed in achieving a pre-defined milestone/target

Systems

• Systems have collection of predefined procedures related to each other in a sequenced logical manner in order to collectively achieve the desired results.

• The system & procedures in all kinds of environment are subject to internal controls and checks that are necessary to ensure the effectiveness of the same.

Purpose of Systems & Procedures

• The basic purpose behind setting up systems and procedures is to make available information when required.

• But when procedures are organized in a logical manner to form systems, the value of information as an output of a system enhances.

• When technology is added to the system, scope of a system changes to include hardware, software and designs linked together in accordance with the procedures contained in that system to give a purposeful architecture.

Data

• Data represents facts of any kind

• It’s a raw form of information

• Example– 100,000 is a figure which by itself does not add to

the knowledge, so it’s a data

Information

• Information is the processed form of data being verified and substantiated from various sources.

• Example:– when we say 100,000 sales orders, it does add to

our knowledge, hence it is information.

Information systems

• Interrelated components working together to collect, process, store and disseminate information to support decision making, coordination control, analysis and visualization in an organization.

Manual vs. computerized information systems

• In manual environment, the concept of transformation was difficult to apply, since input of data into records was by itself the output which also included simple computations.

• Concept of control mechanism grew stronger as computerized information systems emerged.

• Now the concept of Information system exists with the usage and benefits of Computers as an inevitable part.

CBIS

• Computer based information systems that uses computer and telecommunication technology to perform its intended tasks.

• In CBIS, information technology (IT) becomes a subset of the information system.

• The terms information system (IS) and computer based information systems (CBIS) with the extensive use of computers in almost every field renders it inevitable to think of an IS as CBIS.

Factors increasing the importance of information systems

Emerging Global Economics

• High level of foreign trade has resulted in imports and exports which require inter linkage for smooth coordination. Core business functions (manufacturing, finance and customer support) have been distributed in different countries.

Transforming industrial economics

• Industrial economies have started merging as knowledge-and-information-based economies. Manufacturing activities being shifted to low wage countries. More opportunities are available in education, health care, banks, insurance firms and law firms.

Transformed Business Enterprise

• The structure of business enterprise have also changed, initially the organizations used to be Hierarchical, Centralized, Structured following a Fixed Set of SOP’s. However, now the organizations are moving towards more Flatter, Decentralized and Flexible structures. Information Technology makes it convenient and efficient to promote this new culture.

Emerging Digital Firms

• Firms where all significant business process and relationships with customers and suppliers and employees are digitally enabled and key corporate assets are managed through digital firms. This results in rapid response with more flexibility to survive and getting more global.