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Unformatted text preview: 10/6/2018 Information System Components | Information Systems Management Search this course... Information Systems Management: Unit 2: Information Systems Foundation MODULE 1 MANAGEMENT INFORMATION SYSTEMS AND BUSINESS FUNCTIONS ware/wgu_C724_01Sept17_inform_system_mgt_1/intro_unit/u1_unit_intro/u1_unit_intro) ware/wgu_C724_01Sept17_inform_system_mgt_1/intro_unit/concepts_intro/p2_differences_between_information) e 8 Current Module | Pages 8 - 13 Information System Components Learning Objectives W Describe the common components and the purpose of information systems. The purpose of information systems is to get useful information to the right people within an organization to support decision making and operations. Effective information systems can help companies streamline business processes and planning, as well as help with data storage, data management, and data security. Information systems are comprised of multiple components working together to convert data into useful information. The value of an information system is founded on how it collects data (input) and converts that data (processing) into meaningful and actionable information (output that forms the basis of action). In … 1/17 10/6/2018 Information System Components | Information Systems Management modern organizations, data are secured on storage devices for future access and business use. Unmanageable volumes of data can be put into meaningful reports to help businesses make decisions and plan for the future. Management of each information system component is required for a business to effectively leverage its stored data and information, within both its internal and external environment. An organization’s information systems (IS) provide benefits related to both its internal environment and its external environment. Internally, IS can help streamline business processes and coordinate activities of employees within and across departments. Such internal IS benefits can result in a more productive workforce, thus freeing up company resources that can be applied to the pursuit of the external benefits IS can provide (e.g., enhanced customer marketing campaign, development of a targeted sales strategy, IS-enabled strategic partnership formation, etc). The effective application of information systems to solving business problems involves a combination of technological, managerial, and organizational considerations, with end-user ergonomic considerations running through all of these. Technological considerations relate to hardware, software, data … 2/17 10/6/2018 Information System Components | Information Systems Management management, and networking. Managerial considerations include business processes, strategies, and leadership. Organizational considerations include business procedures, culture, and organizational hierarchy. Learn by Doing A(n) information system consists of all the components that work together to process data into useful information. Correct! An information system is a system that accepts input data and processes it into information as output. Did I Get This True or False. Information is data that have been organized to provide value to an organization. True False Correct! Data that are organized are significant and can become useful information. Information systems accept data into information as input and process it as output. Correct! Information is data that have been organized to provide value. … 3/17 10/6/2018 Information System Components | Information Systems Management Correct! Raw data are input into a system and then processed for output. Businesses of all sizes benefit from information systems. Most companies use information technology to automate required, routine, and structured tasks. The primary component categories that make up a computer-based information system (CBIS) are people, processes, hardware, software, networks, and data. The components should be configured logically (i.e., integrated) based on the most effective and efficient way to get work done. Hardware Hardware refers to the physical IT devices (i.e., equipment) that are integrated into an information system. The primary hardware equipment are various types of computers, such as laptops, workstations, minicomputers, and mainframes. Each of these computer types has internal, built-in dedicated devices for input, data processing, output, and storage. In addition to computers, information systems typically comprise various external hardware (i.e., peripheral) devices that can be connected to the computer for specific purposes: input devices: mouse, keyboard, touchscreens, voice recognition, microphones, scanner, etc. output devices: printer, monitor, speakers, etc. storage devices: portable hard drive, flash drive, tape drive, cloud, etc. Software … 4/17 10/6/2018 Information System Components | Information Systems Management Software refers to prepackaged sets of coded instructions that end-users directly interact with, in order to indirectly communicate with the other major components of the information system to get tasks done. Systems software, such as an operating system, direct and control the hardware components of the IS. Typically, end users rarely interact directly with systems software. Examples of system software packages commonly used in industry are Windows OS, Mac OS, and Unix. Utility software programs perform periodic system maintenance activities, such as virus detection, storage space consolidation, backup and recovery, intrusion detection, and access authentication monitoring. Application software are programs that are commonly used by end users as a means of increasing their productivity by directly applying them to specific tasks inherent in the work they are responsible for accomplishing. Examples of application software include word processors, electronic spreadsheets, and presentation software. Regardless of the type of software package, the vendor product should include operating instruction documentation to familiarize the end-user with how to use the product’s features. People People are the most important component of an information system (IS) and their requirements are the primary reason IS are developed. People are the individuals who interface with the hardware, software, network, and data. Typically, end users are the people who directly interact with the IS on a regular basis (i.e., daily or several times per week) and use the information produced to get their work done. They can be data entry clerks, managers, salespersons, customers, or decision makers. Information systems specialists are the people who develop, operate, and maintain the systems. Specialists include programmers, systems analysts, testers, computer operators, and other managerial IS personnel. … 5/17 10/6/2018 Information System Components | Information Systems Management Ultimately, the single most critical factor in determining the success or failure of an information system is whether people use it. Naturally, the extent to which an IS gets used is related to how the end user feels about its effectiveness and efficiency in achieving its intended purpose(s). Networks A computer network is a telecommunications network that enables computers to exchange data resources and information. Networks support the interactions between people, as well as the interactions between end users and the other components of an information system (e.g., hardware, software, and data resources). Telecommunications technology transmits and facilitates the transmission of information over distances and is often used to connect multiple end users across physically remote locations. Data Data are more than just raw material; they are facts that are a valuable organizational resource that must be well managed to benefit all end users in an organization. Data (i.e., typically input) can take on many forms, including alphanumeric data, text data, image data, and audio data. Information (i.e., typically output) is data that has been transformed by a predefined process (e.g., organization, format, calculations, etc.), through which it takes on an additional informing quality, that adds value for the end user recipient. Processes Processes and procedures provide a structured sequence of activities to govern the use, operation, and maintenance of IS. A process must have clearly defined input and output guidelines. Operational processes can outline the procedure for … 6/17 10/6/2018 Information System Components | Information Systems Management taking customer orders. Other process examples are equipment maintenance schedules and backup and recovery policies. There are six components of a computer based information system needed to implement important business tasks. Learn by Doing What are two of the six major components of a computer-based information system? Software and telecommunications Telecommunication and hardware Data and external influences Software and data Correct! Software and data are two of the main components of a computerbased information system. Did I Get This … 7/17 10/6/2018 Information System Components | Information Systems Management Select the main system component to match each of the following descriptions. The input the system accepts to produce useful information Data The computer and all of its peripherals Hardware The programs comprised of pre-coded instructions written in a programming language which the end user typically uses to interact directly with the IS. Software A group of two or more computers and other devices connected to each other. Network The information system professionals and users. People Correct! People are the information system professionals and users who use computers. Correct! A network is a system of computers joined together so they can communicate and share resources. Correct! Software is made up of programs and instructions to run your computer and network. Correct! Hardware is the physical equipment and devices that make up a computer system and are connected by networks. Correct! Data are the symbols or signals that are input, stored, and processed by a computer for output as usable information. … 8/17 10/6/2018 Information System Components | Information Systems Management Different types of computer-based information systems are used by different internal stakeholder groups, which can be distinguished by their position within the organization’s hierarchy. Each type of computer based information system is used for different types of decision making and by a different group of employees or managers. Transaction processing systems (TPS) collect, store, update, and retrieve transaction data within an organization. Common business transactions include employee payroll, customer sales, and supplier payments. One of the earliest types of IS, TPS are developed to decrease costs, decrease processing time, and increase accuracy. TPS achieve these benefits by automating and recording routine business transactions that are too tedious and monotonous for front-line employees to process manually in an effective and efficient manner. A transaction processing system is a computer system that tracks transactions required to run a business. Highly structured, with predefined rules, TPS provide critical information to other departments and systems within the organization. Management information systems (MIS) represent a category of information systems that serve lower to middle managers. MIS provide performance reports based on the results from transaction processing systems, such as product cost data, sales data, and expense data. This information guides managers with tactical decisions and predictions for future business performance. What-if scenarios are … 9/17 10/6/2018 Information System Components | Information Systems Management used to create decision-making process simulations to assist with potential changes in the short-to-medium term business direction (i.e., 1 to 2 years), which is the focus of mid-level management. Decision-support systems (DSS) focus on supporting all phases of specific decision-making processes and procedures for arriving at a solution. While MIS are generally applied to structured problems at the organizational level, DSS are often developed to handle unstructured problems at all levels (i.e., single user, group, or organization). Further, MIS typically replace the decision maker by making automatic decisions. In contrast, DSS support the entire decision-making process, but the actual decision is ultimately made by a human. DSS use information from both the transaction processing systems and the management information system, along with external factors such as stockholders requirements, regulations, product pricing, and competition. Examples of decisions that might be made at this level are “What types of products should our company be making in five years?” and “Which shipping method should we use to maximize profit and maintain our current customer service?” Middle to upper level managers use models to help with decision making needs for a business. Decision systems are most concerned with understanding how business decisions will impact the future. Executive information systems (EIS) are a specific class of DSS that support the strategic decision-making process of top-level executives. These systems incorporate summarized information from decision support systems and management information systems, along with external factors to forecast and analyze trends. An example of an executive information system is a digital dashboard, which displays charts and graphs showing up-to-the-moment performance indicators on sales, profit, expenses, and inventory on an executive’s computer. Executive information systems summarize data but have the capability to drill down to the details. Outputs include summary reports, graphs, plots, and forecasts, which can be viewed via screen display, as well as in printed form. … 10/17 10/6/2018 Information System Components | Information Systems Management This executive is using a digital dashboard to see up-to-the-moment performance indicators on sales and profits to help make strategic business decisions. SuriyaPhoto/Shutterstock.com Learn by Doing Management information systems focus on technology, people, and organizations. They primarily serve _______. first level managers consumers executives front-line staff Correct! Management information systems represent a category of information systems that serve low level managers. MIS are usually focused on short- to medium-term business decisions. Did I Get This … 11/17 10/6/2018 Information System Components | Information Systems Management A four-level pyramid depicts different types of information systems, as they relate to different hierarchical levels within an organization. Select the correct ascending ordered list of four systems (i.e., bottom to top of the pyramid), that relates to the end users’ increasing hierarchical level within an organization. TPS, DSS, MIS, EIS EIS, MIS, TPS, DSS TPS, MIS, DSS, EIS EIS, DSS, MIS, TPS Correct! EIS is at the top of the pyramid. This system organizes and presents data and information using internal (MIS and TPS) and external data sources in support of senior executives. Consider the following IS definitions and identify the type of IS it represents by dragging the correct IS acronym to the most accurate definition. Alternate mode System Definition System This system supports senior executives by providing important data in the form of graphs and charts to analyze and identify long-term trends. This system tracks the flow of daily routine transactions that are necessary to conduct business, such as payroll or order processing. This system provides first level managers with reports on current performance and historical records to help keep an organization running smoothly. TPS EIS MIS … 12/17 10/6/2018 Information System Components | Information Systems Management This system provides modeling and analytical tools that support middle to senior managers in all aspects of the decision-making process, when problems are unique, unstructured, and not easily specified in advance, to project DSS potential future trends. Correct! This system processes business transactions of the organization. Correct! These systems help low to middle level management in problem solving and making decisions. Correct! This system supports senior executives with information and decision-making needs. Correct! These systems assist senior management in making long-term decisions. Critical Issues of Information Systems Management … 13/17 10/6/2018 Information System Components | Information Systems Management There are many critical issues involved in information systems management (ISM). Three primary issues, broadly defined, relate to (1) conveying the relevance and value of IT to the rest of the organization, (2) managing critical relationships between the IT unit and key internal and external stakeholders, and (3) the actual implementation of effective IT solutions. The primary focus here will be on the third issue. A key facet of the issue is building a flexible IT infrastructure that is responsive and adaptive to change over time. Managing information systems is a complex task, and many factors need to be considered. First, information systems have the potential to deliver an enormous amount of both operational and strategic value to organizations. Indeed many business operations are so heavily IS-dependent that when a system goes down, some organizations become paralyzed (i.e., cannot perform basic or mission critical tasks). Second, there is the cost factor, as information systems can be very expensive to develop, operate, and maintain. A third factor that warrants consideration relates to the increasingly pervasive reliance on IS. The organization as a whole and each of its departments have become increasingly impacted by and dependent on information systems. As such, organizational dependence on the MIS functional area has increased. This IS pervasiveness factor relates directly to the first two information systems management issues noted above: (1) the need to convey the relevance and value of IT and (2) manage relationships with key stakeholders. The IS function is highly horizontal and its success depends on its cooperation and relationship with the other functions in an organization. Companies often face difficult decisions regarding their hardware. Constant innovations from the IT industry lead to increased processor speeds and storage capacities, but can also lead to the obsolescence of the organization’s existing IT. IS executives face tough decisions about their hardware needs when looking at performance, security, reliability, maintenance, and future obsolescence. Managing the organization’s data, information, and knowledge requires an … 14/17 10/6/2018 Information System Components | Information Systems Management adaptable IT infrastructure with sufficient capacity, performance, and reliability to be able to leverage them to gain business intelligence and execute business processes. Various types of software enable companies to utilize their information systems hardware and networks. The increased organizational reliance on information systems, has made the efficient development and effective utilization of software resources increasingly critical and complex. Managing the software component of an IS infrastructure can be a daunting task. The IS management function is highly dynamic due to the constant evolvement of information systems, so their main agenda changes every three years. Companies have to decide how to support their communication and collaboration needs and decide what combination of technologies will best support their organizational goals. Another issue in information systems management is the availability of a skilled and trained workforce to develop and manage the ...
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