Tag: Enterprise Resource Planning

An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. In a sociotechnical perspective, information systems are composed by four components: task, people, structure (or roles), and technology.

A computer information system is a system composed of people and computers that processes or interprets information. The term is also sometimes used in more restricted senses to refer to only the software used to run a computerized database or to refer to only a computer system.

Information Systems is an academic study of systems with a specific reference to information and the complementary networks of hardware and software that people and organizations use to collect, filter, process, create and also distribute data. An emphasis is placed on an information system having a definitive boundary, users, processors, storage, inputs, outputs and the aforementioned communication networks.

Any specific information system aims to support operations, management and decision-making. An information system is the information and communication technology (ICT) that an organization uses, and also the way in which people interact with this technology in support of business processes.

Some authors make a clear distinction between information systems, computer systems, and business processes. Information systems typically include an ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes.

Alter argues for advantages of viewing an information system as a special type of work system. A work system is a system in which humans or machines perform processes and activities using resources to produce specific products or services for customers. An information system is a work system whose activities are devoted to capturing, transmitting, storing, retrieving, manipulating and displaying information.

As such, information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action.

Components of Information Systems

The computer age introduced a new element to businesses, universities, and a multitude of other organizations: a set of components called the information system, which deals with collecting and organizing data and information. An information system is described as having five components.

1. Computer hardware

This is the physical technology that works with information. Hardware can be as small as a smartphone that fits in a pocket or as large as a supercomputer that fills a building. Hardware also includes the peripheral devices that work with computers, such as keyboards, external disk drives, and routers. With the rise of the Internet of things, in which anything from home appliances to cars to clothes will be able to receive and transmit data, sensors that interact with computers are permeating the human environment.

2. Computer software

The hardware needs to know what to do, and that is the role of software. Software can be divided into two types: system software and application software. The primary piece of system software is the operating system, such as Windows or iOS, which manages the hardware’s operation. Application software is designed for specific tasks, such as handling a spreadsheet, creating a document, or designing a Web page.

3. Telecommunications

This component connects the hardware together to form a network. Connections can be through wires, such as Ethernet cables or fibre optics, or wireless, such as through Wi-Fi. A network can be designed to tie together computers in a specific area, such as an office or a school, through a local area network (LAN). If computers are more dispersed, the network is called a wide area network (WAN). The Internet itself can be considered a network of networks.

4. Databases and Data Warehouses

This component is where the “material” that the other components work with resides. A database is a place where data is collected and from which it can be retrieved by querying it using one or more specific criteria. A data warehouse contains all of the data in whatever form that an organization needs. Databases and data warehouses have assumed even greater importance in information systems with the emergence of “big data,” a term for the truly massive amounts of data that can be collected and analyzed.

5. Human Resources and Procedures

The final, and possibly most important, component of information systems is the human element: the people that are needed to run the system and the procedures they follow so that the knowledge in the huge databases and data warehouses can be turned into learning that can interpret what has happened in the past and guide future action.

Technologies within Information Systems:

• Data Management:

This involves techniques for collecting, organizing, and storing data efficiently. It includes database management systems (DBMS), data modeling, data normalization, and data governance.

• Information Retrieval:

Techniques for retrieving relevant information from large datasets or databases. This includes search algorithms, indexing methods, and information retrieval models.

• Networking and Telecommunications:

Technologies that facilitate the transmission of data between computers and devices. This includes network protocols, wireless communication, and internet technologies.

• Systems Analysis and Design:

Methodologies for analyzing organizational processes and designing information systems to support them. This involves requirements gathering, system modeling, and the use of tools such as Unified Modeling Language (UML).

• Software Development:

Techniques for building software applications to automate business processes or provide decision support. This includes programming languages, software development methodologies (e.g., Agile, Waterfall), and software testing techniques.

• Cybersecurity:

Measures to protect information systems from unauthorized access, data breaches, and other security threats. This includes encryption, firewalls, intrusion detection systems, and security policies.

• Cloud Computing:

Delivery of computing services over the internet, allowing organizations to access resources such as storage, processing power, and software on-demand. This includes Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) models.

• Business Intelligence and Analytics:

Techniques for analyzing and interpreting data to gain insights and support decision-making. This includes data mining, predictive analytics, business intelligence tools, and visualization techniques.

• Enterprise Resource Planning (ERP):

Integrated software systems that facilitate the management of core business processes, such as accounting, human resources, and supply chain management.

• Emerging Technologies:

Constantly evolving technologies that have the potential to disrupt traditional Information Systems, such as artificial intelligence (AI), machine learning, blockchain, and the Internet of Things (IoT).

Business information systems are sets of inter-related procedures using IT infrastructure in a business enterprise to generate and disseminate desired information.

Such systems are designed to support decision making by the people associated with the enterprise in the process of attainment of its objectives.

The business information system gets data and other resources of IT infrastructure as input from the environment and process them to satisfy the information needs of different entities associated with the business enterprise.

There are systems of control over the use of IT resources and the feedback system offers useful clues for increasing the benefits of information systems to business. The business information systems are sub-systems of business system and by themselves serve the function of feedback and control in business system.

Features of Business Information System

• Data Management:

BIS involves the collection, storage, and management of data from various sources within an organization. This includes structured data from databases, as well as unstructured data from documents, emails, and other sources.

• Integration:

BIS integrates data and processes across different functional areas of an organization, such as finance, human resources, sales, and marketing. This integration enables seamless communication and collaboration between departments.

• Decision Support:

BIS provides tools and technologies for analyzing data and generating insights to support decision-making at all levels of the organization. This includes reporting tools, dashboards, and predictive analytics capabilities.

• Automation:

BIS automates routine tasks and processes, increasing efficiency and reducing the likelihood of errors. This includes workflow automation, where tasks are automatically routed to the appropriate individuals based on predefined rules.

• Accessibility:

BIS allows users to access information and perform tasks from anywhere at any time, using a variety of devices such as computers, tablets, and smartphones. This enables remote work and enhances flexibility.

• Security:

BIS incorporates security measures to protect sensitive information and prevent unauthorized access or data breaches. This includes encryption, user authentication, access controls, and regular security audits.

• Scalability:

BIS is designed to scale with the needs of the organization, accommodating growth in data volume, user base, and complexity. This scalability ensures that the system can continue to support the organization as it evolves.

• Customization:

BIS can be customized to meet the specific requirements and workflows of an organization. This includes configuring user interfaces, reports, and business processes to align with the organization’s unique needs and preferences.

Key Components of Business Information System

• Hardware:

This includes all the physical equipment used to process and store data within the information system. Hardware components may include servers, computers, networking devices (routers, switches), storage devices (hard drives, solid-state drives), and peripherals (printers, scanners).

• Software:

Software components encompass the programs and applications used to manage data and support various business processes. This includes operating systems (e.g., Windows, Linux), database management systems (e.g., MySQL, Oracle), enterprise resource planning (ERP) software, customer relationship management (CRM) software, productivity suites (e.g., Microsoft Office), and specialized business applications.

• Data:

Data is a fundamental component of any information system. It encompasses the raw facts and figures collected and stored by the system. Data can be structured (e.g., databases, spreadsheets) or unstructured (e.g., documents, emails). Effective management of data involves processes such as data capture, validation, storage, retrieval, and analysis.

• Procedures:

Procedures refer to the methods and protocols established within the organization to govern the use of the information system. This includes guidelines for data entry, processing, security protocols, backup and recovery procedures, and user access controls. Well-defined procedures ensure consistency, accuracy, and compliance with organizational policies and standards.

• People:

People are an integral component of any information system. This includes system users, administrators, IT support staff, managers, and other stakeholders involved in the operation, maintenance, and utilization of the system. Effective training, communication, and collaboration among individuals are essential for the successful implementation and operation of the information system.

• Networks:

Networks facilitate the communication and exchange of data between different components of the information system. This includes local area networks (LANs), wide area networks (WANs), wireless networks, and the internet. Networking infrastructure enables seamless connectivity and collaboration among users and facilitates access to centralized data and resources.

• Feedback Mechanisms:

Feedback mechanisms allow users to provide input, report issues, and suggest improvements to the information system. This may include user feedback forms, helpdesk support, system logs and monitoring tools, and periodic reviews and evaluations. Feedback mechanisms help identify areas for improvement and ensure that the information system continues to meet the evolving needs of the organization.