Unit 3: Information Systems
Unit code: H/601/7256
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
Aim and purpose
The aim of this unit is to ensure learners understand how organisations use information and the
surrounding use of information, know about information systems and develop the skills necessary to
produce management information.
Unit introduction
Information systems are combinations of software, hardware and communication networks, used to collect,
organise and distribute useful information within organisations. The availability of reliable information,
presented in an appropriate format is the basis for good decision making. It can be used by organisations
for obtaining a competitive advantage and promote efficiency.
People need to become skilled manipulators and users of information to ensure that organisations become
more efficient and succeed in achieving their aims and objectives.
In this unit, learners will manipulate data to generate meaningful information. Learners will use an IT tool,
such as a spreadsheet or a database, to process data and therefore this unit would fit well with any of the
units introducing appropriate software packages.
As IT users, we need to make judgements about sources and accuracy of information and be able to select
and manipulate information to support sound decision making. Not all information is current or accurate. In
this unit learners will find out how to select their sources and decide on how much credence can be placed
in them.
To understand and appreciate how organisations use information, it is necessary to appreciate how
businesses operate and the functional areas into which they are divided. This unit looks at these areas, as
well as exploring the formal ways that internal and external information flows can be represented. There is
scope for this to be contextualised through the setting up of mini-enterprises.
In any organisation it is important that employees know the constraints that impact on the use of
information and learners will consider issues such as data protection and other legislation.
Learning outcomes
On completion of this unit a learner should:
1 Understand how organisations use business information
2 Understand the issues related to the use of information
3 Know the features and functions of information systems
4 Be able to use IT tools to produce management information.
Information Systems – Pearson BTEC Level 3 Nationals (QCF) specification in Information Technology
– Issue 4 – July 2020 © Pearson Education Limited 2020
1
, Unit content
1 Understand how organisations use business information
Types of information: qualitative, quantitative; primary; secondary
Purposes of information: operational support eg monitoring and controlling activity; analysis eg to
identify patterns or trends; decision making (operational, tactical, strategic); gaining commercial
advantage
Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing,
administration; external eg government, trade groupings, commercially provided, databases, research;
reliability of data sources
Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective,
sufficiently accurate, relevant, having the right level of detail, from a source in which the user has
confidence, understandable by the user
Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel,
administration
Information flows: internal information flows; information flows to external bodies; information flow
diagrams
2 Understand the issues related to use of information
Legal issues: General Data Protection Regulations (GDPR); other relevant legislation eg computer misuse
legislation
Ethical issues: codes of practice eg on use of email, internet, use of social media; ‘whistleblowing’;
organisational policies; information ownership
Operational issues: security of information; backups; health and safety; organisational policies; business
continuance plans; costs eg additional resources required, cost of development; impact of increasing
sophistication of systems eg more trained personnel, more complex software, use of cloud computing
software/ storage/access/data security
3 Know the features and functions of information systems
Features of information systems: data; people; hardware; software; digital communications
Functions of information systems: input; storage; processing; output; control and feedback loops; closed
and open systems
Transformation of data into information: distinction between data and information; collection, storage,
processing, manipulation, retrieval, presentation
Types of information system: management information systems; others eg marketing (sales performance,
competitors etc), financial (financial costs, investment returns etc), human resources (HR) (staffing,
professional development etc)
Management information systems (MIS): features; benefits; effectiveness criteria eg accuracy,
sustainability, response times, confidence
2 Information Systems – Pearson BTEC Level 3 Nationals (QCF) specification in Information Technology
– Issue 4 – July 2020 © Pearson Education Limited 2020
Unit code: H/601/7256
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
Aim and purpose
The aim of this unit is to ensure learners understand how organisations use information and the
surrounding use of information, know about information systems and develop the skills necessary to
produce management information.
Unit introduction
Information systems are combinations of software, hardware and communication networks, used to collect,
organise and distribute useful information within organisations. The availability of reliable information,
presented in an appropriate format is the basis for good decision making. It can be used by organisations
for obtaining a competitive advantage and promote efficiency.
People need to become skilled manipulators and users of information to ensure that organisations become
more efficient and succeed in achieving their aims and objectives.
In this unit, learners will manipulate data to generate meaningful information. Learners will use an IT tool,
such as a spreadsheet or a database, to process data and therefore this unit would fit well with any of the
units introducing appropriate software packages.
As IT users, we need to make judgements about sources and accuracy of information and be able to select
and manipulate information to support sound decision making. Not all information is current or accurate. In
this unit learners will find out how to select their sources and decide on how much credence can be placed
in them.
To understand and appreciate how organisations use information, it is necessary to appreciate how
businesses operate and the functional areas into which they are divided. This unit looks at these areas, as
well as exploring the formal ways that internal and external information flows can be represented. There is
scope for this to be contextualised through the setting up of mini-enterprises.
In any organisation it is important that employees know the constraints that impact on the use of
information and learners will consider issues such as data protection and other legislation.
Learning outcomes
On completion of this unit a learner should:
1 Understand how organisations use business information
2 Understand the issues related to the use of information
3 Know the features and functions of information systems
4 Be able to use IT tools to produce management information.
Information Systems – Pearson BTEC Level 3 Nationals (QCF) specification in Information Technology
– Issue 4 – July 2020 © Pearson Education Limited 2020
1
, Unit content
1 Understand how organisations use business information
Types of information: qualitative, quantitative; primary; secondary
Purposes of information: operational support eg monitoring and controlling activity; analysis eg to
identify patterns or trends; decision making (operational, tactical, strategic); gaining commercial
advantage
Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing,
administration; external eg government, trade groupings, commercially provided, databases, research;
reliability of data sources
Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective,
sufficiently accurate, relevant, having the right level of detail, from a source in which the user has
confidence, understandable by the user
Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel,
administration
Information flows: internal information flows; information flows to external bodies; information flow
diagrams
2 Understand the issues related to use of information
Legal issues: General Data Protection Regulations (GDPR); other relevant legislation eg computer misuse
legislation
Ethical issues: codes of practice eg on use of email, internet, use of social media; ‘whistleblowing’;
organisational policies; information ownership
Operational issues: security of information; backups; health and safety; organisational policies; business
continuance plans; costs eg additional resources required, cost of development; impact of increasing
sophistication of systems eg more trained personnel, more complex software, use of cloud computing
software/ storage/access/data security
3 Know the features and functions of information systems
Features of information systems: data; people; hardware; software; digital communications
Functions of information systems: input; storage; processing; output; control and feedback loops; closed
and open systems
Transformation of data into information: distinction between data and information; collection, storage,
processing, manipulation, retrieval, presentation
Types of information system: management information systems; others eg marketing (sales performance,
competitors etc), financial (financial costs, investment returns etc), human resources (HR) (staffing,
professional development etc)
Management information systems (MIS): features; benefits; effectiveness criteria eg accuracy,
sustainability, response times, confidence
2 Information Systems – Pearson BTEC Level 3 Nationals (QCF) specification in Information Technology
– Issue 4 – July 2020 © Pearson Education Limited 2020
