Block 1:
Information Systems and Organisations Intro
What is an information system
An information system that collects, organises and processes data to help human users take
decisions and control their business activities or other interests. This almost always use
computers/machines that executes algorithms/programs.
The use of scientific management theory as a rational model for how managers make
decisions. This enables us to get an idea of useful or good information. Good information is
Accurate, up to date, precise, brief and appropriate.
What is a System
A collection of parts or components. There is a defined structure/pattern of connections
between the parts. There may be interaction with things outside the system. A system has a
function or objective.
Open Systems: Exchange material (or information) with their environment
Closed Systems: Do not interact with their environment
Sub-systems
Any component can itself be described as a system. Well-designed sub-system will have high
cohesion and low coupling
The division of a system into
components (or sub-systems) is also a
choice. Boundaries are a matter of
choice.
The input and output flows is the part of a system description present in an open system and
gives details of how it interacts with its environment.
Information is data processed for a purpose.
Data can be the basis of graphs, images or observations of a set of variables. Viewed as the
lowest level of abstraction from which information and then knowledge are derived.
Data may undergo complex processing prior to presentation and used as information such as
sorting, summarising, calculations, categorisation…
,Facts or statistics are used for data processing/analysis. Information is processed
data/interpreted data.
E.g. Completed questionnaire may be considers to be data. The final report analysing may
consider to be information.
Organised Systems:
Internal structures hold components together maintaining its goal or purpose despite its
environment.
Flows within the system that make it independent are information flows.
Only having a precise description of each component in a system is not enough to
enable you to understand how the system behaves.
Information System
Information Systems are the systems that enable us to manage an organisation.
Computer focused:
Collection of interacting computer programs that supply Information to human decision
makers
People focused:
Collection of interacting computers and humans that makes management decisions within
an organisation
Algorithms
An algorithm describes a process. A sequence of instructions which leads to a solution of a
problem. Following the instructions does not require any understand of the problem.
Transactions & Transaction Processing
Progression of computing technology
1940’s first ‘electronic computer’
1950’s first used commercially – repetitive tasks
Valve operated: unreliable, expensive, slow, inefficient
1960’s: hardware & software improved
Solid state transistors, reliable, faster, smaller, lower cost
,1970’s: Continued to improve
Miniaturization, improved processing power & disk storage, more common in
medium-sized organisations
1980’s: Microchip processing & memory
Millions of transistors also could be placed on one chip for processor and fast access
working memory storage.
Facilitated more sophisticated software applications
Computing for business
Computer and applications
Day to day business usage perspectives
Management perspectives
Decision making perspectives
Management levels: Organisations
Executive: Strategic Planning
Middle: Management Control
Supervisory: Operational Control
Structure of decisions
Structured decisions (operational)
Governed by clear rules, e.g. granting credit to customer (point-based system –
employed/married/etc)
, Unstructured decisions (executive)
No set procedure for arriving at a decision, hiring executive staff
(qualifications/experience/character/etc)
Transaction Processing Systems (TPS) (Supervisory)
Functional
Directly supports business functions
Day-to-day activity
Deterministic
Always has a defined outcome
Routine
Structured/rule based
Low level of decision making
Where does information come from?
From the customer when they placed the order
Already in the database
Something the sales office works out/fills in
Information system can check credit limit for each customer, if there is a reasonable quantity
being ordered, reasonable date.
Process as much as possible on the computer without tying the user’s hands.
Help rather than hinder the business process.
Maintain a good balance between what a person and a computer can do.
Decision support & Information Quality
Good information: Supports the decision
Accurate
Timely
Relevant
Reliable
Concise
Management IS (Middle)
Takes data from transaction processing system base (Accurate, Timely, Complete)
Produces summaries and statistics (Relevant, Complete)
Produced on a regular schedule, on demand
Include external information sources e.g. sales of competitors
(potentially the most common and easiest IS to develop)
Information Systems and Organisations Intro
What is an information system
An information system that collects, organises and processes data to help human users take
decisions and control their business activities or other interests. This almost always use
computers/machines that executes algorithms/programs.
The use of scientific management theory as a rational model for how managers make
decisions. This enables us to get an idea of useful or good information. Good information is
Accurate, up to date, precise, brief and appropriate.
What is a System
A collection of parts or components. There is a defined structure/pattern of connections
between the parts. There may be interaction with things outside the system. A system has a
function or objective.
Open Systems: Exchange material (or information) with their environment
Closed Systems: Do not interact with their environment
Sub-systems
Any component can itself be described as a system. Well-designed sub-system will have high
cohesion and low coupling
The division of a system into
components (or sub-systems) is also a
choice. Boundaries are a matter of
choice.
The input and output flows is the part of a system description present in an open system and
gives details of how it interacts with its environment.
Information is data processed for a purpose.
Data can be the basis of graphs, images or observations of a set of variables. Viewed as the
lowest level of abstraction from which information and then knowledge are derived.
Data may undergo complex processing prior to presentation and used as information such as
sorting, summarising, calculations, categorisation…
,Facts or statistics are used for data processing/analysis. Information is processed
data/interpreted data.
E.g. Completed questionnaire may be considers to be data. The final report analysing may
consider to be information.
Organised Systems:
Internal structures hold components together maintaining its goal or purpose despite its
environment.
Flows within the system that make it independent are information flows.
Only having a precise description of each component in a system is not enough to
enable you to understand how the system behaves.
Information System
Information Systems are the systems that enable us to manage an organisation.
Computer focused:
Collection of interacting computer programs that supply Information to human decision
makers
People focused:
Collection of interacting computers and humans that makes management decisions within
an organisation
Algorithms
An algorithm describes a process. A sequence of instructions which leads to a solution of a
problem. Following the instructions does not require any understand of the problem.
Transactions & Transaction Processing
Progression of computing technology
1940’s first ‘electronic computer’
1950’s first used commercially – repetitive tasks
Valve operated: unreliable, expensive, slow, inefficient
1960’s: hardware & software improved
Solid state transistors, reliable, faster, smaller, lower cost
,1970’s: Continued to improve
Miniaturization, improved processing power & disk storage, more common in
medium-sized organisations
1980’s: Microchip processing & memory
Millions of transistors also could be placed on one chip for processor and fast access
working memory storage.
Facilitated more sophisticated software applications
Computing for business
Computer and applications
Day to day business usage perspectives
Management perspectives
Decision making perspectives
Management levels: Organisations
Executive: Strategic Planning
Middle: Management Control
Supervisory: Operational Control
Structure of decisions
Structured decisions (operational)
Governed by clear rules, e.g. granting credit to customer (point-based system –
employed/married/etc)
, Unstructured decisions (executive)
No set procedure for arriving at a decision, hiring executive staff
(qualifications/experience/character/etc)
Transaction Processing Systems (TPS) (Supervisory)
Functional
Directly supports business functions
Day-to-day activity
Deterministic
Always has a defined outcome
Routine
Structured/rule based
Low level of decision making
Where does information come from?
From the customer when they placed the order
Already in the database
Something the sales office works out/fills in
Information system can check credit limit for each customer, if there is a reasonable quantity
being ordered, reasonable date.
Process as much as possible on the computer without tying the user’s hands.
Help rather than hinder the business process.
Maintain a good balance between what a person and a computer can do.
Decision support & Information Quality
Good information: Supports the decision
Accurate
Timely
Relevant
Reliable
Concise
Management IS (Middle)
Takes data from transaction processing system base (Accurate, Timely, Complete)
Produces summaries and statistics (Relevant, Complete)
Produced on a regular schedule, on demand
Include external information sources e.g. sales of competitors
(potentially the most common and easiest IS to develop)
