09-07-2013, 03:33 PM
150 Computer Concepts Computer-based Information Systems
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INTRODUCTION
In Week One of this course we identified the five components of a business system, people, procedures, data, hardware and software. Now that we know a lot more about computer technologies we return to this first learning outcome and look a little deeper at what a computer-based information system (CBIS) is and how different levels of management use different types of information systems. While we are referring to a computer-based system, it is common practice to refer just to an “information system”. The course prescription uses the term “business system”, to mean a CBIS.
What is an information system?
An information system is a group of elements – people, procedures, data, hardware and software – that are integrated with the common purpose of achieving an objective.
In any system, whether computer-based or not, there is a process that takes place (refer to the simplified diagram below). Step One: Input - People input information and data into the system. In a CBIS this would involve also using hardware and software and guidelines on how to do this. Step Two Transformation – the information is processed by people using hardware and software and guidelines on how to do this. Step Three: Output – People extract information using hardware and software and guidelines on how to do this, in the form of output required, for example a summary of the daily sales in the form of a report.
Management Information Systems
A Management Information System (MIS) is a system used as a management tool for transforming raw data or outputs from other internal information systems into information that can be used in decision making. Managers make decisions and solve problems all the time and information is needed quickly and easily to help them make the best decisions. A MIS might simply consist of printouts prepared each month from the outputs of other information systems of the business. Managers of different departments and levels in an organisation require different types of information. The diagram on the following page shows three levels of information systems which support the levels of Management, Top, Middle and Lower. Information Systems at the higher levels build on information from the lower levels. Top managers need information to enable strategic long-term planning and forecasting. Middle managers at the tactical level of the organisation need information for budgeting, scheduling, pricing, and analysing sales and profits. Lower managers need information for day to day operational procedures such as tracking orders, managing materials or stock, paying accounts, keeping employee records.
Decision Support Systems (DSS) – Top-level managers and sometimes middle managers receive decision-making assistance from a DSS, which is an interactive system that locates and presents information needed to support the decision-making process. Some DSS’s are devoted to specific problems, others serve more general purposes allowing managers to analyse different types of problems.
Executive Support Systems (ESS) – are a quick-reference, easy-access application of informations systems specially designed for instant access by upper-level managers. ESSs are designed to assist with executive-level decisions and problems, ranging from “What lines of business should we be in five years from now?” to “Based on forecasted developments in electronic technologies, to what extent should our firm be globalised in five years? In 10 years?