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Archive for January, 2012

Information System consists of physical components like hardware, software, database, procedures and people operating these components which interact to support the operational, managerial, and decision-making information needs of an organization. So, an information system is the means by which data flows from one person of department to another. An information system accept data from the user, process this data to produce information and achieve knowledge.

Data is a collection of facts, figures, statistics which can be processed to produce meaningful information. A process involves collecting, capturing, sifting, rearranging, calculating, comparing, decision-making, storing, retrieving, reproducing and transporting of data. Information is processed data. It refers to facts, figures or statistics that have meaning. It can become data or input for another process. Information which is known and verified is knowledge and this knowledge which is relevant and useful in any given situation which anticipate events helps the business move in the right direction taking the correct decision at the right points in time is known as business intelligence.

Types of Information Systems

The types of Information Systems are Data Processing System (DPS), Management Information System (MIS), Decision Support System (DSS) and Expert System. The data being processed in each of these systems may be done using Batch Processing Systems, On-line Systems, Real-time Systems and Distributed Systems.A data processing system process large amount of data for routine business transactions; they run a series of programs on an automatic basis at regular intervals. E.g. Payroll, Accounts, inventory.

Management Information Systems (MIS) provide reports or generate information for planning, control and decision making. They use a shared database. E.g. Estimation software for civil engineers. Decision Support Systems (DSS) differs from MIS in that it emphasizes more on decision making in all levels. It provided ad hoc (as and when required) decision reports. E.g. Business software integrating all modules payroll, accounts, inventory which helps the top management to take decision based on the business intelligence gained. In Expert System decisions are taken by the computer itself, it captures and uses the knowledge of an expert for solving a particular problem. An expert system selects the best solution available to a problem or a specific class of problems. E.g. Judicial System, medical system.

In batch processing system data are gathered from time to time and collected into groups or batches before they are entered in to the computer for processing. In On-line System data is entered online and each data is processes immediately. Real Time Processing System is same as on-line system but output is generated fast and efficiently enough to influence on going activity. But on-line system need not be real-time system. And, in Distributed System processing is shared by several independent processors at different locations in a network.

An organization may consist of many business systems and information systems is a subsystem of the business.

Accounting information system is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system and which is used to analyze and record business transactions for the purpose to prepare financial statements and provide accounting data to its users. Some accounting information systems are still manual, i.e. accounting records are made with a pen, paper and manual entries into accounting books.

How are Such Systems Used?
These systems can be customized to meet the needs of a business. For example, information technology professionals responsible for business processes and information technology professionals responsible for the accounting information system can work together to develop and implement such a system so that it automatically gets information from other sources already in use by the business. Also, the systems can be set up to feature certain functions that are important to the business and eliminate functions minor to the business.

We live in an age where information accumulates all around us in seemingly limitless quantities. As individuals we send or receive emails, text messages, photos and sound bytes on an hour-to-hour basis. As corporations, we cram computer hard drives with statistics, contacts, financial transactions, specifications, technical drawings, instructional materials, and employee and customer data. It’s just as well that our technological capability to store information electronically has improved beyond all expectation.

But despite our technological ability to store information there is still so much that simply disappears on a day-to-day basis. Business owners and managers know the cost when an experienced and valuable employee moves on to a new job. It’s often a mad scramble to capture their knowledge and organise an information handover to the new employee. As technologically advanced we may be, you cannot just backup the employee’s brain to a computer hard drive as they leave. It’s likely you’ll soon be a victim of a variation of Murphy’s Law – the information you most need is the information you don’t have!

The continuous cycle of employees joining and leaving, at whatever level, can be a major impediment to organisation learning and the continuous improvement process. Employees are mostly concerned with the here and now rather than leaving trails of information that may benefit their successors. The management of knowledge and information within a business needs a continuous improvement process itself. Although business owners and managers may strive hard to implement, update and ensure the continuity of work systems and processes, there is still a need to foster an organisation culture that promotes the importance of spending time and energy capturing and preserving information and knowledge on a daily basis.

In any work situation, there are always employees that perpetually seek the assistance of colleagues when they need information. They rely on others to be the ‘keepers of knowledge’. They are full of praise when the information is forthcoming and they curse ‘the system’ if information cannot be found. They take little responsibility themselves to contribute to the organisation’s efforts in information management, it’s someone else’s job. At home, they probably have countless thousands of photos, some of them precious, sitting on an aging hard drive that has never been backed up.

Likewise, there are always some employees that seem to be the givers and perpetrators of information. They seem to have an uncanny knack of finding information when asked, or some 6th sense in knowing what information must be kept. But having special powers is not their reality, it’s more a case of good habits and an appreciation of the need to spend time on a daily basis collecting, updating and managing information.

The difference between people’s inclination to manage information is a consequence of training, life experience and human nature. Some people just don’t get the need to do something now if it can be left until tomorrow, or next week. For many people, taking time to store and organise information falls into this category. On any day inside any business, there is likely to be some failure to appropriately store information. While each failure may be relatively insignificant, cumulatively the effect can be considerable, even damaging to the business.