NAME: LORENZO, Diane Loreto I.

BS ACCOUNTANCY 2-1

IT APPLICATION TOOLS IN BUSINESS

SEATWORK NO. 1

Understanding information systems and their role in the organization

For us to understand information systems and its role, we first define a system. A system is a set of rules,
arrangement of items or a group of related things that works toward a common objective or goal. According to
James Hall, in his book Accounting Information Systems 7 th edition, the term system is broad and widely applicable.
Certain systems occur naturally, while others are artificial. Natural systems range from the atom— the system of
electrons, protons, and neutrons— to the universe— the system of galaxies, stars, and planets. Examples of natural
systems are all life forms, plant and animals. Artificial systems are particularly man-made. These systems range from
clocks to submarines and social systems to information system.

Information system is an integrated set of components for the collection, storage and processing of data
and the provision of information, knowledge and digital products. Typically, information systems include a mix of
software, hardware and telecommunications networks. Business companies and other organizations depend on
information systems to carry out and handle their activities, communicate with their clients and vendors and
collaborate on the marketplace. Information systems are used to operate inter-organizational supply chains and the
markets of electronics. Corporations, for example, use information systems to process financial accounts, handle their
human resources, and with online promotions reach their prospective clients.

Clearly from its definition, we can see through it its importance to an organization particularly business. To
further elaborate its essence, we can turn to its role in the organization. Organizations across all sectors can
manipulate information technology to create smarter choices in order to meet objectives more effectively. Today, we
have access to state-of - the-art software that enables us to enhance customer care, transform big data into useful
ideas, evaluate hazards, and enhance company safety. How this technology will be used depends on your objectives.

One role of information system to an organization is that it offers many advantages. It has the ability to
process complex data that greatly helps in making important and strategic decisions for the organization. It is
possible to identify several functions performed by an organization's information systems, but O'Brien and Marakas
(2008) recognized three basic functions performed by business information systems. These are; First, information
systems help activities and business processes. Secondly, they promote staff and executives ' decision-making and,
finally, they promote competitive advantage policies.

Organizations that fully understand how information system and technology works have a competitive edge.
In this digital era, with the contact of a click, we can swap huge quantities of information in seconds, conduct
video conferences and system transfers. Indeed, information system plays a vital role in meeting the goals of an
organization.

Information Life Cycle

 What exactly is information? Information, by definition, is knowledge of a specific topic, problem,
occurrence or method. An information goes by a process of usage. This is called its life. The life of an information is a

repetitive sequence of events. It works like just how rain is formed,  water evaporates from the surface of the earth,
rises into the atmosphere, cools and condenses into rain or snow in clouds, and falls again to the surface as
precipitation. Thus, it’s a cycle where it repeats a pattern.

The information life cycle is a stage through which each file of facts or information passes from being
created to being finally archived or destroyed.

The information life cycle has five phases.

(1) INFORMATION CAPTURE – Data reaches an organization by data capture. This pertains to data entry and
data reception which means the stage where an information is on the way to its production. When data joins your
organization, the information lives process begins. This data will provide useful and actionable information for your
company once connected to other data in your information systems.

(2) DATA STORAGE – The data that the organization captured needs to be stored diligently. Data must be
collected and guaranteed in an ideal way to minimize space demands and data should be stored in a categorized
manner for easier access. It is quite difficult to hold the different kinds of big data that the company acquires,
produces and gets from instruments that need to be maintained to be used for retrieval and publication later.

(3) UTILIZATION – The stage where how a data is used. Once data is collected safely and accessible, analytical
procedures can be developed to produce actionable information that can be internally circulated for an organization’s
decision making. The data gathered, stored, categorized and edited is used wisely for publication. Each organization
releases its data to its stakeholders including staff, suppliers, and shareholders. Organizations use many tools to
publish and report information. Data sharing is also part of the publication, as the purpose of publishing data is to
make it available to the intended audience.

(4) ARCHIVING - Another significant phase of the information life cycle is data archiving. When bulk of data is
process on a regular basis, it results to extremely costly storage and handling which means slowing down of the
publication of the information. To counteract this, information is regularly verified, edited and archived because there
are data that are no longer needed for current operations but is still useful for analysis and reporting.

(5) REMOVING DATA (DATA PURGE)– This is the end phase of the life cycle. If data has served its usefulness to
your organization and is no longer needed for regulatory purposes and concerns, removing it from the information
systems is important since the goal is always to keep optimum access to helpful information.

Information is an organization's most precious asset and it is essential to ensure that it stays safe at all
stages of its lives straight up to the end of use. In conclusion, understanding the information life cycle will enable us
to open our minds as to how we use our information efficiently for effective outcomes.