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Information systems have become as integrated into our daily business activities
as accounting, finance, operations management, marketing, human resource
management, or any other major business function. Information systems and
technologies are vital components of successful businesses and organizations—
some would say they are business imperatives. They thus constitute an essential
field of study in business administration and management, which is why most
business majors include a course in information systems.
• Input involves capturing and assembling elements that enter the system to be
processed. For example, raw materials, energy, data, and human effort must be
secured and organized for processing.
• Processing involves transformation processes that convert input into output.
Examples are manufacturing processes, the human breathing process, or
mathematical calculations.
• Output involves transferring elements that have been produced by a
transformation process to their ultimate destination. For example, finished
products, human services, and management information must be transmitted to
their human users.
Example.
● A manufacturing system accepts raw materials as input and produces
finished goods as output.
● An information system is a system that accepts resources (data) as input
and processes them into products (information) as output.
● A business organization is a system in which human and economic
resources are transformed by various business processes into goods and
services.
The system concept becomes even more useful by including two additional
elements: feedback and control. A system with feedback and control functions is
sometimes called a cybernetic system, that is, a self-monitoring, self-regulating
system.
• Feedback is data about the performance of a system. For example, data about
sales performance is feedback to a sales manager.
• Control involves monitoring and evaluating feedback to determine whether a
system is moving toward the achievement of its goal. The control function then
makes the necessary adjustments to a system’s input and processing
components to ensure that it produces proper output. For example, a sales
manager exercises control when reassigning salespersons to new sales territories
after evaluating feedback about their sales performance.
Business as an example of system
An information system differs from other kinds of systems in that its objective is
to monitor/document the operations of some other system, which we can call a
target system. An information system cannot exist without such a target
system. For example, production activities would be the target system for a
production scheduling system, human resources in the business operations
would be the target system of a human resource information system, and so on.
It is important to recognize that within a vending machine there is a component/
sub-system that can be considered an information system. In some sense, every
reactive system will have a subsystem that can be considered an information
system whose objective is to monitor and control such a reactive system.
For example Production activities would be the target system for a production
scheduling system, human resources in the business operations would be the
target system of a human resource information system, and so on. It is important
to recognize that within a vending machine there is a component/sub-system
that can be considered an information system. In some sense, every reactive
system will have a sub-system that can be considered an information system
whose objective is to monitor and control such a reactive system.
Chapter 3
ESS process
Chapter 4
Competitive forces and strategies
This strategic role of information systems involves using information technology to develop
products, services, and capabilities that give a company major advantages over the
competitive forces it faces in the global marketplace. This role is accomplished through a
strategic information architecture: the collection of strategic information systems that
supports or shapes the competitive position and strategies of a business enterprise. So a
strategic information system can be any kind of information system (e.g., TPS, MIS, and DSS)
that uses information technology to help an organization gain a competitive advantage,
reduce a competitive disadvantage, or meet other strategic enterprise objectives.
Role of IT in creating agile company
Chapter 5