Segment 1 Information Systems

in Business

IT CERTIFICATE
CA Professional Stage - Certificate Level, ICAB
COURSE TEACHER: Abhijit Kumar Saha, FCA
Data Vs Information
 Data Process Information

• Raw Facts • Useful & Relevant

• Unorganized • Organized
• Unprocessed • Processed
• Chaotic or Unsorted • Ordered or Sorted
• Input to a Process • Output of a Process
Data Information
Data, Information & Knowledge
 Information
Customer data organized
and placed in the context
of the company to make it
relevant to the business Knowledge
Analyzed and established
customer buying behavior
and pattern of brand
Data retention
Customer data (name,
age, brand choice,
etc.) is gathered and
recorded
Information is a Key Resource
 Effective business decision making
 Identifying opportunities or threats (e.g. PEST,
SWOT)
 Understanding the current status to set proper goal
 Rewarding or nurturing “good” and addressing
“bad”
 Responses to economic events or changes
 And, many more…

Attributes of Information
 Availability  Decay
Useful only when required Value of information
decays with time / changes
 Purpose
Rate
 Characters or volume against
Needs to have an objective.
To inform, evaluate, persuade time (e.g. 50 word per
and organize minute or 2 mbps)

 Mode and format Frequency

 Daily sales report
Sensory (5 senses).
Can have different formats.
Formats must help clarity.
Attributes
Information
 Completeness
Incompleteness may lead to
wrong decisions (e.g. ROI without
the assumptions)  Validity
Reliability
Repeated correctness
establishes reliability
 Cost Benefit Analysis
of
Benefits sometime may
fall short compared to cost
/ involvement
Contextual applicability
(e.g. a normal Vs
exceptional observation)
 Quality
 Correctness, more logical Says what it needs to say
estimates, etc.  Value of Information
 Transparency Impact

Organization
An organized group of people with a particular purpose,
such as a business or government department.
 For Profit Vs Not for Profit
 Businesses or Industry wise diverted:
– Financial
– Manufacturing
 – Retail
– Logistics & Transportation – Service, etc.
 Can also be Divisional or Departmental Organization
DSS
DSS = Decision Support System

 Decisions are two types:

– Programmed (e.g. inventory replenishment)
– Non-programmed (e.g. investing in a new technology)
Where does DSS come into play?
 – Generally in non-programmed decisions
 Why?
– It’s flexible, adaptive, applies to various levels of
management, can be intense, analytical, easy to use, etc.

DSS
 Who uses DSS?
– Generally, the mid level Management – Can be used by
anybody in the organization
 Examples:
– Budget Variance Analysis
– Production Costing Analysis
– Attractive Customer Segment Analysis
Major Roles of Information System
 Strategies and
Competitive Edges

Business Decision
Making

Business Processes and

Operations
E-Business
INTERNET Suppliers

Extranet Company Boundary

Supply Chain Management:

Procurement, Distribution and Logistics

Intranet

Engineering & Manufacturing & Accounting &

Research Production Finance

Intranet

Customer Relationship Management:

Marketing, Sales, Customer Service

Extranet
INTERNET
Customers
Types of Information Systems
 Transaction Processing System

Operations Support System Process Control System

Supports Business Operations

Enterprise Collaboration System

Management Information System

Management Support System Decision Support System

Supports Managerial Decision Making

Executive Information System
Developing Information Systems
 Maintain Investigate

Implement Analyze

Design
Components of an Information System
Thank You