Activity 1 – Task A

Session 1.1 outlined the various reasons which information systems are needed. Information
systems are vital because they allow businesses to compete, achieve operational excellence,
to connect with customers and suppliers and to improve decision making (Grant-Fraser,
2016).

Session 1.2 discusses the components of an information system namely people, processes
and technology. The IPOS system is also a useful tool, where the data (internal/external) is
processed to output information and is then combined with context to create knowledge. It
also outlines the various jobs which support the MIS in businesses and how they all lead to
informed decision making.

Session 1.3 looks at the management levels (operational, tactical, strategic) and the
functional areas/departments, as well as the different types of information systems which
would be best suited given the responsibilities of the employees.

Activity 1

Session 1.1 demonstrated the importance of Information Systems in today’s businesses and

organizations. It is quite evident that information systems play a crucial role in increasing
efficiency and productivity for businesses and if not implemented to some extent, you may
just be left behind. Additionally, this unit highlighted how Information systems help
organizations analyze data to make informed decisions, while minimizing the likelihood of
errors in financial / business transactions.

Session 1.2 explained the information system components. We saw that IS incorporate a

formula which is:  IS = People + Process + Technology. Technology obviously stands out
when we think of Information Systems however, we learned that the people and processes
are equally, if not more important. I believe this is so because we are the ones benefiting if
used correctly. Most times the technology or system will be constant and give us a
competitive edge because of its vast innovative processes. The session also mentioned how
businesses can make sound decisions using Information System Components because data
is processed to give you information, and information is combined with context to give you
knowledge. The result, empowering one to make informed decisions. An example where IS =
People + Process + Technology for me is, the computer software used at work to facilitate a
work process. Without IS efficiency and productivity will be very low along with a lot of
manual labor being introduced.

Session 1.3 saw us delve into the relationship between organizational structure and
information systems from two different perspectives, management and functional areas.
Additionally, we were informed of the different types of information systems that cater to the
three levels of management. These were Strategic, Tactical, and Operational.
We also learnt how Information System help in the decision-making process for managers /
supervisory management, example:

1. Senior managers - make decisions on very summarized information.

2. Middle managers - make decisions that have short- to medium-term impact on a
business.
3. Supervisory management - has a narrower scope and focuses on repetitive day-to-
day routines in a department.

This session demonstrated the different manager levels that exist in the work force and at my
place of work. Most senior managers truly don’t interact with lower-level staff daily however,
they make informed decisions with summarized information received.  

Activity 1 Task A:

Summarize the main points from the 3 sessions in the unit. Express how they relate to a
situation you encountered. Share with your paired colleagues and critique what they
have written. Refer to the literature you have read and the videos you have watched
when you make your critique.

Session 1.1 - Rationale for Information Systems

In today's world, it is evident that Management Information Systems (MIS) is critical to most
organizations’ survival no matter its size. To stay ahead of the competition, companies utilize
MIS to foster new ideas, connect closely with consumers and suppliers, assist with decision-
making, and also boost productivity. The use of MIS in our everyday life includes the simplest
activities like withdrawing cash from ATM, browsing the Internet, shopping with a credit card,
reserving tickets online which are all vital to the continuation of life (Manipal ProLearn, 2014).
The two key functions of MIS are that it allows one to carry out business transactions and it
analyzes and presents data for decision-making.

Session 1.2 - Information Systems Components

People, Processes, and Technology are the main known components that makeup
Information Systems (IS). When raw data is retrieved from internal sources (cash flow reports,
inventory amounts) and/or external sources (social media, newspapers), Information Systems
(IS) converts such data into information that gives knowledge which is then used to make
informed decisions and helps give control in the organization (Maisano, 2015). This is also
viewed as a component of IS known as the IPOS model (Input-Process-Output-Storage).

Session 1.3 - Management Levels and Functional Areas

In any organization, Information Systems (IS) provides support to three levels of

management. These are strategic, tactical, and operational which helps managers make
different decisions within the organization. Top-level managers for example Board of
Directors, CEO utilize Information Systems such as executive dashboards that allow them to
make unstructured decisions. Middle-level managers, for instance, Departmental Managers
make semi-structured decisions and low-level managers such as Supervisors make structured
decisions all with the assistance of different Information Systems (IS). Additionally, IS
provides vital support to the major functional areas of an organization, that is, Human
Resource, Sales & Marketing, Manufacturing & Production, and Finance & Accounting.