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VU
Information
System (CS507)
LESSON
6
Systems
vs. Procedures
Procedure
is a defined set of instructions aimed at
describing how to proceed in
achieving a pre-defined
milestone/target.
Systems have collection of predefined
procedures related to each
other in a sequenced
logical
manner in order to collectively achieve
the desired results. The
system & procedures in all kinds
of
environment
are subject to internal controls
and checks that are
necessary to ensure the effectiveness of
the
same.
6.1
Purpose of Systems &
Procedures
The
basic purpose behind setting
up systems and procedures is to
make available information
when
required.
But when procedures are
organized in a logical manner to form
systems, the value of
information
as an
output of a system enhances.
When technology is added to the system,
scope of a system changes
to
include
hardware, software and
designs linked together in accordance
with the procedures contained in
that
system
to give a purposeful architecture.
6.2
Data & Information
Before
defining what information systems
are? I would like to once
again differentiate between
data and
information.
Data represents facts of any
kind. Information is the processed
form of data being verified
and
substantiated
from various sources.
Example
100,000
is a figure which by itself
does not add to the
knowledge
But
When
we say 100,000 sales orders,
it does add to our knowledge,
hence is information.
6.3
Data & Information
Generation
of relevant information is the objective of every
information system. Now we
would move fwd
with
the definition & necessity of
information systems.
What
are Information
Systems?
Interrelated
components working together to collect,
process, store and
disseminate information to
support
decision
making, coordination control, analysis
and visualization in an organization.
6.4
Manual Vs Computerised Information
Systems
As
advancement was made in
every field of life, manual
information systems were converted
to
computerized
systems. In manual environment, the
concept of transformation was
difficult to apply, since
input
of data into records was by
itself the output which also
included simple computations. Concept
of
control
mechanism grew stronger as
computerized information systems
emerged. Now the concept
of
Information
system exists with the usage
and benefits of Computers as an
inevitable part.
6.5
What is Computer based Information
System (CBIS)?
CBIS
is an Information System that
uses computer & telecommunications technology to
perform its
intended
tasks. In CBIS, Information technology
(IT) becomes a subset of the
Information system.
18
VU
Information
System (CS507)
The
terms Information
System (IS) and Computer Based
Information System (CBIS)
with
the
extensive
use of computers in almost
every field renders it
inevitable to think of an IS as
CBIS.
6.6
Why Information
Systems?
In modern
age, there has been
felt a growing need for the
use of information systems. Let's
take a look at
what
factors increased the importance of
efficient information
systems.
6.7
Emerging Global Economies
High
level of foreign trade has
resulted in imports and exports which
require inter linkage for smooth
coordination.
Core business functions (manufacturing,
finance and customer support)
have been distributed
in
different countries.
Coordination
6.8
Transforming Industrial
Economies
Industrial
economies have started
merging as knowledge-and-information-based economies.
Manufacturing
activities
being shifted to low wage countries.
More opportunities are
available in education, health
care,
banks,
insurance firms and law firms.
More knowledge and information
intense products are being
created.
Higher
commitment expected from customer
e.g. overnight package delivery,
world wide reservation
systems.
6.9
Transformed Business
Enterprise
The
structure of business enterprise
have also changed, initially
the organizations used to be
Hierarchical,
Centralized,
Structured following a Fixed
Set of SOP's. However, now
the organizations are
moving
towards
more Flatter, Decentralized and
Flexible structures. Information
Technology makes it convenient
and
efficient to promote this new
culture.
6.10
Emerging Digital
Firms
Firms
where all significant business
process and relationships with
customers and suppliers and
employees
are
digitally enabled and key
corporate assets are managed
through digital firms. This
results in rapid
response
with more flexibility to survive
and getting more global.
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