Wednesday, April 29, 2009

Revisit-Understanding Information System l

An information system (IS) is a computerized system that, collects, processes, stores, analyzes and, disseminates information for a specific propose. This process is defined as an information processing cycle (IPC). The information processing cycle consists of four operations: input, process, output, and storage. Raw data retrieved from the environment and delivered to the computer is called input. After the computer receives data from the input device, it will manipulate, refine, and process the data to produce useful information for users. This step is called processing.

After data has been refined and manipulated into useful information, it is displayed to the end users as output. Finally,the information needs to be stored for future uses. All four processes make up the information processing cycle. Input consists of raw facts (data),while information is a collection of facts organized or processed in such a way that it has additional value for further usage. The information that is organized and processed to convey understanding,experience, learning, and expertise forms knowledge, which has a high value. All enterprises which have been in operation for any period of time have a wealth of information.

However, this information often remains under-utilised because it is compartmentalised, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorised according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, do not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it. Information system can link all this subsystem into unique system where needed data, information or knowledge would be easily accessed.

As information itself has value, commerce often involves the exchange of information (and knowledge), rather than tangible goods. Information is valuable and useful because it can help decision makers. For example, investors are using information to make multimillion-dollar decisions, and financial institutions employ information to transfer millions of dollars. Retailers use information to control inventory and process orders. Information technologies are constantly changing our society, our ways of doing business, and our lives. To fully understand what an information system is and how it works, it is necessary to examine its components. to be continued..

Ref: Information System Management (download here)

regards

-MZA-

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