Features and Functions of Information Systems

Features and Functions of Information SystemsBy Robert Taylor

P4: describe the features and functions of information systems1

Features and Functions of Information SystemsTypes of Information Systems:Management Information Systems (MIS)Marketing AnalysisHuman ResourcesFinancialCompetitor

An information system is a system of both people and computers that are used to process and interpret information. There are many different types of information systems, each with their own specific purpose and use. For example a management information system is utilized to help control and organise the sectors of an operational structure. A lot of businesses use information systems as a convenient way to transfer and store relevant data. 2

Features and Functions of Information SystemsFeatures of Information Systems:DataPeopleHardwareSoftwareCommunication/data flows

The features of an information system are the different characteristics that the system possesses in-order to accomplish its job. Each information system has its own specific features that are often unique and applicable to an organisations requirements. There can be many features in a information system such as data, where the information can be stored in its raw form to allow for quicker transference. Different features allow an organisation to change certain aspects of their information system.3

Features and Functions of Information SystemsFunctions of Information Systems:InputstorageProcessingOutputControl and feedback loopsClosed and open systems

The functions of an information system encompass how the system operates in its distinctive environment. Different organisations require different types of functions for their information systems to operate at a high efficiency. For example, the processing of information in a medical laboratory will need to be more protected than the processing of a newspaper companies headlines. A diversity of functions enable an organisation to change the purpose of the information system.4

Features of Information SystemsData:Data input must be as accurate as possible.It should be stored in the most logical way.The data then needs to be summarised to meet the needs of the system.The data is vital to the creation of a good information system.

A main feature in an information system would be the data. Data is the raw form of information and is used to help an organisation store only necessary information. Its also a collection of facts and statistics that have yet to be analysed or referenced to anything.There are many features of data that must be maintained within a company, such as being accurate, timely, up to date and relevant to the topic. To an organization, data is important and has to be extremely accurate and should be presented and kept in a organized way. Data must then be analysed in-order to become information and must meet the demand of the person asking for it.5

Features of Information SystemsPeople:People are involved in both capturing the data and exploiting the information.It is important to motivate those who capture the data by highlighting the importance of how the data can help the business.

People are necessary to record, process and then input the data within any organization. Furthermore, people are able to affect the quality of information by inputting mistakes such as capturing the data in the wrong format or inputting incorrect data.Because of this, the information input can only be as equally good as the individual who input it. To avoid this companies can use motivation as a way of getting people who collect the data to become a lot more efficient.6

Features of Information SystemsHardware:In small organisations the Information System may just run on the PC of the person in charge of that system(s).In larger businesses it usually runs on a server, either shared or dedicated, with internet access if needed.It is unusual to require specialised hardware.

Hardware is also an important component when it comes to information systems as big organizations will use them to store data in massive quantities. Furthermore, the hardware being used has to be able to cope with the stress put onto it because of the vast use by the whole organization.The MIS (Management information system) is what most large companies run on a server. This is done so the entire organization are able to easily access the data they need.7

Features of Information SystemsSoftware:The simplest Information System can be built using standard software.However, MIS and some other Information Systems can use complex software.The developer configures this system to a set standard, allowing some customisation by the business.Costs varies but more expensive usually means more features.

Organizations must also use software with their hardware. The software should be able to process data efficiently and rapidly. Furthermore it can easily be searched by individuals within the organizations to find things when needed. Organizations must also be aware that cheaper MIS tend to have less features while more expensive ones will have more features and so organizations must take into consideration that the hardware and software are compatible together and function well together.8

Features of Information SystemsTelecommunications:An MIS can be delivered across the internet but this usually brings out an issue of security of data.Many are delivered across an intranet, protected by the businesses firewall, to safeguard information.Telecommunications can be used to provide the utmost security.

Telecommunication refers to the exchange of information between devices over vast distance electronically.Telecommunication is done everyday via the use of emails, phone calls and texts. It is essential to have it, if wanting to run a successful organization as telecommunication is currently the best way to communicate quickly when in different locations.9

Functions of Information SystemsInput:Detailed data inputted into the system, stored, processed ready for being used as an output.Telling the system what and how they expect the outputs to look like and do. This is usually setup by the trained individual or technician.

As explain previously people will need to input information for others to gain access to it. When inputting information into the information system there are two parts that must be followed. One of these parts is detailed data which is stored and processed. which then forms the foundation for the rest of the system.The next part is the user. Who must tell the system what sort of analysis they want the system to perform.10

Functions of Information SystemsStorage:The data should be stored at the most detailed level possible.The IT department would take consistent backups of this data.The IT department may also store summaries of this data for ease of use.

All information must be stored securely to ensure that no information is lost. In organizations, the IT department should regularly perform back up checks of the stored data. The backups should be kept in a safe location to avoid any potential risk of data manipulation. The information should also be kept as concise and explained as possible to minimalize the risk of confusion with other workers. In-order for the their workers to be able to access the information when its being stored an organisation can have summarised documents for their employees to access on a regular basis.11

Functions of Information SystemsProcessing:Processing is what turns data into information.At its simplest this may be adding up a list of sold products and working out remaining stock levels but at its most complex this could be analysing trends and answer complex decisions on actions to take.

Processing data is when either data is converted into information or when information is transformed into knowledge. Different individuals may have different perceptions on a piece of information, this can be reduced by processing the information so that a wide variety of individuals are able to comprehend it. The processing of information can also encompass the calculation of an organisations finance management and even stock levels. The processed information can even tell how well a company is performing within their specified market.12

Functions of Information SystemsOutput:This can be in two formats: graphical and textual.Graphical is good for seeing the bigger picture and understanding trends. Textual is preferred for analysing the detail and making more accurate choices.Outputs should be presented in the most suitable way for the user.

The output function on a information system is the procedure that occurs after the processing stage. After data has been processed it is then outputted and displayed as either a chart/graph or in the form of a report. Graphical output involves carts and graphs, which is beneficial for a greater understanding of a the bigger picture. The textual output includes reports, that are easier to analyse and will contain detailed descriptions. Outputs like the processing step will also be changed to suit the reader depending on what form of information needs to be relayed.13

Functions of Information SystemsControl and Feedback Loops:This is what happens as a result of the output from the system.An automated example would be a system checking stock levels and re-ordering stock based on the system outputting a minimum level.Or a product automatically increasing its price based on great sales.

The control and feedback loops are the next part of the outputted information. If the information that is outputted is wrong or inaccurate an organization will give constructive criticism to those who inputted the data initially. These people will then have to correct any mistakes identified by the feedback and make sure that the entire document is properly corrected. 14

Functions of Information SystemsClosed and Open Systems:In a closed system, the user may have some choice about what to report on but they are limited to pre-defined output formats.In an open system there is often greater flexibility. This usually means significant training is needed to make the best of the system which will be very analysis based.

Closed systems are systems which allow users to use content as is, with minimal to modification to the actual system or program. Users may create or email content, but changes to the system are minimal. Content may also live in a proprietary format, which is not compatible with other products. Open systems are systems which allow users to contribute, manipulate, edit, use, reuse, mash up, and in some way actually create or alter content and/or the actual programming of the system.15

Types of Information SystemsLaboratory Information Management System (LIMS):A LIMS will offer a scientific workplace more efficiency.LIMS can have many different features in comparison to other types of information systems.LIMS are often more secure than other forms of information systems as they generally contain sensitive information that requires a high level of protection.

P5: dentify the information systems used in a specified organisationA laboratory information management system (LIMS) is a software based program that manages the information within a scientific workplace. LIMS offers many fundamental features that greatly support the operations in a modern laboratory. By using a LIMS, a scientific workplace can automate workflows, integrate instruments, as-well as manage samples and associated information. Labs using LIMS increase their level of efficiency and their ability to meet customer demand. LIMS helps scientific work places produce reliable, accurate & reproducible results faster. It also allows data from sequencing runs to be easily stored, tracked, and access over time and across experiments so that labs can evaluate and improve work productivity.

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Types of Information SystemsManagement Information System (MIS):An MIS is a decision support information systemInput, query and response is usually already predefinedIt is effective in supporting management ask the same questions over and over to track, analyse, make decisions about the day to day running of the business.Simple systems with complexity hidden away from the usersAnswers are often displayed as tables or graphs but easily exported into all office applicationsAn MIS is only effective if the data entered is accurate, consistent and acquired with confidence.

Amanagement information system (MIS)is mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems and summarise it into a series of management reports. MIS reports tend to be used by middle management and operational supervisors. An MIS generates three basic types of information:detailed, summary and exception.Detailed informationtypically confirms transaction processing activities.A detailed order report is an example of adetail report.Summary informationconsolidates data into a format that an individual can review quickly and easily.To help synopsize information, a summary report typically contains totals, tables, or graphs.An inventory summary report is an example of asummary report.17

Types of Information SystemsMarketing Information System:One of the first areas of business to adopt the need for an information system.Identifying where and why its sales go up and down.Applying and analysing the result of a promotion in one store before applying it to all stores.Analysing the impact of changes on product prices, profit/loss, competition

Amarketing information system is amanagement information system designed to supportmarketingdecision making. The marketing department is interested in both customers and the organizations competitors. They will spend time to analyse the different groups of customers that go to the organizations such as rich adults and gaming teenagers etc. They will spend their time analysing their rivals to ensure that they will always have the advantage over them. They can do this by reducing prices based on their rivals price.18

Types of Information SystemsMarketing Information System:Marketing systems is when the network of buyers, sellers and other actors that come together to trade in d given product or service. There are many participants in a market system and they include:Direct market players - producers, buyers and consumers who drive economic activity in the marketSuppliers of supporting goods and services and services such as finance, equipment and business consultingEntitles that influence the business environment such as regulatory agencies, infrastructure providers and business associations.

A market system can be specific to a product or a cross-cutting sector. A lot of examples of information systems were in marketing sales.The marketing information system would have data on the organisations sales performance. If a particular business was able to identify where and why their sales were increasing, then it could apply those conditions elsewhere with the same effect. For example, a particular business might run an advertising campaign or a reduced price offer in one shop or a small number of shops. An information system could identify how successful this was. A chain of different shops or hotels could have a programme of refurbishing their properties. An information system could show how successful this programme was in increasing a business.This type of information system contains the details of organisations competitors. Most competitive actives include selling competing products, opening competing stores and reducing their prices. As competitors introduce these changes, an information system can show what effect these changes have. A business can also make similar changes specifically to compete and the system could identify the effect of these changes.19

Types of Information SystemsHuman Resources Information System:Human resources have a great need for an information system due to the amount of analyses they have to perform.Information systems support HR in deciding how many staff they need at key times in their days. The system will help identify skill shortages, training needs and staff turnover.Analysis of staff skills can support the business in decisions over promotions, training and career development opportunities.

A human resource system is a software solution for generally smaller businesses to help automate and manage their human resources, payroll, management and accounting activities. This type of system is used by the human resource department, so that they can effectively manage their job with efficiency. The purpose of this type of information system is that it allows companies to manage their workforce through two significant main components:HR&Payroll. In addition to these essential software solutions, the information system offers other options to help companies understand and fully utilize their workforces collective skills, talents, and experiences.20

Types of Information SystemsHuman Resources Information System:Advantages of using a HRIS Higher Speed of retrieval and process dataReduction in duplication of efforts leading to reduced cost.Better analysis leading to more effective decision making.Higher accuracy of information/report generated.Disadvantages of a HRIS:It can be expensive in terms of finance and manpowerIt can be threatening and inconvenientThorough understanding of what constitutes quality information for the userComputer cannot substitute human beings

There are several advantages and disadvantages of having a human resource system. A qualified worker can manage compliance with federal and state laws, streamline processes for recruitment and selection, and produce analyses, data and reports for internal and external use. Some of the weaknesses of this information system involve human error during information input, costly technology to update your system and malfunctions or insufficient applications to support your human resources needs.21

Types of Information SystemsFinancial Information System:Simply it is needed to manage income or revenue. However, once setup it can focus on expenditure and costs to make it more effective.Able to identify trends and unusual patterns to support the running and actions of the business.Helps identify the financial impact of an investment, large purchase, new revenue or expenditure. Keeping the business in the black.

Financialmanagementinformation system is an Information system that tracks financial events and summarizes information. They also contain managementreporting, policy decisions, fiduciary responsibilities, and preparation of auditable financial statements. Finance departments are the main users of a financial information system and are normally split into two different departments. The accounting department is more involved with money the organization has and its overall income and its money spent.Whilst the management side is more involved with how all the money will be and is being spent.There are many advantages of implementing an FMIS. One of them is that the integrated financial information, where the finance depart is able to see the economic figures throughout their organisation. Another advantage is the flexibility of reporting and additional control over expenditure, they also required less administration within the business.22

Types of Information SystemsFinancial Information System:Financial data analysis may be conducted through trend evaluations, ratio analyses and financial planning modelling. Data outputs that are produced by financial information system can include:Operating and capital budgetsWorking capital reportsAccounting reportsCash flow forecasts

Once a business has had an information system to help manage income or revenue, the next area to address is often expenditure or costs.For financial costs the best thing to use is spreadsheets, these help manage regular costs. However, information systems will more easily find trends and unusual patterns. There are also trends that the financial information system can examine, and inform the organisation when necessary. It mainly analyses the operating and capital budgets, working capitol reports, accounting reports and cash flow forecasts. These allow a business to better understand how they are performing and if they need to make any significant changes.23

Types of Information SystemsSchool Information Management System (SIMS):School use this type of information system to manage and archive information, the heads of departments and the ICT department generally have access to the SIMS.The SIMS is provided so that the teachers are able to access information about their students whenever necessary.This form of information system can be access from many computers across the school as they run from a computer system, this allows quick access for the teachers.

A school information management system is used in schools so that the teachers are able to access pieces of information about the school and students if needed. The school uses this form of information system to archive significant information and also to distribute vital information quickly and efficiently. There are a select group of people who are able to access the information stored on the SIMS, these include people like: teachers, heads of departments, managers & the head teacher. A SIMS contains information such as contact details, notifications, grade predictions/results and much more. The advantage of having a SIMS is that it can keep a permanent record of who is present and on what days until they dont need it anymore. It can also be updated and corrected at any time and if a teacher forgets to register their class it will alert them. The disadvantages of using a SIMS is that it could be accessed by a student if a teacher stays logged in and he/she can edit personal information such as their attendance. The information could also be lost if someone accidently or purposely deleted it.24

Purposes of Information systemsThere are many different types of information systems, each with their own purposes.The different forms of information systems have their own set of functions and features.Generally an information system supports the operations and decisions within an organisation.The allow a company to be maintained and focus on other forms of work instead of being distracted by organising.

The purpose of information systems varies depending on the sector a systemcovers, but systems generally support operations and decisions made within organizationsas well as helping with data storage and facilitatingmanagement.Information systems are used by a variety of organizations in different industries. They allow companies to improve performance in certain areas by streamlining processes such as planning and organizing.Information systems provide companies with internal and external benefits. Internally, they help to streamline, focus and coordinate the activities of employees and different organizational departments. In turn, companies benefit from having a more efficient workforce, which allows them to focus more time and efforts on external affairs such as marketing, sales and establishing a market presence.25

Examples of Information Systems in a Business EnvironmentA wide variety of businesses use information systems.Private organisations like Cytec use an information system known as LIMS.Laboratory information management systems are used in scientific workplaces.

M2: illustrate the input and output of information within a specified functional area of an organisationMany business have an information system linked onto the firms computers for their convenience. A private organisation such as a laboratory will use a LIMS to organise their information and to store it safely, so that sensitive information doesnt become public. The scientific workplace will have a LIMS so that they can record their results easily and be able to access information about procedures with ease. Private companies like Cytec will use information systems like a LIMS to have an increase in productivity, as the computer is automating certain routines. This will in turn lead to more profitability as their workers have more time to carry out other tasks and responsibilities. 26

Examples of Information Systems in a Business EnvironmentPublic organisations such as the Maelor school penley use the information system SIMS.A school information management system is used within a school and allows teachers to access specific information.Information systems will help a business to become more efficient when performing everyday tasks.

M2: illustrate the input and output of information within a specified functional area of an organisationA public organisation such as a School will use a SIMS to keep pieces of information such as the register and contact details. The school uses the SIMS for convenient access to any stored data on their system, this is useful for a public organisation like the Maelor school as it will be enhanced greatly. This is due to the fact that it will increase the efficiency of the school in general, the systems would be quicker and more convenient to add information or organise documents. A public company could also have a computer system that links all of their computers to an suitable information system. This makes the organisational process more streamline and be able to operate more effectively.

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Student Registration FormApplication Verification and Availability1Accepted/Rejected ResultsOpen CoursesCourse InformationConformation LetterRegistration Conformation3Enrolling Student2Course EnrolmentStudent InformationUpdate InformationRegistration Course Files Student FilesMaelor School SIMS Data Flow Diagram

I created a dataflow diagram describing the process in which a student would enrol into the School information management system. This data flow diagram represents the general information flowing into and out of a school information management system. Different people will have access to different sections of the information, such as a subject teacher will have access to their students course information to find out what grades that are expecting. There are many forms of input data in this data flow diagram as there is a wide variety of information and data going through a SIMS at any one time.28

Legal and Ethical Implications of InputLegal implications of Input data in an SIMS:The students dont have to give certain details about themselves

Ethical implications of Input data in an SIMS:Only relevant data should be input

D2: analyse the legal and ethical implications of the illustrated input and outputsThere are many legal implications of having a school information management system, this includes the fact that the students are not obliged to give in certain details when attending a school. These details could be information such as their Facebook profile or e-mail. While the school isnt able to obtain this information to contact a student about a problem, they can take the pupils home address and phone number. The school can hold this information so that a teacher may contact the students parents/carers. The ethical implications of inputting data into a SIMS is that the data stored on the information system should be relevant to the school. For example, the school doesnt need the students Skype details or their personal medical records if theyre not interrupting the pupils education. In my own opinion I think that although students do not need to give personal details and that it would be unethical to store these details permanently onto a database, it is essential to have the basic information inputted into a information system in-case of an emergency. There should be limited access to the information system with only the required people being able to access peoples information and sufficient protection against data fraud/manipulation to comply with the data protection act.29

Legal and Ethical Implications of OutputLegal implications of Output data in an SIMS:Data protection act

Ethical implications of Output data in an SIMS:Data outputted must be used ethically

D2: analyse the legal and ethical implications of the illustrated input and outputsThere are many legal and ethical implications of the output of information detailed in my data flow diagram. A legal implication would be the data protection act, where the school should keep the records of their pupils protected. If the data outputted by the SIMS is personnel then only the appropriate people should be able to see the information. The ethical issue with the output of information is that people may not need to use the selected pieces of data for moral reasons. If the wrong people were to get their hands on the address details of a student, they could see the location of where they live. I think that information in a database such as a SIMS would have to be carefully kept track off with extremely limited access by staff and safeguards, such as passwords, to stop students from being access other people personal information within that system.30

Maelor School Library Booking system Data Flow DiagramCustomer IDCustomer Details1Customer InformationLoan InformationOrder3Student DVD details2 Customer Record Payment Loan FileAdministrationPersonal DetailsError DetailsQuantity of ItemsBooking ReceiptBook DetailsStock Availability

Book Inventory

This data flow diagram represents the input and output data of the schools library booking system. With this type of data flow diagram there are a-lot more input pieces of information compared to the output data. The user and the admin output the majority of information in this data flow diagram, this is then processed by the library booking system where the information books the necessary transactions and then records the appropriate data.31

Legal and Ethical Implications of InputLegal implications of Input data in an library booking system:Sales of Books to the library

Ethical implications of Input data in an library booking system :Privacy details concerning peoples book history

D2: analyse the legal and ethical implications of the illustrated input and outputsThe input of information into the library booking system can have many legal and ethical issues. A legal issue would include the finance involved with the sales of books to the library. The books that the library buy should have the appropriate taxations, concerning the types of books bought. If the taxation on the books are incorrect then the library may be breaking the law, so all transactions of business needs to be thoroughly examined. The ethical implication of inputting data into the library booking system is that the privacy of peoples bookings can be compromised. Some people read books that they do not wish for other people to know about, thus when a particular book is taken out they have it on their booking history. If the wrong people see this information then the person in question may suffer from discrimination.32

Legal and Ethical Implications of OutputLegal implications of Output data in a library booking system :Recovery of stolen/damaged books

Ethical implications of Output data in a library booking system :Leaking of potentially sensitive details

D2: analyse the legal and ethical implications of the illustrated input and outputsOutput of information in the library booking system can have several legal and ethical implications. One of which is the recovery of stolen/damaged books, where the law protects the property of the library. If a book is damaged, lost or stolen by a individual then the library can legally contact the police and fine them for the property misuse. An ethical issue involved with the output of information in my data flow diagram is that sensitise details can be leaked from their booking system, this can lead to discrimination or worse if the wrong people see the information. In my judgement I think that the implications of out data from the library booking system isnt very severe. It is apparent that people could misuse the information which can lead to the library becoming inefficient as people would be able to abuse the system. The library would need to have appropriate data protection software to protect both its booking system information as-well as any of its customers/users.33

Other forms of Data flow diagrams

This data flow diagram shows the management information system of an unspecified organisation. As do most data flow diagrams, this example has an input and output of data with the processing procedure in-between. The processing section encompasses several factors of this data flow diagram including the management information system data. The management information system programs take the inputted data and convert it into more useful documents such as a report or feedback. This can be done through the management information system where the inputted information is analysed, corrected and then formatted into a suitable layout. This data can then be outputted as more useful and accurate information that is easier to understand than the regular information.34

Other forms of Data flow diagrams

Another form of data flow diagram is one of an enterprise system, these encompass many features/functions such as: manufacturing, accounting, human resources, sales and marketing as-well as finance. The two main inputs/outputs for an enterprise system are the vendors and customers. In-order for information to be processed through a enterprise data flow diagram, the data has to be put through the business process. This type of data flow diagram is more complex than most as it requires more choice of judgement. This is due to the fact that when the data is being processed, the user has to select the appropriate form of business process to ensure that the information is getting suitably sorted.35