3. What exactly is an information system? How does it work? What are its management, organization, and technology components? a) Define an information system and describe the activities it performs.
From the textbook defines an information system as a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.. From the internet information system is a combination of people, hardware, software, communication devices, network and data resources that processes (can be storing, retrieving, transforming information) data and information for a specific purpose. The operation theory is just similar to any other system, which needs inputs from user (key in instructions and commands, typing, scanning). The inputted data then will be processed (calculating, reporting) using technology devices such as computers, and produce output (printing reports, displaying results) that will be sent to another user or other system via a network and a feedback method that controls the operation. The picture below shows the procedure of Information System when it works. From PC Magazine Encyclopedia information system is a business application in the computer. It is made up of the database, application programs and manual and machine procedures. It also encompasses the computer systems that do the processing. Three activities in an information system can produce the information that organizations need to make decisions, control operations, analyze problems, and create new products to make decisions, control operations, analyze problems, and create new products or services. These activities are input, processing and output such as figure 1.1. Input captures or collects raw data from within the organization or from it s external environment. For example, data about sales transactions can be recorded on source documents such as paper sales order forms. (A source document is the original formal record of a transaction). Alternately, salespersons can capture sales data using computer keyboards or optical scanning devices; they are visually prompted to enter data correctly by video displays. This provides them with a more convenient and efficient user interface, that is, methods of end user input and output with a computer system. Methods such as optical scanning and displays of menus, prompts, and fill-in-the-blanks formats make it easier for end users to enter data correctly into an information system. Processing converts this raw input into a meaningful form. For example, data received about a purchase can be (1) added to a running total of sales results, (2) compared to a standard to determine eligibility for a sales discount, (3) sorted in numerical order based on product identification numbers, (4) classified into product categories (such as food and nonfood items), (5) summarized to provide a sales manager with information about various product categories, and finally, (6) used to update sales records. Output transfers the processed information to the people who will use it or to the activities for which it will be used. Environmental actors, such as customers, suppliers, competitors, stockholders and regulatory agencies, interact with the organization and its information systems. Common information products messages, reports, forms, and graphic images, which may be provided by video displays, audio responses, paper products, and multimedia. For example, a sales manager may view a video display to check on the performance of a salesperson, accept a computer-produced voice message by telephone, and receive a printout of monthly sales results. Information systems also require feedback, which is output that is returned to appropriate...
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