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Range of purposes for which orgs require information-role of IS in an org

  1. Recording transactions(eg:evidence if there s a dispute,legal requirement,better assessment of profitability)
  2. Decision making(make informed decisions-use of internal -external info by IS)
  3. Planning(knowledge of rexources,time-scales,outcome under altern scenar)
  4. Performance measurement(comparisons against budget or plan-collection ,analysis,presentation)
  5. Control-(whether preceeding as expected-control outcomes of a plan)


Turning data to information process:

  • Data: raw unprocessed facts and figures.
  • Information :data processed in a way it makes it meaningful for planning.
  1. Gathering data from int -ext sources
  2. Examine and filter
  3. Compare against benchmarks(act vs budget)
  4. Interpretation (why there are discrepancies)
  5. Info distributed 


Internal data info:

  1. Accounting records-great value outside of acc dpt
  2. Personel records-payroll but also project costing
  3. Production data-machine capacity,fuel consumption,movement of people,materials,WIP,set up times,maint requirem ect
  4. Time sheets-notably accountants and solicitors,fees to clients,efficiecy ,profitability


External data info,Fomal collection of data from sources outside/environmental scanning:

  • PEST factors
  • Competitors -successful,new prod
  • Customers-needs,potential market
  • Suppliers-price,quality,new suppliers

Fomal collection of data from sources outside:

  1. Tax specialists -changes in tax law
  2. Legal experts,comp secretary-empl regulations,health and safety at work
  3. R&D-other research already done
  4. Marketing managers:opinions and buying attitudes.
  • Environmental scanning:Gathering extern data frome wide range of sources.


Informal data/human capital/structure capital:

  • Informal gatherining continuous:employees learn what is going on in the world around them(magazines,newspapers,ect)
  • Human capital:Knowledge skills experience developed by staff
  • Structural capital:assets such as patents ,client lists


The qualities of info:


  • Acccurate-no typos,figures shoul ad on,reliable
  • Complete-consistent to allow comparisons
  • Cost-effective
  • Understandable-easy to read,well presented
  • Relevant-omit if irrelevant,all significant inluded
  • Accessible-appropriate choice of medium
  • Timely-available when it is needed
  • Easy to use-format easy to use or pass on as required


!Difference between IS and IT:

IS:A general concept that refers to people,data,activities both computer based and manual taht effectively gather,process,store and disseminate info.Most rely on ICT .



IS-Provides mgt info that assists business operations

IT-underlying hardware equipment that the system is built on


Different levels-different types of IS:

  • Strategic:help senior mgrs with long term planning,long term,covers whole of org,high uncertainty/subject ,accuracy less critical  eg:KPI s,ad hoc market analysis,startegic plans
  • Mgt or tactical:Help middle mgrs monitor and control,short to medium tim efocus,covers dpt or function,Moderate uncertainty,accuracy:moderate level eg:variance analysis,except reports
  • Operational: process ops and help operational mgrs to trach day2day act ,immediate time focus,specific activities covered,low uncertainty,high accuracy eg: daily receipts and payments,real time production data,debtors and creditors


TPS or DPS: 

Transaction processing systems,Data proc syst:

  • Used  for routine tasks ;

Major application systems:

  • Sales/mkt:
  1. sales order info system
  2. Market research system
  3. Pricing system
  • Manuf /prod systems:
  1. Materials resource planning
  2. PO control
  3. Engineering
  4. Quality control
  • Finance account systems:
  1. GL
  2. AR ,AP
  3. Budgeting
  4. Funds Mgt
  • HR systems
  1. Payroll
  2. Empl records
  3. Empl benefits 
  4. Career path systems



  • Mainly internal sources of info
  • Managers to make timely and effective decisions  for planning , directing and controlling the activities for which they are responsible.
  • Provides regular reports and access to current and past perf 
  • Transforms data from TPS to summarised files  


  1. Support structured decisions at operational and mgt control levels
  2. Design to report on existing operations
  3. Little analytical capabilities
  4. Inflexible
  5. Internal focus



  • Pools data from internal and external sources and makes info available to senior mgrs in an easy to use form .
  • Helps them to make strategic,unstructured decisions


  • Flexibility
  • Quick response time 
  • Sophisticated data analysis and modelling tools


DSS(decision support systems):

  • Data and analytical models or data analysis tools semi -structured and unstructured decision making .
  • Assist mgrs in decision making when there is high uncertainty
  • Range of alternatice info and analytical tools with emphasis upon flexibility and user friendliness
  • More analytical power than other alternatives,variety of potential conditions


Knowledge work systems (KWS)

  • Facilitates teh creationa and integration of new knowledge into an org
  • Knowledge workers:jobs involve priimarily creation of new knowledge

KWS helps knowledge workers create new knowledge and expertise eg

  • CAD
  • CAM
  • Specialised financial software that analyses trading situations


Office automation systems(OAS)

  • Supports major activities in a typical office such as document mgt,facilitating communications and managing data


Expert systems:

  • Form of DSS
  • Allows users benefit from expert knowledge and info
  • Consists of a database holding specialised data and rules  about what to do in ,how to interpret ,a given set of circumstances

Eg loan aplications

  1. Check the facts
  2. Perform calculations
  3. Match up other criteria

Business apps of ES:

  1. Legal advice
  2. Tax advice
  3. Forecasting 
  4. Surveillance (number of customers entering in a supermarket-how many new check outs)
  5. Diagnostic systems
  6. Project mgt
  7. Educationa /training



When use of ES is appropriate to use?

  1. Problem well defined
  2. Define some rules by which the problem can be solved
  3. Cannot be solved by conventional transaction processing
  4. The expert could be released to more difficult problems
  5. Investment in ES is cost justified


Internet ,intranet,extranet

  • Internet :system of networks and  computers taht use the standard internet protocol (TCP/IP)  to connect between each other globally
  • Intranet:Mini version of inetrenet-private network inside a company
  • Extarnet:Accessible to authorised outsiders,business partners to exchange info



  • Collection of data organised to service many applications,access for a wide variety of users
  • Database Mgts system:Sofware that centralises data and manages access to the database.Enables numerous apps to utilise the same files


  1. Shared
  2. Controls to preserve integrity
  3. Flexibility: provides for the needs of different users,should be capable of evolving to meet future needs


Database queries:

  • Interogate ,change,way o asking for data
  • SQL:structired query language
  • Databases connect to web server  and can be accessed by people outside the org through their web browser
  • eg Micosoft ado


Advantages/disadv of database systems:


  1. Data redudancy (avoidance of dulpication) brings time savings and reduced costs
  2. Encourages mgt to regard data as a resource that must be properly managed
  3. Encourages better use of data (analyse,relationships,use in different apps)
  4. Consistency-integrity
  5. Greater flexibility(users,programs ect)
  6. Developing new apps easier 


  1. Data security and privacy
  2. Data should be accurate and free from corruption (data cleansing)
  3. Disputes on who owns the data
  4. Contigency plan required in case of system failure
  5. Initial dvt costs when built from scratch.


Network and network topology definition:

  • Network general term: decribe any computing system that includes connected computers
  • Computer network:number of connected computers and other devices.
  • Network topology:Refers to how a computer networkis physically arranged.The virtually shape /structure of a network  ..doesn t correspond to the physical layout:


Network topology-types

  1. Bus -Common backbone/devices tap into with an interface connector.
  2. Ring-
  3. Star -central connection point (huB/switch/router)-all cabling segments meet-connected to hub via UTP Ethernet-if a cable has problem only that part is affected(also extended star with one or more repeaters-to extend the max transmission distance)
  4. tree(or star bus )-collection of star networks arranged in hierarchy-unlike star  net the functionality of the central node may be distributed.
  5. mesh-each device connects to every other(Internet)
  6. More complex networks -hybrids of 2 or more of the obove


Definition,adv,disadv centralised IS:

  • Involves all functions being based out of a single central location such as HQ.


  1. Only one set of files(all same data and info)
  2. Better security/control
  3. Head office better condition to know what s going on
  4. Economies of scale (purchasing comp equip)
  5. More expert staff likely to be employed.


  1. Local offices might need to wait for IT/IS services.
  2. Local offices less self reliant
  3. A system fault-impacts everyone


Decentralised IS /def/adv/disadv:

  • Functions spread out througout orgs locations


  1. Each office IS system tailored in its needs
  2. More self sufficient
  3. Quicker access to IT /IS support 
  4. More likely to facilitate accurate cost allocations


  1. Difficult control
  2. Lack of coordination between dpts
  3. Increased risk of data duplication


Centralised Network architecture(def,+,-)

  • Processing performed in one computer or in a cluster of coupled computers in a single location.
  • Workstations are clients of the file server(file and print,communication,directory ect)
  • High security:no storage media,usb,cd drives,email access on workstations


  1. One set of files
  2. Better sec/control
  3. Head offices controls computing processes and developments
  4. One central powerful computer affordable 
  5. Economies of scale


  1. Not flexible-resources placed on the server to be shared.
  2. Local offices delays or interruptions
  3. Reliance on head office
  4. Central computer damage-entire system out of operation
  5. Processing speed deteriorates as more users log onto the system



Decentralised or distributed network achitectures(def,+,-)

  • Spread the processing power throughout the org throughout the org at several different locations.
  • Key features:
  1. Many comp own CPU
  2. sharing through communication links
  3. More user friendly than centralised
  4. End users responsibility and control over programs and data


  1. Fexibility
  2. Data transmission reduced(less cost and sec risks)
  3. Speed of processing not affected by n of users
  4. Possibility of distributed database
  5. Less possibility of breakdowns 
  6. Better local control
  7. Increased familiarity with computer technology


  1. Data duplication
  2. More difficult to administer and maintain
  3. Malware /unauthorised copies and data  to memory sticks


Grid and cloud computing:

  • Grid: pool the processing power of many computers-heavy apps/programmes
  • Cloud: Delivery of computing as a service rather than a product ,resources ,sofware ect provided as utility
  • Public cloud  sells services to everyone on the internet
  • 3 distinct charact from traditional hosting
  1. Sold on demand.Shift from capex to opex model.
  2. It is elastic-service upon demand
  3. Fully managed by provider(consumer only inter and PC)


Local area Network(LAN)/ Lan configuration consists of:

  • Connects network devices over a short distance
  • Owned ,controlled and managed by a single person or org

Lan configuration consists of:

  1. A file server 
  2. Workstation
  3. Cables 


Wide area Network:

  • Consists of 2 or more LANs
  • Large geografical area
  • Ofetn connected to public network (eg telephone)
  • NSPs-network service providers -orgs supporting WANs using the Internet protocol


Virtual private network(VPN):

  • Information shared with others on the network by means of a private,exclusive link created by a method other than perm hard wires or leased lines.
  • Set up using the Internet

4 critical functions:

  1. Authentication
  2. Access control
  3. Confidentiality
  4. Data integrity


  1. Security
  2. Cost savings(no expensive dedicated WANs)
  3. Scalability(easy to add new users,large amount of capacity)
  4. Compatibility with broadband technology.