LO1: Information Flow

Information System- The movement of information relevant to the business from where it produce.
- it has two (2) types: (i) Internal Information Flow (ii) External Information Flow

Internal Information Flow
- Information generated by functional areas (developments)
- Shared with other functional areas.
- Example: Organisation chart


External Information Flow
- Information passes to agencies outside the organisation.
- Purpose: This may be targeted to individual customers, such as bank statement or utility bill.

Internal Information Flow Diagram
- An information flow diagram shows the steps involved in data flow.
- It includes:

•  Where data is originally produces
•  Where it is turned into information
•  Where decisions are made on that data