LO3: Know The Features and Functions of Information System

3.1 Features of Information Systems:

3.1.1 Data

Data are Information that stored in its raw (or most basic) form. The reason why information is stored like this is so that only the information that is needed for specific functions can be used.

3.1.2 People

People are another key feature of information systems and need to understand how the system works to maximize the potential of the data stored in the information system.

3.1.3 Hardware

Hardware is used in the information system and depends on the size of organisation. If the organisation is small the all the management and storage of information can be done with one or two computers and if the organisation is large, the information will be stored and managed on a server that can be accessed by different computers or shared through the internet to others.

3.1.4 Software

Software is a key component of any information system as it is what lets the end user access the system to enter and find information. The key software component of any information system will definitely be a database or DBMS (database management system).

3.15. Telecommunication

Telecommunication is an organisation that is used as information system may be sent to others over an internal intranet connection to ensure that it's not intercepted by the competitors.

3.2 Functions of Information System

3.2.1 Input

Input is what is put in, taken in, or operated on by any process or system. The input part is done by the IT department and it's not available for the users.

3.2.2 Storage

The retention of retrievable data on a computer or other electronic system. When data is stored the IT department will make regular backups of the data.

3.2.3 Processing

Processing is when the data turned into information. Movement of data or material towards a known goal or end result, by passing it through a series of stages or a sequence of actions.

3.2.4 Output

Any information that has been processed by and sent out from a computer or similar device is considered output.

3.2.5 Control and Feedback Loops

A feedback loop is a term commonly used in economics to refer to a situation where part of the output of a situation is used for new input.

3.2.6 Closed and Open Systems

A closed system is one where a quantity or series of quantities cannot enter or leave the system. For example, a system might be closed to energy, meaning energy might not be able to enter or leave the system.

An open system is one where a quantity or series of quantities can enter or leave the system to a significant degree. If you pour your hot drink into a mug instead of a vacuum thermos flask, the heat will escape relatively quickly into its surroundings. 

3.3 Data Into Information

3.3.1 Difference between data and information

Information and data are used interchangeably, yet they are not the same thing. Data can be any character, text, words, number, pictures, sound, or video and, if not put into context, means little or nothing to a human. However, information is useful and usually formatted in a manner that allows it to be understood by a human.

3.4 Types of Information System

3.4.1 Management Information systems:

Management Information Systems (MIS) is the study of people, technology, and organizations.       
     

3.4.2 Others

3.4.2.1 Marketing Information System (sales performances, competitors etc)

Used to plan for future marketing or product development activities. The information may come from a single source or through a system of collection

3.4.2.2 Financial Information System (financial cost, investment returns etc)

A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes

3.4.2.3 Human Resources (HR) (staffing, professional development etc)

The Human Resource Information System is a software or online solution for the data entry, data tracking. It is useful for all processes that you want to track and from which you hope to gather data.

3.5 Management Information Systems (MIS)

3.5.1 Features

1. Database Management

The chief feature of an information management system is its ability to store data and make that data easy to retrieve by the system’s users. The type of database used determines how the information management system responds to requests or queries for information. 

2. Reporting

The next most important feature of an information management system comes in the form of reports. An information management system is only as good as the reports it generates.

3. Open Access

An information management system that allows open access to its system architecture lets a company comply more easily with external regulations and internal requirements. Open access means the company can more easily integrate the IMS with existing systems.

4. Integration

Information management systems typically integrate with a company’s existing systems.

5. Scalability

Not all companies require the full offering of some information management systems, scalability becomes a key purchase consideration. Smaller businesses might require a scaled-down version of an IMS now, but within a few years require additional features and larger database management capabilities. 

3.5.1 Benefits

MIS helps to manage information and facilitates communication between diverse teams. A collaborative management information system is a specific system to improve team work. One aspect of EDI is Electronic Funds Transfer (EFT) which allows for payment without physically sending money.

3.5.3 Effectiveness Criteria 

References:

prezi.com. (2017). Features and functions of information systems. [online] Available at: https://prezi.com/xlfk2dojj1vd/features-and-functions-of-information-systems/ [Accessed 2 Aug. 2017].

BusinessDictionary.com. (2017). What is processing? definition and meaning. [online] Available at: http://www.businessdictionary.com/definition/processing.html [Accessed 2 Aug. 2017].

Definitions, O. and Hope, C. (2017). What is Output?. [online] Computerhope.com. Available at: https://www.computerhope.com/jargon/o/output.htm [Accessed 2 Aug. 2017].

Lexicon.ft.com. (2017). Feedback Loop Definition from Financial Times Lexicon. [online] Available at: http://lexicon.ft.com/Term?term=feedback-loop [Accessed 2 Aug. 2017].

Study.com. (2017). Closed & Open Systems: Definition & Examples - Video & Lesson Transcript | Study.com. [online] Available at: http://study.com/academy/lesson/closed-open-systems-definition-examples.html [Accessed 2 Aug. 2017].