FACULTY OF SCIENCE AND COMPUTING

NAME: EDGAR
SSEMIRIMU

REG NO :

COURSE: BIT

INTRODUCTION TO INFORMATION TECHNOLOGY

COURSE UNIT:

QUESTIONS
1. WHAT IS AN INFORMATION SYSTEM?
2. TYPES OF INFORMATION SYSTEMS
3. ROLE OF INFORMATION SYSTEMS IN AN ORGANIZATION

What is an information system?

An information system is a set of interrelated components that works together to
collect, process, store and breakdown the information to support decision making.
Following are the DIMENSIONS of information system:

1. ORGANIZATIONAL DIMENSION: Information systems are part of organization.

Information system will have the standard operating procedure and culture of an
organization embedded within them. This involves:
a)Functional specialties b)Business processes c)Culture d)Political interest groups

2. MANAGEMENT DIMENSION: Managers perceive business challenges in the

environment. Information systems supply tools and information needed by the
managers to allocate, coordinate and monitor their work, make decision, create new
products and services and make long range strategic decision.

3. TECHNOLOGY DIMENSION: Management uses technology to carry out their

functions. It consists of – computer hardware/software, data management
technology, networking/telecom technology. It’s one of the many tools managers
use to cope with the change.

Types of Information Systems

Information systems support processes and activities in an organization. They help
create, collect, process, store, and disseminate information and are a major
component of information technology.

There are different types of information systems, depending on their purpose and
the kind of information they deal with.

1. Transaction Processing Systems

All organizations need to process sales, purchases, payments, and orders; a
Transaction Processing System (TPS) handles these transactions. TPSs usually use a
database to store information about customers, products, and prices. They also use
software to help with tasks such as order entry, inventory management, and billing.

Transaction Processing Systems are used to process and store transactions, such as
sales, invoices, and payments. These systems capture and process data about
transactions and record information such as sales, customer orders, payroll, and
billing. TPS systems use business rules to validate and process transactions. They also
generate reports that give information about the organization’s financial
performance. Using a TPS can help improve an organization’s efficiency by
automating transactions and reducing processing time.
2. Operational Support Systems
Operational Support Systems (OSS) automate and improve the efficiency of tasks
essential to an organization’s day-to-day running. OSSs are typically used by
telecommunications companies and help with tasks such as network management,
billing, and customer service. In addition, they provide the information needed for
decision-making, such as information about the current state of the network, the
location of assets, and performance data.

They also provide information to help managers make better decisions about their
business operations. For example, a network management system can provide
network performance, usage, and security information. This information can help
managers identify problems and make changes to improve the network’s
performance.

3. Decision Support Systems

Decision support systems (DSS) are information systems that help managers make
decisions. DSS uses analytical tools such as models and simulations to generate
information about different scenarios. For example, a DSS could evaluate the
financial impact of opening a new store in a particular location.

A DSS is interactive and allows managers to modify the displayed information. This
means that they can get information about the consequences of their decisions and
see how different scenarios would affect their business. DSSs also allow managers to
share information with other team members so that everyone has the same
information when making decisions. The organization can use this information to
decide what products to sell, where to locate new stores, and how to market
products.

4. Management Information Systems

Management information systems (MIS) are valuable tools for mid-level managers to
optimize their planning and decision-making. MIS also helps managers to track the
performance of their organization. They can use this information to identify areas
where they need to make changes for improvement.

MIS usually contains information about the performance of the business, including
data on sales, profits, and costs. It also includes information on the resources used,
such as the number of employees and the amount of inventory. These systems
collect data from TPS and other sources, then process and store the information in a
database. Finally, MIS systems use the database to generate reports that give
managers information about their business performance.

5. Office Automation Systems

Office automation systems (OAS) are the various tools used to perform clerical and
managerial tasks in an organization. These tasks include word processing, email, and
data entry. OAS is the software that allows employees to create documents, send
emails, and manage their calendars. They can improve the efficiency of these tasks
by automating them. For example, a word processor can automatically format a
document according to an organization’s style guide.

One of the benefits of using an OAS is that it can help employees be productive. They
can create documents quickly and easily, stay organized and track their progress.
Thus, they have more time to focus on essential tasks. Office Automation Systems
can also help managers communicate with other team members. For example, they
can use OAS to send emails and share documents for easy collaboration.

6. Knowledge Management System

A Knowledge Management System (KMS) manages and shares knowledge within an
organization. It allows employees to store, access, and share information about the
products, services, and processes that the organization uses.

KMS can help to improve communication within an organization by providing a

central repository for information. This information can be accessed by anyone in the
organization, making it easier for employees to find the information they need.
Additionally, KMSs can help improve an organization’s efficiency by reducing the
amount of time that employees spend searching for information.

7. Executive Support System

An Executive Support System (ESS) is a type of information system that senior
managers use. It provides them with information about the performance of their
business and the resources that are being used. ESSs typically include information
about the business’s financial performance, including data on sales, profits, and
costs. Additionally, ESSs can also provide information about an organization’s
customer base, including data on customer satisfaction and customer loyalty.
8. Expert Systems
An expert system is a type of information system that uses artificial intelligence to
provide advice or recommendations to decision-makers. It is designed to help
humans make better decisions by providing them with the information they might
not have otherwise considered.

Expert systems can be used in various fields, including medicine, finance, and law.
They can help decision-makers make better decisions by providing them with
information based on the expertise of others. Additionally, expert systems can also
help improve an organization’s efficiency by reducing the amount of time that
employees spend searching for information.

9. Process Control Systems

A process control system (PCS) is a type of information system used to manage and
monitor a process. It collects data about the performance of the process and uses it
to make decisions about how to improve the process.

PCSs are typically used in manufacturing or other industrial settings. They can help
improve the efficiency of a process by ensuring that it is running smoothly and
efficiently. Additionally, PCSs can also help to improve the quality of a product by
ensuring that it meets all necessary specifications.

10. Enterprise Collaboration System

An enterprise collaboration system (ECS) facilitates communication and collaboration
between employees. It allows employees to share information, ideas, and files. ECSs
can help improve communication within an organization by providing a central
repository for information, and anyone in the organization can access this
information.

ROLE OF INFORMATION SYSTEM IN AN ORGANISATION

1. Decision making
In an organization or business the managers need to make decisions all the time. The
decision must be backed by quality judgment of the situation and its implications.
Data collected, compiled and presented in a simple way helps managers understand
the position of the organization and take appropriate decisions. For example the final
report of a company shows the companies sources of funds and it applications for
return. If there are more sources of funds available then the manger has to find good
investment opportunities. Similarly restaurants can see the most ordered dish and
beverage which helps the manger to promote it more.
2. Operations management
Information system is used to manage every day operation in an organization such as
employee monthly salary, taxes, attendance, leave records, record income and
expenses, receivables, procuring goods and inventory management to name a few.
Daily tasks or operations management to keep records or follow up on supplies,
creditors, and inventory is made easier with the help of IS.

3. Customer interactions
Information systems also help in customer interaction. Few forms of customer
interactions based on information systems that I use are ATM machines, recharge
card in mobiles. Thus the implication of the use of IS for customer interaction is
gaining more popularity. With online shopping in like on jumia, kikuu, jiji etc. are
some of the more successful organizations that have used information systems for
customer interactions.

4. Collaboration on teams
Information systems has made the world a smaller place. With connectivity available
communication has increased a lot. People can conduct meeting from different
countries through skype. Friends and family members can keep in contact through
facebook, celebrities and even head of states can reach out to the general people
through the use of Twitter. IS has made this possible.

5. Strategic initiatives
IS helps in taking strategic initiatives for competition in the market. For example here
in Nepal, NCELL a private company had to face NTC, owned by the government, as a
competitor. It was very difficult to get a sim from NTC. People waited in line whole
day to get a sim card. NCELL provided sim cards in every small cyber shops. In
addition various facilities like Rs. 20 loan, mms, call recording, 4G etc. were provided
by NCELL. This increased its hold in the telecommunication market.

6. Individual productivity
Productivity is highly increased by IS but the user should be able to understand its
effectiveness. For example excel is very useful for accountants and finance personnel
but there are a lot of features in it. If people do not understand these they cannot
make full use of it. Another example is our own Westcliff GAP website. Students
login, have option to do research with LRIN, post assignments, track grades etc. This
has made it very easy and increased individual productivity in this MBA course.

These are the six primary roles of IS in an organization.