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Three Primary Uses of Information Systems

The document discusses the three primary uses of information systems: 1) information storage and analysis by using databases to store and analyze data to identify solutions, 2) assist with decision making by evaluating information from various sources to formulate strategic plans, and 3) assist with business processes by integrating systems to simplify and control processes and eliminate repetitive tasks. Information systems can prove costly to implement due to installation, training, and potential employee resistance to change, so organizations must weigh the costs and benefits.

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Innoe malon Machinga
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312 views

Three Primary Uses of Information Systems

The document discusses the three primary uses of information systems: 1) information storage and analysis by using databases to store and analyze data to identify solutions, 2) assist with decision making by evaluating information from various sources to formulate strategic plans, and 3) assist with business processes by integrating systems to simplify and control processes and eliminate repetitive tasks. Information systems can prove costly to implement due to installation, training, and potential employee resistance to change, so organizations must weigh the costs and benefits.

Uploaded by

Innoe malon Machinga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Three primary uses of information systems

INTRODUCTION

Information systems, is an umbrella term used to describe the various networks, hardware,
and software that people and businesses use to make sense of data and put it to use.

It can also be defined as an integration of components for collection, storage


and processing of data of which the data is used to provide information, contribute to
knowledge as well as digital products that facilitate decision makings.

In this presentation the writer will, elaborate on the three primary uses of information
systems.

Definition of Terms

a) Information systems - integration of components for collection, storage


and processing of data of which the data is used to provide information, contribute to
knowledge as well as digital products that facilitate decision makings.

MAIN BODY

Information systems help a company make adequate use of its data, reduce workload and
assist with compliance with various mandatory regulations.

Any specific information system aims to support operations, management and decision-


making. An information system is the information and communication technology (ICT) that
an organization uses, and also the way in which people interact with this technology in
support of business processes.

Information systems are also different from business processes. Information systems help to
control the performance of business processes.
Input, processing, and output are the three activities in an information system that produces
the information an organization needs. Input captures or collects raw data from within the
organization or from its external environment.

Processing converts this raw input into a meaningful form. Output transfers the processed
information to the people who will use it or to the activities for which it will be used.

Information systems also require feedback, which is output that is returned to appropriate


members of the organization to help them evaluate or correct the input stage.

The diagram below shows a typical information system:

In order to produce an information system, these six (6) components are a must; hardware,
software, data, procedures, people and internet.

1. Hardware - This refers to machinery and equipment. In a modern information


system, this category includes the computer itself and all of its support equipment.
The support equipment includes input and output devices, storage devices and
communications devices.
2. Software - This refers to computer programs and the manuals (if any) that support
them. The programs and other operating information used by a computer.
3. Data - Data are facts that are used by systems to produce useful information. In
modern information systems, data are generally stored in machine-readable form on
disk or tape until the computer needs them.
4. Procedures - Procedures are the policies that govern the operation of an information
system. Procedures are to people where software is to hardware. This is a common
analogy that is used to illustrate the role of procedures in a system.
5. People - Every system needs people if it is to be useful. Often the most overlooked
element of the system is the people, probably the component that most influence the
success or failure of information systems. This includes not only the users, but those
who operate and service the computers, those who maintain the data, and those who
support the network of computers.
6. Internet - This is a combination of data and people.

Three primary uses of Information Systems

Information systems help organizations make adequate use of its data, reduce workload and
assist with compliance with various mandatory regulations. The three (3) primary uses of
information systems are; Information storage and analysis, assist with decision making, and
assist with business processes.

 Information storage and analysis

Through the adoption of information systems, organisations can make use of sophisticated
and comprehensive databases that can contain all imaginable pieces of data about the
organisation.

Information systems store, update and even analyse the information, which the company
can then use to pinpoint solutions to current or future problems. Furthermore, these systems
can integrate data from various sources, inside and outside the company, keeping the
company up to date with internal performance and external opportunities and threats.

 Assist With Making Decisions


The long-term success of a company depends upon the adequacy of its strategic plans. An
organization’s management team uses information systems to formulate strategic plans and
make decisions for the organization's longevity and prosperity.

Organisation uses information systems to evaluate information from all sources, including
information from external references, which provide information on the general economy.
This analysis of and comparison to market trends helps organisations analyse the adequacy
and quality of their strategic decisions.

 Assist With Business Processes

Information systems help businesses in developing a larger number of value added-systems


in the company. For example, a company can integrate information systems with the
manufacturing cycle to ensure that the output it produces complies with the requirements of
the various quality management standards.

Adoption of information systems simplifies business processes and removes unnecessary


activities. Information systems add controls to employee processes, ensuring that only users
with the applicable rights can perform certain tasks.

Further, information systems eliminate repetitive tasks and increase accuracy, allowing
employees to concentrate on more high-level functions. Information systems can also lead
to better project planning and implementation through effective monitoring and comparison
against established criteria.

CONCLUSION

Implementing information systems within an organization can prove to be costly.


Implementation costs include not only installation of the systems but also employee
training.

Also employees may see the adoption of information systems as an unwarranted change
and, thus, may resist this change. Resistance to change can hinder business operations and
can cause employee turnover.
Organisations should have leadership in place to assess the adequacy of the decision to
have an information system and to guide the company through the transition phase and
weigh information systems cost against the potential benefit.

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