THE INFORMATION SYSTEM
Today it is hard to imagine any industry or business that has not been affected
by computer-based information systems and computer applications. An
information system provides for data collection, storage and retrieval by
arranging people, data, processes, information presentation and information
technology to interact and support and improve day-to-day operations in a business
as well as support the problem-solving and decision-making needs of management
and users. Thus, a complete information system can be defined as a composition of
people, hardware, software, databases, application programs and procedures. The
people (stakeholders) who interact and support information systems can be divided
into six groups:
System Owners: pay for the system to be built and maintained. They own the
system, set priorities and determine policies. They may also be the system users.
System Users: use the system work. They define the business requirements and
performance expectations for the system to be built.
System Designers: design the system to meet the user's requirements. They may
also be the system builders
Systems Analyst: facilitate the development of information systems and computer
applications. System Builders: construct, test and deliver the system into operation
IT Vendors and Consultants: sell hardware, software and services to businesses
for incorporation into their information systems Information Systems differ in their
business needs. There are different levels in organization's information system; this
is because the information needs are different at different organizational levels.
Three major information systems levels are
- Transaction processing systems.
- Management information systems.
- Decision support systems.
Accordingly the information needs can be categorized as: strategic information,
managerial information and operational information. Strategic information is the
information needed by top most management for decision making. For example the
trends in revenues earned by the organization are required by the top management .
