The creation of information:
What is data? Activity Data Information Knowledge Decision making
Data are the raw material available for processing into Characteristics of information:
information. Data consist of numbers, letters, audio and
• Accessible
video data and relate to facts, events and transactions.
• Accurate
Plural from the word datum.
• Detail
What is information? • Up-to date information
• Timely
Information is a set of facts or data organised and
• Format of information
processed in such a way that it provides additional value
• Cost effectiveness
beyond that of the facts themselves.
• Reliability
• Flexibility
• Relevance of information
Examples of internal users and the information
needed by them: Examples of external users and the information
needs by them:
• Management
• Financial managers • Shareholders
• Production managers • Suppliers
• Staff managers • Customers
• Marketing managers • Financial intuitions
• Sales manager • Government
• Purchase manager • Possible future employees
• Employees
What is a system: What is system performance measurement?
• A system is a set of two or more components • It is the monitoring of the working of the system
that serve a common purpose and interacts to to ensure it is effective, fulfil its responsibility
achieve a common goal. and make the contribution it is supposed to
The components of a system: make.
Input Processing Output System performance can be measured as follows:
What is a closed system? • Effectiveness
• Efficiency
• A system which is isolated from its environment • Performance standard
What is an open system? • A system variable
• A system parameter
• An open system interacts with its environment.
The environment effects it, in turn, affects its
environment.
, What is a computerised information system?
What is an information system?
• A computerised information system is a set
• An information system is an organised way of hardware, software, telecommunication,
of collecting, processing, managing and people and procedures that is used to
reporting information for informed decision collect, store and process data into
making to achieve goals. information.
The role of information systems in organisation: The components of a computerised information system:
• Planning • Hardware
• Recording transactions • Software
• Decision making • People
• Control and performance measurement • Procedures
• Databases
• Telecommunication, networks and the
internet
What is an information strategy?
• An information strategy refers to our
decisions or plan on how to use the available
What is an accounting information system?
information, how to collect more relevant,
• An accounting information system collects, useful information and how to use the
records, stores and processes financial data information technology to manage the
to supply information for decision makers. process.
What is information technology?
• Refers to the processing of data, using
electronic systems and all communication
links and software that go with it.
The three elements of information strategy: Benefits of an information strategy:
• The information system strategy: is a long • An information system contributes to the
term plan for system in order to provide achievement of goal congruence between
information to support business strategy. the information system’s objectives and the
• The information technology strategy: Entails organisation’s objectives.
selecting, operating and managing the • Information strategies ensure that the
technology elements of the information required information is acquired, retained
system strategy. and shared with all stakeholders.
• The information management strategy: • Information strategies minimise
Refers to the people involved in the use of development and maintenance cost which
information technology and these people’s are expensive.
roles. It deals with the relationships between • Organisations are more likely to create a
them and with the management process sustainable competitive advantage.
needed to use information technology. • Information strategies ensure better quality
information and therefor better decisions by
management.
, INFORMATION SYSTEM (IS) DEPARTMENT: Centralisation of an IS department:
The information system (IS) department is a support • A centralised IT department means that IS staff and
function within the organisation. The IS functions are situated in a single location such as the
department’s role can broadly be described as head office
ensuring that the information system is operating
efficiently on a day-to-day basis and is maintained ADVANTAGES DISADVANTAGES
and upgraded when appropriate. Duplication of certain IT A single fault in the
functions is reduced system at head office
Objectives of the IS department level will affect every
regional office in the
• Developing an IS strategy that aligns IS goals organisation.
with the organisation’s goals Files will be more secure Regional offices are less
• Monitoring return on investment in IS self-sufficient and may
• Setting standards for the purchase and use hesitate to make
of hardware and software decisions as they are
• Constantly seeking new ways to meet the relying on head office.
needs of internal users. Head office has better Important operational
• Implementing measures to ensure that control over daily IS time may be wasted at
operations. regional level, as they
planned benefits from system solutions are
might have to wait for IT
actually realised.
services and help from
• Minimising database redundancy and head office
increasing the reusability of a system by Economics of scale may
integrating information system architecture be available when buying
• Providing technical assistance to ensure that IS equipment.
there is an efficient link between the IS There is optimal
department and the rest of the organisation. utilisation of IS capital as
IS staff are in a
Composition of the IS department: centralised location and
• Chief information officer (CIO) more funds are available
to obtain IS expertise.
• Steering committee
• Prioritisation committee
• The system analysis function
• The programming function
• The operations function Decentralisation of the IS department:
• The technical support function
• The user support function A decentralised IS department means that IS staff and
functions are distributed throughout the organisation,
Organising the IS department:
with every regional office or business unit usually having
• Centralise its own IS department.
• Decentralise ADVANTAGES DISADVANTAGES
• Outsourcing IS staff will be conscious of It is harder to control the
Outsourcing the IS department: IS and business needs on a IS department.
regional level.
The IS function does not necessarily need to be Every office is more As offices are independent,
performed within the organisation itself. The IS independent it might result in a lack of
function can also be outsourced to an external coordination between
service provider and monitored by means of a departments.
service level agreement. The responsibility for Every office has quicker The risk of tasks, functions
maintaining the service level agreement can be access to IS assistance and data duplication may
exist.
assigned to an individual within the organisation.
IS cost/overhead
allocations are more
accurate.
, Evaluating the IS department: Hardware:
The IT department’s efficiency can be evaluated by, Computer hardware refers to the physical parts of a
for example, answering the following questions: computer system.
• Did user computer literacy increase? Internal hardware devices: (components)
• Are the IS staff more aware of business motherboard, central processing unit (CPU), Random
matters? Access Memory (RAM), hard disk drive, optical disk
• Did user group’s level of participation drive
increase?
External hardware devices: (Peripheral devices)
• To what extent are users making use of the monitor, keyboard, mouse, speakers, printer and
IS support function? scanner.
• How successful was the implementation of
the new system? Role of hardware: The function and purpose of
• Are IS applications focusing on business? computer hardware is to assist users with the input
• Did the response time to user complaint (capturing of data) processing, data storage, and
decrease? output activities of an information system.
• Did system downtime decrease? Activities of a computerised information system
INPUT PROCESSING OUTPUT
CPU – PROCESSES DATA INTO INFORMATION
PROCESSING
Hardware components:
The CPU and primary memory
• Input devices
• CPU The CPU is the component of a computer system
• Primary memory that carries out the instructions of computer
• Secondary storage programs, and is the primary component of a
• Output devices (Peripheral devices) computer. THE BRAIN OF THE COMPUTER. The CPU
carries out the instructions of a program in sequence
INPUT DEVICES: by performing the basic, arithmetical, logical and
Refers to the physical peripheral devices used for data input/output operations of the system.
entry and input and are used to provide control signals
CPU CONSITS OF THREE COMPONENTS:
for the user interface.
• The arithmetic/logic unit (ALU) which
• Keyboard
performs mathematical calculations and
• USB (Universal Serial Bus) logical operations
• Port • The control unit which fetches program
• Bluetooth instructions, decodes them and directs the
• Wi-Fi instructions in and out the ALU, the register,
• Computer mouse the primary and secondary storage and the
• Imaging and video input output devices
• Scanners • Registers (primary memory) are temporary
• Digital cameras high speed storage areas used to hold
• Webcams program instructions before, during and
• Touch sensitive screens (monitors) after their execution by the CPU
• Auto input devices
