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The outcome of an information system is called the information. Information with good quality helps an organisation to make effective decisions.
Data is made of fact such as number of employees, salary, number of inventory. In any information system data plays a key role because it signifies facts.
A system can be defined as a set of components which are interdependent and organised for a common purpose.
Information System (IS) is a process is an organised combination of resources such as network of hardware, software, people that is used to retrieve, filter, process, create and distribute data.
Control can be defined as the process in which it is determined whether the business is functioning according to the standards or not and if not what steps should be taken to tackle the problem.
Business process design is the method to comprehend and outline the business activities that help the business to operate effectively.
Business process re-engineering (BPR) is a technique that allows us to rethink the fundamentals and redesign the processes of business to achieve rapid improvements.
MIS is a source of information to the management which is helpful in making effective decisions and well-organised business management.
Information systems comprise many components, which are used to input, process and output data in the form of information.
The main components of information systems are computer hardware, software, data, human resources and procedures.
Hardware can be described as the collection of physical components of a computer or the parts of a computer that can be physically touched.
Any hardware device that is used to enter data to a computer is known as an input device.
In a computer, processing devices control the storage and retrieval of information. The CPU (Central Processing Unit) is a processing device found in computers.
A storage device is a hardware device that holds user data.
A peripheral device that receives or displays output from a computer is called an output device.
System software is designed to control and operate other computer programmes. The operating system is an example of system software, because it manages other software programmes.
An operating system is a software programme that allows the computer hardware to communicate with the computer software.
Networking, or a computer network, is described as two or more computers that are connected with one another for the purpose of communicating data electronically.
In a computer network, computers are connected together in order to share hardware resources (such as printers and CDs), software resources (exchange data and files), and allow electronic communications amongst each other.
A computer network design consists of basically two parts viz. hardware and software.
Networking hardware includes gateways, routers, network bridges, switches, hubs, and repeaters. Wireless networking is used for portable and handheld devices.
The Network Operating System (NOS) are be of two major types: Peer-to-Peer and Client/Server
Printers, file servers are hardware devices that are attached to a network and shared by all the computers in a network. Shared data is also one of the most important components of the network.
There are four basic physical topologies that are common in network: star, mesh, bus and ring.
There are following five types of networks: a. LAN (Local Area Network) b. MAN (Metropolitan Area Network) c. WAN(Wide Area Network) d. Bluetooth |RIFD (Radio Frequency Identification)
Different networks are characterised by their cost, performance and structure.
The two network models are: TCP/IP and OSI
Communication networks like Internet, Extranet and intranet are widely used in business organisations for business communication.
Database refers to the organised collection of data in a logical and integrated manner.
Data, in the simplest term, is a collection of raw facts and figures. Processed and interpreted data is called information.
Different types of databases are used to store organisational data, depending on different components such as type of data to be stored, organisational environment, and cost of implementation.
DBMS refers to a collection of software and hardware systems that help in maintaining, managing, and querying data stored in a database.
In DBMS, data is recorded and maintained electronically in a database, and the features of DBMS make data maintenance tasks easy to handle.
DBMS was developed to ensure ease of data storage and retrieval and to provide a user-friendly interface.
Database modeling refers to the process of designing a database. It involves defining data elements, the structures of data elements, and the relationships among them.
An information system is a group of hardware, software, data, people and procedures, which is designed to produce information that helps the regular, small and large activities of users in an organisation.
An OSS is a collection of computer programmes or an IT system, which is used by communications service providers for monitoring, controlling, analysing and managing a computer or telephone network system.
TPS gathers, stores, alters and retrieves the transactions of an organisation.
A PCS monitors and controls physical processes in an organisation, manages manufacturing environment and electronically controls the process based on restrictions defined by the user.
An ECS can be defined as an information system that is used to enable well-organised sharing of documents and knowledge between business teams and individuals in an enterprise.
MSS is the system used by management to support managerial decision making.
MIS is a computer-based system that provides information to the management to help in decision making and effective business management.
Decision making plays a significant and vital role in carrying out the activities of an organisation successfully.
An EIS is a type of MIS that facilitates and supports information and decision-making needs at the senior executive level.
Functional information system is based on various business areas such as production, marketing, finance and human resource.
Expert systems use AI to solve problems within a specialised domain. In another sense, these systems are a traditional application and/or subfield of AI.
Knowledge management is an effective management of knowledge in an organisation and efficient communication of the same to the management.
Strategic systems are designed to give competitive advantage to the organisation.
BIS can be defined as a group of interrelated components that work collectively to carry out input, process, output, storage and control actions to convert data into information products.
An integrated information system can be explained as an expansion of a basic information system by incorporating a portion of the functional or technical elements of one information system into another.
ERP refers to an information system that controls and integrates different business functions of an organisation. Drawbacks of MRP II led to the evolution of ERP in the 1990s.
An ERP system helps an organisation in reducing lead time and cycle time, delivering products on time, providing better customer satisfaction, improving supplier performance, increasing flexibility, reducing quality costs, etc.
The different phases of an ERP implementation cycle are pre-evaluation screening, package evaluation, project planning, gap analysis, re-engineering, configuration, implementation team training, testing, going live, end-user training, and post-implementation.
The implementation of an ERP system may fail due to lack of top management support, improper planning and budgeting, selection of an inappropriate ERP system, lack of training, ineffective work culture of an organisation, and ineffective communication.
To implement an ERP system successfully, an organisation needs to take various steps, such as defining the objectives, targets, and roles of different departments involved in the ERP system; selecting a project team, vendor, and an appropriate ERP system; communicating the implementation plan to the project team; implementing the system; and monitoring its performance on a regular basis.
EDI is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
EDI standards are formats defined for EDI documents to specify what, how, and where information fits within an EDI document.
The ANSI chartered the ASC X12 to develop uniform standards for EDI in 1979.
UN/EDIFACT is a set of internationally agreed-upon standards that was developed by the UN.
The EANCON was developed by EAN General Assembly in 1987.
The HIPAA was developed by the US Congress in 1996.
The ODETTE is a group that takes care of the interests of the automotive industry in Europe.
The RosettaNet is a document standard that is based on XML, which defines guidelines for message transfer, business processes interface, and implementation frameworks for interactions between companies.
The VAN is a commercially owned, secure, and private network, which can be used by trading partners to send and receive EDI documents between them.
AS2 or Internet/AS2 is also one of the most popular methods for transporting EDI data securely and reliably over the Internet.
Web EDI takes the help of an Internet browser for carrying out EDI. Paper documents are replicated as Web forms.
Direct EDI or Point-to-Point EDI establishes a single secure line between two business partners.
Mobile EDI is a transmission mode that enables the exchange of EDI documents through mobile devices.
Managed services are the outsourcing of an organisation’s EDI process to a third-party provider.
Several immediate advantages can be realised by exchanging documents electronically. They are speed, accuracy, economy, and increase in business efficiency.
Disadvantages of EDI are expense and network complexity.
Data warehouse can be simply defined as a collection of data to support the information system process. It stores very large amount of data to retrieve information that helps in decision making.
A data warehouse is made of various constituents or components that are essential to make a data warehouse work efficiently. These components are combined together to make an effective data warehouse.
Data mining is the process of digging through huge amount of data and analysing it for extracting the useful meaning from the data.
Data mining tools and techniques are used by many companies such as retail, finance, health care, manufacturing transportation, and aerospace to take advantage of historical data.
Data mining is a field that consists of a set of disciplines, including database systems, statistics, machine learning, visualisation and information science.
BI is an umbrella term that consists of different types of business software applications.
Organisations use BI for improving the decision making process, reducing costs and identifying new business opportunities.
A successful BI solution can enhance the productivity of your organisation. It supports your processes and best practices and allows employees to boost the power of the entire organisation.
DSS is an interactive information system that delivers information to business experts and managers for making effective decisions.
The different components of DSS are DBMS, knowledgebase management system, model management system, and user interface management system.
The four components of DSS architecture are DSS network, DSS bridge, DSS sandwich, and DSS tower.
DSS can be categorised into different types: model-driven DSS, communication-driven DSS, data-driven DSS, document-driven DSS, knowledge-driven DSS, and Web-based DSS.
Tools and technologies supporting DSS are ETL, OLAP, ROLAP, MOLAP, HOLAP, and dialogue management.
Outsourcing involves contracting with outside consultants, software houses, or service bureaus to perform system analysis, programming, or other DSS-development activities.
GDSS refers to an interactive computer-based system designed for supporting decisions taken by a group or team instead of an individual
CRM refers to a business strategy that enables organisations to better serve the needs of their customers, improve customer service, and achieve a high level of customer satisfaction.
The components of CRM are CRM software, business processes, users, and hardware and operating systems.
CRM is implemented in three phases, which are acquire, retain, and develop.
CRM helps an organisation to achieve higher customer satisfaction and retain its customers.
Some of the challenges to CRM implementation are lack of guidance, integration problem, inaccurate data, and employee problems.
Social CRM is adopted by many organisations to build long-term relationship with their customers.
Mobile CRM is an application that allows remote employees to interact with customers and access and update their data, using mobile devices such as smart phones and tablets.
GCRM is a strategic application of processes and practices for managing relationships between customers and organisations operating in multiple countries.
A supply chain is a system or network of facilities in which people, activities, information and resources are involved to enable a smooth movement of a product or service from supplier to customer.
Supply Chain Management (SCM) is a specialised process that is implemented in organisations to ensure that their supply chain is efficient and cost-effective.
The primary objective of every supply chain is to maximise the overall value generated by the system.
There are five basic components of SCM; planning, sourcing, making, delivery, return.
Supply chain management and logistics are two functional areas in an organisation that often seems to overlap.
Logistics deals with strategy and coordination between marketing and production departments and on the other hand the focal point of supply chain management is purchase and procurement.
Supply Chain Management (SCM) can offer tremendous benefits to any organisation that relies on smooth planning and execution of related functions to attain long-term profitability and maintain a competitive edge.
The key challenges faced by an organisation in the supply chain management are: customer service, planning and risk management, cost control, supplier relationship management and talent.
There are six key trends that are creating significant impact on supply chain design and performance: demand planning, globalisation, increased competition and price pressures, outsourcing, shortened and more complex product life cycles, closer integration and collaboration with suppliers.
Information system architecture defines the business processes rules, systems structure, technical framework, and product technologies for organisational information system.
The architecture of the information system includes the hardware and software used to provide the solution to the end users of the services.
Software development life cycle (SDLC) models consist of phases of the software development and the execution order of these phases.
Different types of software development model are Waterfall model, Prototype model, Incremental model and Spiral model
Requirement analysis consists of four types of activity Requirement Elicitation, Requirement Analysis, Requirement Specification and Requirement Validation.
The factors which need to be considered while designing a software model are compatibile, extensibility, fault –tolerance, maintainability, modularity, packaging, reliability, reusability, robustness, security and usability.
Software testing is a process in which we execute programmes to determine whether the programmes have errors or not.
Deployment is an activity that makes a software system available for users. A software system is deployed on a server.
Infrastructure Management (IM), from the perspective of an organisation’s information system, is defined as the management of essential operation components, such as organisation policies, processes, equipment, data, human resources and external contacts, for overall effectiveness.
Infrastructure management can be divided into following three categories; system management, network management, storage management.
Maintenance, in general, refers to the changes that are made to a system to correct or enhance its functionality.
Maintenance is carried out in four major steps. They are obtaining maintenance requests, transforming requests into changes, designing changes, implementing changes.
Requirements change continuously throughout the software development lifecycle.
Requirements management, within an organisation, aspires to provide consistency, predictability, and repeatability of the activities.
Incident handling is a generalised term that pertains to the response to an attack, by a person or organisation.
There are two common forms of system attacks: Virus outbreak, System compromise
The sequence of steps that should be followed in the case incident is: preparation, identification of an attack, containment of an attack, recovery and analysis.
Business Continuity and Disaster Recovery, in short BCDR or BC/DR, are both closely related business practices and pertain to an organisation’s preparation for any unforeseen risks during continued operations.

Important Keywords of Information Systems for Managers

American National Standards Institute (ANSI): ANSI is a private non-profit organisation that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the US.
Architecture: The art or practice of designing and building structures.
Artificial Intelligence (AI): The theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision making and translation between languages.
Artificial Intelligence: A system characteristic that allows it to work intelligently in decision-making situations with the help of its knowledge base and technical capabilities.
ASCII: It an acronym of American Standard Code for Information Interchange with a character encoding scheme.
Assembler: Assembler is a computer programme that translates other computer programmes from assembly language to machine language.
Batch Processing: Batch transaction processing collects the transaction data together as a group or batch and processes it later.
Bluetooth: Bluetooth technology is a wireless communication technology standard that is simple, secure and is used for exchanging data over short distances.
Business Continuity Planning: Business Continuity Planning (BCP) consists of the plans that an organisation can prepare for and help in disaster recovery.
Client-server Technology: An application that divides tasks or workload between the service providers (servers) and requesters to access the service (clients).
Closed-loop MRP: An enhanced version of MRP that can perform activities such as sales planning, customer order processing, capacity planning, etc.
Compensation: It refers to any means of payment to an individual for his service or loss.
Compiler: A compiler is a programme that translates a computer programme written in some high-level programming language (such as Java) into machine language.
CRM: A strategy used by organisations for providing better services to its customers and increasing the level of customer satisfaction.
Cycle Time: The time that starts when work begins on the request of a customer and ends when the product is ready for delivery.
Data Integrity: Data integrity provides a set of rules to ensure that incorrect or inconsistent data is not entered in the database.
Data Security: Data security to the database ensures that no unauthorised users are allowed to access the database without proper permission.
Data: Data is a collection of raw facts and figures.
Database: Database refers to the organised collection of data in a logical and integrated manner.
DBMS Engine: It is a core service for storing, processing, and securing data and acts as an interface between a user and the physical database.
Defects: Defects refers to the number of unknown errors that exist or emerge in the system after it is installed.
Disaster Recovery: Disaster recovery process helps an organisation to recover access to its software, data, and/or hardware that is required to resume the original performance of normal, critical business functions.
Distribution: Distribution is the movement of goods and services from the source through a distribution channel, to the customer.
Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT): EDIFACT is the international EDI standard developed under the UN.
Ergonomics: It is the study of methods that reduce stress on muscles to avoid strain injury.
ERP System: An information system that helps an organisation to control and integrate the activities of its different departments.
Errors: It refers to the difference between actual output and expected output.
Extensible Markup Language (XML): XML is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable.
File Management System: It is the system used by an operating system or a programme to organise and keep track of files.
Firewalls: Firewall, either hardware or software, is installed at the entrance of an organisation’s local network, to filter traffic into and out of its network, to protect the organisation’s network users and data from outside threat like hacking, infringement of privacy etc.
Framework: A basic structure that works as a guideline to the main system.
Gateway: Gateway is a device that enables one network to communicate outside of its own boundary with another network.
Global CRM: An application used by organisations to build relationships with customers located in different geographical areas.
Globalisation: Globalisation is the worldwide movement towards economic, financial, trade and communications integration.
Hadoop: It is a software framework for scalable and distributed programming.
Hub: A hub is a network device that is placed centrally and all the computers are attached to it via cable. It is used to send data or signal sent by one of the computers to all the others connected with it.
Information: Processed and interpreted data is called information.
Infrastructure Management: Infrastructure management is defined as the management of essential operation components, such as organisation policies, processes, equipment, data, human resources, and external contacts, for overall effectiveness.
Inventory: Inventory is an itemised catalogue or list of tangible goods or property or the intangible attributes or qualities.
Knowledge Base: Similar to a database, knowledge base represents the organised storage of knowledge with or without the use of computers.
Lead Time: The amount of time taken between the placing of an order and the receipt of products by a customer.
Logical Independence: This signifies that in a database, the conceptual level can be edited without disrupting the physical level.
Logistics Management: Logistics management is concerned with providing goods & services when and where they are required.
Management Information System (MIS): MIS is a computer-based system that provides information to the management to help in decision-making and effective business management.
Management: It is a process of planning, organising, directing and controlling the resources to achieve business goals.
Mobile CRM: An application adopted by organisations to connect and interact with its customers using mobile devices such as smart phones and tablets.
MRP II System: An integrated form of various systems such as financial accounting system, manufacturing system, and material management system.
MRP System: A system that helps an organisation to estimate the requirements of materials for manufacturing its products using master production schedule, bill of materials, and list of materials.
Neural Network: It refers to a type of artificial intelligence that attempts to imitate the functioning of the human brain.
Normalisation: It refers to a process in which fields and tables of a relational database are organised to minimise redundancy
Online Transactional Processing (OLTP): It is a real-time processing business transaction with the help of the Web.
Outsourcing: The contracting of non-core business processes by an organisation to another organisation to reduce its cost and use resources for other purposes.
Physical Independence: This signifies that in a database, the physical level is kept separate from the conceptual level and may be modified independently of the latter.
Point Of Sales Terminal: POS terminals are used by retail stores to sell goods and services.
Procedure: It refers to the set of instruction to process information.
Procurement: The act of obtaining or buying goods and services, procurement includes preparation and processing of a demand as well as the end receipt and approval of payment.
Real-time Transaction Processing: Real-time transaction processing is the instant processing of data.
Recovery of Data: In case of a system failure, i.e., a computer crash, a fire, or a natural calamity, DBMS is able to recover the database, so that the data is not lost. This is referred to as recovery of data.
Repeater: Repeater is a device which amplifies or regenerates weak digital signals received before sending them from one part of a network into another.
RFID: Radio Frequency Identification (RFID) is a non-contact wireless technology that uses radiofrequency electromagnetic fields to transfer data and is used for the purpose of automatically identifying and tracking tags attached to objects.
Router: A router is a specialised network device that manages the traffic of data packets within the network.
Social CRM: An application used by organisations to build long-term relationships with their customers using social media websites such as Facebook and Twitter.
SQL: A standard computer language used for accessing and manipulating databases.
SRS: Software Requirement Specification is a document having a description of the behaviour of a system to be developed.
Standardisation: It refers to a process in which files are first parsed and then interpreted to a common format.
Supply chain: A supply chain is a network that involves the functions of procurement of raw materials, transformation of these raw materials into intermediate and finished products, and then lastly distribution of the final products to customers.
Teradata: It refers to a fully scalable relational database management system developed by Teradata Corp.
The Society of Worldwide Interbank Financial Telecommunication (SWIFT): SWIFT is a member-owned cooperative through which the financial world conducts its business operations with speed, certainty, and confidence.
Topology: Topology is defined as geometrical representation of various devices in a computer network.
Transceiver: A transceiver is a device that contains both transmitter and receiver. It transmits and receives analog or digital signals.
Unstructured Decisions: These decisions are called unstructured decisions because they are not well defined and there is ample scope of various sub decisions based on these decisions.
Value Added Network (VAN): VAN is a hosted service offering that acts as an intermediary between business partners sharing standards based or proprietary data through shared business processes.
Vendor: It refers to suppliers associated with the production process in an organisation.
Version: It refers to a unique name of the number given to the states of computer software.
Virus: A piece of software code which is capable of copying itself and typically has a detrimental effect, such as corrupting the system or destroying data.

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