The Features and Functions
Information is very important in business because you can see where you can make cuts in people’s jobs if you know the input, output and what’s required. The features of information systems are: Data, People, Hardware, Software and Telecommunications.
Transaction Processing System (TPS)
Basic business system that serve the operational level.
A computerised system that performs and records the daily routine transactions necessary to the code of the business.
Types of TPS Systems
Sales / Marketing Systems
Major Functions of System = Sales Management, Market Research, Promotion, Pricing, New Product.
Major Application System = Sales Order Information System, Market Research System, Sales Commission System.
Manufacturing / Production Systems
Major Functions of System = Scheduling, Purchasing, Shipping / Receiving, Engineering, Operations.
Major Application System = Machine Control Systems, Purchase Order Systems, Quality Control Systems.
Finance / Accounting Systems
Major Functions of System = Budgeting, General Ledger, Billing, Cost Accounting.
Major Application System = General Ledger, Accounts Receivable / Payable, Funds Management Systems.
Human Resources Systems
Major Functions of System = Personnel Records, Benefits, Compensation, Labour Relations, Training.
Major Application System = Payroll, Employees Records, Benefit Systems, Career Path Systems.
Major Functions of System = Admissions, Grade Records, Course Records, Alumni.
Major Application System = Registration System, Student Transcript System, Curriculum Class Control Systems, Alumni Benefactor System.
You need data for it to be processed into information. You need information to make business decisions.
People are the process. Everyone has different ways of turning data into information unless they all have the same variable. For example: the number 2004 means different things to different people because they process it differently. People manage the data and without people you would not be able to input process data and get any output back into the business.
Hardware is the tools that you use to collect and use the information. These are the physical components. These need software to be able to get the job done.
Software could and is everything. Your brain is software because it tells your body (hardware) what to do. You need a human to collect the data and someone else to process it into information.
Telecommunication is data, people, hardware and software communicating together. If they did not communicate the business would lose money and you would not be able to get accurate data. For example: software and hardware needs each other in order to be able to work, if they do not communicate the data could not be processed by the people.
The functions of information systems can be broken down into:
Closed and Open Systems.
Input is the data that you collect this data can be anything but it will not mean anything to anybody until it is processed. If processed in different ways it will mean different things to different people.
The storage of information has to be secure especially if the information is about people then it falls under the data protection act. The storage has to keep the information safe but has to be accessible whenever the organisation needs the information so easy access is essential.
This is where the data gets turned into information so that you can understand it. Data can be processed in different ways such as the number 2010 will mean the year to some people and just a number to others.
Output is what you get out of something. If you are spending money on input but not getting any output it is not cost efficient. For