Information technology and information systems Fundamentals of Information Technology Session 2

Systems A system is a set of interrelated components and processes within a clearly defined boundary functioning together in order to bring about a common objective There are many different kinds of system  Physical systems – solar system  Biological systems – human circulatory system  Technological systems – production line  Information systems – social security system

Information systems Information systems have three key stages 1)Input This entails the capture and ordering of elements for processing (e.g. raw data from a barcode) 2)Processing This entails a transformation of inputted elements into a form suitable for output (e.g. calculation of order price) 3)Output This involves the delivery of elements in a transformed state to their ultimate destination (e.g. a report such as an invoice)

Information systems Information systems can also have other important characteristics –Feedback This is data that is provided by a system to provide information about its performance –Control This involves monitoring and processing feedback to ascertain the extent to which a system is fulfilling its stated success criteria. It enables system owners to spot system deficiencies and introduce optimization measures

Information systems Many information systems exist as sub-systems of other systems (e.g. an ordering system is part of a stock control system which is part of a retail system) The system within which a system or a sub-system operates is called its environment A number of related systems or sub-systems may be connected to one another. The point of contact between systems is referred to as an interface (note: different than user-interface)

Information systems An information system in its simplest form is a combination of human and technological resources which act together to capture data, process that data and transform it into information Data is the raw material; of little value or meaning in itself Information is some or other arrangement of data which gives it meaning and value. Information helps us make informed decisions

Information systems

Types of information system Information systems work at different levels within an organization

Operations support systems – TFL congestion charging Transaction processing systems –Paying for the congestion charge Process control systems –Monitoring vehicles entering congestion zone Accounts systems –Monitoring defaulters, issuing fines Payroll systems –Paying of TFL employees Enterprise collaboration systems –Collaborating with colleagues and contractors (e.g. borough councils)

Management support systems – TFL congestion charging Management information systems –Providing information on levels of current congestion zone vehicle ingress Decision support systems –Enabling correct calibration of congestion charge

Strategic information systems – TFL congestion charge Executive support systems –Determining overall success of congestion charging –Supporting decisions to extend congestion zone

Components of an information system

Components of an information system – TFL congestion charge

Benefits of information systems Operational excellence –Increase capacity (e.g. Supermarket self-checkout) Differentiation –Offer customers new/improved experience (e.g. Airport self- check-in) Improved customer relations –Maintain better/closer contact with customers (e.g. Utility online billing and personal account management) Improved decision-making (e.g. UK Border & Immigration Agency) Competitive advantage (e.g. Amazon)

Information system stakeholders A stakeholder of a system is any individual or organisation that is impacted in any way by the development or use of that system This impact can be direct or tangential It can be: –Economic –Political –Social –Professional –Legal

Information system stakeholders – TFL congestion charging Mayor of London/London Assembly System developers Employees of TFL administering the congestion charge Contractors working for TFL to administer the congestion charge Motorists using the congestion zone Businesses within the congestion zone Londoners living in and on the periphery of the congestion zone The UK government

IT and IS – the wider context IT and IS do not exist in a vacuum Their development and deployment is shaped by a wider set of real world forces These forces can be: –Political (the government) –Legal (the courts) –Social (pressure groups) –Business/economic (banks/financing) These forces place constraints on what companies can do with IT (e.g. surveillance at work)

IT and IS – the wider context

IT and IS – the wider context (TFL)

Hands-on exercises Now do –Activity 2 – Information technology and information systems