Organizational Information System

 IS is an integrated IT based system designed to support operations, mgt and decision making function of an organization

 A framework that can be used to help org identify critical aspects of their environment and the areas where IT can play an important role  Provides simple but powerful approach to understand how org interact with their environment  To apply this theory to org, org is view as a system consisting: Inputs Outputs Transformation process Exist in an environment Have boundaries Have feedbacks

 Systems have inputs Transform inputs into outputs Without inputs, there’ll be no transformation process and outputs produced IT can be used to ensure the availability of inputs  Eg. by linking production schedules to the computer system of the suppliers through internet  Systems have outputs The purpose of an org is to transform inputs into outputs and exchanging the outputs with the environment Can consist of products or services IT can used to track acceptance of outputs be the products or services

 Transformation process Is a series of activities that org use to turn inputs into outputs IT may be used to increased the flexibility of transformation process by coordinate pricing, quantity, ordering services etc  Eg the used of IT in the customer ordering system  Systems exist in an environment Anything outside the org can be considered as environment that includes customers,suppliers, technology etc

 Systems have boundaries Organizational boundaries separates the system from its environment The systems and subsystems boundaries and environment impact on system analysis and design The boundaries must be large enough to contain all affected subsystem  Systems have feedbacks Means reporting on an event that has already happened and determining whether or not that event was predicted and whether the event is better or worse than expected It keeps the org informed as to whether the org understands its environment and taking appropriate actions to stay in touch with it

 Accounting Is a score keeping function that enables org to keep track of the revenues, expenses, inventory etc IS have been developed to support the accounting functions. Eg accounting software  Finance Responsible for acquiring and managing source of capital of the company Is support finance function through monitoring cash flows, allow financial analyst to analyze effects of their decision  Marketing and sales Involves in identifying potential customers and customer preferences and providing relevant marketing messages to potential customers The order processing system record customer orders, sales tracking system and sales reporting systems help monitor revenue generation activities

 Productions and operations mgt IS provides support concerning the acquisition of materials, converting materials into finished products and the delivery of finished products to customers  Customer support Often considered to be part of marketing function Involves answering customer’s question prior to making a purchase such as availability of products Includes handling product returns, customer complaints and after- sales support  Human resource mgt Responsible for hiring employees, developing and administering training plans and terminating employees Using IS such as database to record employees record

 Legacy IS/ Antiquated System Often support one business unit only and are not integrated Designed to provide info on specific areas with little/no integration with other applications Continues to be used because the org does not want to replace or redesign it Potentially problematic because they often run obselete, slow hardware and the parts are difficult to get Integration with newer systems also difficult because the systems may use different technology Are stand-alone application, therefore not able to share data with other users

Files processing can lead to difficulties such as:  Slow data retrieval  Updating records  Expensive overhead and effort to maintain it Legacy system tend to be mainframe-based applications, batch- oriented and use flat-files data storage Flat- files are individual data files that are not related to one another

 Enterprice resource planning systems are groups of software application integrated to form enterprise info  Using enterprise resource planning system, the workflows can be prescribed to automate approval processes through established chains of command.  Once the system is in place, end user enters data at only one point and the info is transferred through all relevant processes to other modules  It gives additional support to people on the ground. E.g. people who operates organizational processes

 Provides general facilities for process and task that enable both reports on progress and control of day to day operations to be prepared  Is designed to fulfill the demands which relates to technological advancement in the effective use of the system implemented in the org  Embraced in the manufacturing companies as a basis for business process mgt integration across business functions  It does not only current requirements of the company but also provides opportunity of continually improving and refining business process  The benefit of enterprise IS is that they link financial operations, human resource, distribution etc through an integrated system

Org need to share and communicate info within org and external parties as well Some communication is highly computerized requiring little human intervention. Eg in maintaining the inventory, can used Electronic Data Interchange (EDI) In designing EDI, have to considered issue of standard for data transmission, growth of internet and the used of open standard protocols

Next is the development of extensible markup language (XML) that is use in building inter- organizational systems. Plays important role in the exchange of wide- variety of data in the internet XML provides an open standard and easy to use alternative to the proprietary IS

IS is the provision and mgt of info to support the running activities of organization IT is the data processing and communication technologies to support IS

The linear cycle/ waterfall model of SDLC assumes:  All activities are performed in strict sequence  Eg one phase must be completed before continue to the next one  No phase can be repeated  One can develop and specify precisely a system in a top- down manner However, in practice some of the early work may be overlooked. It may be necessary to return to earlier phase and refine objective or redo some work

Subjected to a number of critics:  Real IS projects rarely follow such a simple sequential cycle  Phases may overlap  Activities may have to be repeated  Iterations are needed as in adequacies in analysis phase may become evident only during design, construction or implementation phase  Time may elapsed between preliminary investigation and final implementation  Technology may change  Iteration can be costly

Their broad business background, financial skills etc can provide valuable advice relating to assessing investment in IT and systems Have the ability to perform appropriate analyses of IS investment and related benefits and risks Expected to translate the business rule and requirements to map them in the new system through program rules Provide valuable service by bridging communication gaps between top mgt and technologist

Are in position to advise on control systems required to meet the need of org and mgt Need to know logical design as it will form the blueprint of the system that will be implemented Must be equipped with the knowledge and skill in computer technology, tools and techniques and consistently updated it