P5 identify the information systems used in a specified organisation

Transformation of data into information

The process of turning data into information starts with the collection of data, then storage, then processing, then retrieval, then presentation.

Collecting data starts by gathering data from where it’s generated such as measurements or available and makes sure it’s valid for use.

Storing data is done by putting the data on some form of storage media such as a server or a hard drive; it’s kept stored for long periods of time until it is used.

Processing data is done by taking data which is input and turning it into information ready to be presented as output.

Retrieving data is simply taking the information from the storage media.

Presentation is displaying the information in a format the user can understand such as text or graphics, a hard copy will also usually be printed.  

Types of information systems

Marketing Systems-Sales Performance

This was one of the first areas in IT to adopt information systems, it’s used to identify where business sales are going up and down. It’s also used to see how well one stores sales react to a promotion or special offer before applying it to any other stores. It’s also used to analyse the effect of product prises, profits/losses and rival competition.

Financial Systems-Costs and Investments

Information systems are needed to provide employees an easier way to manage income and revenue, but once in use can also be used to focus on costs and expenditure which expands the need for the information systems as they have a greater use.

They can be used to identify trends and patterns that affect the business or may have been affected by the businesses actions.

It can also be used to monitor and identify the effect of a financial investment, large purchase, new revenue or expenditure.

Human Resources (HR)-Staffing and Professional Development

Human Resources need information systems to aid them in the vast amount of analysis they need to do as part of their job. Information systems can aid human resources in deciding how many staff they need at certain times of the day depending on key times in the day. It helps to identify skill shortages, training needs and staff turnover.

Analysing the skills of staff can support the business in making decisions about promotions, training and career development opportunities.

Management Information Systems (MIS)-Decision Support

This system helps to make decisions, the input query and response is already pre-defined. This system is effective in supporting management asking repetitive questions, it helps to track, analyse and make decisions on the day-to-day running of the business. They’re simply systems that have all complexity hidden away from the user to provide a comfortable environment. Answers and analysis are often presented as graphs and tables for ease of use but can be exporting to other office applications. The system can only provide effective support if the data entered into it is accurate and consistent.

Features

An MIS is used as a decision support system where the input query and response is always pre-determined; it’s used to ask the same question repeatedly but about different subjects. For example listing the top 5 stores with the highest profit for the last month, this can then be compared to the previous month which would highlight flagship stores.

Benefits

An MIS can be easily used by senior management as any complexity is hidden meaning the MIS can be easily used. Answers are often presented in tables and graphics and can be imported into a spreadsheet. An MIS provides answers very quickly which saves time.

Effectiveness

For an MIS to be effective it must be as accurate as any other source of information, sustainable and available to use at any given time, must have consistent timelines so that all MIS systems operate effectively, must give the user confidence to use the MIS and trust the information it outputs, any faults found in the data, processes or systems must be fixed and the customer must be reassured that the fault is fixed and won’t occur again to keep customer confidenc