Information vs Data Processing
Section 4 Information Systems in Organisations
Chapter 37 – Management Information Systems
Introduction
Over the past two decades, a transformation to an information society has been taking place, and computers and telecommunications technologies have revolutionised the way that organisations operate. We live in an information age, and no business of any size can survive and compete without embracing information technology. Information has come to be recognised as a resource of fundamental importance to an organisation, in the same way as the more traditional resources of people, materials and finance. It is not enough to be merely ‘computer-literate’ in order to become an expert in information systems. It is also necessary to understand how to apply modern technology in a business, commercial or other environment to achieve the goals of the organisation.
Information systems vs. data processing systems
In the last chapter we looked at the different levels of information system in an organisation. Remember that a data processing system is simply one which records the day-to-day transactions taking place within an organisation. An information system is one which uses this data and turns it into useful information. For example: Data on items sold is collected by the data processing system, using a barcode scanner and an EPOS system, and stored on a computer file; An operational information system then reads this data and produces a list of items that need reordering; A management information system may analyse the sales data to highlight sales trends and use this information to plan a new marketing campaign, adjust price levels or plan an increase or reduction in production facilities.
Internal and external information
Much of the information used by management concerns the internal operations of the company. However, external information about the environment in which the organisation exists is crucial to all organisations. This may include Intelligence
Chapter 37 – Management Information Systems
Introduction
Over the past two decades, a transformation to an information society has been taking place, and computers and telecommunications technologies have revolutionised the way that organisations operate. We live in an information age, and no business of any size can survive and compete without embracing information technology. Information has come to be recognised as a resource of fundamental importance to an organisation, in the same way as the more traditional resources of people, materials and finance. It is not enough to be merely ‘computer-literate’ in order to become an expert in information systems. It is also necessary to understand how to apply modern technology in a business, commercial or other environment to achieve the goals of the organisation.
Information systems vs. data processing systems
In the last chapter we looked at the different levels of information system in an organisation. Remember that a data processing system is simply one which records the day-to-day transactions taking place within an organisation. An information system is one which uses this data and turns it into useful information. For example: Data on items sold is collected by the data processing system, using a barcode scanner and an EPOS system, and stored on a computer file; An operational information system then reads this data and produces a list of items that need reordering; A management information system may analyse the sales data to highlight sales trends and use this information to plan a new marketing campaign, adjust price levels or plan an increase or reduction in production facilities.
Internal and external information
Much of the information used by management concerns the internal operations of the company. However, external information about the environment in which the organisation exists is crucial to all organisations. This may include Intelligence