Information System free essay sample

Information Systems for the Banking amp; Financial Sector: Audit is one of the major controls for monitoring management activities in the banks and financial institutions. In a computerized environment, IS audit is a very effective and necessary activity. Usually the IT implementation in the banking and financial organizations is done by adopting a mix of different methodologies – internal development and deployment and third party product development and deployment. In case of internally developed and deployed IT systems, IS audit will require to be done by a team of specially trained internal or external auditors. However, it is preferable to have the IS audit conducted with the help of suitable external agencies with the required skills and expertise to ensure independent nature of audit. In case of development and deployment of the IT systems by third parties, the IS audit requires to be conducted by trusted auditor/s with skills and expertise, required for the purpose. 3. 2. Computer information system(s) (CIS) Computer information system is a field studying computers and algorithmic processes, including their principles, their software and hardware designs, their applications, and their impact on society while IS emphasizes functionality over design. Any specific information system (IS) aims to support operations, management and decision making. In a broad sense, the term is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes. Some authors make a clear distinction between information systems, computer systems, and business processes. Information systems typically include an ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes. Alter argues for advantages of viewing an information system as a special type of work system. A work system is a system in which humans and/or machines perform work (processes and activities) using resources to produce specific products and/or services for customers. An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information. As such, information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action. Information systems are the primary focus of study for organizational informatics 4. Types of information systems Figure : Types of Information Systems. A four level pyramid model of different types of Information Systems based on the different levels of hierarchy in an organization The classic view of Information systems found in the textbooks in the 1980s was of a pyramid of systems that reflected the hierarchy of the organization, usually transaction processing systems at the bottom of the pyramid, followed by management information systems, decision support systems, and ending with executive information systems at the top. Although the pyramid model remains useful, since it was first formulated a number of new technologies have been developed and new categories of information systems have emerged, some of which no longer fit easily into the original pyramid model. Some examples of such systems are: Data warehouses Enterprise resource planning Enterprise systems Expert systems Search engines Geographic information system Global information system Office automation. 4. 1. Computer (-Based) Information System A Computer (-Based) Information System is essentially an IS using computer technology to carry out some or all of its planned tasks. The basic components of computer based information system are: Hardware- these are the devices like the monitor, processor, printer and keyboard, all of which work together to accept, process, show data and information. Software- are the programs that allow the hardware to process the data. Databases- are the gathering of associated files or tables containing related data. Networks- are a connecting system that allows diverse computers to distribute resources. Procedures- are the commands for combining the components above to process information and produce the preferred output. The first four components (hardware, software, database and network) make up what is known as the information technology platform. Information technology workers could then use these components to create information systems that watch over safety measures, risk and the management of data. These actions are known as information technology services. Certain information systems support parts of organizations, others support entire organizations, and still others, support groups of organizations. Recall that each department or functional area within an organization has its own collection of application programs, or information systems. These functional area information systems (FAIS) are supporting pillars for more general IS namely, business intelligence systems and dashboards. As the names suggest, each FAIS support a particular function are within the organization, e. g. : accounting IS, finance IS, production/operation management (POM) IS, marketing IS, and human resources IS. In finance and accounting, managers use IT systems to forecast revenues and business activity, to determine the best sources and uses of funds, and to perform audits to ensure that the organization is fundamentally sound and that all financial reports and documents are accurate. Other types of organizational information systems are FAIS, Transaction processing systems, enterprise resource planning, office automation system, management information system, decision support system, expert system, executive dashboard, supply chain management system, and electronic commerce system. Dashboards are a special form of IS that support all managers of the organization. They provide rapid access to timely information and direct access to structured information in the form of reports. Expert systems attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain. 5. How they assist in business planning? 5. 1. Information Storage and Analysis At the date of publication, many companies no longer manage their data and information manually with registers and hard-copy formats. Through the adoption of information systems, companies can make use of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the company. Information systems store, update and even analyze the information, which the company can then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate data from various sources, inside and outside the company, keeping the company up to date with internal performance and external opportunities and threats. 5. 2. Assist With Making Decisions The long-term success of a company depends upon the adequacy of its strategic plans. An organization’s management team uses information systems to formulate strategic plans and make decisions for the organizations longevity and prosperity. The business uses information systems to evaluate information from all sources, including information from external references such as Reuters or Bloomberg, which provide information on the general economy. This analysis of and comparison to market trends helps organizations analyze the adequacy and quality of their strategic decisions. 5. 3. Assist With Business Processes Information systems aid businesses in developing a larger number of value added-systems in the company. For example, a company can integrate information systems with the manufacturing cycle to ensure that the output it produces complies with the requirements of the various quality management standards. Adoption of information systems simplifies business processes and removes unnecessary activities. Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks. Further, information systems eliminate repetitive tasks and increase accuracy, allowing employees to concentrate on more high-level functions. Information systems can also lead to better project planning and implementation through effective monitoring and comparison against established criteria. 5. 4. Considerations Implementing information systems within an organization can prove to be costly. Implementation costs include not only installation of the systems but also employee training sessions. In addition, employees may see the adoption of information systems as an unwarranted change and, thus, may resist this change. Resistance to change can hinder business operations and can cause employee turnover. Companies should have leadership in place to assess the adequacy of the decision to have an information system and to guide the company through the transition phase and weigh information systems cost against the potential benefits. 6. Examples of IS that are useful for communication 6. 1. Information and communications technology (ICT) It is often used as an extended synonym for information technology (IT), but is a more specific term that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate information. The phrase ICT had been used by academic researchers since the 1980s, but it became popular after it was used in a report to the UK government by Dennis Stevenson in 1997 and in the revised National Curriculum for England, Wales and Northern Ireland in 2000. As of September 2013, the term ICT in the UK National Curriculum has been replaced by the broader term computing. The term ICT is now also used to refer to the convergence of audio-visual and telephone networks with computer networks through a single cabling or link system. There are large economic incentives (huge cost savings due to elimination of the telephone network) to merge the audio-visual, building management and telephone network with the computer network system using a single unified system of cabling, signal distribution and management. The term Infocommunications is sometimes used interchangeably with ICT. In fact Infocommunications is the expansion of telecommunications with information processing and content handling functions on a common digital technology base. 7. CONCLUSION The IS technology is need for every business. It’s cheaper and efficient way in communication to maintain data to execute reports to find out where are we now in business?