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Information Systems

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Information System (CS507)
No information system can exist in an organization without being linked with other functional information
systems. This linkage is important for the over all smooth functionality of the information system since it
allows easy transformation and usage of information.
Production subsystem needs to be linked with the marketing system so as to produce right amount of
Human resource system
Most of the human resource is involved in the manufacturing process. Since factory premises has to be
working continuously, availability of relevant labour is critical.
Accounts and Finance
Accounts should have a control over various recording points in the entire process from procurement
to finished good store room. This would help both in recording transactions for financial statements
and approving and arranging for cash payments.
Accounting information system (AIS) is linked to all the information systems in an organization. This is
important because the data required for proper book keeping and generation of transactional reports is
extracted from all over the organization. For instance sales information can be sought only from marketing
information system and stock information is available in manufacturing information system.
Here we would consider an example to see how AIS records internal data describing manufacturing
operations ­ this requires use of data collection terminals at the manufacturing facility. It also records
external data describing firms transactions with its suppliers.
Information System (CS507)
The figure shows twelve data collection terminals located at the factory area. Raw materials are received
from suppliers, and receipt data is entered into the terminal. Quality control inspection is conducted and
results are recorded at terminal two. Acceptance into and release from the raw materials room is logged in
to the terminal three. Terminals four to ten are used by production employees to record start and
completion of each step of production. Terminal eleven records the entry into the finished goods store
room. Shipping to customers is recorded at terminal 12.
14.1 Accounting & Financial Information Systems
Accounting and financial information systems cater for the needs of Accounts & Finance Department.
These are responsible for managing financial assets in order to maximise return, like
Other investments
Financial liabilities
Capitalization of the firm through acquisition of new financial assets
It also produces the periodic and annual financial statements.
Importance of Accounting & financial Information Systems
Every transaction that an organization undertakes has a financial impact, to be recorded and reported by the
accounts & finance department. Hence there is a share of interest for every department in reports and
information produced by this system. Financial Information Systems like other information systems should
cater for information requirements at each level, for instance.
Strategic level
1. Investment goals
2. long range forecasts for firm's financial performance
3. Acquisition of financial resources and goals
Knowledge Level
1. Analytical tools to design the right mix for investment
2. Portfolio updates
3. Market information analysis
Management level
1. Control over firm's financial resources
2. Investment management
3. Budget management
4. Tax management
5. Profitability & Performance Evaluation
Operational Level
1. Cash flow statements through various transactions
2. Inventory and debtors management
3. Creditors Management
14.2 Human Resource Information Systems
Information System (CS507)
It is an information system that combines many human resources functions, including benefits
administration, payroll, recruiting and training, and performance analysis and review into one package. It
helps in
o  Building database of employees
o  Keeping track for new positions or vacancies
o  Keeping master records for each employees
o  Performance evaluations and training assessments
14.3 IT Department
Information by itself is proving to be the most critical resource for organizations. Such is the criticality that
other resources of the organization cannot be managed without it. This has lead to the evolution of
information systems to efficiently manage the information resource of the organization. This system is
usually employed by the Information Services department which is the major functional area of the
14.3.1 Evolution of the IT Department
IS department function has been evolving based on the needs of user departments
Traditional Computing -- Initially User was not directly linked with using the computing facilities and
the IT workforce was involved in assisting user to achieve his computer related goals.
Information System (CS507)
End User Computing ­ As the computer users become more literate, much of the work was done by
users themselves and IT department took over as a support function.
All information specialists collectively
support the user in using computing
Table of Contents:
  1. Need for information, Sources of Information: Primary, Secondary, Tertiary Sources
  2. Data vs. Information, Information Quality Checklist
  3. Size of the Organization and Information Requirements
  4. Hierarchical organization, Organizational Structure, Culture of the Organization
  5. Elements of Environment: Legal, Economic, Social, Technological, Corporate social responsibility, Ethics
  6. Manual Vs Computerised Information Systems, Emerging Digital Firms
  7. Open-Loop System, Closed Loop System, Open Systems, Closed Systems, Level of Planning
  8. Components of a system, Types of Systems, Attributes of an IS/CBIS
  9. Infrastructure: Transaction Processing System, Management Information System
  10. Support Systems: Office Automation Systems, Decision Support Systems, Types of DSS
  11. Data Mart: Online Analytical Processing (OLAP), Types of Models Used in DSS
  12. Organizational Information Systems, Marketing Information Systems, Key CRM Tasks
  13. Manufacturing Information System, Inventory Sub System, Production Sub System, Quality Sub system
  14. Accounting & Financial Information Systems, Human Resource Information Systems
  15. Decision Making: Types of Problems, Type of Decisions
  16. Phases of decision-making: Intelligence Phase, Design Phase, Choice Phase, Implementation Phase
  17. Planning for System Development: Models Used for and Types of System Development Life-Cycle
  18. Project lifecycle vs. SDLC, Costs of Proposed System, Classic lifecycle Model
  19. Entity Relationship Diagram (ERD), Design of the information flow, data base, User Interface
  20. Incremental Model: Evaluation, Incremental vs. Iterative
  21. Spiral Model: Determine Objectives, Alternatives and Constraints, Prototyping
  22. System Analysis: Systems Analyst, System Design, Designing user interface
  23. System Analysis & Design Methods, Structured Analysis and Design, Flow Chart
  24. Symbols used for flow charts: Good Practices, Data Flow Diagram
  25. Rules for DFDs: Entity Relationship Diagram
  26. Symbols: Object-Orientation, Object Oriented Analysis
  27. Object Oriented Analysis and Design: Object, Classes, Inheritance, Encapsulation, Polymorphism
  28. Critical Success Factors (CSF): CSF vs. Key Performance Indicator, Centralized vs. Distributed Processing
  29. Security of Information System: Security Issues, Objective, Scope, Policy, Program
  30. Threat Identification: Types of Threats, Control Analysis, Impact analysis, Occurrence of threat
  31. Control Adjustment: cost effective Security, Roles & Responsibility, Report Preparation
  32. Physical vs. Logical access, Viruses, Sources of Transmissions, Technical controls
  33. Antivirus software: Scanners, Active monitors, Behavior blockers, Logical intrusion, Best Password practices, Firewall
  34. Types of Controls: Access Controls, Cryptography, Biometrics
  35. Audit trails and logs: Audit trails and types of errors, IS audit, Parameters of IS audit
  36. Risk Management: Phases, focal Point, System Characterization, Vulnerability Assessment
  37. Control Analysis: Likelihood Determination, Impact Analysis, Risk Determination, Results Documentation
  38. Risk Management: Business Continuity Planning, Components, Phases of BCP, Business Impact Analysis (BIA)
  39. Web Security: Passive attacks, Active Attacks, Methods to avoid internet attacks
  40. Internet Security Controls, Firewall Security SystemsIntrusion Detection Systems, Components of IDS, Digital Certificates
  41. Commerce vs. E-Business, Business to Consumer (B2C), Electronic Data Interchange (EDI), E-Government
  42. Supply Chain Management: Integrating systems, Methods, Using SCM Software
  43. Using ERP Software, Evolution of ERP, Business Objectives and IT
  44. ERP & E-commerce, ERP & CRM, ERP Ownership and sponsor ship
  45. Ethics in IS: Threats to Privacy, Electronic Surveillance, Data Profiling, TRIPS, Workplace Monitoring