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Information Systems

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VU
Information System (CS507)
LESSON 2
Areas Covered
Introduction to Organization and
Role of Information in Organization, Management & Strategy
What is Organization?
Basically, an organization is group of people organized to accomplish an overall goal. Organizations can
range in size from two people to hundreds of thousands -- some people might argue that organizations are
even larger. Organizations have an overall goal (or mission) which is usually subdivided into various other
goals (often called strategic goals) that, in total, will achieve the overall goal of the organization.
A structure through which individuals cooperate systematically to conduct business. It is a collection of
people working under predefined rules and regulations to obtain a set of objectives. It is a stable formal
social structure. It takes resources from the environment and processes them to produce outputs.
"Organization" is understood as planned, coordinated and purposeful action of human beings in order to
construct or compile a common tangible or intangible product or service. This action is usually framed
by formal membership and form (institutional rules). Organization is a permanent arrangement of
elements. These elements and their actions are determined by rules so that a certain task can be fulfilled
through a system of coordinated division of labour.
An organization is defined by the elements that are part of it (who belongs to the organization and who
does not?), its communication (which elements communicate and how do they communicate?), and its
rules of action compared to outside events (what causes an organization to act as a collective actor?).
By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie
beyond the abilities of the single elements. The price paid by the elements is the limitation of the degrees
of freedom of the elements.
2.1 Need for Organization
As the volume of business expands, the need for disciplined approach to managing operations is required.
This results in formulation of organizational structures. The organizational structures are formulated in
order to efficiently manage the business operations. This makes the structures a relative term to explain and
define. Organizations have the freedom to chose / evolve the structures which best fits the management
needs.
An organization's primary aim is to achieve the objective that it lays down for itself and in pursuance of
which various actions are undertaken. Such objective could be to generate profits or specific socio-
economic cultural objectives. What ever the objectives are, these activities interrelate and their occurrence
generate a series of events which helps organization achieve its goal. The regular and timely recording of
information is critical to the proper management of business operations.
2.2 Data vs. Information
Data represents facts of any kind. In the process of recording important particulars of any event, it is the
discretion of the management, what should be recorded and how it should be presented. However when
this data is processed or reformatted, it becomes information. Information is a subset of data which adds
to the knowledge.
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VU
Information System (CS507)
Information should be relevant so that it is valuable for the recipient. Although the processed form of
information is more valuable than the raw form of data, still all information is not of value for every one.
Distributing common information to every one may result in waste of time and confusion. Irrelevant
information has no value.
2.3 Information Quality Checklist
The information can also be ranked in accordance with the qualities it has in it. The experts have devised
certain criteria to evaluate the quality of information. These are stated below:
1. Is it clear who has written the information?
2. Who is the author? Is it an organization or an individual person? Is there a way to contact
them?
3. Are the aims of the information clear?
4. What  are  the  aims  of  the  information?  What  is  it  for?  Who  is  it  for?
Does the information achieve its aims?
5. Does
the
information
do
what
it
says
it
will?
Is the information relevant to me?
List five things to find out from the information.
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o
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1. Can the information be checked?
Is the author qualified to write the information? Has anyone else said the same things
anywhere else? Is there any way of checking this out? If the information is new,
is there any proof?
2. When was the information produced?
Is it up to date? Can you check to see if the information is up to date?
3. Is the information biased in any way?
Has the information got a particular reason for wanting you to think in a particular way?
Is it a balanced view or does it only give one opinion?
4. Does the information tell you about choices open to you?
Does the information give you advice? Does it tell you about other ideas?
2.4 Organization & Information Requirements
Organizations have various attributes which distinguish them from each other. No two organizations are
similar in all respects. There have to have certain distinctive lines keeping them unique from each other.
Information requirements keep varying in accordance with
 Size of organization
 Its structure
 The Culture it follows
 Decision Making Structures
 Interested parties both internal and external
An organization should consider the above mentioned requirements while devising a system which
tailors for specific information needs.
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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