Chapter 2: Software for Information Management

Information Systems, Software, Hardware

- Information system
The combination of hardware and software technology used by an individual to
perform tasks including information management
- Software – Intangible
The instructions or programs used to control a computer system through interaction
with hardware
- Hardware – Tangible
The physical components of a computer system such as its input devices, processor,
memory, storage and output devices

Which is which?
(a) Windows, (b) Sage Accounts, (c) A PC, (d) An iPod

Categories of software

- Applications software
o Software programs used by business users to support their work
o Examples
o Word processor
o Finance package
- Systems software
o Controls the computer system as it performs tasks for the end-user through
acting as a ‘bridge’ between the hardware and applications software
o Examples
o Windows
o Linux

Categories of applications software

- Enterprise systems
o Provide support across the organization for key processes such as sales,
finance and logistics for both events / transactions and record or document
management
o Examples
o ERP systems
o Document / records management
- Departmental applications
o Support specialist application within an organization such as data analysis and
modelling within finance or marketing
o Examples
o Business Objects
o Cognos
- Personal productivity and group working
o Used to support individuals when performing tasks or working as part of teams

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 o Examples
o Office suite
o E-mail and groupware

Types of systems software

- Operating systems
o Controls the computer system as it performs tasks for the end-user through
acting as a ‘bridge’ between the hardware and the applications software
o Examples
o Windows
o Linux
- Development software
o Programming languages and integrated development environments used to
develop new software
o Examples
o Visual basic
o Java
- Database systems
o Used for rapid storage, access and modification of structured data
o Examples
o Oracle
o Microsoft SQL Server

The Make, Buy or Rent decision

1. Bespoke
With a bespoke development, a completely new, unique application is developed
from scratch through programming of a solution

2. Off-the-shelf or packaged
In a packaged implementation, a standard existing system is purchased from a
software vendor and installed on computers located within an organization.
Alternatively free or low-cost open-source software

3. Hosted solution (packaged)

With a hosted solution, a standard system is used, but not managed

4. Tailored development
In a tailored development, an off-the-shelf system or hosted solution is tailored
according to an organization’s needs

Issues in software selection

1. Identify criteria and functionality for new system

The important criteria in the next section will be identified

2. The make, rent or buy decision

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For most specialist application software there is a choice of creating the software
from scratch, renting it online or purchasing it from a packaged software vendor

3. Identify possible suppliers

A ‘longlist’ of perhaps 5 to 10 suppliers that can meet the requirements listed below
will be drawn up by searching the web or from articles and ads in relevant magazines

4. Produce a shortlist of preferred suppliers

A shortlist will be produced by using a checklist to select the best suppliers from
those that meet the most requirements

5. Select supplier from shortlist

There are a number of methods for finally selecting the supplier which are dependent
on the cost and importance of the final system

Information System Defined

- Data need to be transformed into information using an information system

- What is a System?
o According to ‘Webster’s Dictionary’:
o A set or arrangement of things so related as to form a unity or organic
whole
o A set of facts, principles, rules, etc, classified and arranged in an
orderly form so as to show a logical plan linking the various parts
o A method or plan of classification or arrangement
o An established way of doing something, method, procedure, …
o According to ‘Collins’ English Dictionary’:
o A group or combination of interrelated, interdependent, or interacting
elements forming a collective entity; a methodical or coordinated
assemblage of parts, facts, concepts, etc: a system of currency; the
Copernican system
o Any scheme of classification or arrangement: a chronological system
o A network of communication, transportation or distribution
o A method or complex of methods: he has a perfect system at roulette
o …

- A system is a set of interrelated components, working together to accomplish some

goal
o Inputs: the physical and virtual resources that feed into a system
o Output: the physical and virtual products that are created by a system
o Feedback: output that is used to evaluate the performance of a system
Inputs Outputs
System

Feedback

- An Information System is a special case of system …

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… which components are hardware, software, data, people and procedures …
… that work together interdependently under some means of control …
… to process data … OR … that interact …
… and provide information to … for the purpose of supporting and
users improving both day-to-day operations in a
business (data processing) …
… as well as supporting the problem solving
and decision making needs of management

Stakeholders

Business users Government Competitors Manufacturers

- Needs - Regulation - New products - Technology

- Standards - Law - New markets - Standards
- Policy - New business

Customers / suppliers Consumers

IS
- Networking - Expectations
- Integrating - Behaviour

Employees

- Union Agreement
- Job satisfaction

The organizational system

ENVIRONMENT

Feedback

- Change plans - Performance targets

- Change resources - Performance metrics
Control

Organizational
Inputs processes Outputs
(Sub-systems)

- Finance - New product - Physical products

- Revenu development - Services
- Human resources - Manufacture - Profits
- Physical resources - Distribution - Data, information
- Data, information - Sales and marketing

The organizational environment

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 MACRO-ENVIRONMENT International: Society:
- Economic factors - Public opinion
- Legal constraints - Moral constraints
- Cultural factors - Ethical contraints

MICRO-ENVIRONMENT
Competitors

Suppliers Interme- Organization Interme- Customers

diaries system diaries

Competitors

Technology: Country-specific:
- Innovation - Economic factors
- Trends - Legal constraints
- Cultural factors

Classification of Information Systems

ESS
GDSS

Management level Expert Systems Middle management

DSS
MIS

Knowledge level Knowledge Work Systems Knowledge and data

Office Automation Systems processors

Transaction Processing Systems

Sales and Production Finance Accountancy Human

Marketing Resources