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Components of Information Systems
Components of Information Systems
Information systems (IS) are the pieces of hardware and software that are used to collect,
organize, process, and distribute data. Essentially, information systems exist so that information
can be shared between different hardware, software and users in network. The most common IS
will be investigated next.
Information Systems
Information can be gained from a broad range of sources. Where your information comes from
will depend on your industry and organizational requirements along with the requirements of
your job role. There are many systems used to record this information.
Billing Systems
Databases
Databases exist in all companies in one form or another. Databases can contain a variety of
information. A company may have an email database, a database containing each customer and
their details. Databases may even exist for past clients. The types of databases a company keeps
are all dependent on the nature of their business and what types of information they need to keep.
Database management systems (DBMS) are software that are used to collect, maintain, and
administer databases. Examples of DBMS include Microsoft Access, Oracle, and SAP.
• Internet
The fastest way to share information nowadays is with the internet. The internet can be accessed
with computers, tablets and smart phones with internet connectivity (either wired, wireless or
through a mobile connection). Recent years have seen the development of the Cloud. Essentially,
the Cloud allows users to access and store information from anywhere, with any device, as long
as the correct software is installed and the user has an internet connection. A few examples
include Dropbox, SugarSync, OneDrive, and Google Drive.
Applications such as Drop box can be installed on computers, smart phones, and tablets. With
the correct login details, users are then able to access the information they have stored on the
application.
Intranet
Intranet systems are private systems, only accessible by employees hired by an organization.
Intranet systems are useful in that information can be shared between particular work teams and
with the organization as a whole. Some Intranet systems have forums available, allowing work-
related conversations to be held. Using these forums can help employees with their work,
especially when it comes to finding solutions to problems others have encountered.
For management, it is an easy and cost-effective tool that can be used to communicate mass
messages to their employees. Protocols, policies, and procedures can also be made available on
Intranet systems, hence making it easier for employees to know where they can access important
information.
• Telephone Systems
Some companies have a system where by not all employees work at the office every single day.
Most of the time they work externally, they either work from home, or at a client’s premises.
Customer contact centers such as call centers have a large number of little work cubicles. Shift
work is most probably the system on which a call centre would work, this means it would be too
expensive for the organization to invest in a work cubicle for each of their employees. As a
result, each employee is not assigned a workstation. Rather each workstation is equipped with
the same basic set-up: chair, computer, stationary, and VOIP phone.
VOIP stands for Voice Over Internet Protocol. In short, these systems allow for communication
over the Internet. In terms of the workstations described above, the VOIP phones are set up in a
way that allows each employee who sits at the desk to log into the phone system by entering an
assigned code when they begin their shift and then the network identifies that phone as belonging
to a particular individual. At the end of their shift or work day, employees are then expected to
log off the VOIP phone, thus allowing the system is ready for the employee who next chooses to
use that workstation.
Now that some of the familiar IS systems have been highlighted, the next step is to understand
how a user logs onto them. The process of logging into a device or a program involves entering a
username and a password (both of which are specific to each user). Once the username and
password match what is in the system, they are logged in and given access to whatever it is they
need. In your own experience, you’ve likely done some internet banking, which requires you to
login using your account/client number and a password/pin before you can access your money.
○ use good passwords—the best passwords are alphanumeric, have at least six to eight characters
and do not hold a relationship to the user or contact centre
○ refrain from writing your username and password on your computer or in an easy to access
place
○ refrain from giving out your username and password to staff or customers
If login details are required to access certain information, it usually means there is sensitive or
confidential information on the system. If this information isn’t secured behind a login, anyone
can access this information and potentially use it for nefarious purposes. Login details are
usually a username/email and a password.
The most used application in an organization depends on the type of organization. In a customer
contact environment, applications such as the Intranet, information databases, word documents,
and spread sheet documents could be the most frequently used applications.
On most desktops (the main screen that a user will see once a computer starts up) there may be
application shortcuts, which will have a little blue arrow on it indicating that it is a shortcut and
the user simply needs to click on the icon and the application will open:
Another method to open frequently used applications is to go to the start button (bottom left hand
corner), and click on it. A list of the most frequently accessed application will appear. From
there, users simply click on the application/s that they require.
Computer equipment, once plugged in and switched on at the power point, is turned on by
pressing the power button found on the front of the computer. Computer screens/monitors also
have a button which needs to be pressed in order for the screen to turn on.
Usernames and passwords, as mentioned earlier, are specific to each employee. One of the
reasons why these login details are required is that this information is confidential and governed
by Privacy acts. Employees do not have full access to all information stored on the system.
Access to certain information is restricted to upper management or to employees whose job
involves access to this information.
○ Never share these two pieces of information with any of your colleagues
○ Try and memorize them, then discard the paper on which they were written on
○ Change your password every few months.
As the work day progresses and employees carry out their work tasks, they may begin opening
many applications which are all relevant to their work. They will use them interchangeably and
more than one program may need to be used for completing a single job task.
The easiest way to navigate to the different windows or apps is from the computer’s taskbar. The
taskbar is the long bar found at the bottom of the screen which often has a variety of window or
app icons, depending on what windows or apps are open and whether the user has pinned
frequently used app icons to the taskbar. The user just needs to click on the window or app icon
to open it. The window or app icon, provided it isn’t pinned, will sit on the taskbar until closed.
If you are unable to navigate multiple screens, windows and interfaces you might:
○ not be able to provide a one-stop service avoiding unnecessary transfers and call backs into the
contact centre
○ not be able to check data inputs with the customer directly, to ensure accuracy
○ not have access to information about products, services and warranties when discussing
transactions, faults and general customer enquiries
Use a Database Management System (DBMS) to Control Data Access, Enforce Data Integrity,
Manage Concurrency, and Access Information
DBMS’s are handy applications to have in an organization. They make the control of and access
to information a much easier process in the organization. There are several types of DBMS’s
which differ in terms of how data is presented, who can access information and how concurrent
the information remains. The four main types of DBMS will be explored in further detail below.
While Excel can be used to store and manage large amounts of data, it is better suited to in-depth
data analysis, formulas, calculations and representing data graphically using charts. Database
management systems such as Access are suitable for grouping and relating data and providing
multiple user access, whilst maintaining the integrity of the data.
Hierarchical Database
This database has a pyramid shape to it and levels have a parent – child relationship. There is a
direct relationship between any records that are stored consecutively. Thus related records are
essentially grouped together and since it is hierarchical structure, the higher level records will sit
above the other level records.
The record at the top of the pyramid is called the root record, as it is from this record that the
levels below it grow. The root record can have many child records, stemming from it, but each
child is linked to only one parent. A child record may also act as a parent record when there are
records below the child record.
This system is the first type of database system that was created and used. It has a few
advantages linked to it in that:
○ They are easy to access and update as the relationship between the levels are pre-defined
○ It is a simple process of locating necessary information once the user starts from the parent cell
and works downwards.
The disadvantages linked to this system include:
○ It is very rigid so where new fields need to be included, the entire database needs to be
redesigned
○ Relationships between the children cells are not allowed, even when in some instances it
would be easier if there were.
Network Database
As the name suggests, this database is made up of networks, and these networks are
interconnected. Parents are called owners and children are called members. Unlike the
hierarchical database, the children in the network database can have more than one parent (as
demonstrated in the diagram).
○ The interconnected nature of the database allows for ease of access to information
○ Data is said to be easier to keep concurrent with this database
○ As this system is defined by the need of a member and an owner, thus leading to data integrity
there is a reliance on the member – owner relationship.
Relational Databases
Both hierarchical and network databases are based on a top down system, where by a user will
need to start at the top and work their way down to find the required information. Relational
databases work on the premise that there is a particular set of data which is used to connect data
in different files. These databases are made up of tables and each table will have that particular
set of data which will help the user find the required information. For example, the Australian
Tax Office may employ a system where by data relating to clients can be identified using their
Tax File Number (TFN). One table may contain the address and contact details of the person
related to a particular TFN. The next table may contain the name of the individual connected to
the TFN and another table could show what years that TFN holder has lodged a tax return and so
on and so forth.
Object-Directed Databases
These databases are becoming popular due to their ability to handle and store new types of data
such as graphics, images, videos, as well as audio. This type of database has the ability to
produce information in a multimedia format.
• Bookmarks
Bookmarks are functions of web browsers that allow the user create a shortcut to a favorite or
frequently used website.
Bookmark functions allow users to create folders to help with the organization of a user’s
bookmarks, especially where a user regularly bookmarks pages. This is a handy tool to use as it
allows for the efficient storage and easy access to web pages that are used on a regular basis.
This data is then used to create graphs which can highlight information such as:
In its simplest form, an office automation system essentially refers to a computer system which
allows the collection, preparation, storage, and sharing of information. A local area network
(LAN) is used in organizations as it is this network which allows for computers and other pieces
of machinery, such as printers, telephone systems, and fax machines to become interconnected,
thus allowing information to be shared between them.
With the way that technology has developed in recent years there are now several ways in which
office automation systems can be integrated into modern business or work environments. These
integrations have been adopted by organizations due to the productivity advantages linked to
them. Examples of the various systems include word processing programs, email, newsgroups,
data conferencing, video conferencing, calendars, and collaboration boards.
A transaction processing system (TPS) is a system that is designed to collect and store data
relating to transactions. Transactions can include making a payment, withdrawing money from
an ATM, ordering a product or service.
These transactions are not processed immediately. The items or jobs that need processing are
batched up and at a particular point they are then processed. Take for example some banking
institutes, they require customers to submit payments or fund transfers by 4pm of the working
day, so that they can process a whole batch of payments and transfers one time during the night.
However, some banks have introduced immediate processing of payments and transfers which
are processed as soon as the customer verifies and submits the transactions.
Key Points
• An organization will have a variety of information systems, each being used for particular
tasks.
• Database management system is a very handy application to use for storing large quantities of
information.
• Information systems come equipped with tools which allow them to be managed.
Process Customer Information Using Multiple Information Systems
2.3 Use information systems according to organizational processes to complete customer enquiry
or transaction
2.5 Use the shortest reasonable pathways to navigate between and within information systems
2.6 Maintain contact and communication with the customer while operating information systems
In order to correctly process a customer’s request, it is first important to identify the customer. A
customer could be:
• A colleague
• Internal or external customers of the organization
• User, purchaser or beneficiary of a service, product, or process.
It is important to identify who the customer is as different types of customers can have different
types of information needs. The type of enquiry can dictate the type of information system that
may need to be used or accessed when dealing with the enquiry.
Different enquiries will warrant different types of information systems being used when trying to
satisfy customer information needs. The reason different information systems may need to be
used when dealing with enquiries is because different types of information may need to be
accessed which may be available on the various information systems found in the organization.
As an example, consider a customer who has a query regarding payment of an invoice. When
speaking to the customer service representative officer, the customer will indicate that the nature
of the call is in regards to invoice payment. This will act as an indicator to the representative to
access the billing system that controls the company’s finances. This then allows the customer
service representative to easily access the information required.
On the other hand, in another situation, an employee is unsure on the process that needs to be
followed when submitting an escalation report. This information can be found on the company
intranet system, alongside all other organizational policies and procedures. Thus, the important
element then is for the employee to understand that this is where they will be able to find the
necessary information which will allow the employee to correctly submit an escalation to report.
Information systems used within organizations usually have several functions, which means that
they are able to carry out a variety of tasks which can produce different types of results. An
information system will be used within an organization because the organization has a need for
the functions found in that particular system. Whilst most functions would be used, sometimes
only particular functions are required by an organization, depending on what they want the end
result to be.
Whatever the reason an organization employs a particular information system for; the
organization will develop particular processes that need to be followed in order to use the
functions in the systems. These processes will be based on best practice methods as well as the
want to produce a particular result.
Take, for example, using a billing system to create a bill or invoice for a customer.
Organizational processes may require a customer service representative to create the invoice
using an already created invoice template. This template will be directly accessible from the
billing system or from a templates folder found in the company’s Intranet. Once the template has
been retrieved the employee will then follow company processes so that they accurately input the
customer’s name and address so that they are correct when an invoice is printed
Depending on the organization, the type of enquiry or transaction, and whether the customer is a
first time customer or a repeat customer, there may be a requirement to record customer
information within certain information systems. The information systems most likely to be used
to record such information would either be in a database system or in a billing system.
The types of customer information that may be recorded can include:
Name
Address
Email address
Contact phone numbers, a fax number if applicable
The product or service they purchase
Membership number/loyalty card number/customer reference number.
If a customer is a first time customer, then these details will make it easier for a customer
representative to liaise with the customer in future dealings. This recording of information can
also allow the organization to send out newsletters or pieces of correspondence to the customer
or maybe even contact them via telephone to talk to them about services that may be relevant to
them. For example, some banks may contact a customer and inform them of a service they may
be eligible for such as credit cards or being eligible for a home loan based on the amount of
money a customer has in their savings account.
• ask questions to determine the important information required to complete each task
• Accurate and timely information ensures integrity of the business and staff, improves customer
relations, allows for prompt follow-up of all actions, and provides a basis for other staff to follow
up other queries.
You can ensure accuracy by checking work for errors and integrity of data, listening attentively
to the customer’s feedback, investigating and following up immediately.
If a customer chooses to become a member of a company’s loyalty program, these details are
collected from customers so that the organization may keep in touch with the customer.
Use the Shortest Reasonable Pathways to Navigate Between and Within Information Systems
Breadcrumb trail is the term designated to a navigation aid that helps a user work their way
around an information system. A breadcrumb trail will look something similar to this:
Home>Client Database>Investors>Mr Malcolm Mac>Contact details
or
Home>Suppliers>Macro Stationery Pty Ltd
Basically, when using a program or system, the user will start on the Home page and from there
select what information they want to access. In the first instance, the user wants to access the
Client Database. Once they have gained access to that page, they want to have a look at the
contact details for a particular investor of theirs, Mr Malcolm Mac. Once in his profile, his
contact details are accessed.
Now, with the breadcrumb trail, the user can click on any of the option in the trail to access that
section. If the user wanted to go back to the home page, they simply need to click on ‘Home’ and
they will be redirected to the home page. If the user wanted to gain access to the details for the
repair and maintenance man after having looked at the stationery supplier’s details, the user
simply clicks on Supplier on the breadcrumb trail and then locates the repair man’s profile.
This navigation aid is also found on some websites. On both the websites and any internal
systems where this aid is used, it is usually found near the top of the page or display screen.
Be more productive
Another regularly used tool to help with the ease of navigation with an information system is the
use of page navigation area which is usually found on the left or right of the page. This
navigation tool allows users to select the content they want to view or access.
Maintain Contact and Communication with the Customer While Operating Information
Systems
Using information systems whilst looking for information or inputting new information can
sometimes take a bit of time. Where this occurs and the customer is either waiting on the
telephone or they are in the office area or the shop front, keeping contact with a customer is
important. There are a number of reasons this should be done:
Verifying information with a customer before a transaction is completed is one of the most
important steps to cover in the customer contact role. Why? By going over what has been asked
or requested by the customer and highlighting what has been done to satisfy their request, a level
of reassurance and trust is developed between a customer and the customer representative. By
fully satisfying a customer’s request, the customer will feel valued because the rep has taken the
time and initiative to listen, pay attention, and correctly carry out the request.
Verifying information also allows for any unclear pieces of information to be clarified. The
customer has a chance to ask any further questions or raise any concerns that they may have
regarding the product or service they are interested in.
Furthermore, this is an opportunity for the organization to check that they have covered all
aspects of the customer’s query. This is important from a productivity point of view. An
organization needs to deal with each customer efficiently and effectively the first time round. By
doing this, it allows the organization to help and attend to other customers and thus work towards
meeting team or organizational goals. Verifying information with a customer reduces the
chances of a repeat phone call and having to cover the same query again.
Customer service levels can vary between organizations, thus small efforts such as verifying
information with the customer and ensuring that the correct information is relayed back to the
customer can certainly make an impact on how well a company is perceived by a customer.
Key Points
• Different customers will have different queries and as a result, employees should be able to
identify which information system is needed for the enquiries.
• Organizational requirements will expect the relevant customer information to be recorded in the
appropriate information systems.
• Navigation aids, such as a breadcrumb trail, are a tool sometimes found on information
systems.
• It is good practice to continually keep contact with the customer while an employee operates
the information system as well to verify all information with the customer before ending the
transaction.
Information systems have the capability of storing a large amount of information as well as
performing a variety of tasks and functions. Due to these factors, different types of information
may need to be entered into particular areas of the information system. Where information is
inserted in the wrong areas or if the information system detects something that is not compliant
with the system, the user will be alerted. Different types of errors can occur. These will be
explored below.
• Corrupt Data
Corrupt data or data corruption are errors in computer data which essentially are a result of
unintended changes which occur when data is stored, processed, or transmitted. The result of
corrupt data in a system is that the file/s in which the error occurs becomes inaccessible. A user
knows an error has occurred because an error message will appear on the screen.
Data corruption can occur as a result of:
This type of error is quite straightforward. As was highlighted earlier, information systems are
designed to store a large amount of and a variety of types of information. This is why
organizations use information systems. Due to the complexity of information that can be stored
in these systems, particular parts of the systems are designed in a way that allow certain data
types and particular data formats to be entered into specific data cells.
Common mistakes include inserting someone’s first name into the family name and vice-versa.
• Inaccurate Data
Inaccurate data can encompass many things. Common inaccurate pieces of data can result from
spelling errors, selecting the wrong option from a drop down list such as selecting Single instead
of Married for one’s marital status.
Another example: consider entering a date into a form in a billing system. As individuals we
know that there are multiple ways of entering a date – by writing it out in full, by separating day,
month, and year using forward slashes or with hyphens. On some forms, the preferred way of
entering in a date may not be made clear. As a result, the user will enter the date information as
they like. Once submitting the form, an error may appear, and on further inspection, the user may
see that the error was as a result of the date being typed in using an incorrect format, thus the
system does not recognize that piece of information as a date. The user then needs to re-enter the
information according to the instructions that appear as a result of the error message.
Some information systems are designed in a way that need certain types of information to be
inputted before the next piece of information is entered. Where this is the case and the user
forgets to or overlooks the need to first enter a particular type of information before proceeding
to the next step, an error message pertaining to the need to fill in required data cells comes up.
In most cases, the information systems tend to highlight the areas which need attention when
errors arise. They are usually highlighted in red and this makes it easier for the individual to
identify the problem area. A simple instruction can also accompany the error message as to how
to rectify the problem.
What impact do these various types of errors have on an information system and customers? In
some instances, these errors are simple to rectify, provided the user has identified the error. For
example, where inaccurate data has been entered, provided the system has clearly indicated the
area where there is a case of inaccuracy, the user can fix the error.
However, consider a situation where an error comes up, but the individual does not take efforts
to rectify the error and chooses to ignore it?
This can have a significant impact on the processes of the information system, the organization,
and the customer. Where pieces of separate information are needed to create a particular set of
information and not all the information is available, it can impact on the overall result. Key
pieces of information will be missing, which could lead to delays in the processing of the
information because time will need to be taken to identify why there are missing pieces of
information and what error needs to be attended to.
Errors that arise as a result of a data corruption can be quite serious especially where the data
corruption is a result of bad programming, or hardware or software malfunctions. At times these
problems are not easily fixed or can be quite costly to repair. This could mean a replacement
information system will be needed. Where data corruption exists, there may be a chance that
there will be a delay in processing the customer’s request or enquiry.
Sources of errors can be quite hard to identify to an untrained eye, especially where the error
message is quite a complicated series of codes which are presented to the user. However, some
data errors are quite simple errors which may not necessarily be as a result of the system itself,
but rather due to human error. In terms of inaccurate data entry and entering data into incorrect
fields, the source of these errors can be attributed to an individual who makes a mistake, a
mistake as simple as mistyping a word, for example, Blak instead of Black. Further, where a user
needs to select information from a drop down list of options, the incorrect option may be
selected, unknown to the user because they may not go back and check the selection.
Other sources of errors can include the design of form into which data is entered. The form may
not be designed well. Some fields in the form may be confusing to the user in that they are
unsure of what information they are expected to enter. This uncertainty may lead them to enter
information they think should be entered, which may not necessarily be the information they
were expected to enter.
Missing information may also be a source of errors, simply because a customer (or a data entry
worker) did not enter certain pieces of information. This is why with online forms, there are
fields which the organizations will denote as Required Fields, hence the individual needs to fill
in those pieces of information as it is that information that an organization most requires to
process information.
The information system itself can be a source of errors too. The errors generated can be as a
result of bad or incorrect coding. Coding and algorithms are some of the few elements that are
required to connect various parts of software together, allowing processes to occur. When the
codes are not accurate, it can affect how the system processes information. Websites too have
errors. These errors can be as a result of broken links, website, or webpage not being in use
anymore, or again, coding problems.
Another source could be the program that is being used. It may be corrupt, hence making the
information on that program inaccessible. See the section previously which discusses data
corruption. There are a few sources listed there relating to causes of data corruption.
Big error problems can lead to system down time. For example, in an organization set up, the
telephone systems are connected via a LAN system (as was explained at the beginning of the
module). In order for this system to work, it is run by a particular type of software. Like many
pieces of software, they need to be updated regularly. These updates insert new features and
functions. Where these updates are not carried out properly or steps are missed out during the
installation process, this can affect how well the system works. This is a problem that can be
faced by an organization where their telephone system gets a system update.
In summary, being able to identify error sources will depend on the nature of the error. It may be
something very simple such as an inaccurate entry which is easily fixed however where the
source lies directly with the hardware or software of the information system, then certainly, a
higher level of expertise would need to be approached to help rectify the problem.
There are several people who an employee can consult with in order to rectify errors. Reporting
these errors to the appropriate people is important because the chances are that employees may
not necessarily know how to fix any errors because they lack the expertise to do so. Stakeholders
that can be approached include:
After approaching the right people to rectify the errors, the next step is to find out how to rectify
the errors and ensure that these solutions are the needed solutions. The type of rectification that
is chosen depends on the seriousness of the error. In the instance of data being typed in the
incorrect fields, the solution to that error can be as simple as inserting the data into the correct
data field.
However, in terms of a more complex error such as data corruption, solutions to such an error
will vary. Perhaps a simple rebooting of the computer and re-opening the system in question may
fix the problem. Where a serious problem exists, a data recovery organization or specialist may
need to be approached.
The issue of rectifying system errors is a sensitive matter and caution must be taken. As the
information contained in information systems is of high importance, losing it forever can be
quite concerning. For this reason, professional help should be sought especially when there is a
high level of uncertainty attached to the situation.
Inform Customers of Errors and Take Necessary Action
Dealing with errors can be a time consuming process (depending on the complexity of the error
and the experience level of the employee dealing with the errors). When an employee is
interacting with a customer either over the telephone or face-to-face and a delay occurs due to an
error, the customer must be informed. It is impolite to keep a customer waiting. It reflects badly
on the company and the customer can become impatient and frustrated if they do not understand
the reason for the delay.
Employees should take care to reassure the customer of the situation and that everything is being
done to rectify the problem. Where a delay is getting longer, a different approach may need to be
taken in terms of keeping the customer informed. Taking the customer’s contact numbers and the
best time to contact them is a good approach. Once the error has been rectified and an
employee’s supervisor is happy for a customer to be contacted, then contact can be made with
the customer and the conversation can carry on from where it left off.
Identify Information System Faults and Notify Relevant Personnel According to Policy
As was highlighted previously, the task of fixing errors can be quite tricky. Due to the
uncertainty linked to some errors, it then becomes important to notify the relevant personnel.
This is necessary because those relevant personnel (see note on stakeholders previously) will
have the expertise and the knowledge of how to rectify such problems.
All organizations are governed by specific policies and procedures. Dealing with system errors
will be no different. Part of the procedure of dealing with errors will include reporting any errors
to relevant personnel. Lodging a report of any errors may be required so that the organization can
monitor errors that occur. Constant occurrence of errors can highlight an underlying problem in
an information system. This can help IT experts diagnose the cause and the nature of the errors.
From there, the experts can assemble and implement strategies which can reduce or stop these
errors from occurring.
An organization depends on procedures to allow for the smooth, daily running of the business.
One way an organization will know if the implemented procedures work is when they are used
and they produce the desired results. Some procedures are used more regularly than others, some
are used less frequently. In most organizations, the hope is that errors do not occur on a regular
basis, and thus when they do occur, it could bring to light a few loop-holes in the procedural
process of dealing with errors. On the other hand, the procedures that are in place could work
smoothly and can give the required results.
There is always room for improvement and organizations will generally appreciate any
recommendations. So where an employee can make a recommendation in terms of changing
policy with regard to handling or dealing with errors, there will be a procedure that they will
need to follow in order for the procedural change to come to fruition. For example, an employee
makes a written report to their supervisor highlighting what they see can be improved and how
they recommend the improvement can be implemented. The supervisor, provided they can see
the advantage in it, will then take the recommendation to higher levels of management and so on,
until the recommendation is either accepted or rejected.
Key Points
• Whilst information systems are capable of storing a lot on information and carrying out a
variety of tasks, they can be affected by errors.
• The effect errors can have on an organization and customer can vary, depending on how
problematic the error.
• Approaching and informing the relevant personnel with regards to the error is very important.
• Making recommendations on how to deal with errors when they arise is an important aspect for
business efficiency and business progress.
Information system
Computer hardware
This is the physical technology that works with information. Hardware can be as small as a
Smartphone that fits in a pocket or as large as a supercomputer that fills a building. Hardware
also includes the peripheral devices that work with computers, such as keyboards, external disk
drives, and routers. With the rise of the Internet of things, in which anything from home
appliances to cars to clothes will be able to receive and transmit data, sensors that interact with
computers are permeating the human environment.
Computer software
The hardware needs to know what to do, and that is the role of software. Software can be divided
into two types: system software and application software. The primary piece of system software
is the operating system, such as Windows or iOS, which manages the hardware’s operation.
Application software is designed for specific tasks, such as handling a spreadsheet, creating a
document, or designing a Web page.
Telecommunications
This component connects the hardware together to form a network. Connections can be through
wires, such as Ethernet cables or fibre optics, or wireless, such as through Wi-Fi. A network can
be designed to tie together computers in a specific area, such as an office or a school, through a
local area network (LAN). If computers are more dispersed, the network is called a wide area
network (WAN). The Internet itself can be considered a network of networks.
This component is where the “material” that the other components work with resides. A database
is a place where data is collected and from which it can be retrieved by querying it using one or
more specific criteria. A data warehouse contains all of the data in whatever form that an
organization needs. Databases and data warehouses have assumed even greater importance in
information systems with the emergence of “big data,” a term for the truly massive amounts of
data that can be collected and analyzed.
The final, and possibly most important, component of information systems is the human element:
the people that are needed to run the system and the procedures they follow so that the
knowledge in the huge databases and data warehouses can be turned into learning that can
interpret what has happened in the past and guide future action.