1.

Information systems are combinations of hardware, software, and telecommunications networks

that people build and use to collect, create, and distribute useful data, typically in organizational
settings

Example: patient record.

2.

Input is anything we wish to embed in a system for some type of use. A variety of sources are
used to input: keyboard, scanner, microphone, mouse, even another computer. What we input has
a purpose - but until it is processed and generated in some form of output, it doesn't do us much
good.

Processing takes place in the internal parts of the computer. It is the act of taking inputted data
and converting it to something usable. What we typically see on the screen in today's computer
world (known as what you see is what you get or WYSIWYG) is the result of our input being
processed by some program so we can have usable output: an English paper, an edited
photograph, this video you're watching.

Output, or processed information in a usable format, comes in many different forms: monitor or
printer for visual work, a speaker for audio. Sometimes our output is short-term, such as printing
a photo, and sometimes what we work on needs to be kept around for a while. That's where
storage comes in.

Storage is the term used to indicate we will be saving data for a period of time. We store for
many reasons: for future reference; to prevent full loss of data; because we forget to purge. But,
storage is vital. There are several mediums on which we can keep output and processed data: a
hard disk, a USB drive, a CD.

3.

In today’s technology is continuously changing, where customers’ requirements and preferences

are always evolving, the only businesses that can hope to remain competitive and continue to
function at the performance levels that can match their customers’ expectations are those that are
going to embrace innovation.

Information systems (IS) importance has increased, and most businesses have been prompted to
introduce it to keep their competitive edge. Today, nobody can envisage a business without an
effective information system. Introduction of an information system to a business can bring
numerous benefits and assist in the way the business handles its external and internal processes
that a business encounters daily and decision making for the future.
Many businesses today do not make use of internet which is very important in this day.
Upgrading the computer information system is not an option in this technology-driven era, it is
essential. The follow are reasons why businesses need to use information systems.

Operational Excellence:
In order for a business to achieve high levels of profitability, they need to improve the efficiency
of their operations. Information systems is a tool that is used in order to achieve high levels of
efficiency and productivity in business operations.

New Products, Services and Business Models:

Information systems can be used to create new products and services and also an entirely new
business model. A business model describes how a company produces, delivers and how they
sell a product or service to create wealth.

Customer/Supplier Intimacy:
When a business provides a good product or service customers tend to return and purchase more
frequently which raises revenue and profits. The more a business engages with its suppliers, the
better the supplier can provide vital inputs which can lower costs.

Improved Decision-Making:
Information systems allow the managers to use real-time data from the marketplace when
making decision.

Competitive Advantage:
When a firm achieved one or more of these business objectives (operational excellence, new
products, services and business models, customer/supplier intimacy and improved decision-
making), they may have a competitive advantage. By performing better than competitors,
charging less for superior goods and responding to customers and suppliers, higher sales and
profits can be made.

Day To Day Survival:

Businesses must invest in information systems and technology as they are essential to doing
business. This necessity is caused by the industry level changes and firms need to use
information systems and technology in order to provide the capability to respond to these.
Information systems enable companies to react, respond, cater, store, retrieve, disseminate and
control their new valuable asset that is information. In the future, a good information system in a
business will no longer be an option; it will become a compulsory in determining success.

Understanding Value Chains

Because of ever-increasing competition for unbeatable prices, exceptional products, and
customer loyalty, companies must continually examine the value they create in order to retain
their competitive advantage. A value chain can help a company to discern areas of its business
that are inefficient, and then implement strategies that will optimize its procedures for maximum
efficiency and profitability.
Primary Activities
Primary activities consist of five components, and all are essential for adding value and creating
competitive advantage:

1. Inbound logistics include functions like receiving, warehousing, and managing

inventory.
2. Operations include procedures for converting raw materials into a finished product.
3. Outbound logistics include activities to distribute a final product to a consumer.
4. Marketing and sales include strategies to enhance visibility and target appropriate
customers—such as advertising, promotion, and pricing.
5. Service includes programs to maintain products and enhance the consumer experience—
like customer service, maintenance, repair, refund, and exchange.

Support Activities
The role of support activities is to help make the primary activities more efficient. When you
increase the efficiency of any of the four support activities, it benefits at least one of the five
primary activities. These support activities are generally denoted as overhead costs on a
company's income statement:

1. Procurement concerns how a company obtains raw materials.

2. Technological development is used at a firm's research and development (R&D) stage—
like designing and developing manufacturing techniques and automating processes.
3. Human resources (HR) management involves hiring and retaining employees who will
fulfill the firm's business strategy and help design, market, and sell the product.
4. Infrastructure includes company systems and the composition of its management team
—such as planning, accounting, finance, and quality control.

5.

Deciding which new systems to build should be an essential part of the organizational planning
process. Organizations need to develop an information systems plan that supports their overall
business plan and in which strategic systems are incorporated into top-level planning. Once
specific projects have been selected within the overall context of a strategic plan for the business
and the systems area, an information systems plan can be developed. The plan serves as a road
map indicating the direction of systems development.

CASE ANALYSIS

McDonald’s has a huge history which goes back in time to show the development of the
organization over the years. McDonald’s is a huge chain of restaurants operating globally. More
than 32,000 stores located across the globe shows the measures using which the company has
expanded. The development of the business took place in the 20th century (McDonalds, a). Over
the years the business has developed a prominent position in the industry. It has succeeded in
doing so by acquiring a competitive edge and sustaining a prominent position in the industry
with the application of new technology for managing the operations. McDonald’s is a well
renowned fast food chain which has utilized the applicative systems of IT for enhancing their
overall business performances. Application of different forms of information systems is used for
improving the day to day functionality of the businesses. The Transaction Processing Systems
(TPS) is used when the hamburgers are ordered to the suppliers. The system records the names,
address and quantity ordered in its system. Recording all this information helps in managing the
inventory efficiently and secures the proof for the transactions which took place. Similarly the
application of the MIS system helps in producing the daily record of employees work schedule
and compares the budget and efficiency of the employees. This will help the manager in
designing the plans for the future and control the operational success of the business accordingly
(McDonalds, f). In McDonald’s the MIS system is applied so that the periodic assessment reports
can be generated. This assesses the progress of the employees and helps the management in
assessing their efficiency and proposing the level of targets which are been met by the
employees. Using this system the operational budget of the organization is also assessed. The use
of MIS system is the basis of profitability. The information which is available is crucial for the
managers and staff for understanding the business performance and establishes future goals and
targets for the organization.