Downloaded from TVET lite

a
o .z
.c
rs
INTRODUCTION TO INFORMATION SYSTEMS
pe
pa
et
tv

Downloaded from TVET NCV Exam Papers

 Downloaded from TVET lite

a
o .z
.c
TOPIC 3

rs
THE IMPACT OF INFORMATION TECHNOLOGY

pe
ON BUSINESS PRACTICES
pa
et
tv

Downloaded from TVET NCV Exam Papers

 Downloaded from TVET lite

IMPACT OF COMPUTERS ON MANAGEMENT AND INFORMATION SYSTEMS

a
o .z
.c
CENTRALIZED INFORMATION SYSTEMS

Advantage Disadvantage

rs
• Duplication of information eliminated • Designing and setting up system is complex

pe
• Same information shared among all users • Less flexibility in system
• Improved security control as data sets stored in • When system down, communication among
one place terminals affected
pa
• All related information is stored in one place
• Responsibility and accountability are easily
placed or assigned
et
tv

Downloaded from TVET NCV Exam Papers

 Downloaded from TVET lite

IMPACT OF COMPUTERS ON MANAGEMENT AND INFORMATION SYSTEMS

a
o .z
.c
DECENTRALIZED INFORMATION SYSTEMS

rs
Advantages Disadvantages
• Each branch has full control of its data • Lack of consistency

pe
• System less complex • Difficult to manage as each branch handles
• Takes less time to develop and implement data differently
• Users can modify system to meet their needs • Duplication of data
pa
• Initial cost relatively low • Required trained personnel
• Therefore increased cost
et
tv

Downloaded from TVET NCV Exam Papers

 Downloaded from TVET lite

IMPACT OF COMPUTERS ON MANAGEMENT AND INFORMATION SYSTEMS

a
.z
DIFFERENCE BETWEEN CENTRALIZED IS AND DECENTRALIZED IS

o
Centralization Decentralization

.c
Definition All computers are connected to a central Computers are distributed throughout the
point, which can be a mainframe organization and linked together via data

rs
channels
Involves Systematic and consistent reservation of Systematic dispersal of authority

pe
authority
Communication flow Vertical Open and free
pa
Decision-making Slow Faster
Advantage Proper coordination and leadership Sharing of burden and responsibility
Power of decision-making Top management Multiple persons have the power of decision-
et

making
Control Considerable control over organization Insufficient control over organization
tv

Best suited Large organizations Small to medium organizations

Downloaded from TVET NCV Exam Papers