FUNDAMENTAL INFORMATION SYSTEM CONCEPTS

SYSTEM CONCEPT:

A System as a group of interrelated or interacting element forming a unit which, working towards a common goal. e.g. The System of sun and planets, the system of human body, the system of a college, the system of business organisation.

For the field of Information Technology "A System is a group of interrelated component working together toward a common goal by accepting inputs and producing output in an organised transformation process. Such as a system (called dynamic system has three basic interacting components or element.

• Input:Input involves capturing and assembling element that enter the system to be processed. For example: raw material, energy, data and human effort must be secured (protected) and orgainse for process
•  Processing:
  It is method or series of steps by which data changes into information (output). Examples are a manufacturing process, the human breathing process, or mathematical calculations etc.
• Output:Result of process data and instruction that is obtained from the system. For example, finished products, result etc.
  
  

 The System Concept can be mad more useful by including two additional component feedback and control.

Feedback & Control:

• Feedback:
  Feedback is data about the performance of a system. It is necessary to know whether the results of data processing are helpful for the business or not. In this step, we take the comments of different users about the data processing system and its output. This step is helpful for future planning. For example, data about sales performance is feedback to a sales manager.
• Control:
  Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal. The control function then makes necessary adjustments to system's input and processing components to ensure that it produces proper output. For example, a sales manager exercises control when he or she reassigns salespersons to new sales territories after evaluating feedback about their sales performance.

CHARACTERISTICS OF SYSTEM

The characteristics of a common system are as under:

• A system does not exist in a volume rathe than it exist and functions in an environment containing other system.
• A large system may have more than one small system called sub system and the large system is its environment.
• Several system may share the same environment. Some of these system may be connected to one another by mean of share boundary or interface. 
• A system may be open system that is a system that interact with other system in its environment.
• A system has the ability to change itself or the environment in order to survive as an adaptive system.
  Example:
  Organisation such as business and government agencies are good examples of the system in society, which is their environment, society contains a multitude of such systems, including individuals and their social, political and economic institutions. Organisations themselves consist of many subsystem, such as department, division, and other work groups. Organisations are open system, because they interface and interact with other systems in the environment.

NAME & DIAGRAM OF COMPONENT OF AN INFORMATION SYSTEM

Information System is a system that accepts data resources as input and processes them into information products as output.

1.  Resources:
   People, hardware, software, data and networks are five basic resources consist of Information System.
2. Activities:
   Input, Processing, Output, Storage & Controls. All information system uses these components to transform raw material into information product.

INFORMATION SYSTEM RESOURCE WITH HELP OF DIAGRAM

Information System consists of five major resources people, hardware, software, data and network, which you can see above diagram.

• People Resource:
  People are required for the operation of all Information System. People resources include programmer and all other person who use computer. The basic purpose of any Information System is to provide information to the people.
• Specialists:
  Are people who develop[ and operate Information System. They include System Analysts, Programmers, Computer Operators, and other Managerial Technical and Clerical IS Personal (Workers),
• End Users: 
  End user also called users or client)____ any one else who uses Information System.
• Hardware Resources:
  The hardware component consists of all the physical devices used with in the Information System. The equipment includes hardware like computer, terminals and printers and non-computer equipment like typewriter, other machine, paper, printing ribbon etc/
• Machine:
  Computers, video monitors, magnetic disk devices, printers, optical disk, 
• Media:
  Media (tangible object on which data recorded): Floppy disk, magnetic tape, optical disks, plastic cards, paper forms, CD's Rom.
• Software Resources:
  The computer programmed used for processing information and control hardware such as MS-Office, payroll program, peach-tree and Windows etc.
• Data Resources:
  Data is raw material of Information System. Data is necessary for any Information System. Any deficiency in data causes it seriously. Data can take many forms, including Alphabetic, numeric, alphanumeric data, other character that describes business transaction. The data resources are organised, stored, and accessed by a variety of sources management technologies.
  For Example: Name, Address, Product descriptions, Customer records, employee files, inventory databases.
• Network Resources:
  Networks used for data communication and internet to exchange information.

INFORMATION SYSTEM ACTIVITIES

The Information System activities (functions) are input, processing, output, storage and control.

1. Input of Data Resource:
   Data about business transactions and other events must be captured and prepared for processing by the input or data entry activity such as recording and editing. End-user enter data directly into a computer system or record data on some type of physical medium such as paper form. Once entered, data may be transfer on to a machine-readable medium such as magnetic disk, optical disk etc until needed for processing.
   For example sale data could be captured by sale person using computer keyboard are optical scanning device to enter data into the computer.
2. Processing of Data in to Information:
   Data are usually process through calculating: computing, sorting, organise, analyze manipulate data, thus converting data into information for end user.
   For example calculating employee's pay, taxes and other payroll deduction. 
3. Output of Information Product:
   Information in various forms in transmitted to end users and make available to them in the output activity. Productions of appropriate information products for end user as the goal of information system. Common information product include massages, reports, forms, and graphics image which may be provided by video displays, audio response, paper report, and multimedia e.g. producing and displays about sales performance.
4. Storage of Data Resources: Storage is a basic system component of an Information System in which data and information are retained in an organise manner for latter use. Stored data are commonly organised in to fields, records, files and database e.g. Storing record of customer, employees and products.
5. Control of System Performance:
   It involves measuring performance and taking corrective decision if required. An Information System should produce feedback about its input, processing, output and evaluated to determine if the system is not meeting standards. Then appropriate system activities must be adjusted so that proper information product is produce for end users. These activities are known as control.
   For example a manage may discover that subtotal of sales amount in a sales reports do not add up to total sales. This might mean that data entries or processing procedure need to be corrected. Then change would have to be make to ensure that all sales transactions would be properly captured and process by a sales information system e.g. Generating audible signals to indicate proper entry of sales data.

 RECOGNISING INFORMATION SYSTEM (Different Types of Information System)

There are many kinds of Information System in the real world. All of them use hardware, software, people and othher resources to transform data in to information product. There are different types of Information System, which are as under.

• Manual Information System:

  In manual Information System every thing is done by hand. All types of calculations, processing and operations required to convert data into information, are performed by human beings. In Manual Information System peoples use simple tools such as pencils and paper etc.

• Mechanical Information System:

  In this data processing different calculation processing is performed with mechanical machine.

• Electronic Data Processing System or Computer Based Information System:

  The Computer based Information System where people use computer system to transform data in to information products. The input of data is given to the computer, which converts this data into information by applying the required processing. In computer different software packages are used for data processing.
  As a business professional, you should be able to recognise the fundamental of Information System.
• The people, hardware, software, data and network resources they use. 
• The types of Information Product they produce. 
• The way they perform input, processing, output, storage and control activities.

 EXPANDING ROLE OF INFORMATION SYSTEM

Until the 1960s, the role of most Information System was simple transaction processing, record keeping, accounting and other electronic data processing applications. Then another role was added as the concept of management information systems (MIS). By the 1970s, respecified information products produced by such MIS ware not adequately meeting many of the decision making needs of management. So the concept of decision support system (DSS) was born. In the 1980s, several new roles of Information System appeared. First the rapid development of microcomputer processing power, application software package and telecommunication networks gave birth to the phenomenon of end user computing. Now end useres could use their own computing resources to support their job requirement instead of waiting for the indirect support of corporate information services edepartment.
Second Executing Information Systems attempted to give top executive an easy way to get the critical information they want, when they want it, tailored to the formats they prefer.
Third, the use of Artificial Intelligence (AI) technique to business information systems, expert system (ES) and other knowledge based systems forged a new role for Information System.
An important new role the concept of strategic role for information system, sometimes called strategic information system (SIS) (1980 - 90). In this concept information technology becomes an integral component of business process, products and service that help a company gain a competitive advantage in the global marketplace.
Finally, the rapid growth of the internet, intranet, extra-net and other interconnected global networks of the 1990s has dramatically changed the capabilities of Information System in the business. Inter networked enterprises that is e-commerce and e-business.

TYPES OF INFORMATION SYSTEM

There are two types of Information System of Information System can be classified in to two types.

1. Operation Support System.
2. Management Support System.

Operation Support System: 

An Information System that collects, process and stores data generated by the operations systems of an organisation and produces data and information for input in to management information system or the control of an operations system. These system produce a variety of information products for internal and external use. The role of Operation Support System in the business firms is to efficiently process business transactions, control industrial process, support enterprise communication and collaboration and update corporate database.
There are three types of Operation Support Systems.

• Transaction Processing System:
  This system is used to store and process day-to-day business activities. Automated Teller Machine (ATM) is an example of Transaction Processing System (TPS). This system processes data faster reduce clerical costs and improves customer service. Transaction processing system process transaction in two ways.
• Batch Processing:
  In this data of transactions is accumulated over a period of time and process periodically.
• Real Time Processing:
  In this data are processed immediately after a transaction occurs.
• Process Control System:
  Process control system monitor and control physical process. e.g. a petroleum refinery uses electronic sensors linked to computers to continually monitor chemical process and make instant (real time) adjustments that control refinery process.
• Office Automation System:
  Office Automation Systems collect, process, store and transmit information in the form electronic office communications. Office Automation System provides the facilities to create and distribute graphics and documents, send messages, schedule appointment, browse the web and publish web pages. The Office Automation System enhances office communication and productivity. Most important Office Automation Software is Word Processing, Spread Sheet, Database. Presentation, E-Mail, Web Browser and Personal Information Management...
  For Example a business may Word-Processing for office correspondence, electronic mail to send and receive electronic messages, desktop publishing to produce a company newsletter and teleconferencing to hold electronic meetings.

Management Support System:

An Information System that provides information to support managerial decision making is called Management Support System (MSS). Management Support System providing information and support for management decision-making by all types of manager and business professionals. More specifically, several major types of Information Systems are needed to support a variety of managerial end user responsibility.
Many types of Information Systems are required to support managerial end users responsibilities. Their major categories are:

1. Management Information System (MIS):
   Management Information System is used to generate timely, accurate and organised information for the manager and other users. This information is used to make decision, solve problems, supervise activities and monitor process. It provides useful information for the management to make important decision about the organisation. MIS creates three types of information.
   
   • Detailed report: It contains only transaction.
   • Summery Report: It consolidates data to review it quickly and easily. It normally contains totals, tables and graph.
   • Exception Report: It identifies data out side of a normal condition. This condition is called exception criteria.
2. Decision Support System (DSS):
   Decision Support System is used to analyse data and make decision. Different manager require different types of information. DSS provides information for different type of users according to their needs. A DSS helps different users to find the information they need.
3. Executive Information System (EIS):
   The goal of computer-based Executive Information System is to provide top and middle management with immediate and easy access to selective information. It supports the strategic information needs of executive management. Executive Information System provides critical information in easy-to-use displays to executive and managers. It present information as a chart and table. For example top executive may use touch screen terminals to instantly view text and graphics displays that highlight key areas for orgiansational and competitive performance.

 CLASSIFICATION OF INFORMATION SYSTEM

There are five types others categories of Information System.

1. Expert System:
   An Expert System is a knowledge based Information System that uses its knowledge about a specific area to act as an expert consultant to users medicine, engineering, physical science and business. For example: Expert System now helps diagnose illness, search for minerals, analyse compound, recommend repair and do financial planning.  OR
   An Expert System is an intelligent computer program, which contains knowledge about some particular field to assist human expert or provide information to those people who do not have any access to an expert in that particular field.
2. End Users Computing System (Knowledge Management System):
   End Users Computing Systems are computer-based information system that directly support both the operational and managerial applications of end users. End Users Computing are the direct use of computers by  end users. In End User Computing System end users use microcomputer workstations, software packages and databases for personal productivity, information retrieval, decision support and application development. For example, users may use word-processing, spreadsheet, send e-mail and retrieve information from data base. End Users Computing is the involvement of end users (including employees, managers and executive) in the development use if information system.
3. Strategic Information System:
   The Strategic Information System using information technology to develop products, services and capabilities that gives company strategic advantages over the competitive forces it faces in the global marketplace. This creates Strategic Information System, information system that support or shape the competitive position and strategic of an enterprise. So a Strategic Information System can be any kind of Information System (TPS, MIS, DSS etc) that helps an organisation gain a competitive advantages, reduce competitive disadvantages, or meet other strategic enterprise objective. e.g. online stock trading, shipment tracking and e-commerce WEB systems.
4. Business Information System:
   Information System that support basic business functions such as accounting or marketing are known as Business Information System. Business Information Systems provide managers with a variety of information products to support their decision-making responsibilities in each of the functional area of business. for example Information System that support application in accounting finance, marketing, operation management and human resources management.
   Financial Managers need information concerning financing cost and investment returns provided by financial information system. Marketing managers need information about sales performance and trends provided by marketing information system.
5. Integrated Information System:
   Many software applications use a mixture of different types of Information Systems to create information for different types of users. Most Information System designed to produce information and support decision making for various levels of management and business function as well as do record keeping and transaction processing.

MANAGEMENT INFORMATION SYSTEM

SYSTEM:

A System as a group of interrelated or interacting elements forming a unit which, working towards a common goal. e.g. The System of sun and planets, the system of human body, the system of a college, the system of business organisation
For the field of Information Technology " A System is a group of interrelated components working together towards a common goal by accepting inputs and producing output in an organised transformation process. Such as system (called dynamic system) has three basic interacting components or elements.

• INPUT
  Input involves capturing and assembling elements that enter the system to be processed. For example: raw material, energy, data and human effort must be secured (protected) and organise for processing.

• PROCESSING
  It is method or series of steps by which data changes into information (output). Example are a manufacturing process, the human breathing process, or mathematical calculations etc.

• OUTPUT
  Result of process data and instruction that is obtained from the system. For example, Finish Products, Results etc

 DATA 

 Data is a plural form of the Latin word Datum. The collection of fact and figure is called Data OR any thing in raw form is called Data. Data can not be used for decision making or action taking. e.g. Name, Address, Number, Phone Number, Roll No. etc.
Example:
When student fill College Admission Form the form consists of raw facts about students. These raw facts are student's name, father's name, marks obtain etc.

INFORMATION

 To organise the data in meaningful form upon which people can take necessary decision is called Information e.g. 2,1,5,4 when sorted it become 1,2,4,5 which is information. Information is the meaningful, processed data, which is relevant and accurate and there by can be used in decision-making. Examples are voucher, bills, fee registration cards or library cards.
Example:
When the student's admission is processed and makes merit list the merit list is the Information

Remember that the computer is one of the data processing systems that convert raw data in to useful information.

Therefore we can write it graphically as:

COMPARE DATA AND INFORMATION 

DATA & INFORMATION:

1. Data is a set of raw facts, while Information is processed form of data.
2.  Data is used as input in the compute, while Information is the output of computer.
3. Data is not meaningful, while Information is meaningful.
4. Data is asset of organisation and is not available to the people for sale, while Information is normally available for sale.
5. Data is an independent entity, while Information is depend on data.
6. Data is not use in decision making, while we can take any action or decision on information.
7. Data is use rarely, while Information is used frequently.

COMPUTER

Computer is electronic device, which can accept the input data, process the data and gives the result / information of the process data / values according to the instruction.

MANAGEMENT

Management is the process of leadership involving the management functions of planning, organising, staffing, supervision (directing), and controlling.             OR
Management as a level of personal that oversee the tasks of planning, organising, staffing, supervising, and controlling business activities.
In the above definition the five basic functions, considered classic tasks of management, are defined as follows:

• PLANNING:
  Planning is to try to get yourself or your organisation from your present position to an even better position. Planning is setting objectives, both long - term and short - term, and also developing strategic for achieving them.
• ORGANISING:
  To achieve your goals, you must organise the parts in a coordinated and integrated efforts. Organising is making orderly arrangements of resources, such as people and materials.
• STAFFING:
  Staffing has to do with people. Staffing is selecting, training, and developing people. In some cases, specialists, such as those in the human resources department, may do it. 
• SUPERVISING:
  Supervising is directing, guiding, and motivating employees to work towards achieving the organisation's goals.
• CONTROLLING:Controlling is monitoring the organisation progress and adapting methods towards achieving its goals.

MANAGEMENT INFORMATION SYSTEM (MIS) OR INFORMATION REPORTING SYSTEM (IRS)

Computer-based information system that derives data from all of an organisation's department and procedure summary, exception (exemption), periodic and on-demand reports of that organisation performance.         OR
Management Information System provides information in the form of reports and displays to managers and many business professionals. For example, sales managers may use their network computers to get instantaneous displays about the sales result of their products and access their corporate intranet for daily sales analysis reports. e.g. sales analysis, production performance and cost trend reporting system.

Feature of MIS as Follows

1. Input and Output:
   Input consists of processed transaction data such as bills, order, and paychecks, plus other internal data. output consists of summarise structured report, budget summaries and production schedule.
2. For Middle Manager:An MIS is intended (proposed) to assist middle manager that is it helps them with tactical (planned) decision.
3. Draws From all Department:The MIS draws from all department.
   Produce several kinds of report:- The manager at this level usually receive information in the form of several kinds of reports: summary, periodic, exception and on demand report.

INFORMATION TECHNOLOGY 

The combination (merging) of computer and communication is called Information Technology. Information Technology is the technology that merges computing with high-speed communication links carrying data, sound, image, graph, and video. Computer and communication are the parents of the information age. The interconnection of computer enables peoples to send and receive information.
The world has become a global village due to advancement in information technology. It means that people living in the wold know one an other as if they are living in a village. Information can be transferred from one place to another place easily and quickly. It manages a network of computers for creating WEB Pages, producing videos digitally, selling, buying, and any type of business on the Internet. For example, telephone and radio equipments and switches used for voice communication.
The components of Information Technology are as follows: 

•  Computer:
  Electronic system that can be instructed to accept, process, store and information.
• Communication Network:
  It is an interconnection of different location through a medium than enable people to send and receive information. Communication network allows people and business to interact. It include hardware, programms, and information.
• People:
  People are required for the operation of all information technology system. These people resources include programmer and all other persons who use IT.
• Software: All programms which are used for solving problem and to communicate with computer. For example: Operating System, Spread Sheet, Word Processing, Telecommunication Management Programm etc.
• Data:
  Data is a raw material of Information Technology. Data can take many forms including numeric, alphanumeric, alphabetical, audio and video etc.

INFORMATION SYSTEM / DATA PROCESSING SYSTEM

It is an organised combination of people, hardware, software, communication networks, and data sources that collect, transforms and distribute information in an organisation.
OR
An Information System is a System that accepts data resources as input and processes them into information product as output.    
OR
A set of people, procedures, and resources that collects transforms and disseminates (distribute) information in an organisation.    
OR
A system that uses the resources of hardware, software and people to perform input, processing, output, storage, and control activities that transform data resources into information products.
Computer is the best tool to process information more quickly and more accurately: therefore, any system based on computer processing technology is called Computer-Based Information System. There five elements / components of Information System.

1. People:
   People are required for the operation of all information system. People resources include programmer and all other person who use computer. The basic purpose of any information system is to provide information to people.
2. Hardware:
   The hardware component consists of all the physical devices used within the information system. The equipment includes hardware like computers, terminals, and printers and non-computer equipment like typewriter, other machine, paper, printing ribbon etc.
3. Software:
   The computer programmed used for processing information and control hardware such as MS-Office, Payroll Programm, Peach Tree, and Windows etc.
4. Networks:
   Networks used for data communication and internet to exchange information.
5. Data:
   Data is necessary for information system. Any deficiency in data causes it seriously. For example raw material, name, age, address, city name etc.

COMPUTER BASED INFORMATION SYSTEM

An Information System that uses Computer and their hardware, software, Internet and other telecommunication technology to transform data into information  is called Computer-Based Information System.

Reason for Studying Information Systems (IS) Or Why IS are Important Or Importance of Information System

Information System has become a vital (very important) component of business firm and other organisation. The knowledge of Information System and their technologies are important for manager, business professionals, and other knowledge workers in today's inter networked enterprises. Information System play a vital role in the e-business and e-commerce operations. Enterprise collaboration (teamwork), management and strategic success depend on businesses that must6 operate in an inter networked global environment. There are three importance of Information System for business.

1. Information System Resources & Technologies (Product):
   The resources and technology of Information System are Hardware resources (Physical Devices), Software resources include computerised instructions (programm), People resources (Information Systems Specialists and Users), Data resources (Alphanumeric, Text, Images, Videos, Audio and other forms of Data) and Network resources (Communications Media and Network Support). Information System produced information, which is in the form paper reports, visual displays, multimedia documents, electronic messages, graphics images and audio responses.
2. An End User Perspective (Importance of IS System for End User):
   Anyone who uses an Information System or the Information it produce is an end user. Whatever your career will be, you can increase your opportunities for success by becoming knowledgeable end users of information technology. Business and other organizations need people who can use networked computer workstations to enhance their own personal productivity and the productivity of their work groups, departments, and organizations. For example: You should be able to use word processing and electronic mail to communicate more effectively, spreadsheet packages to more effectively analyze decision situations, database management packages to provide better reports on organisational performance, and specialised business software to support your specific work activities. You should be aware of the management problems and opportunities presented by the use of information technology, and how you can effectively confront such challenges. Then you play a major role in seeing that information system resources are used efficiently and effectively to benefit your career goal and the goal of the business firms or other organisation you may work for in the future.
3. An Enterprise Perspective (Importance of IS System for Organisation):
    Information Systems play a vital role in the business success of an enterprise. Information technology can provide the information a business needs for efficient operation, effective management and competitive advantages.
   Business are becoming E-Business Enterprises. The Internet and Internet like networks inside the enterprise (Intranet), and between an enterprise and its trading partner (Extra-net) have become the primary information technology (I..T.) infrastructure that supports the business operation to many companies.

GLOBAL INFORMATION SOCIETY:

Information is a basic resource in today's society. We are living in global information society, with a global economy that is increasingly dependent on the creation, management and distribution of information system resources. People in many nations no longer live in agriculture or industrial society but they are living in information age where people spend most of their time exchange information through networking. The internet, networking and other communicating devices have brought great revolution in society and have transformed the society into a Global Village. Through internet we can exchange data in any form that is audio, video, text, numeric, and graphics. The internet reduces distance among people living in the world and they can communicate easily and quickly just like the people can communicate in a small village easily. Due to IT we can now communicate easily, work cooperatively, share resources and make decision all electronically.

TECHNOLOGICAL & BEHAVIORAL DIMENSION OF INFORMATION SYSTEM:

Computer science, engineering, and mathematics are disciplines that contribute to the technological aspects of information system in business. The research of these disciplines drives developments in computer hardware, software, telecommunications, database management and other information technologies.
Area such as psychology, sociology, and political science, on the other hand, contribute to the behavioral aspects of information system in organisations. The research findings of these behavioral disciplines and the disciplines of information system shed light on how individuals and organisation can effectively use and manage information technology.
Both of these expects, the technological and behavioral are important for business end users.
Computer based information system depends on information technologies, are designed, operated and used by people in a variety of organisational setting and business environment. Thus the success of information system should not be measured only by its efficiency in term of minimizing costs, time and the uses of information resources. Success should also be measured by the effectiveness of information technology in supporting an organisation's business strategies, enabling its business processes, enhancing its organisational structures and culture and increasing the customer and business value of the enterprise. Success should also be measured by the effectiveness of information technology in supporting and meeting the goal of the end users and their work-groups and organisation.
The use of information technology in business has major impact on society, and thus raises serious ethical consideration in areas such as privacy, crime, health, working, condition, individuality, employment, and the search for societal solution through IT. However you should realise that information technology can have beneficial effect as well as a negative effect in each of these areas. For example computerising a production process may have the adverse effect of eliminating jobs, and the beneficial effect of improving the working condition and job satisfaction of employee that remain, while producing products of higher quality at less cost.

MANAGERIAL ENDS USERS NEED TO KNOW ABOUT IS:

Managerial end users need to know how Information System can be employed in a global business environment. Business firms and other organisations need people who can help them manage their information resources. Knowledgeable managerial end users can play a major role in information resources management. That is they can learn to manage Information System hardware, software, data and information resources so they are used for the efficient operation, effective management, and strategic success of their organisation.

The framework outlines the major areas of information system knowledge needed by business professionals are:

• Foundation Concepts:
  Fundamental behavioral and technical concepts that will help you understand how information system can support the business operation, managerial decision-making and strategic advantage of business firms and other organisations.
• Technologies:
  The knowledge of hardware, software, networks, database management and other information processing technologies.
• Applications:
  The major uses of information system for operation, management, and competitive advantage of an enterprise, including e-commerce and collaboration using internet.
• Development:
  How end users or information specialists develop Information System solutions to business problems using fundamental problem-solving and development methodologies.

NEED OF INFORMATION TECHNOLOGY FOR BUSINESS

Information Technology can support many competitive strategies. They can help a business, cut costs, differentiate and innovate in its products and service, promote growth, develop alliances, lock in customers and suppliers, create switching cost, raise barriers to entry and leverage its investment in Information Technology Resources, Thus, Information Technology can help a business gain, competitive advantage in its relationships with customers,. suppliers, advantages in its relationship with customer, suppliers, competitors, new entrants and producers of substitute products. Information technology and its expense have become an every day part of business life.

ROLE OF INFORMATION SYSTEM

Information System performs three vital roles in any organisation.

• Support of Business Operation.
•  Support of Managerial Decision Making.
• Support of Strategic Competitive Advantage.
• Support of Business Operation:
  Most business used computer-based information system to record business transaction that is purchase, inventory, pay employee, buy new merchandise, and evaluate sales trend.
• Support of Managerial Decision Making:
  Take decision to improve business process. What kind of merchandised needed to be added or discontinued or what kind of investment is requiring, are made after an analysis provided by computer-based information system.
• Support of Strategic Competitive Advantage:
  Use Information Technology to substantially reduce the cost of business process and also lower of customer or suppliers. Use Information Technology feature to reduce the differentiation advantages of competitors. Develop unique new markets or market niches with the help of Information Technology and make radical changes to business process with Information Technology that dramatically cut cost, improve quality, efficiency, or customer services or shorten time to market. Use Information Technology to manage regional and global business expansion.

Finally, the rapid growth of the Internet, Intranet, Extra-net and other Interconnected Global Networks has dramatically changed the capabilities of Information System in business. Inter networked enterprise and global electronic business and commerce systems are revolutionalising the operation and management of today''s business enterprises.

WINDS OF CHANGE (MORDERNISATION IN BUSINESS PROCESS)

The shifting winds of change (Method change or business process change) in today's business environment have made Information System and Information Technology vital components that help keep an enterprise on target to meet its business goals. Information Technology has become indispensable ingredient in several strategic thrusts which business has initialised to meet the challenge of change. These include globalisation, business process re-engineering and using Information Technology for competitive advantage.
There are major reasons, why today business needs information technology, which are the following.

1. Globalisation:
   Now-a-day many companies are in the process of globalisation by expending their business into global market. Becoming a global enterprise by expanding into global markets, using global production facilities, forming alliance with global partners, supplier, customer, consultant and government agencies. A business that is driven by a global strategy so that all of its activities are planned and implemented in the context of a whole world.
   Information Technology support globalisation for example a Global companies operate in a competitive environment in which networked computer system make possible global markets that can instantly and cheaply process transactions. 
2. Business Process Re-Engineering:
   Business Process Re-Engineering simply called re-engineering. Re-engineering is a fundamental rethinking and radical redesign of business process to achieve dramatic improvements in cost, quality, speed, and service.
   Information Technology is a key ingredient in re-engineering business operations by enabling radical changes to business processes that dramatically improve their efficiency and effectiveness. Internet technology can play a major role in supporting innovative changes in the design of workflows, job requirements, and organisational structure in a company. Business has used computer-based Information System to support the analysis, interpretation and presentation of data to support business decision making. Business processes at the individual, work-group, and business unit level can be changed by using information technology to provide economic benefits.
3. Competitive Advantage:
   Using information Technology for globalisation, and business process re-engineering frequently results in the development of information system that help give a company a competitive advantage in the market place. Develop product, services, processes, or capabilities that give a company a superior business position relative to it competitors and other competitive forces. There are five basic advantages, which are as follow:
1. Lower Cost: Use Information Technology the cost business process, lowering cost of customer or suppliers or increasing the cost of your competitor in market.
2. Differentiate:
   Developing new Information Technology feature to differentiate products and services from your competitor so your customer perceive your product or services as having unique feature or benefits.
3. Innovation Strategies:
   Introducing unique products and services, or making redial changes in your business processes that cause fundamental changes in the way business is conducted in your industries.
4. Promote growth Strategies:
   Use Information Technology to manage regional and global business expansion. Use Information Technology to diversify and integrate into other products and services. 
5. Develop Alliances:
   Establishing new businesses linkages and alliances with your custo0mer, supplier, competitors, consultants and other.

SOME IMPORTANT DEFINITION 

1. End Users:
   End Users are those who uses Information System or Information Produce by Information System. End Users make their living using Information System to create, distribute, manage, and use Information System Resources.
2. Business End Users:
   Business End Users are knowledge workers who are part of a global information society.
3. Knowledge. Worker:
   People whose primary work activities include creating, using, and distributing information.
4. Business Information System:
   Information System within a business organisation that support one of the traditional functions of business such as marketing, finance or production. Business Information System can be eithher operations or management information system.
5. Intra-Net:
   A networks inside the organisation is called Intra-Net.
6. Extra Net:
   A Network between different organisation is called Extra Net.
7. Internet:
   International Networking or the network of the whole world is called Internet.