BTEC National
Level 3
Unit 3
p4: features and
functions of information
systems
What are information systems?
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Information systems are systems that
consist of software, hardware,
communication networks and data.
Software = for data entry and
management.
Hardware to run the software.
Communication: for distribution between
different networks and sharing of
information.
Good decision = reliable information and
presentation
Competitive advantage
What is MIS used for?
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It helps to manage an organisation
Provide information control
functionality
Helps with processing data
Writing reports
Help with introducing new products
Deterministic
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Inputs are already known
Outputs can be predicted
Example:
You know the language you need to create
a page (html)
Output: the number of web pages you can
create using html
Or you know the components you need to
make a PC
Predicted output: the number of computers
you can build
Probabilistic
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History of what has happened
Likely Outputs can be predicted
Tyre wear on a vehicle
Car service
Hour of use for a USB before it fails
Likely time before it is replaced
meantime between failure
Tools
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Databases
Artificial intelligence
Internet
Data mining
Databases
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The heart of the system is a database
A database = digital filing cabinet
Tables: fields >> records >> relationships
Database model: designed first. Describes
the information that will be stored, type,
what it means and how data is linked with
other data (relationship).
Digital system, more efficient than manual
Reports >> queries >> inventory system,
payments
Example
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Forums
Ecommerce websites
Dynamic website
GO4school
SIMS
Show example of phpmyadmin
Data model
Employee
Job
Pay Rate
Database Showing Linked
Tables or Files
Empl-1
Job-1
Job-2
Job-3
Employees
Database
Jobs
Database
Rate-1
Rate-2
Rate-3
Rate-4
Pay Rates
Database
Artificial Intelligence or
expert systems
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Systems based on complex algorithms
that are dynamically changing based on
inputs
Example: National rail. The website will
dynamically change the price for train
tickets based on demand, time you are
booking and its objectives.
Example: more tickets sold == higher
price
No tickets sold == lower price
Internet access
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Systems provide internet access
This makes it easy to share data and
access it from anywhere
Makes changes to the data
Etc…
Data mining
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Identifying trends in data
Software to make predictions. Tesco, or
Sainsbury's order system
Used to produce market research reports
Average sale, location and other data
Report writing functionality
Works with many databae software
Activity
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Select any functional department in
an organisation and describe how it
makes effective use of an
information system to its benefit.
Describe what software it may use.
Describe the data it may use to
produce the information.
Activity
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Identify key elements of an information
system
Data, people, software, hardware
Find five different examples of where data
mining tools provide a distinct benefit which
would not have been available without data
mining techniques
Look at self organising systems
P4 – Features and Functions of
Information Systems
Marketing Information System
• One of the first areas of business to adopt the need for
an information system.
• Identifying where and why its sales go up and down.
• Applying and analysing the result of a promotion in one
store before applying it to all stores.
• Analysing the impact of changes on product prices,
profit/loss, competition
Financial Information System
• Simply it is needed to manage income or revenue.
However, once setup it can focus on expenditure and
costs to make it more effective.
• Able to identify trends and unusual patterns to support
the running and actions of the business.
• Helps identify the financial impact of an investment,
large purchase, new revenue or expenditure. Keeping
the business in the black.
Human Resources Information
System
• Human resources have a great need for an information
system due to the amount of analyses they have to
perform.
• Information systems support HR in deciding how many
staff they need at key times in their days. The system
will help identify skill shortages, training needs and staff
turnover.
• Analysis of staff skills can support the business in
decisions over promotions, training and career
development opportunities.
Management Information System
(MIS)
• An MIS is a decision support information system
• Input, query and response is usually already predefined
• It is effective in supporting management ask the same
questions over and over to track, analyse, make
decisions about the day to day running of the business.
• Simple systems with complexity hidden away from the
P4 – Features and Functions of
Information Systems
Data
• Data input must be as accurate as possible (subject to
cost/timescale).
• It should be stored in the most logical way.
• The data then needs to be summarised to meet the
needs of the system.
• The data is vital to the creation of a good information
system.
People
• People are involved in both capturing the data and
exploiting the information.
• It is important to motivate those who capture the data
by highlighting the importance of how the data can help
the business.
Hardware
• In small organisations the Information System may just
run on the PC of the person in charge of that system(s).
• In larger businesses it usually runs on a server, either
shared or dedicated, with internet access if needed.
• It is unusual to require specialised hardware.
Software
• The simplest Information System can be built using
standard software.
• However, MIS and some other Information Systems can
use complex software.
• The developer configures this system to a set standard,
allowing some customisation by the business.
• Costs varies but more expensive usually means more
features.
Telecommunications
• An MIS can be delivered across the internet but this
usually brings out an issue of security of data.
• Many are delivered across an intranet, protected by the
businesses firewall, to safeguard information.
P4 – Features and Functions of
Information Systems
Input
• Detailed data inputted into the system, stored,
processed ready for being used as an output.
• Telling the system what and how they expect the
outputs to look like and do. This is usually setup by the
trained individual or technician.
Storage
• The data should be stored at the most detailed level
possible.
• The IT department would take consistent backups of this
data.
• The IT department may also store summaries of this
data for ease of use.
Processing
• Processing is what turns data into information.
• At its simplest this may be adding up a list of sold
products and working out remaining stock levels but at
its most complex this could be analysing trends and
answer complex decisions on actions to take.
Output
• This can be in two formats: graphical and textual.
• Graphical is good for seeing the bigger picture and
understanding trends. Textual is preferred for analysing
the detail and making more accurate choices.
• Outputs should be presented in the most suitable way
for the user.
Control and Feedback Loops
• This is what happens as a result of the output from the
system.
• An automated example would be a system checking
stock levels and re-ordering stock based on the system
outputting a minimum level.
• Or a product automatically increasing its price based on
great sales.
• In a closed system, the user may have some choice