Proliferation of information technology has increased in the last decade. Todays organizations are acknowledging the importance of information systems. It has been accepted worldwide that information system provides competitive edge and are the bedrock for innovation. The six basic functions of information systems are capture data, transmit data, store data, retrieve data, manipulate data and display information.
The elements of an information system are customers, business processes, product services and communication technology. Design of an information system is done based on elements of the model.
Every information system has end users or customers. An information system can have internal as well as external. Customers are beneficiaries of products and services provided by an information system. Here external customers could be people visiting a website for shopping or e-commerce transaction, people searching for cooking recipe, searching for tax saving tools, etc.
Internal customer of an information system could be employee receiving salary from payroll system, employee checking inventory and stock, etc. Sometimes these employees could be the customer for the product and services, for example, employee working with a computer manufacturer could be customer of manufactured product.
For a manufacturing organization, production department would be customer for supply department. Therefore, information system requirements of each department would be different. Information systems are design to service what is best for external customers. However, information systems should be flexible enough to support internal requirements also.
The result of data transformation is products and services. An information system can generate products as well as service depending upon industry it is developed for. In clothing industry designer clothes are produced based customers requirement. Here completed garments are product and custom design is a service. In internet banking, customer can accomplish the entire banking task, without visiting the bank. Internet banking, therefore, is a service.
An information system can generate various types of services and products based on its design. An effective information system needs to satisfy customer expectation. An information system should provide product and service based on customers needs and requirements.
Business activity consists of various processes. These processes include talking to customer, understanding her requirements, manufacturing product as per requirement, provide post sales service, etc. A business process may not be structured all the time and may not be formal. An improvement in the business process directly impacts business performance. An information system can improve a business process, by providing relevant information, increasing a step in business process or eliminating a step in a business process.
Communication technology and computers are the central pieces of an information system model. Their presence is required to deliver efficient business process and customer delighting products and services. Infusion of technology within business creates win-win situations. Technology improves internal communication via email chat, etc. and improve external communication through website, webinar etc. Access to valuable information is quicker through information system, and this can provide a competitive edge in digital age.
Information system model highlights the pivot role information system plays in bringing efficiency in any work system.
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