Information Systems and Application Development in Business
Item 1: Introduction to Development Applications
1. Computer Software
When we talk about computers, we must refer to both the computer hardware and computer software. The hardware is the set of physical elements that make up a computer. Software is defined as a computer software package that is able to interpret and execute properly. Depending on your role, you may develop programs that fall under software control, treatment, and diagnosis.
- Control software is a set of programs, usually managed by the computer, which is responsible for its proper functioning.
- Treatment Software refers to programs used by the user and can be divided into software and application programming.
Programming software consists of programs and utilities installed on your computer. Today, a PC is not formed only by programs and utilities, text editors, interpreters, compilers, linkers, etc., but by an integrated development environment in which all those tools are contained, along with some operating system management, development and project documentation, and visual design of forms and reports.
Application software consists of programs that allow data processing, graphic design, communications, and even games. When multiple programs with different functionality are designed to work together, share data, and have a similar appearance, they are called an integrated package. Within the application software programs are also computer-aided design.
Diagnosis and protection software is the set of programs related to maintenance, detection, and correction of errors, both in software and hardware.
2. Information Systems
Organizations create information systems that help achieve the objectives of the company. Before offering a definition of an information system, we will begin by defining the terms that constitute it: system and information.
2.1. The Concept of a System
The dictionary of the Spanish Royal Academy says that a system is a set of things that contribute neatly, interrelated to a certain target. From this definition, we identify the main elements in any system:
- The components of the system.
- Relations between them, which determine the structure of the system.
- The aim of the system.
- The system environment: that which surrounds it, within which it is located.
- The system boundaries: the boundary between what the system is and what constitutes the environment.
2.2. Concept of Information
The larger and more complex a system is, the more important is the communication of information among its components, as it must coordinate to achieve its goal. Having the right information means making decisions most appropriate for each situation.
The data consist of records of facts, events, transactions, etc. By contrast, information implies that the data is processed so that they are useful or meaningful to the recipient. So, in a way, data can be considered the raw material for information. We should clarify that we mean by processing the data put in context or supplement their incomplete meaning. Information stimulates action, and its value is that it allows better decisions because the decision is the first step for any action.
Quality information has qualities, plus the ability to reduce uncertainty, that help the recipient decide the most advantageous course of action. These properties are as follows:
- It is relevant to the purpose of the decision or the problem considered.
- It is sufficiently accurate, i.e., accurate to reality so that you can trust it. It should be noted that in reality, there is no absolute precision, but accuracy levels: a higher level requires a higher cost in the collection of information.
- It is complete enough for the problem. The ideal is to have all information relevant to the decision, but this never happens in the real world.
- It communicates to the right person for the decision.
- It communicates in time for it to be useful.
- Reaches the appropriate level of detail.
- It is understandable to the recipient.
2.3. Information Systems
Every company, large or small, needs an infrastructure to develop its activities. This organizational structure usually rests in a network of functions to be developed and, among others, includes the following:
- Control and manage the use of financial resources via the function (or system) accounting and financial management.
- Optimally market products or services.
- Manufacture products or create services to sell in the market: it is the function or production department.
But it is very difficult for all these functions and activities to be conducted effectively without coordinating with each other through the management and intercommunication of good quality information. Therefore, organizations include an infrastructure to coordinate the flow of information and records needed to perform their work. The system dedicated to this task is called the information system of the company.
3. Elements of an Information System
To better understand the concept of an Information System (IS), we must also understand the elements that compose it. There is unanimity in the literature on IS in designating a system as components of the following:
- The procedures and the routines of work that continue to run all sorts of activities necessary for the proper functioning of the company. The IS exists because it must support the management of information to be provided on the basis of all these forms of work.
- Information. It is the fundamental element of the system and its rationale. It should adapt to people who run and the equipment available, according to the procedures of work the company has created to ensure that activities are carried out effectively.
- Individuals or users. These are individuals or organizational units that introduce, manage, or use the information to perform their activities according to established work procedures.
- Support equipment for communication, processing, and storage. It is the most visible part of IS, its physical, tangible reality.
The IS, as already mentioned, must serve the overall objectives of the company. To achieve these objectives, the organization and its members adopt the ways of working that are more useful and effective. These practices make work:
- What information is needed.
- What equipment is needed for effective work.
But the relationship also works in reverse. The procedures should be adapted to the items available.
Working practices force people to adopt a certain course of action but should, in turn, match the characteristics of those involved to be effective. Finally, obviously, the procedures must conform to existing technology equipment.
4. General Principles of Systems
Systems can differ in many things but also possess many common characteristics. The study of these common characteristics is known as general systems theory. There are some general principles of systems that are of particular interest for those who create automated information systems and include the following:
- The more specialized the system is, the less able it is to adapt to different circumstances. The more general a system is, the less optimal it will be for a given situation, but the more optimal it is for a given situation, the less adaptable it will be to new circumstances.
- The larger a system, the greater the number of resources to be devoted to its daily maintenance.
- Systems are always part of larger systems and can always be divided into smaller systems. This is important for two reasons: first, it suggests an obvious way to organize a computer system we are trying to develop by the process of splitting into smaller systems. But more important is the fact that the definition suggests that the system we are trying to develop is arbitrary; we could have chosen a slightly smaller or larger system.
- Systems grow. One cannot assume that a system already made could remain static.
5. Applications Development Management
An application is a set of software programs and other items that attempt to solve problems or needs raised by companies. These applications typically embody one or more management tasks that are developed with a particular information system.
To develop an application, the first step should, therefore, be a study on the information system we want to computerize.
6. Application of IT to Information Systems
The optimal solution consists of an IS that has a mix of activities, with some parts or subsystems automated and other functions that are still performed manually. Therefore, we can distinguish between what is the total IS and what is the Automated Information System.
Moreover, the IS must have a computer to function. A computer should not be confused with an IS.
There are also some concepts related to the IS that sometimes cause some confusion as to its meaning. Among them, we highlight the following:
- MIS, System Management Information. The acronym MIS, widely used, refers to the IS who are not dedicated to processing and transaction processing, but the operational level, tactical and strategic direction. Managers should provide information and assistance necessary for their decisions.
- Systems Decision Support (DSS) are a concept similar to MIS. In this case, it is assumed that the MIS provides management support for structured decisions, i.e., those performed regularly, and well-defined processes that are known a priori what information is needed to decide.
- There is talk of Transaction Processing Systems to name the part of IS devoted to the treatment of daily routine operations or transactions.
The automation of an IS, to computer effects, you should consider the choice of hardware and software configuration of the basic right and, of course, the achievement of software applications that can address information needs that mark the structure of IS. To develop any kind of software in a professional manner requires making a lot of activities, among them, programming is just one more and perhaps not the most important. This set of steps and processes necessary for proper development of software is called the software development cycle.
Unit 1: Basic Information Systems in Business
1. Structure of Information Systems
Although the structure of the IS depends entirely on the particular company or organization to which he belongs, you can identify a common basis that is fairly typical in most businesses. The structure of most companies can be described fairly well by a pyramid in which one can distinguish a hierarchy of different levels of performance and management:
Operations and transactions. This standard includes the processing of daily activities or transactions. Transactions constitute the majority of daily activities and generally count on. All companies with similar characteristics. Treatment procedures are well understood and can be described in detail.
- They appear a few exceptions to normal procedures.
- A large volume of transactions.
- There is great similarity between transactions.
The transaction processing procedures are often called standard operating procedures and describe both the routine of steps normally what to do if something exceptional happens.
The operational level of management concerned with the analysis of results, essentially on the resources consumed in transactions, to make decisions in the short term and limited impact. (He often works with information from the registration transactions whose characteristics are:
- Repetitive
- Centered in the past
- With data generated internally.
- The data have a well-structured format.
- The data are detailed and precise.
The tactical level of management is often worrisome to the effective allocation of resources in the medium term to improve company performance. Usually focuses on the analysis reports of the following types:
- Abstracts with statistical measures:
- Exceptions:
- Sporadic, which had not been asked before, and that managers need normally quickly to solve a particular problem
Information management focuses on both regular and routine information as exceptional and immediate need. It works with the aim of discovering something new in the data, not just the obvious, always working on summary information and comparative in nature rather than descriptive. The data sources are both internal and external.
The strategic level of management works with long lead times to undertake the difficult task of deciding the guidelines to be followed by the company in the future. The information is handled must appear in highly compressed format, in order to predict what will work best for the future success of the company. Information is included in widely varying formats and the most unexpected external sources. The decisions to be taken at this level are poorly formalized and have a strong subjective component.
There are two main groups of information flows within the firm: horizontal (to coordinate) and vertical (based on the hierarchy). Consequently, the types of flows that can be distinguished in an organization are the following:
- Downward vertical, a subordinate chief. Typically, this command: decisions, objectives to be met, plans are being introduced, and so on. It may also involve specific requests for information to make decisions and monitor performance.
- Horizontal flow, between the same level of authority. Often, content is often referred to as coordination information shared responsibilities to manage these flows is an essential means to better adapt to market, so now it is encouraging that there are horizontal communication channels and effective agile enterprises.
These types of flows are those who feel formal, as are reflected in the organizational and operating procedures.
We could say that a typical firm has a structure of IF composed of the following subsystems:
- Human resources subsystem, which covers both management personnel and payroll.
- Subsystem management accounting, both for internal control of the company and to meet legal obligations.
- Business management subsystem for monitoring customers and sales.
- Subsystem control of inventory, or warehouse, and inventory of goods.
This division often coincides with organic or functional units more common in organizations:
- Human Resources
- Accounting and finance
- Marketing and sales
- Production and engineering)
- Logistics
2. Human Resource Subsystem
Perhaps the most important resource or asset in a company is constituted by all the people who compose it, technically known as human resources management activities related to personnel of the company are based on two main aspects:
The management of information related to the template. This information includes personal information consisting of:
- Full Affiliation:
- Many businesses also include medical data
- Work History: date of incorporation; low compliance schedules, holidays, duties and responsibilities performed, department, category, etc.
- Facts relating to salary and incentives:
- More sophisticated systems include data on career and educational background of employees
The implementation of payroll. The relationship payroll or wage payments performed regularly, mainly monthly.
The human resources management operates at all levels of the hierarchy of the company: operational, tactical, and strategic. At the operational level is responsible for:
- Maintain employee data:
- Inventory of qualifications of employees:
- Inventory of existing jobs within the company and the conditions appropriate to fill them.
- Evaluation of employees based on reports from their superiors, the achieving the goals, and so on.
- Generation of reports should be referred to public related to the many provisions and rules
- Management of job applications, storage of curricula, etc. to vacancies or staff increases.
- Shipping economic management department of the exact instructions for payment of wages for each employee
At the intermediate level decision, the subsystem of human resources management should support the following activities:
- Analysis and design of the profile of the ideal person for each job, to know what kind of person should be hired or what training should get someone before ascending to office.
- Analyze staffing needs to cover business objectives in the medium term, generating forecast recruitment.
- Generate plans to create incentives and implement social benefits for employees
- Analysis of training needs and create plans for improvement technical-level professional staff.
The computer systems that support these subsystems often have different characteristics to the above functions:
- The list is usually provided with job applications in batches (batch)
- Staff management requires some immediate and interactive treatments
- In both cases, the information handled is confidential or “sensitive” because of his social and personal implications.
3. Sales Management Subsystem
The main purpose in any business is to sell to meet the needs of customers. Management activities related to dealing with customers are based on two main areas:
Sales, which includes management and treatment of orders, in the event that the sale is made in this way. Each request must control the means of payment, to determine precisely the goods or components included and the amounts should be asked to verify whether the company can accept the order, check inventory on hand,
In all these efforts will create most typical documents in business
The function of marketing. Marketing (also known as marketing) involves the analysis of sales, competition, tastes and demands of customers, etc. to optimize all the aspects involved in implementing products on the market. The study of marketing requires a contribution of information from many departments:
- Sales information, both through direct sales orders or distribution, etc.
- Market Research Information Preferences, situation or market trend, etc.
- Data on the company’s financial capacity to undertake campaigns promotion, design of new products, etc.
Commercial management operates at all levels of the hierarchy of the company: operational, tactical, and strategic. At the operational level is responsible for:
- All aspects of support for sellers:
- Management of client portfolios to locate potential buyers.
- Control of customer contacts: visits, preferences, purchase history, etc.
- Consultations on product characteristics and availability.
- Information on the loan or the economic consideration of each client.
- Facilities for the management of orders and invoices or other commercial document
- The management of product distribution: control of shipping, receiving, returns, etc.
At the intermediate level decisions, the commercial subsystem should support following activities wings
- The collection of sales information from each customer, each zone of each product type, etc.
- Setting prices based on market data through simulations of statistical models of sales.
- The decisions about how best to distribute the products
- Analysis of competitors to control how it may affect the marketing of products
Finally, at the strategic level, working with global marketing plans based on a large accumulation of data. The basic objectives of this activity include:
- Dividing the market into segments of people with common characteristics or needs.
- Select the segments to which the organization wants to access.
- Planning products and services should be offered to meet the needs of these customers.
- Predict sales for various products and segments with which to work.
- Work begins only when it accumulates a certain number of orders or meet certain deadlines.
4. Subsystem of Accounting and Financial Management
Accounting is one of the basic tools for managing a company while it is a legal obligation. All organizations have an accounting more or less sophisticated, depending on their size and complexity.
Economic management should address, at an operational level accounting activities across the enterprise according to relevant legislation involves the daily accounting management to address certain classical functions: Control of fixed assets.
- Collection management,
- Payment management
- Inventory control as part of the assets.
- Implementation of the payroll
- Reporting to management and all sorts of official documents prescribed.
The accounts are recorded manually in paper books and more, making the so-called seats in the corresponding accounts in the debit and credit. each of the elementary operations of business, whose performance in the assets must be registered in the accounts is called transaction.
At the intermediate level decisions, the economic management subsystem should support the following activities to support the decisions of managers:
- Management and control of budgets,
- Information on cash flow
- Control of capital spending plans
Finally, at the strategic level, senior management of the company wishes to obtain long-term financial forecasts.
The computer systems in connection with accounts often rely on the familiar concept of transactions. Rather rigid characteristics of accounting transactions that were made possible one of the first activities to be automated. most of the financial analysis functions are complex indeed.
Simulations require very elaborate, because there is great uncertainty about the values that the various parameters adopted in the future.
5. Stock Control Subsystem
The main objective of a management system is to control inventory stockpiles.
At operational level, this subsystem works in the following activities related to storage:
- Purchases of raw materials or components
- The reception of raw materials or components,
- The shipment of products manufactured to customers that have finalized an order
At the tactical level storage optimization requires making decisions based on statistical data. Therefore, the subsystem must work with:
- The management and control of raw materials,
- Planning for the optimal production capacity not to saturate the store
However, at the strategic level, decisions on long term strategic decisions come more from the general direction of high specific production analysis. The stock control is more adapted well to the conditions imposed by the overall business strategy.
6. Other Subsystems
Obviously, there are other basic subsystems in addition to the above for the IS business. These can include:
- Office automation systems, also known by the global name of office.
- Production Systems (CAM / CIM), including manufacturing automation and support for the design and start production of