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Systems vs Procedures

Systems vs. Procedures

Procedure is a defined set of instructions aimed at describing how to proceed in achieving a pre-defined
milestone/target. Systems have collection of predefined procedures related to each other in a sequenced
logical manner in order to collectively achieve the desired results. The system & procedures in all kinds of
environment are subject to internal controls and checks that are necessary to ensure the effectiveness of the

6.1 Purpose of Systems & Procedures
The basic purpose behind setting up systems and procedures is to make available information when
required. But when procedures are organized in a logical manner to form systems, the value of information
as an output of a system enhances. When technology is added to the system, scope of a system changes to
include hardware, software and designs linked together in accordance with the procedures contained in that
system to give a purposeful architecture.

6.2 Data & Information
Before defining what information systems are? I would like to once again differentiate between data and
information. Data represents facts of any kind. Information is the processed form of data being verified and
substantiated from various sources.

100,000 is a figure which by itself does not add to the knowledge
When we say 100,000 sales orders, it does add to our knowledge, hence is information.

6.3 Data & Information
Generation of relevant information is the objective of every information system. Now we would move fwd
with the definition & necessity of information systems.

What are Information Systems?
Interrelated components working together to collect, process, store and disseminate information to support
decision making, coordination control, analysis and visualization in an organization.

6.4 Manual Vs Computerised Information Systems
As advancement was made in every field of life, manual information systems were converted to
computerized systems. In manual environment, the concept of transformation was difficult to apply, since
input of data into records was by itself the output which also included simple computations. Concept of
control mechanism grew stronger as computerized information systems emerged. Now the concept of
Information system exists with the usage and benefits of Computers as an inevitable part.

6.5 What is Computer based Information System (CBIS)?
CBIS is an Information System that uses computer & telecommunications technology to perform its
intended tasks. In CBIS, Information technology (IT) becomes a subset of the Information system.
The terms
Information System (IS) and Computer Based Information System (CBIS) with the
extensive use of computers in almost every field renders it inevitable to think of an IS as CBIS.

6.6 Why Information Systems?
In modern age, there has been felt a growing need for the use of information systems. Let’s take a look at
what factors increased the importance of efficient information systems.

6.7 Emerging Global Economies
High level of foreign trade has resulted in imports and exports which require inter linkage for smooth
coordination. Core business functions (manufacturing, finance and customer support) have been distributed
in different countries. Coordination

6.8 Transforming Industrial Economies
Industrial economies have started merging as knowledge-and-information-based economies. Manufacturing
activities being shifted to low wage countries. More opportunities are available in education, health care,
banks, insurance firms and law firms. More knowledge and information intense products are being created.
Higher commitment expected from customer e.g. overnight package delivery, world wide reservation

6.9 Transformed Business Enterprise
The structure of business enterprise have also changed, initially the organizations used to be Hierarchical,
Centralized, Structured following a Fixed Set of SOP’s. However, now the organizations are moving
towards more Flatter, Decentralized and Flexible structures. Information Technology makes it convenient
and efficient to promote this new culture.

6.10 Emerging Digital Firms
Firms where all significant business process and relationships with customers and suppliers and employees
are digitally enabled and key corporate assets are managed through digital firms. This results in rapid
response with more flexibility to survive and getting more global.

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