Information System and How They Relate to the Business - Essay Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Course : xxxxxxxxxxx Title : Information System and how they Relate to the Business Tutor : xxxxxxxxxxx @2009 Information System and how they Relate to the Business Introduction An information system has four components which consist of processes, software, hardware and information or data. There are several kinds of information system used by companies, for instance: transaction processing systems, office systems, decision support systems, database management systems and office data systems. Vital to most information systems are information technologies which are purposely designed to enable people to carry out tasks like handling huge quantities of data, performing multifaceted calculations and managing several simultaneous processes. In this report, the information system of KPMG was analyzed. Software Software refers to digitally stored information for instance the computer programs and other types of data read and written by computers. Therefore, software is the set of instructions which makes a computer to carry out a task. These instructions are referred to as programs. The company KPMG has both classes of software in the information system and this includes application software which consists of the usual utility applications like Microsoft word and PowerPoint which interacts and executes particular tasks. The other software is the system software, like operating systems which interacts directly with hardware to lead the system into working and also availing a platform for other applications to function. The software stores the KPMG information regarding their activities, the customers’ information and their security data which is normally protected for security reasons and to allow only the authorized users to access the company’s information. It is the software that has all the company’s computer programs, processes and documentation that executes some tasks on an operating system. The software enables KPMG to carry out various tasks electronically (Curtis 2005). Hardware This is the physical parts of a computer and the connected appliances. The internal hardware appliances normally consist of motherboards, hard drives and RAM. External hardware appliances normally consist of monitors, keyboards, mice, printers and scanners. At KPMG, the hardware allows efficient transmission of information from one point to another and also for physical protection of the company’s network for example firewall. The servers and the mainframes are used for the company’s information storage. Furthermore, KPMG has a webcam which allows the company’s computers to market and recruit employees outside the world (Curtis 2005). Intranet An intranet avails a private network that is within an organization. Basically, it consists of several connected local area networks and also makes use of leased lines within the wide area network. Characteristically, an intranet consists of linkages though one or more gateway computers to the outside internet. At KPMG, intranet is basically used to enable the company to share information and computing resources among the company’s staff members. The company also makes use of intranet to smooth the progress of working in groups and for teleconferences. This is the company’s private version of internet since it enables the company to share the information within the network with the company’s employees but not with unauthorized users which is the outside world. The intranet makes use of TCP/TP and HTTP and other internet protocols as well. With tunneling, KPMG is able to send private messages by using public network. This is made possible because while using the public network, there is particular encryption or decryption and other security protects to link one part of their intranet to another (Mumford 2006). Usually, since KPMG is a large enterprise, it permits the users within their intranet to get access to the public internet by use of firewall servers that have the capacity of screening messages in both directions. This enables the company to maintain security. However, at times the company makes a component of intranet to the customers, partners, suppliers or other people outside the company and this is what is referred to as extranet. The intranet provides the company with marketing information systems because it avails information technologies that support key parts of the marketing purposes. KPMG uses intranet and internet web sites to develop an interactive marketing procedure. KPMG’s intranet improves the manner in which KPMG employees all over the world operate to meet up the demands of increasingly varied and globally oriented customer base (Mumford 2006). E-commerce and internet This is the development of business over the internet and thus it entails many the same key activities as starting any other business. E-commerce requires a business to carry out some essential business planning since the business requires clients, market to market its products to customers, strong customer service and also the business is required to manage the purchases done by the customers through the internet, finances, its staff and other resources. There are specific features of e-commerce which include that not all products are actually compatible to be marketed and sold through the internet. For instance, some products require a lot face to face selling. Such products may be expensive to ship and the business is required to ensure that because the product has been advertised all over the world, one remains in control of the ideas or the intellectual property. E-commerce also requires on line store whereby the business requires a merchant account or the capacity to process the client’s credit card transactions through the internet. This is inclusive of having a secure server or that the online store being on a computer system that makes sure that clients’ credit card numbers cannot be readily read by people who are not authorized to be reading these numbers. It also requires a business to have an online order form that clients fill over the internet in order to buy the products and also the business might need to process the clients order in order to include the processing of the clients’ credit card numbers instantly while the customers are still online and connected to the business’ Website. E-commerce business also requires a firm to have and promote their own Website over the net (Fitzgerald 2005). Worldwide KPMG is half way through an enormous IT transformation shifting from being an Oracle dominated company to one that is making use of SAP as the platform from which to make sure it posses a universal operating model. Shifting onto SAP is not only about introducing new software, this has KPMG redefine its business procedure as component of the strategic change over. The company has also introduced more mutual technologies founded on Microsoft Sharepoint, which also assist it to set out the new business procedures and assimilate SAP productively. This has been achieved through E-commerce and through internet marketing. Basically, KPMG conducts business trough the internet whereby the clients order for the company’s clients order for their products through the net and the company also advertises for its service through the internet. For instance, in 2007, 40% of the KPMG’s consulting profits resulted from E-business assignment generating more than $780 million. KPMG is a consulting firm with a Web training program. Internet has turned out to be the company’s gateway for success. The company’s employees have been trained regarding internet and this has enabled proficient E-commerce business over the internet. Customers buy while KPMG sells and advertises its products through the internet (Fitzgerald 2005). Database Database is one of the foundations of information technology. It is the database that has the ability of organizing, processing and managing information or data in a structured and controlled way within an organization and hence it is the key to numerous aspects of contemporary business efficiency. The gathering, processing and making use of the data linked to the operations of a business are very important to the business’s success. Even something as easy as client mailing list requires to be managed properly for it to be maintained up to date and exact as well. This is why any tools or applications that make it possible for the business tasks to be easier and more resourceful ought to be given serious consideration. KPMG keeps database of its operations, employees and regarding its clients, suppliers and competitors as well. This is because the company believes that the more one knows regarding the clients, suppliers and competitors the better for its performance and its operations as well (Spyns 2008). Consequently, gathering, storage and processing of the data through the use of the databases provides the company with a distinct advantage. KPMG normally sets apart time and resources to gather and process large sum of information. As a result, this avails the company with sufficient information regarding how their business is doing, how profitable their services and products are and if the clients are making repeat purchase of their products and services or not and also many aspects of information. The company gathers as large information as possible and this helps it in dealing with particular operational problems and also shapes future strategies. It is important to note that gathering, storing and processing the client’s personal information ought to comply with information protection legislation (Graham 2006). Making use of refined relational database management system enables a business to do this and the storage of information is developed with time and thus it becomes more and more useful and valuable. For instance, historical information within the database enables a company to show its business trends, or the sale records enable the business to identify its valuable clients. Moreover, the disciplines needed to collect, enter and process such information helps an organization in ensuring that the business is operated in a regulated and appropriately managed manner. The main benefits that have been observed at KPMG as a result of database technology include decreasing the quantity of time spent in managing their information, it has given the company the ability to analyze information in several ways and it has promoted a disciplined approach to data management. Still, this has enabled KPMG to turn disparate information into valuable resource and it has also enhanced the quality and reliability of company’s information (Graham 2006). Since the company’s needs are very complicated, KPMG makes sue of more sophisticated and able packages like Oracle Sybase and Microsoft Access. These packages are purposely designed to sort and search huge amounts of information of different types. For example, this allows the company to manage the clients’ names, products orders and payment histories. Some of the KPMG’s business procedures are frequently managed by using specialist database applications. There are contact management packages like ACT and Maximiser which are purposely designed for the management and manipulation of contact information within the organization. In conclusion, different types of business normally make use of database solutions particularly targeted at their exact needs and requirements. Therefore, it is very important to seek out for any database product that addresses the precise needs of the business sector. KPMG uses server databases like Oracle Sybase and Microsoft Access since such databases provide it with the ability to manage huge quantities of information proficiently and in a way that enables numerous users to have access and to update the information concurrently. This server based database offers KPMG with broad data management solution (Fitzgerald 2005). Security considerations This includes the information security within the business. KPMG is devoted to safeguarding confidentiality and privacy of data entrusted to it. KPMG appropriately protects and uses the personal information that has been collected over its sites. Basically, there is automatic collection of PII whereby KPMG involuntarily collects certain kinds of information when one visits the websites and over the emails that people exchange. KPMG protects the privacy of the children more so online environment. Above all, the company’s sites are not purposely designed for or directed at children below 13 years. The company does not share individual information with unaffiliated third parties apart from as basic for the company’s valid professional and business requirements to perform ones requests and as permitted or required by the law. In regard to information security and integrity, KPMG has logical security policies and processes in place to safeguard personal information from unauthorized loss, mishandling, alteration or damage. The company accesses the individual data and this is only restricted to only those who need to know the information. The people who have access to data are needed to keep the confidentiality for such data. The information is also retained only as long as it is necessary (Graham 2006). Managerial considerations The product managers at KPMG have product managers who require information to plan and control the performance of definite products. Consequently, the managers make use of computers to assist in price provision, revenue, cost and development information for existing products and for new product development. The information system therefore avails data and analysis since pricing is its key system within any business. The managers may make use of computer based models to assess the performances of existing products and the prospects for achievement of proposed products. In regard to advertising and promotion, managers attempt to maximize sales at lowest probable costs for advertising and promotion. Marketing information make use of market resource information and promotion form to assist assign financial resource, choose media and promotion procedure and control and assess results of several advertising and promotions campaigns. In accordance to human resource information systems to enable the HR managers to generate paychecks and payroll reports, sustain employees’ record and analyze the use of employees within the business operations. The managers also make use of information systems to control all personnel policies and programs (Tomlinson 2008). Ethical considerations An ethical company incorporates attributes like mutual respect, justness, reciprocity and objectivity within its activities. Being ethical entails the company to inform the employees and clients what to expect and how they will be treated and then the managers and the company should live up with what’s stated. KPMG has its code of ethics posted and this enables the employees to know what its expected of them and also the company train its employees to conform to the company’s code of ethics. It does this through conducting meetings for each an every employee to explain the rules. KPMG maintains an open door policy to get to know about violations and here the company has created an environment where employees are comfortable discussing concerns regarding ethical questions (Spyns 2008). Bibliography Fitzgerald, K., 2005, Information Systems Development: Methodologies, Techniques and Tools 2nd Ed, McGraw Hill, New York. Graham, B., 2006, Incremental Development: Review of no monolithic life-cycle development models, Information and Software Technology, Vol. 31/1. Mumford, K., 2006, Effective Requirements Analysis and Systems Design: the ETHICS method. Macmillan, New Jersey. Curtis, G., 2005, Business information systems: analysis, design, and practice, Pearson, London. Tomlinson, F., 2008, Thinking about GIS: geographic information system planning for managers, ESRI, Inc, Sydney. Spyns, P., 2008, Legal knowledge and information systems: JURIX 2007 : the eighteenth annual conference, IOS Press, Albania. Read More