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Information Technology Master - Essay Example

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This is a 5 page 5 resources paper discussing principles of information systems, the internet and availability of information, and how the capabilities of information systems have impacted the businesses with special reference to banking.
Information technology has changed the very face of organizations from their traditional time-consuming internal and external settings to robust applications of Information Systems…
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Information Technology Master Essay
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"Information Technology Master"

Download file to see previous pages Information is one of the assets of an organization. Raw data until processed has no value in a business structure to be used in the best interests of the organization. With the advent of information technologies that raw data is gathered, stored, processed and disseminated to become an integral part of the organizations' processes. An information system links together data inputs, processes, and information outputs in a systematic, structured way. With the use of technology, information processes are used to further the operations and management of an organization (Ward 1995).
With the help of internet and usage of technology, information can be accessed and made available with the click of the mouse. By using the electronic means like the Internet, the email and other electronic means of communication, right information becomes available at the right time. Electronic mail has become the standard and dependable source of communicating information. Other than emails, there are company websites, online bulletin boards, and message boards through which anybody can gather reliable, relevant and important information. A simple searching and researching on the internet about a company's systems can be availed any time. Information sharing has become as easy as can be dreamt of (Kairab 2004, p. 10).
Information systems work on the principles as the value of information is crucial in taking important decisions by the management. Information system is a set of interdependent parts that gather, use and provide information, and feedback to meet a business goal. These parts are input, processing, output, and feedback. We see day-to-day examples of information systems at work in ATMs, airline reservation systems, course reservation systems etc. Efficiency, effectiveness, and system performance standard makes an information system reliable; these are the three important ingredients that generate output, which is received in the format of documents and reports when raw data is captured to transform it into beneficial outputs. Important feedback from the output is recycled back to input or processing activities for getting further future output. In a computerized information system, inputs used are hardware, software, databases, internet, people, and methods are utilized to gather, use, save, and process data into information, as seen in the figure1 (Stair & Reynolds 2009).



Figure 1: The parts of a Computer-based Information System
The figure above depicts the components of transaction processing system (TPS), which include human capital, procedures, software, databases, and hardware equipment used in recording a foolproof business function (Stair & Reynolds 2009).
There are a number of information systems used in business organizations like electronic and mobile commerce systems, transactions processing systems, management information systems, and decision support systems. These information systems can be used in any industry like airlines industry, investment firms, banks, logistic industry, publishing companies and many others.
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