Components of an Information System

Components of an Information System

The security of confidential information in an organization is pegged on understanding how the information system functions. An information system refers to an interconnected set of components used to collect, store, process, and transfer data from one location to another. The primary goal executed by an information system is that it provide appropriate information to users, thus necessitating processing and effective communication of the data to the system user. This paper will discuss the five components of an information system, Porter’s five forces model, systems as they apply to management information systems, security measures against cyber-attacks, and the importance of the management information system.

Components of an Information System

IS’s primary goal is to provide appropriate information to its users, which enables data gathering, processing the same data, and ensuring that information is communicated effectively to the system user (Bourgeois et al., 2019). The five components of an information system include computer software, computer hardware, networks, databases, and human resources.

Computer Software

Computer software is an application program that controls and coordinates the hardware components. It is used in assessing and processing the data. This component may be divided into two broad categories: the system and application software. The first category comprises an operating system, such as iOS, significantly involved in managing the hardware’s operation (Bourgeois et al., 2019). On the other hand, the application software is used to manage specific tasks including but not limited to the creation of the document, handling the spreadsheet, or the web page design.

Computer Hardware

This is the physical component that works to protect the computer software. Computer hardware may be as small as a smartphone that can easily be carried in one’s pocket or as large as a supercomputer that requires a building for proper storage. It also includes peripheral devices that work in close association with computers (Bourgeois et al., 2019). These include routers, external disk drives, or even keyboards. The increased utilization of the Internet of Things has given room to use sensors in the human environment.

Networks

These are the telecommunication networks such as the Internet, extranet, or intranet that aid in the organization’s efficient and effective flow of information. Networks are composed of both physical and software devices. Some physical devices on a network are hubs, cables, network cards, and routers, while software devices include data servers, application servers, operating systems, and web servers (Bourgeois et al., 2019). Telecommunication networks comprise components such as communication processors, computers, and devices controlled by computer software.

Database

This is the component that works to store the data that has been collected and analyzed. The database enhances quick retrieval of the stored data by using one or more specific criteria—a data warehouse stores data in various forms based on the organization’s needs. The emergence of “big data” has increased the role played by databases and data warehouses because a vast amount of data can be collected and analyzed quickly.

Human Resources

This relates to the human resources required to run and maintain the system. People are the end users of the information collected and analyzed in an information system. In this regard, human resources may be accountants, customers, clerks, engineers, salespersons, or managers. Human resources also comprise employees hired to develop and operate information systems within the organizational setting (Bourgeois et al., 2019). These employees include systems analysts, programmers, computer operators, and other IS personnel.

Porter’s Five Forces Model

This model is extensively used in evaluating the structure of the industry together with an organization’s corporate strategy. In this model, Porter outlined five critical forces influencing each market and industry in different parts of the globe. These forces are utilized in assessing the market’s competition intensity, attractiveness, and profitability.

Competition in the Industry

The competitors’ total population and ability to outdo the company’s operations have been identified as one of the forces outlined by Porter in this model. The more competitors and many similar products sold in a market setting, the lower the company’s power in that particular market. Suppliers and customers often search for a company’s competitor in that they offer lower prices as far as the purchase of commodities is concerned (Anastasiu et al., 2020). On the other hand, when the competition rivalry is low, a company would enjoy more power to charge higher prices hence setting proper terms directed towards the realization of volume sales and more revenue streams.

The Potential of New Entrants into the Industry

New entrants in the market also affect the power of an organization. The less time and money spent for an effective competitor to gain access to the market, the more the weakening of established companies (Anastasiu et al., 2020). On the contrary, an industry composed of solid barriers to entry is beneficial for already established firms because this would enable them to charge more together with negotiating for better terms.

Power of Suppliers

The third factor in this model addresses the influence of suppliers on the price of inputs. The information price is dictated by the available number of suppliers, the unique attributes of these inputs, and the cost of changing a supplier. The fewer suppliers in an industry, the more companies would be required to have a designated supplier that they can trust to meet their production needs (Anastasiu et al., 2020). In this case, the available few suppliers would have more power, thus leveraging it to drive input costs up and pushing for other trade advantages. On the other hand, when an industry has many suppliers, companies enjoy the freedom to settle with a supplier that charges the least amount possible.

Power of Customers

Customers also can influence the prices of commodities in the market. The power of these customers lies in their population, how important each customer is, and the cost implication of finding a new customer for the output being produced by the company. A smaller client base denotes that each customer has high negotiation power regarding the commodities’ prices (Anastasiu et al., 2020). An organization with many more minor, independent customers has been established to enjoy the liberty of setting prices, leading to more revenue.

Threat of Substitutes

The last force of Porter’s five forces model focuses on substitute goods or services, which can always be used when customers find locating their preferred products or services difficult. In this regard, companies manufacturing goods or offering services with hardly any substitutes have been established to have more power to change prices in their favor. On the contrary, the availability of close substitutes denotes that customers would have more options and can easily forego purchasing the company’s development (Anastasiu et al., 2020). This results in the company’s power being weakened over time.

Management Information System (MIS) Software and Hardware Technologies

A Collaboration Information System

This refers to a system used to share information among the parties through a platform that houses dynamic and interactive information-seeking user groups. The information being shared in these systems often comes from associated parties such as higher institutions of learning, government, or industries through a web portal that allows users to have an interactive session (Shniekat et al., 2022). This system will enable employees to communicate among themselves and access and share information while working on various projects together. An example of a collaboration information system is the comprehensive collaboration toolset that encompasses an array of features ranging from workflow to management control (Shniekat et al., 2022). This system helps in developing an efficient and smoother work process.

A Database Management System

A database management system (DBMS) is a computerized system used to store an organization’s data. The users of this system are often provided with various facilities that can perform manipulative activities on the data or foster proper management of the entire database structure. An example of a DBMS is the Bill of Material (BOM) database structure composed of high-level assembly part numbers, several levels of components, and subcomponents (Shniekat et al., 2022, p. 491). The design of this system is often composed of a component forecast, cost, and pricing data.

A Content Management System

A content management system (CMS) is an application used to manage content, permitting users to enjoy various forms of freedom. The information in this system is often stored in a database and can be displayed through a presentation layer based on various sets of templates, such as websites (Shniekat et al., 2022). An example of a content management system is WordPress.

A Knowledge Management/Expert System

Knowledge management system refers to how corporations use and take advantage of the data they acquire. Knowledge management refers to developing, examining, and adequately using information to ensure that the correct information is availed at the right time in a way that is helpful to the end user (Shniekat et al., 2022). Managing knowledge starts with acquiring and storing important data for future use. The data can be collected from an organization, social media platforms, or other unstructured sources. A real-world example of a knowledge management system is Tableau’s knowledge base.

A Customer Relationship Management System

This system encompasses principles, practices, and guidelines that an organization must follow while interacting with its clients. Based on a firm’s point of view, this relationship includes direct interactions with the customer. This occurs through forecasting, sales, service-related activities, and evaluating customer trends and behaviors in the market (Shniekat et al., 2022). An example of this system is sales customer relationship management, which is geared towards increasing sales by increasing the number of new customers and prospects.

An Enterprise Resource Planning System

An ERP system is a platform that permits companies to manage essential parts of their businesses effectively. This system is vital in business operations because it necessitates incorporating all the processes required to run these companies using a single system. Some of the procedures that can be included in an ERP system are finance, marketing, purchasing inventory, planning, and human resources, to mention a few.

A Social Media Information System

Social media information system (SMIS) is a technology that brings together people and firms to make, offer, and trade in client-created content. Social media platforms generate a joint effort and information sharing and open doors for business activities to be executed effectively. It has become a daily routine for people to browse through social media pages like Twitter, Facebook, and Instagram (Shniekat et al., 2022). An example of SMIS is Chatbots for customer support that answers clients’ questions 24/7.

A Business Intelligence/Decision Support System

A decision support system (DSS) is an analytics program that collects and evaluates data to inform design-making protestations. DSS in problem-solving situations to enhance efficiency and streamline operations through planning and organization management (Shniekat et al., 2022). Modern DSS is an example of a business intelligence system that uses AI and machine learning to suggest fundamental insights that can be adopted within an organizational setting.

An Enterprise Information System

This refers to a system directed toward improving the functions of a business process through integration. This includes but is not limited to providing high-quality services, assessing large volumes of data, and supporting complex organizational processes (Shniekat et al., 2022). An example of an enterprise information system is enterprise asset management, which focuses on maintaining the organization’s equipment, foreseeing its repair, and after-sales services.

Technical and Human Safeguard Security Measures

Installing antivirus software is one of the technical measures that can be adopted to protect against IS security threats. This has been identified as the first line of defense that an organization can adopt. Antivirus software is essential because it helps detect and prevent malicious files from being illegally installed on the system (Hasan et al., 2022). On the other hand, the human safeguard measure entails the management team in the organization urging employees to create passwords. Strong passwords should be at least eight characters long and involve a mixture of numbers, letters, and symbols (Hasan et al., 2022). The combination used should be challenging for someone to guess, and employees should refrain from using their names, the names of their pets, or even that of the company where they work.

Importance of Management Information System

MIS is an essential component as far as the execution of business activities is concerned. For instance, an MIS in an organization supports efficient and effective management of marketing, production, finance, and personnel. This makes monitoring the established targets in an organization an easy process to execute. Additionally, MIS ensures that functional managers are informed about the progress, achievements, and bottlenecks regarding attaining the set targets. Lastly, the manager in an organization is kept informed on the current trends and how they impact business operations as a result of implementing the management information system.

References

Anastasiu, L., Gavriş, O., & Maier, D. (2020). Is human capital ready for change? A strategic approach is adapting Porter’s five forces to human resources: Sustainability, 12(6), 2300.

Bourgeois, D. T., Smith, J. L., Wang, S., & Mortati, J. (2019). Information systems for business and beyond. Saylor Academy.

Hasan, M. K., Ghazal, T. M., Saeed, R. A., Pandey, B., Gohel, H., Eshmawi, A. A., & Alkhassawneh, H. M. (2022). A review of security threats, vulnerabilities, and countermeasures of 5G enabled Internet‐of‐Medical‐Things. IET Communications, 16(5), 421–432.

Shniekat, N., AL_Abdallat, W., Al-Hussein, M., & Ali, B. (2022). Influence of management information system dimensions on institutional performance. Information Sciences Letters, 11(5), 435-1443.

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In this final assignment, you will develop a paper that reviews some of the main topics covered in the course. Compose an essay to address the following:

Identify the components of an information system using the five-component framework and provide a brief summary of each.
Explain Porter’s five forces model.

Management information systems incorporate software and hardware technologies to provide useful information for decision-making. Explain each of the following information systems and use at least one example in each to support your discussion:
A collaboration information system.
A database management system.
A content management system.
A knowledge management/expert system.
A customer relationship management system.
An enterprise resource planning system.
A social media information system.
A business intelligence/decision support system.
An enterprise information system.
Identify and discuss one technical and one human safeguard to protect against IS security threats.
Sum up your paper by discussing the importance of MIS.

Your paper must be at least three pages long, and you must use at least two resources. Be sure to cite all sources used in APA format and format your essay in APA style.