Unpacking the 7 Key Information System Elements
Introduction
If you’re running a business, chances are you’re using some sort of information system to help manage operations. Whether it’s an inventory management system or a customer database, information systems are critical to business success. However, many business owners and managers are unfamiliar with the various elements that comprise these systems. In this article, we’re going to take a deep dive into the 7 key information system elements, and explain why each one is essential to your business.
System Objectives
The first element of any information system is the system objectives. In other words, what is the purpose of the system? Is it to improve efficiency, reduce costs, or increase customer satisfaction? Well-defined system objectives help ensure that everyone involved in the system’s development, implementation, and maintenance is clear on its intended purpose.
For example, let’s say your business is a small retailer that wants to improve customer satisfaction. Your system objectives might include creating a user-friendly online store, providing customers with real-time inventory information, and improving the checkout process.
Data
The second element is data, which is the raw material that your information system uses to generate insights. Data can come from a variety of sources, including customer interactions, sales records, and website traffic. It’s essential to ensure that the data you’re collecting is accurate, complete, and relevant to your system objectives.
In the example of the small retailer, data might include customer names and addresses, website traffic statistics, and sales data.
Hardware and Software
The third element is hardware and software. This includes everything from servers and storage devices to software applications and operating systems. It’s essential to choose hardware and software that can handle the demands of your system and provide the necessary performance, availability, and security.
In the example of the small retailer, hardware and software might include a web server, customer relationship management software, and inventory management software.
Process
The fourth element is process, which refers to the set of procedures and workflows that your system uses to collect, analyze, and distribute data. It’s essential to ensure that these processes are well-defined, efficient, and effective. In addition, you’ll need to create guidelines for ensuring that these processes are followed consistently.
In the example of the small retailer, processes might include data collection procedures, website design processes, and shipping and fulfillment workflows.
People
The fifth element is people, which refers to the individuals involved in the system’s development, implementation, and maintenance. These might include IT professionals, business analysts, and end-users. It’s essential to ensure that everyone involved in the system is adequately trained and has the necessary skills to perform their roles effectively.
In the example of the small retailer, people might include website developers, customer service representatives, and warehouse personnel.
Communication Networks
The sixth element is communication networks, which are the channels through which data is transmitted between system components. It’s essential to ensure that these networks are reliable, secure, and provide sufficient bandwidth to meet your system’s needs.
In the example of the small retailer, communication networks might include local area network (LAN) connections within the warehouse and store, as well as a wide area network (WAN) connection to the customer’s website.
Security
The final element is security, which refers to the measures taken to protect the system’s data, hardware, software, and processes. This includes everything from firewalls and access controls to backup and recovery procedures. It’s essential to ensure that your system’s security measures are sufficient to safeguard against threats such as cyberattacks, data breaches, and natural disasters.
In the example of the small retailer, security measures might include firewall protection for the web server, data encryption for customer information, and backup and recovery procedures for the inventory management system.
Conclusion
In summary, the 7 key information system elements are system objectives, data, hardware and software, process, people, communication networks, and security. Each of these elements is critical to the successful development, implementation, and maintenance of an effective information system. By understanding these elements and their importance, you’ll be better equipped to leverage your system’s power and drive business success.
