IT/IS Flashcards
What is IT
IT describes any equipment concerned with the capture, storage, transmission or presentation of information. The IT is the supporting hardware that provides the infrastructure to run the information systems.
What is IS?
IS refers to the provision and management of information to supper the running of the organization
2 main roles of IS in an organization
Support the operations through the processing and storage of transactions
Supper managerial activities such as a decision making, planning, performance measurement and control.
Costs and benefit of IS
Benefits outweigh or justify the costs
The value of information
Collecting and processing information for use by managers has a cost
The value of the information to the business must be greater than the cost. I order words, the benefits of the new IS should be greater than its costs. If this is the case, the new IS is worth implementing.
CBA
Cost benefit analysis
The costs of a new system
Initial costs
Running costs
Cost classification
Costs of internal information
Costs of external information
Examples of initial costs
Costs to design and develop system if software is bespoke
Purchase price of software if it is not bespoke
Purchase cost of hardware
Cost of testing and implementation of the new system
Training costs
Examples of running costs
Costs of labour time to run the system
Costs of materials like replacement parts
Costs of service supper like IT help desk
Costs of internal information
Direct data capture costs like the cost of barcode scanners in a supermarket
Indirect costs like information collected which is not needed or is duplicated
Processing costs like salaries paid to payroll processing staff
Costs of external information
Direct costs like newspaper subscription
Indirect costs like wasted time finding useful information
Infrastructure costs like system enabling internet searches
The indirect costs of producing information
Labour
Training or retraining expenses
Paying for the trainer
Paying wages for people being trained
Paying wages for someone to do the normal work for the peer being trained
Lost productivity whilst people are being trained
Slower productivity whilst people learn on the job
Other indirect costs of producing information
•Loss of staff moral
•Delays caused in other projects of the business
•General dislocation cashed by system change
•Upsetting customers from system change
•Incompatibility with other systems
Unexpected costs of software amendments, tailoring and maintenance
•Cost of failure due to inappropriate system or faulty implementation
