8/11/2019 Diploma in Business Process Management

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A system is a set of interdependent elements that together accomplish specific objectives. A system

must have organization, interrelationships, integration, and central objectives. Each part of a system

is known as a subsystem. Within limits, any subsystem can be further divided into its component

parts or subsystems. A systems basic objectives depend on its typenatural, biological, or human-

madeand on the particular system. For example, the human circulatory system is a biological

system whose purpose is to carry blood containing oxygen and carbon dioxide to and from the

organs and extremities of the body. Determination of the purpose of man-made systemssuch as

governments, schools, and business organizationsis necessary to understanding how best to

create and evaluate the processes that comprise each system. Many businesses, however, establish

goals other than financial return to the owners. For example, a business might strive to improve the

quality of life of its employees, or to use its natural resources responsibly. We must know a business

organizations objectives to understand that business as a system and to understand the actions and

interactions of that businesss components or subsystems. This is a central theme of the study of IS.

An Information System is a man-made system that consists of an integrated set of computer-based

and manual components established to facilitate an organizations operational functions and to

support management decision making by providing information that managers can use to plan and

control the activities of the firm. An IS often divides into components based on the organizational

function being supported. Other typical IS components include personnel, production, finance, and

accounting. Input data are data received by the Information System from the external environment

or from another area within the Information System. Data input includes capturing data and, if

necessary, conversion of the data to machine-readable form. Input data are normally recorded in

business event data stores. These business events comprise the activities of the organization, such

as purchasing goods from vendors and collecting cash from customers. Business event data are used

often as a key source of data to update various master data. A master data update is an informationprocessing activity whose function is to incorporate new business event data into existing master

data. Updating includes adding, deleting, and replacing master data and/or records. Master data

updates are recorded on master data stores. Master data stores are repositories of relatively

permanent data maintained over an extended period of time. Master data contain data related to

entitiespersons, places and things. Master data include such data as the accounts receivable

master data, the customer master data, and the inventory master data. Two types of updates can be

made to master data: information processing and data maintenance. Information processing

includes data processing functions related to economic events such as financial events, and internal

operations such as manufacturing. Data maintenance, on the other hand, includes activities related

to adding, deleting, or replacing the standing data portions of master data. Master data standing

data include relatively permanent portions of master data, such as the credit limit on customer

master data and the selling price and warehouse location on inventory master data.