Information Systems

CS-507
Lecture 05

1
Direction of Information Flow

2
Ideal Information Network in an
Organization
In an ideal information network, information should be
• Periodically / Continuously updated,
• Efficiently Processed,
• Value driven,
• Audience Centred, and
• Available/made available to everyone within and
outside the organization. (Subject to management’s
decision)

3
Availability of timely and accurate information helps in
proper decision making and meeting the organizational
goals.

4
Information must be tailored in accordance with the
organization’s structure.

5
Effect of Changes in Environment
Changes in business environment have
resulted in changing information needs.

6
Effect of Changes in Environment
Information requirements have to be met to
help in effective and goal oriented decision
making.

7
Effect of Changes in Environment
The business environment and changes in it
drive the information needs of the
organization.

8
Effect of Changes in Environment
Information systems are developed to
capture the right type and quality of
information.

9
 Business Environment
• It is a collective reference made to the
following factors
• Legal factors
• Economic factors
• Social factors
• Technological factors

10
 Legal Factors
Interaction with government and regulatory
bodies.
• International trade agreements e.g.
• European Union (EU)
• World Trade Organization (WTO)
• South Asia Free Trade Agreement (SAFTA)
• Laws imposed to regulate business e.g.
• Companies Ordinance 1984
• Environmental Laws
• Import Export regulations
11
 Economic Factors
Developments within the economy which
may affect the business environment
• Inflation rates
• Bank interest rates
• Availability of capital in the capital/money
markets
• Foreign exchange rates
• Consumer spending
• Employment opportunities

12
 Social Factors
These include
• Changes in needs of society due to
demographic changes, such as
• Age Composition
• Gender
• Occupations
• Social norms
• Changing attitudes and perceptions of
people, such as,
• Lifestyle
• Prosperity
13
• Availability of foreign brands/products
 Technological Factors
• Research made for new inventions
• Changes in
• Production processes
• Raw materials
• The way products are developed and offered
to the customers keeps changing thus
affecting the business environment in which
the organization works.

14
 Pressures/Challenges
• Changes in business environment pose pressures
to the organizations. These pressures need to be
responded to.
• Following are the pressures
• Competition for cheaper factors of production
• Changing workforces
• Enhanced customer quality
• Technological Obsolescence
• Information overload
• Social responsibility
• Ethics 15