Information Technology Reference
In-Depth Information
decide whether to invest in additional information systems and technology. A new comput-
erized ordering system might cost $30,000, but generate an additional $50,000 in sales. The
value added
by the new system is the additional revenue from the increased sales of $20,000.
Most corporations have cost reduction as a primary goal. Using information systems, some
manufacturing companies have slashed inventory costs by millions of dollars. Other com-
panies have increased inventory levels to increase profits. Wal-Mart, for example, uses
information about certain regions of the country and specific situations to increase needed
used valuable information about the needs of people in the path of Hurricane Ivan when it
hit Florida. The store stocked strawberry Pop-Tarts and other food items that didn't need
refrigeration or food preparation to serve people in the area and to increase its profits.
Like information, another central concept of this topic is that of a system. A
system
is a set
of elements or components that interact to accomplish goals. The elements themselves and
the relationships among them determine how the system works. Systems have inputs, pro-
cessing mechanisms, outputs, and feedback (see Figure 1.3). For example, consider an
automatic car wash. Tangible
inputs
for the process are a dirty car, water, and various cleaning
ingredients. Time, energy, skill, and knowledge also serve as inputs to the system because
they are needed to operate it. Skill is the ability to successfully operate the liquid sprayer,
foaming brush, and air dryer devices. Knowledge is used to define the steps in the car wash
operation and the order in which the steps are executed.
system
A set of elements or components
that interact to accomplish goals.
T
T
T
Input
Processing
Output
Feedback
Figure 1.3
The
processing mechanisms
consist of first selecting which cleaning option you want (wash
only, wash with wax, wash with wax and hand dry, etc.) and communicating that to the
operator of the car wash. A
feedback mechanism
is your assessment of how clean the car is.
Liquid sprayers shoot clear water, liquid soap, or car wax depending on where your car is in
the process and which options you selected. The
output
is a clean car. As in all systems,
independent elements or components (the liquid sprayer, foaming brush, and air dryer) in-
teract to create a clean car.
Components of a System
A system's four components consist
of input, processing, output, and
feedback.
System Performance and Standards
System performance can be measured in various ways.
Efficiency
is a measure of what is
produced divided by what is consumed. It can range from 0 to 100 percent. For example,
the efficiency of a motor is the energy produced (in terms of work done) divided by the energy
consumed (in terms of electricity or fuel). Some motors have an efficiency of 50 percent or
less because of the energy lost to friction and heat generation.
efficiency
A measure of what is produced
divided by what is consumed.
