Design and Development of Information Systems

This report explains the design and development of information systems for Active Medical Supplies in Australia. It covers major functions, business processes, transaction cycles, ethical issues, and more.

Running head: DESIGN AND DEVELOPMENT OF IS
Design and Development of Information Systems
Name of the Student
Name of the University
Author’s Note:

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DESIGN AND DEVELOPMENT OF IS
Executive Summary
The main aim of this report is to understand about the usage, design and development of
information system for the popular organization in Australia, namely, Active Medical
Supplies. The various data operations such as collection, filtering, processing, creation as
well as distribution of the confidential information is well done with the help of this
information system. Some of the major functions are present for information system and
hence it becomes beneficial for the users. This report has clearly explained about the business
processes and transaction cycles with their examples. Moreover, the various ethical issues
related to the usage and development of information system is also identified in this report.

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DESIGN AND DEVELOPMENT OF IS
Table of Contents
Introduction................................................................................................................................3
Literature Review.......................................................................................................................3
Major Functions Performed by Information Systems............................................................3
Definition and Examples of Business Processes and Transaction Cycles.............................4
Mapping and Documenting Information Systems.................................................................5
Acquiring and Deploying Information Systems....................................................................6
Ethical Issues for Development and Use of Information Systems.........................................7
Analysis and Interpretation........................................................................................................7
Findings......................................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
Appendix..................................................................................................................................11

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DESIGN AND DEVELOPMENT OF IS
Introduction
The organized system that helps to collect, organize, store as well as communicate
sensitive information or data is known as an information system. Each and every operation of
data is well executed in this type of system and hence data is completely safe and secured if
information systems are being utilized (Dahlstrom, Walker & Dziuban, 2013). The
collectiveness of the data elements is taken into consideration so that they can interact with
each other to produce relevant and important information. The most significant focus is
provided over the internal data. The external data is completely eliminated in this type of
system and hence it is the proper combination of the business processes, hardware, software,
functions and data. These are then used to increment the overall efficiencies, effectiveness
and management of data in the company.
The following report will be outlining a brief discussion on the designing and
development of the information system for an Australian organization, namely, Active
Medical Supplies. This organization is not utilizing information system in their business and
this report will be providing relevant details regarding the information system functionalities,
business processes, transaction cycles and even the ethical issues of this system.
Literature Review
Major Functions Performed by Information Systems
As per Eason (2014), information systems comprise of some of the most important
and significant functions that make this specific system extremely popular for all
organizations. Active Medical Supplies should implement an information system in their
business for obtaining these functions. The major functions of this information system are
given below:

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DESIGN AND DEVELOPMENT OF IS
i) Easy Data Processing: The first and the foremost function of this information
system is that it supports easy data processing. This particular function helps to transform the
data into relevant information easily and promptly, without having any problem. Moreover,
data backups are also easy with these information systems and hence any type of data disaster
is avoided here.
ii) Provides Data Storage: The data storage is being provided by this information
system and hence regular backups could be eventually taken by the users (Bilbao-Osorio,
Dutta & Lanvin, 2013). There is a major impact on the backup as well as original data
storage.
iii) Open and Closed Systems: The third function of the information system is that it
is also termed as open and closed system, since it can easily interact with the environments.
The open system can interact with the environment completely and the closed system is
separated from that environment as it could not interact much with the environment.
iv) In Built Database: There is an in built database present within the information
system, which allows the users to manage their data properly (Dahlstrom & Bichsel, 2014).
The quantitative, qualitative, structured or unstructured data are well managed by this system.
Definition and Examples of Business Processes and Transaction Cycles
i) Business Processes: The business process can be defined as the collection of
several associated tasks that search their end for the respective delivery of any product or
service to any particular client. The business processes help in accomplishing or completing
the various goals and objectives of that particular organization. There are clear defined inputs
and it provides a single output. The major factors that affect any business process are
supporting business process, operational processes and management processes.

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The most significant examples of these business processes are manufacturing, finance,
banking and health business processes. Each and every above mentioned examples of
business process is extremely vital for all organizations and thus should be utilized by the
organizations for reducing their business complexities and undertaking better decisions.
ii) Transaction Cycles: As per Worrell, Di Gangi and Bush (2013), the transaction
cycle can be easily defined as the interlocking set of several business transactions. These
transaction cycles help the organization to execute any type of accounting transaction
properly. The major business transactions could be aggregated to a small number of
transaction cycles, which are solely related to the suppliers’ payments, employees’ payments,
lenders’ payments and many others. Since, Active Medical Supplies organization has to deal
with customers, transaction cycles are extremely important for them (See Appendix).
The most significant examples of the transaction cycles for any company are sales
cycle, purchasing cycle, payroll cycle and financing cycle. The various complexities related
to the transactions are substantially reduced with these transaction cycles.
Mapping and Documenting Information Systems
There are various types of information systems and all of these types could be easily
mapped with the businesses. The most popular types of information systems are as follows:
i) Accounting Information System: This is the system for collection, storage and
finally processing of the accounting or the financial data or information, which are utilized by
all decision makers (Bloom et al., 2014). Any type of accounting activity is being tracked by
this information system.
ii) Transaction Processing System: The TPS or transaction processing system is the
type of information system that helps to process information for the various business

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DESIGN AND DEVELOPMENT OF IS
transactions after the involvement of collection, modification and retrieval of transactional
data. The performance, reliability as well as consistency are included in this system.
iii) Management Information System: Demski (2013), state that MIS is the specific
computerized database of the financial data that is organized in such a manner that only
regularized reports on the operations are produced at each and every managerial level within
the organization.
iv) Process Control System: The automated process control system help to
continuously produce process after utilizing the industrial control systems. The respective
production level of economy, safety and consistency are achieved or obtained by this system.
This helps to reduce the human manual controls.
v) Decision Support System: According to Holtshouse (2013), the information system
that helps the businesses or organizations to take proper decisions related to operations,
management and planning. The management levels of the business are benefitted with this
particular information system and hence this is extremely effective for all.
Acquiring and Deploying Information Systems
As per Hilton and Platt (2013), the deployment of the information system is not easier
and hence is done with proper implementation of various software applications. When the
new software applications are designed as well as developed, four distinct implementation
policies are properly identified and implemented in the information system. The other
important criterion of this deployment of information system is the involvement of the
various types of programming languages. Most important and significant methodologies for
the respective software development are present to develop the information system in any
business.

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DESIGN AND DEVELOPMENT OF IS
The entire process of deploying information system is divided into six steps. The first
step in this process is the identification of the fixed as well as variable system design
parameters (Simkin, Norman & Rose, 2014). The next step is to identify the available options
for all the variables. Then the factors affecting the selected choice and the factors affected by
the selected choice are taken into consideration. Finally, the most suitable option is being
selected.
Ethical Issues for Development and Use of Information Systems
Collier (2015), state that the major ethical issues for development and use of the
information systems for the Active Medical Supplies are the presence of privacy, security,
relevant techniques as well as system qualities. Any type of data loss or data theft should be
avoided in this process and hence this is the most important ethical issue in information
system use and development. Moreover, the data exploitation should be stopped by involving
various security measures such as firewalls and antivirus (Christensen, Nikolaev &
WITTENBERG‐MOERMAN, 2016). Moreover, cyber crime should also be avoided in this
case and thus this ethical issue should be maintained.
Analysis and Interpretation
The analysis of the report is checked after the information system design and
development for Active Medical Supplies in Australia. The software development life cycle
is taken into consideration for the completing of the phases in information system.
Findings
The various functions of the information systems are properly noted for the
organization of Active Medical Supplies. Moreover, the business processes and transaction

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cycles are explained in accounting. The various ethical issues are documented for the use and
development of the information systems.
Conclusion
Therefore, from the above discussion, it can be concluded that information systems
are substantially designed as the complete automated system, which could be utilized by all
the companies in the entire world. An in built database system is present in this type of
system and thus data or information management is extremely easier here. This is responsible
for emphasizing on the definite boundaries, storages, procedures, inputs, outputs, users and
the various computerized networks. The decision making is quite easy with any information
system and the various operations within that business is well supported. The various
objectives like the data transmission, retrieval, manipulation and then displaying are properly
fulfilled with the help of an information system. The above report has properly outlined a
brief discussion on the popular Australian organization, Active Medical Supplies and their
advantages due to the deployment of information systems. The designing and development of
the information systems are much important for this particular organization, since it would
provide proper advancements and competitive advantages in their business. Moreover, this
report has also explained about the business processes and the transaction cycles for this
organization. Various ethical issues are also identified in this process so that the organization
can implement the system ethically. Furthermore, the several functionalities of the
information systems are well described in this particular report.

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References
Bilbao-Osorio, B., Dutta, S., & Lanvin, B. (2013, April). The global information technology
report 2013. In World Economic Forum (pp. 1-383).
Bloom, N., Garicano, L., Sadun, R., & Van Reenen, J. (2014). The distinct effects of
information technology and communication technology on firm
organization. Management Science, 60(12), 2859-2885.
Christensen, H. B., Nikolaev, V. V., & WITTENBERG‐MOERMAN, R. E. G. I. N. A.
(2016). Accounting information in financial contracting: The incomplete contract
theory perspective. Journal of accounting research, 54(2), 397-435.
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for
decision making. John Wiley & Sons.
Dahlstrom, E., & Bichsel, J. (2014). ECAR Study of Undergraduate Students and Information
Technology, 2014. Educause.
Dahlstrom, E., Walker, J. D., & Dziuban, C. (2013). ECAR study of undergraduate students
and information technology(p. 2013). 2013.
Demski, J. (2013). Managerial uses of accounting information. Springer Science & Business
Media.
Eason, K. D. (2014). Information technology and organisational change. CRC Press.
Hilton, R. W., & Platt, D. E. (2013). Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.

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DESIGN AND DEVELOPMENT OF IS
Holtshouse, D. K. (2013). Information technology for knowledge management. Springer
Science & Business Media.
Simkin, M. G., Norman, C. S., & Rose, J. M. (2014). Core concepts of accounting
information systems. John Wiley & Sons.
Worrell, J. L., Di Gangi, P. M., & Bush, A. A. (2013). Exploring the use of the Delphi
method in accounting information systems research. International Journal of
Accounting Information Systems, 14(3), 193-208.

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Appendix
Transaction Cycle