Information Systems Term Paper

The type of information system designed above is a Transaction Processing system (TPS). A TPS collects, modifies, stores and even retrieves transactional data of an enterprise. It helps in the day to day operations of the organization. This is the basis in which the information system above is designed and as such it’s a TPS.
The value of an information system to an enterprise is explained in the porter’s model. In it, an information system is supposed to support various activities in the firm. They are the operations, logistics whether in bound or out bound, marketing and sales and the services of the firm. According ot porter, an information system in an organization helps in the economies of scale, in capacity utilization, interrelations in the business units, market entry and the degree of vertical market integration. So the above system in creating value for the enterprise will help achieve the efficiency of the activities listed above through the cost drivers given.
The capability of the information system raises some privacy issues. With the rise in the accessibility of internet in the world, information system security is of paramount essence. This is to ensure that information privacy is maintained. These issues include theft of the computer hardware, fraud especially by the users and hackers into the system, infringement of copyright and the attacks on the firm’s information system. Other threats to the information system will include: viruses, worms, Trojan horse, time bomb, logic bomb and the trap door.