P7- Use IT tools to produce management information
Databases
All information systems have databases that store data being entered in to the system. To build an information system, you must create a database. First a data model must be created, this presents the information in the database with a specific layout that describes the information being held and the similarities between different sets up data. These data models are able to be applied to both computerised and manual systems. The information/data stored in this data model is then held in a database which is on hard drive/central server. To easily locate information there is an index, this can be used for all databases however it will be more useful for larger databases with large amounts of information.
Artificial Intelligence
Artificial Intelligence (AI) are used as part of an information system to mimic business actions that an expert in a specific department would make. The computer performs tasks that would normally be handled by human workers, this creates a level of convenience as now some tasks can be operated by a computerised system. The system will have a set of changeable rules that will control how the system works and it can then copy what a top employee is doing so it has the proper functions. The rules of the system
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An information system uses historic data stored that develops a model which shows future outcomes in specific areas of the company. Downfalls in profit or sales are predicted as well as spikes in profit/sales. There is an expected profit for the year that helps the company decide what decisions they make as money is a big factor in that. If good decisions are made based on predictions, then that comes as an overall benefit for the