Information Systems Concepts

What is a System?

A system is defined as a set of interrelated components

• with a clearly defined boundary,

• working together to achieve a common set of objectives
• by accepting inputs and producing outputs
• in an organized process.

Example: A society contains a multitude of such systems, including

individuals and their social, political, and economic institutions.
• Organizations themselves consist of many subsystems, such as departments, divisions,
process teams, and other workgroups.
Composition of a System

A System exists and functions in an

environment, separated by its boundary

Open Systems: Interacts with

its environment and exchanges
inputs and outputs

Closed Systems: do not interact

or exchange any inputs or
outputs with its environment
Data & Information

• A “given,” or fact; a number, a statement, or an image

• Represents something (quantities, actions and objects) in
Data the real world
• The raw materials in the production of information

• Data that have meaning within a context

• Data that has been processed into a form that is meaningful
Information to the recipient and is of real or perceived value in the
current or in the prospective actions or decisions of the
recipient.
Characteristics of Information
Time Dimension
• Timeliness Information should be provided when it is needed.
• Currency (On-time) Information should be up-to-date when it is provided.
• Frequency Information should be provided as often as needed.
• Time Period Information can be provided about past, present, and future time periods.

Content Dimension
• Accuracy Information should be free from errors.
• Relevance Information should be related to the information needs of a specific recipient for a specific situation.
• Completeness All the information that is needed should be provided.
• Conciseness Only the information that is needed should be provided.
• Scope Information can have a broad or narrow scope, or an internal or external focus.
• Performance Information can reveal performance by measuring activities accomplished, progress made, or resources accumulated.

Form Dimension
• Clarity Information should be provided in a form that is easy to understand.
• Detail Information can be provided in detail or summary form.
• Order Information can be arranged in a predetermined sequence.
• Visual - Presentation Information can be presented in narrative, numeric, graphic, or other forms.
• Media Information can be provided in the form of printed paper documents, video displays, or other media.
Information System

An information system (IS) can be any organized combination

of people, hardware, software, communications networks,
data resources, and policies & procedures.

An IS stores, retrieves, transforms, and disseminates

information in an organization
Why we need Information System?
To ensure effective and efficient decision – leading to
prosperity of the Organization
An
Organizational
System
What is Feedback?

Definition • Feedback is data about the performance of a system.

• Data about sales performance are feedback to a sales

manager.
Example • Data about the speed, altitude, attitude, and direction of
an aircraft are feedback to the aircraft’s pilot or autopilot.
What is Control?

Definition • Control involves monitoring and evaluating feedback to determine whether a system is moving
toward the achievement of its goal.

The control • then makes the necessary adjustments to a system’s input and processing components to
ensure that it produces proper output.
function
• a sales manager exercises control when reassigning salespersons to new sales territories after

For example evaluating feedback about their sales performance.

• An airline pilot, or the aircraft’s autopilot, makes minute adjustments after evaluating the
feedback from the instruments to ensure that the plane is exactly where the pilot wants it to be.
Activities in an Information System

Input • Involves capturing and assembling raw data that enter the system to be processed.
• Optical scanning of bar-coded tags on merchandise.

• Involves transformation processes that convert input into output.

Processing • Calculating employee pay, taxes, and other payroll deductions.

• involves transferring data that have been produced by a transformation process to their ultimate
Output destination
• Producing reports and displays about sales performance.

• Involves retention of the raw data as well as transformed output (information) in an organized structure
Storage for later use.
• Maintaining records on customers, employees, and products.

Control • Track the system performance and evaluates the feedback

• Generating audible signals to indicate proper entry of sales data.
Components of Information Systems
Components of Information System
People resources

• People who use an information system or the information it

produces.
End users (also called
• They can be customers, salespersons, engineers, clerks,
users or clients) accountants, or managers and are found at all levels of an
organization.

• People who develop and operate information systems.

• They include systems analysts, software developers, system
IS specialists operators, and other managerial, technical, and clerical IS
personnel.
Hardware Resources

Hardware • The concept of hardware resources includes all physical devices and materials used in information
processing.

Includes • It includes not only machines , such as computers and other equipment, but also all data media , that is,
tangible objects on which data are recorded, from sheets of paper to magnetic or optical disks.

• Consist of CPU containing microprocessors and a variety of interconnected peripheral devices such as
printers, scanners, monitors, and so on.
Computer systems • Examples are handheld, laptop, tablet, or desktop microcomputer systems, midrange computer systems,
and large mainframe computer systems.

• Devices such as a keyboard, electronic mouse, trackball, or stylus for the input of data and commands, a
Computer peripherals video screen or printer for the output of information, and magnetic or optical disk drives for the storage
of data resources.
Input Devices

The input devices of a computer system include

computer keyboards, touch screens, pens,
electronic mice, and optical scanners.

They convert data into electronic form for direct

entry or through a telecommunications network
into a computer system.
Output Devices

The output devices of a computer system include

video display units, printers, and audio response
units.

They convert electronic information produced by

the computer system into human-intelligible form
for presentation to end users.
Software Resources

The concept of software resources includes all sets of information processing instructions.

This generic concept of software includes the sets of operating instructions called programs, which direct and
control computer hardware

Also the sets of information processing instructions called procedures that people need.

The following are examples of software resources:

• System software: an operating system program, which controls and supports the operations of a computer system. MS Windows and iOS
• Application software: programs that direct processing for a particular use of computers by end users. Examples are sales analysis, payroll,
and word processing programs like MS Word.
• Procedures: Operating instructions for the people who will use an information system. Examples are instructions for filling out a paper
form or using a software package.
Networking Resources

Network • Connect computers and equipment to enable electronic communication

• Network of interconnected devices for exchanging information across

Internet the globe

• Network that allows people within an organization to exchange

Intranet information for the purpose of business

• Network that allows selective users from outside the organization (such
Extranet as partners, vendors and 3rd party suppliers) to access the intranet
Types of Network
WAN
• Telecommunications networks covering a large geographic area are called wide area networks
(WANs) .
MAN
• When a wide area network optimized a specific geographical area, it is referred to as a
metropolitan area network (MAN).
• Such networks can range from several blocks of buildings to entire cities.

LAN
• Local area networks (LANs) connect computers and other information processing devices
within a limited physical area, such as an office, classroom, building, manufacturing plant, or
other worksite.
LAN
A local area
network (LAN).
Note how the
LAN allows
users to share
hardware,
software, and data
resources.
Data Resources

Data can take many forms…

• including traditional alphanumeric data, composed of numbers, letters and other characters that describe business transactions and
other events and entities;
• text data, consisting of sentences and paragraphs used in written communications;
• image data, such as graphic shapes and figures or photographic and video images;
• audio data, including the human voice and other sounds;

Data that previously were captured as a result of a common transaction are now stored, processed, and
analyzed using sophisticated software applications that can reveal complex relationships among sales,
customers, competitors, and markets.

In today’s wired world, the data to create a simple list of an organization’s customers are protected with the
same energy as the cash in a bank vault.
IS for Business
Different levels in management require
difference information
Information needs at various levels
Operational Middle Management Top Management
Specific Specific General
Scheduled Scheduled Ad-hoc
Narrow Interactive Interactive
Real-time Real-time Real-time
Internal Internal & partly External External
Structured Structured Unstructured
Pushed Pushed & Pulled Pulled