2020

Republic of the Philippines

CAVITE STATE UNIVERSITY
Bacoor City Campus
SHIV, Molino VI, City of Bacoor

AN INTRODUCTION
TO INFORMATION
SYSTEMS

Prepared by:
KHWEEN PRINCES H. MONCAYO
Table of Contents

COURSE DESCRIPTION .......................................................................................................... 2

MISSION ................................................................................................................................ 2
VISION ................................................................................................................................... 2
COURSE REQUIREMENTS ...................................................................................................... 2
INTENDED LEARNING OUTCOMES..................................................................................... 3
PRE-TEST: ................................................................................................................................ 3
INTRODUCTION ....................................................................................................................... 4
INFORMATION CONCEPTS ..................................................................................................... 4
SYSTEM CONCEPTS ............................................................................................................... 7
WHAT IS AN INFORMATION SYSTEM (IS)? ........................................................................... 7
BUSINESS IS .......................................................................................................................... 10
SYSTEMS DEVELOPMENT .................................................................................................... 10
INFORMATION SYSTEMS IN SOCIETY, BUSINESS AND INDUSTRY ................................. 11
GLOBAL CHALLENGES IN INFORMATION SYSTEMS ........................................................ 11
POST-TEST: ........................................................................................................................... 12
PRE-TEST AND POST-TEST FEEDBACK ............................................................................. 13
CASE STUDY .......................................................................................................................... 13
REFERENCES ........................................................................................................................ 15

1
 COURSE DESCRIPTION

INSY 50: FUNDAMENTALS OF

INFORMATION SYSTEMS

Republic of the Philippines This course introduces the fundamentals of

CAVITE STATE computer systems and the role of information
processing in today's business environment. An
UNIVERSITY overview is presented of information systems,
Bacoor City Campus systems development, operating systems and
SHIV, Molino VI, City of Bacoor programming, database management,
networking and telecommunications, and the
Internet.

PROGRAM OUTCOMES
MISSION
ADDRESSED BY THE COURSE.
Cavite State University shall
provide excellent, equitable AFTER COMPLETING THIS
and relevant educational COURSE, THE STUDENTS MUST
opportunities in the arts,
science and technology
BE ABLE TO:
through quality instruction and
1. Attain the vision, mission, goals and
relevant research and
objectives of the university, campus and
development activities.
department,
It shall produce professional,
2. Deliver a gender fair and gender sensitive
skilled and morally upright
instruction to students aligned with
individuals for global
University goals and objectives,
competitiveness.
3. Identify concepts, theories, and principles
about information systems.
4. Use learned concepts, theories, and
principles to identify and outline the
VISION relationships between them.
The premier university in 5. Use information technologies to
historic Cavite recognized for characterize the use of information
excellence in the development system for business.
of globally competitive and 6. Design a simple information system as
morally upright individuals. part of a team using information
principles.

COURSE REQUIREMENTS
KHWEEN PRINCES H.
1. Major Examination
MONCAYO 2. Student Portfolio / Activities
Instructor 3. Class Participation
khweenprinces.moncayo@cvs
u.edu.ph

2
 Republic of the Philippines
CAVITE STATE UNIVERSITY
Bacoor City Campus
SHIV, Molino VI, City of Bacoor

INTENDED LEARNING OUTCOMES

After the completion of the unit, students will be able to:

1. Discuss the importance of Information Systems (IS)

2. Name the components of an IS and its characteristics.
3. Identify the basic types of business IS and discuss who uses them, how they are
used, and what kind of benefits they deliver.
4. Identify the major steps of the systems development process and state the goal
of each.
5. Describe some of the threats to security and privacy that an IS can pose.

PRE-TEST:

Direction: Identify the terms describe by the following:

1. A set of interrelated components that collect, manipulate, and disseminate data

and information and provide a feedback mechanism to meet an objective.
2. Numbers, letters, and other characters are represented by _____________.
3. A set of elements or components that interact to accomplish a goal.
4. It consists of hardware, software, databases, telecommunications, people, and
procedures.
5. Computer programs that govern the operation of a computer system.
6. A collection of facts organized in such a way that they have additional value
beyond the value of the individual facts.
7. A characteristic of valuable information that describes information should be
easily accessible by authorized users so they can obtain it in the right format and
at the right time to meet their needs
8. A characteristic of valuable information that describes information should contain
all the important facts.
9. A type of Information system in which data are processed by automatically
through the use of different hardware, software, database and telecommunication
components.
10. The world’s largest computer network, consisting of thousands of interconnected
networks, all freely exchanging information.

3
INTRODUCTION

Information systems are used in all imaginable field and profession since it can

cut the cost of expenses and increase the profit of an organization. People and

organization use information every day which allows them to collect data, identify the

needs of their customers and reduce cost. The components used are often called an

information system.

Information Systems (IS) is a set of interrelated components that collect,

manipulate, store, and disseminate data and information and provide a feedback

mechanism to meet an objective. It is the feedback mechanism that helps the

organization in achieving their goals and such as increasing profits or improving

customer service. Businesses can use information systems to increase revenues and

reduce costs.

If we are to understand information systems and their functions, we first need to

be clear on the concept of a system. In its simplest form, a system is a set of interrelated

components, with a clearly defined boundary, working together to achieve a common set

of objectives.

INFORMATION CONCEPTS

• Data – raw facts or unprocessed information (ex. Name, Age, Product, etc.)

4
• Information – A collection of facts organized in such a way that they have additional

value beyond the value of the individual facts.

• Process – A set of logically related tasks performed to achieve a defined outcome.

• Knowledge – The awareness and understanding of a set of information and ways

that information can be made useful to support a specific task or reach a decision.

Figure 1. Defining and

Organizing Relationships
among data creates
information

When raw facts are arranged in a meaningful way, they can become information.

Data represents real-world things. In many cases organizations are converting data into

electronic form. Some may have developed a record management to store, organize and

control important data. However, data has little value beyond its existence. For example,

of railroad track in a model railroad kit. Each piece of track has limited inherent value as

a single object. However, if you define a relationship among the pieces of the track, they

will gain value. By arranging the pieces in a certain way, a railroad layout begins to

emerge. (Figure 1. a). Data and information work the same way. Rules and relationships

can be set up to organize data into useful, valuable information.

The type of information created depends on the relationships defined among

existing data. For example, you could rearrange the pieces of track to form different

layouts. Adding new or different data means you can redefine relationships and create

new information. For instance, adding new pieces to the track can greatly increase the

value—in this case, variety and fun—of the final product. You can now create a more

5
elaborate railroad layout (Figure 1. b). Likewise, the organization can use this to improve

their products and determine which products are the most popular and profitable.

On the other hand, turning data into information is a process, and the process of

defining relationships among data to create useful information requires knowledge.

Figure 2. The Process of Transforming Data into Information

Characteristics of a Valuable Information

Depending on the type of data you need, some characteristics become more

valuable than others. Valuable information can help people and their organizations

perform tasks more efficiently and effectively. This can also help organizations decide

whether to invest in additional information systems and technology.

Characteristics Definition
Information should be easily accessible by
Accessible authorized users so they can obtain it in the right
format and at the right time to meet their needs.
Accurate information is error free. In some cases,
inaccurate information is generated because
Accurate
inaccurate data is fed into the transformation
process.
Complete information contains all the important
Complete facts. For example, an investment report that does
not include all important costs is not complete.
Information should also be relatively economical to
Economical produce. Decision makers must always balance the
value of information with the cost of producing it.
Flexible information can be used for a variety of
purposes. For example, information on how much
inventory is on hand for a particular part can be
used by a sales representative in closing a sale, by
Flexible
a production manager to determine whether more
inventory is needed, and by a financial executive to
determine the total value the company has invested
in inventory.
Relevant information is important to the decision
Relevant
maker. Information showing that lumber prices might

6
 drop might not be relevant to a computer chip
manufacturer.
Reliable information can be trusted by users. In
many cases, the reliability of the information
depends on the reliability of the data-collection
Reliable method. In other instances, reliability depends on
the source of the information. A rumor from an
unknown source that oil prices might go up might
not be reliable.
Information should be secure from access by
Secure
unauthorized users.
Information should be simple, not overly complex.
Sophisticated and detailed information might not be
needed. In fact, too much information can cause
Simple
information overload, whereby a decision maker has
too much information and is unable to determine
what is really important.
Timely information is delivered when it is needed.
Timely Knowing last week’s weather conditions will not help
when trying to decide what coat to wear today.
Information should be verifiable. This means that
Verifiable you can check it to make sure it is correct, perhaps
by checking many sources for the same information.

SYSTEM CONCEPTS

System

• A set of elements or components that interact to accomplish goals.

WHAT IS AN INFORMATION SYSTEM (IS)?

Figure 3. The Components of an Information System

7
 An information system (IS) is a set of interrelated elements or components that

collect (input), manipulate (process), store, and disseminate (output) data and

information, and provide a corrective reaction (feedback mechanism) to meet an

objective (see Figure 3). The feedback mechanism is the component that helps

organizations achieve their goals, such as increasing profits or improving customer

service.

• Input – The activity of gathering and capturing raw data.

• Processing – Converting or transforming data into useful outputs.

• Output – Involves producing of useful information, usually in the form of

documents and reports

• Feedback – Output that is used to make changes to input or processing activities

Manual and Computerized Information Systems

• Manual system – data are processed by manually through the use of

components like filing cabinets, manual procedures and papers. For example,

book keeping, school registration, attendance system and school library book

index system

• Computerized – data are processed by automatically through the use of different

hardware, software, database and telecommunication components. For example,

telephone billing system.

Computer-based information system

• A single set of hardware, software, databases, telecommunications, people, and

procedures that are configured to collect, manipulate, store, and process data

into information.

• An IS that is based on computer-hardware and software technology for

processing and disseminating information.

Components of a Computer-based IS

8
 Figure 4. The Components of a Computer-Based Information System

• Hardware – Computer equipment used to perform input, processing, and output

activities.

• Software – The computer programs that govern the operation of the computer.

• Database – An organized collection of facts and information.

• Telecommunications – The electronic transmission of signals for communications,

which enables organizations to carry out their processes and tasks through effective

computer networks.

• Networks – Computers and equipment that are connected in a building, around the

country, or around the world to enable electronic communications.

• Internet – The world’s largest computer network, consisting of thousands of

interconnected networks, all freely exchanging information.

• People – Persons who manage, run, program, and maintain the system

• Procedures – The strategies, policies, methods, and rules for using a CBIS

9
BUSINESS IS

Most common types of information systems used in business organizations

• Electronic and mobile commerce systems

• Transaction processing systems

• Management information systems

• Decision support systems

• Specialized business information systems

SYSTEMS DEVELOPMENT

Systems Development refers to the activity of creating or modifying business

systems. Systems development can be performed in-house or outsourced.

Developing information systems to

meet business needs is highly complex and

difficult—so much so that it is common for IS

projects to overrun budgets and exceed

scheduled completion dates. One strategy for

improving the results of a systems

development project is to divide it into several

steps, each with a well-defined goal and set

of tasks to accomplish.

Figure 5. An Overview of Systems

Development

10
INFORMATION SYSTEMS IN SOCIETY, BUSINESS AND
INDUSTRY

Information systems have been developed to meet the needs of all types of

organizations and people. The speed and widespread use of information systems,

however, opens users to a variety of threats from unethical people.

• Security, Privacy, and Ethical Issues in Information Systems and the Internet

• Computer and Information Systems Literacy

• Information Systems in the Functional Areas of Business

• Information Systems in Industry

GLOBAL CHALLENGES IN INFORMATION SYSTEMS

• Cultural challenges – Countries and regional areas have their own cultures and

customs that can significantly affect individuals and organizations involved in global

trade.

• Language challenges – Language differences can make it difficult to translate exact

meanings from one language to another.

• Time and distance challenges – Time and distance issues can be difficult to

overcome for individuals and organizations involved with global trade in remote

locations.

• Infrastructure challenges – High-quality electricity and water might not be available

in certain parts of the world. Telephone services, Internet connections, and skilled

employees might be expensive or not readily available.

11
• Currency challenges – The value of different currencies can vary significantly over

time, making international trade more difficult and complex.

• Product and service challenges – Traditional products that are physical or tangible,

such as an automobile or bicycle, can be difficult to deliver to the global market.

However, electronic products (e-products) and electronic services (e-services) can be

delivered to customers electronically, over the phone, through networks, through the

Internet, or by other electronic means. Software, music, books, manuals, and advice

can all be delivered globally and over the Internet.

• Technology transfer issues – Most governments don’t allow certain military-related

equipment and systems to be sold to some countries. Even so, some believe that

foreign companies are stealing intellectual property, trade secrets, and copyrighted

materials, and counterfeiting products and services.

• State, regional, and national laws – Each state, region, and country have a set of

laws that must be obeyed by citizens and organizations operating in the country.

These laws can deal with a variety of issues, including trade secrets, patents,

copyrights, protection of personal or financial data, privacy, and much more.

• Trade agreements – Countries often enter into trade agreements with each other.

POST-TEST:

Direction: Identify the terms describe by the following:

1. A set of interrelated components that collect, manipulate, and disseminate data

and information and provide a feedback mechanism to meet an objective.
2. Numbers, letters, and other characters are represented by _____________.
3. A set of elements or components that interact to accomplish a goal.
4. It consists of hardware, software, databases, telecommunications, people, and
procedures.
5. Computer programs that govern the operation of a computer system.
6. A collection of facts organized in such a way that they have additional value
beyond the value of the individual facts.

12
 7. A characteristic of valuable information that describes information should be
easily accessible by authorized users so they can obtain it in the right format and
at the right time to meet their needs
8. A characteristic of valuable information that describes information should contain
all the important facts.
9. A type of Information system in which data are processed by automatically
through the use of different hardware, software, database and telecommunication
components.
10. The world’s largest computer network, consisting of thousands of interconnected
networks, all freely exchanging information.

PRE-TEST AND POST-TEST FEEDBACK

PRE-TEST POST-TEST

1. Information System 1. Information System

2. Alphanumeric data 2. Alphanumeric data
3. System 3. System
4. Computer-based Information Systems 4. Computer-based Information
(CBIS) Systems (CBIS)
5. Software 5. Software
6. Information 6. Information
7. Accessible 7. Accessible
8. Complete 8. Complete
9. Computerized 9. Computerized
10. Internet 10. Internet

CASE STUDY

CASE STUDY 1:

Direction:
1. Analyze the following case and answer the questions below.

CASE: FACEBOOK HAS USER PRIVACY PROBLEMS

13
 On Christmas 2012, Randi Zuckerberg posted a photo of her family onto her
private Facebook page. Unfortunately, the privacy settings on Facebook can confuse
even the company’s top executives. Randi, the sister of Facebook founder Mark
Zuckerberg and a former senior Facebook executive, soon found that her photo had
leaked to the general public and been tweeted to thousands of people. Randi tweeted
Callie Schweitzer, director of marketing at VOX Media, who had first posted the photo to
Twitter: “Not sure where you got this photo. I posted it to friends only on FB. You
reposting it to Twitter is way uncool.”

This incident came only 11 days after Facebook had released new privacy
controls meant to help Facebook users understand who is able to see the content they
post. A new shortcuts toolbar allowed users to control “Who can see my stuff” without
having to go to a new page. The new release also offered in-product education.
Messages explained how content that users hide in their timelines could still appear in
their news feed and on other pages. Evidently, these controls did not go far enough to
protect Randi Zuckerberg’s privacy.

In fact, since it was launched, Facebook has had ongoing issues with addressing
the privacy concerns of its users. In late 2011, Facebook settled a suit by the Federal
Trade Commission (FTC) that charged Facebook with deceiving its customers about
privacy issues since 2009. (The FTC regulates companies that take credit card
information from consumers.) Facebook claimed that it would not share personal
information with advertisers, that third-party applications would only be given the
information they needed to function properly, that no one could access photos or videos
from deleted accounts, and—perhaps most relevant to Randi Zuckerberg’s experience—
that information posted to an individual’s Friends List would remain private. The FTC
found that the company had not delivered on any of these claims. As part of the
settlement, Facebook agreed to stop these practices until it had a better disclaimer and
opt-out procedure. Mark Zuckerberg also issued a statement saying that, over the course
of the previous 18 months, Facebook had introduced 20 new tools to address these and
other privacy-related concerns.

However, by August 2012, the FTC had launched a new investigation into
Facebook privacy practices. Facebook had partnered with Datalogix— a company that
collects credit card purchasing information, such as where users are shopping and what
they buy. Facebook users were included in Datalogix advertising research although they
were not informed of this. Moreover, if Facebook users did, in fact, find out about the use
of their private data, they could only opt out of the research by going to the Datalogix
homepage.

Facebook has also had privacy problems arise with its subsidiaries. In September
2012, Facebook acquired Instagram, is a social media application that allows users to
upload photos to the Instagram site for long-term storage and sharing. The product
boasted a user-base of 100 million users. On December 17, 2012, Instagram posted a
privacy notice claiming the right to sell all photographs posted to its site without
compensation to the user. The company further claimed that it could sell any other
metadata associated with the photo, such as usernames, gender, addresses, mobile

14
phone number, and email addresses—all information users had had to provide when
setting up an account. Instagram asked users who did not agree with the notice to
remove their accounts within a few weeks. The new policy would go into effect for all
users who accessed their accounts after January 19, 2013.

The announcement garnered a great deal of public resentment. On December

18, 2012, Instagram cofounder Kevin Systrom clarified that, despite the notice, the
company had no current plans to sell users’ photos. He explained that the company
would be redrafting the privacy notice. In the meantime, competitors like Flickr, have
picked up a larger market share as a result of Instagram’s privacy misstep.

Facebook is a powerful tool for communicating and reconnecting with friends and
family. The service it provides is so valuable that users continue to flock to it. However,
with every step forward, Facebook seems to be taking one or two steps backward in its
protection of user privacy. Whether at the hands of the FTC or the competition, Facebook
will no doubt continue to face repercussions for its decisions.

Although Randi Zuckerberg may have blamed Callie Schweitzer for poor online
manners, it is likely that most of the billion Facebook users would prefer to rely on some
mechanism beyond social media etiquette to protect their photographs and private
information.

QUESTIONS: (15 POINTS EACH)

1. Who should be held responsible for any privacy related issues when using Facebook?
Facebook or careless and uninformed users? Explain.
2. What additional measures should Facebook must do to protect user privacy? What
additional actions are required on the part of Facebook users to maintain adequate
privacy?
3. Name a privacy issue so serious that it would cause you to stop using Facebook.
Explain.

REFERENCES

• Stair, R. and Reynolds, G. (2016). Fundamentals of Information Systems, Eight

Edition. Course Technology, Cengage Learning

• Stair, R. and Reynolds, G. (2010). Principles of Information Systems: A Managerial

Approach, Ninth Edition. Course Technology, Cengage Learning

15
• Laudon, K. and Laudon, J. (2016). Management Information Systems, 14th ed.

Prentice Hall Inc.

• O’Brien, J. and Marakas, George. (2011). Management Information Systems.

McGraw-Hill Irwin

• Haag, S. and Cummings, M. (2010). Management Information System for Information

Age, 8th ed. McGraw-Hill.

16