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Chapter-1-Business Information Systems

This document provides an overview of business information systems. It defines key terms like data, information, and systems. It describes how data is collected and processed into information through various stages. The document outlines different types of information systems used in business like transaction processing systems, management information systems, and decision support systems. It also discusses how information systems are used in different business functions and sectors. Finally, it provides a brief definition of e-commerce.

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RICA MAE NAVARRO
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65 views20 pages

Chapter-1-Business Information Systems

This document provides an overview of business information systems. It defines key terms like data, information, and systems. It describes how data is collected and processed into information through various stages. The document outlines different types of information systems used in business like transaction processing systems, management information systems, and decision support systems. It also discusses how information systems are used in different business functions and sectors. Finally, it provides a brief definition of e-commerce.

Uploaded by

RICA MAE NAVARRO
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ITAB 2100 - IT APPLICATION TOOLS IN BUSINESS

Module 1: Business Information Systems


Objectives
1.Define the business information system;
2.Describe how computers process is used for
problem-solving and decision making;
3.Identify the functions of different types of
information systems;
4.Describe the information systems on how they
serve different levels within an organization;
Data, information & Systems
• DATA
The plural of the Latin datum, literally a “given”, or fact, which
may take the form of a number, a statement, or a picture; raw
material or building blocks of information; raw facts.
• INFORMATION
The result of processing raw data to reveal meaning; data after
manipulation.
Data vs. Information

Data Information
- raw fact
- data with context
- no content
- data is being processed
- a number, word or a
picture
Data and Information

Image source: https://slideplayer.com/slide/6275257/

Figure 1. Input-Process-Output
Characteristics of Useful Information
1. Relevant - information must pertain to the problem
at hand
2. Complete – does not eliminate important aspect of
activities or information
3. Accurate – ensuring that the information is correct
4. Current – decisions often based upon the latest
information available
5. Economical – considered that the cost of obtaining
information as one cost element involved in any
decision
Data, information & Systems
SYSTEMS: set of components that work together to
achieve a common goal or multiple goals.

Types of a System:
• Subsystem: components of a larger system, all contributing to
the main goal
• Closed system: stands alone, with no connection to another
system: nothing flows in from another system, nothing flows
out to another system
• Open system: interfaces and interacts with other systems
Four Stages of Processing

Figure 2.Input-Process-Output-Storage Devices


What is Information Systems?

Information System (IS) is a set of interrelated


components that collect (or retrieve), process,
store, and distribute information to support
decision making and control in an organization.

- (Laudon, K.C., Laudon, J. P., 2012)


Components of Information Systems
1. People – the one who analyze organizational information
needs
2. Hardware - a computer and its peripheral equipment
3. Software – instructions that tell the computer how to take
data in, process , display, and store data and information
4. Telecommunication – hardware, and software that facilitates
fast transmission and response
5. Data - an input that the system takes to produce
information
6. Procedures - a steps for achieving optimal and secure
operations in the data processing
Stages of processing
• Entering data into an IS (Input)
• Changing and manipulating data in the IS (Data
Processing)
• Getting information out of the IS (Output)
• Storing data and information (Storage)
Stages of Processing

Data Input Process Output Information

Storage
Different Types of Information Systems
1. Transaction Processing Systems (TPS)
- the earliest electronic IS
- record and report their transactions with other parties
- includes cash registers, automatic teller machines(ATM), and purchase order systems
2. Management Information Systems (MIS)
- to make a decision and solve a problem they used the recorded transactions and other data to produce
information
3. Decision Support System (DSS)
- contains models that manipulate data into information.
- answer questions “What If”
4. Executive Information Systems (EIS)
- also called Executive Support Systems (ESS)
- gives the senior to have easy access to internal and external information
5. Group Decision Systems (GDS)
- helps the group to generate ideas, establish priorities, and reach a decision through consensus or majority
vote
6. Geographic Information Systems (GIS) - related to the map and physical location
Image source: https://examplanning.com/types-of-information-system/
IS in Functional Business Areas

1. Accounting
2. Finance
3. Marketing
4. Human Resources
IS in Different Business Sectors
1. Manufacturing
2. Service
3. Retail
4. New Business
5. Government
Shared Data Resources
Data Warehouse Database
- designed to analyze, report, - is a collection of data that can
integrate transaction data from be easily accessed, managed,
different sources and updated
What is E-Commerce?

Electronic
commerce is almost
synonymous with
“doing business on
the internet”.

Image source: https://www.europeanbusinessreview.com/


References:
Oz, Effy. Management Information Systems Third edition, Thomson Learning Center, 5 Shenton Way UIC
Building, Singapore 2002.
Laudon, Kenneth C., and Jane P. Laudon. Management Information Systems: Managing the Digital Firm.
12th ed. Upper Saddle River, NJ: Prentice-Hall, 2012.
Collins, Karen. (2012). An Introduction to Business (v. 1.0). [PDF File]. Available from
https://2012books.lardbucket.org/pdfs/an-introduction-to-business-v1.0.pdf
Hayes, A., James, M.. (2020). Business. Retrieved from
https://www.google.com/search?q=Business+is+an+organization+or+enterprising+entity+engaged+i
n+commercial%2C+industrial%2C+or+professional+activities.+(Adam+Hayes)&oq=Business+is+an+organizati
on+or+enterprising+entity+engaged+in+commercial%2C+industrial%2C+or+professional+activities.+(Adam+
Hayes)&aqs=chrome..69i57.546j0j7&sourceid=chrome&ie=UTF-8
Thank You and Stay Safe!

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