Carlos Hilado Memorial State College

Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Lesson 1

This course will introduce fundamental skill sets that can accelerate students’ ability to
diagnose and manage complex business issues. Find out how to use systems analysis
techniques and simulations to isolate and describe the often-intangible factors that affect the
performance dynamics of a business. An entity’s own operating structures and information
flows, in addition to those of its customers, competitors and suppliers are all part of the
competitive structure that will be explored.

 Explain why information technology matters.

 Define digital information and explain why digital systems are so powerful and
useful.
 Explain why information systems are essential to business.
 Describe how computers process data into useful information for problem solving and
decision making.
 Identify the functions of different types of information systems in business. Describe
careers in information technology.
 Identify major ethical and societal concerns created by widespread use of information
technology.

Business Information System: Meaning, Features and Components

 Business information systems are sets of inter-related procedures using IT
infrastructure in a business enterprise to generate and disseminate desired information.
 Business information system gets data and other resources of IT infrastructure as
input from the environment and process them to satisfy the information needs of
different entities associated with the business enterprise.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Characteristics & features of business information system are:

1. The business information systems are subject to the dynamics of business environment and
need to be flexible enough to absorb the inevitable changes in the information needs of
business. They have to be efficient to satisfy the demanding and ‘hard task masters,’ the
business managers. Thus, there is need to balance the conflicting objectives in the process of
designing business information systems.
2. Business information systems need to be proactive. They should anticipate changes in
information needs of users and accordingly adapt themselves to suit their needs. This has
become important because of the fact that the managers get involved in the routine
activities to the extent that the decision making becomes a matter of imitating what
competitors are doing or planning to do, rather than making an informed choice.
3. The purpose of business information system is to cater to the information needs for decision
making in business.
4. The business information systems have to be designed keeping in view the availability of
financial and human resources to the business enterprise.
5. The cost effectiveness is a matter of prime concern in the development and maintenance of
business information systems. Economic justification for investment in IT infrastructure for
business information systems is a pre-condition for its existence and sustenance.

Information systems can be described by four of their key components which are:
1. Decisions
2. Transactions and processing
3. Information and its flow
4. Individuals or functions involved.

It is difficult to observe the decision process through we can see and review the results of a
decision. Transactions are usually more visible, though many current systems use computer
programs, which are not easy to understand, to process transactions. In principle, an observer
can see information and its flows. Individuals can be observed too, but it is not always easy to
figure out the information processing functions they perform.

Data, Information, and Information Systems Data Vs Information

The word data is derived from the Latin datum, which might take the form of a number, a
statement, or a picture. Information is facts or conclusions that have meaning within a context.
system is an array of components that work together to achieve a common goal, or multiple goals,
by accepting input, processing it, and producing output in an organized.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Data, Information(s), and Systems

Data refers simply to raw facts and figures. Alone it tells you nothing. The real
goal is to turn data into information. Data becomes information when it’s
presented in a context so that it can answer a question or support decision
making. And it’s when this information can be combined with a
manager’s knowledge—their insight from experience and expertise—those
stronger decisions can be made.

The Purpose of Information Systems

People require information for many reasons and in varied ways. however, people and
organizations seek and use information mainly to make decisions and to solve problems
businesses use information systems to support daily operations, such as electronic commerce,
making airline reservations, and many other activities
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

The Benefits of Human-Computer Synergy

 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

The Four Stages of Processing Entering data into the IS (input). Changing and manipulating
the data in the IS (data processing). Getting information out of the IS (output). Storing data
and information (storage).

TYPES OF INFORMATION SYSTEMS

 Transaction Processing Systems

 Supply Chain Management Systems
 Customer Relationship Management Systems
 Business Intelligence Systems
 Decision Support and Expert Systems
 Geographic Information Systems

Transaction Processing Systems - record data collected at the boundaries of organizations,

in other words, at the point where the organization transacts business with other parties. For
example, they record the movement of parts from one phase of manufacturing to another,
from raw materials to finished products

Supply Chain Management Systems - refers to the sequence of activities involved in

producing and selling a product or service. In industries that produce goods, the activities
include marketing, purchasing raw materials, manufacturing and assembly, packing and
shipping, billing, collection, and after- the-sale services. such systems are called enterprise
resource planning (ERP) systems
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Customer Relationship Management Systems - help manage an organization’s

relationships with its customers. simple ones that help maintain customer records to
sophisticated systems that dynamically analyze.

Geographic Information Systems - can be used to tie data to physical locations. application
accesses a database that contains data about a building, neighbourhood, city, county, state, ,
or even the entire world.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

INFORMATION SYSTEMS IN BUSINESS FUNCTIONS Accounting Finance Marketing

Human Resources

Careers in Information Systems

 Help Desk
 Technician Systems
 Analyst
 Database Administrator
 Webmaster
 Chief Information Officer and
 Chief Technology Officer
 Network Administrator, and many more ……

Data Manipulation
The process of manipulating or changing information to make it more organized and
readable. We use DML to accomplish this. It stands for Data Manipulation Language or a
programming language capable of adding, removing, and altering databases, (i.e., changing
the information to something that we can read).

Data Manipulation Examples

 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Data Manipulation is the modification of information to make it easier to read or more

structured.
For example, in alphabetical order, a log of data may be sorted, making it easier to
find individual entries.

On web server logs, data manipulation is also used to allow the website owner to monitor
their most famous pages and their sources of traffic. Accounting users or related fields also
manipulate information to assess the expense of the product, pricing patterns, or future tax
obligations. To forecast developments in the stock market and how stocks might perform
shortly, stock market analysts also use data manipulation.

Computers can also use data manipulation to view the information in a more realistic way to
users based on code in a user-defined software program, web page, or data formatting.

Purpose of Data Manipulation

 Consistent data: It can be structured, read, and better understood by providing data
in a consistent format. You may not have a unified view when taking data from
various sources, but with data manipulation and commands, you can make sure that
the data is structured and stored consistently.
 Project data: it is paramount for organizations to be able to use historical data to
project the future and to provide more in-depth analysis, especially when it comes to
finances. Manipulation of data makes it possible for this purpose.
 Convert, update, delete, and incorporate data into a database means you can do
more with the data: Create more value from the data. It becomes pointless by
providing data that remains static. But you will have straightforward insights to make
better business decisions when you know how to use data to your advantage.
 Delete or neglect redundant data: data that is unusable is always present and can
interfere with what matters. 

Steps Involved in Data Manipulation 

1. Only if you have data to do so is data manipulation feasible. You need a database,
therefore, which is generated from data sources.
2. This knowledge requires reorganization and restructuring. Manipulation of data helps
you to cleanse your information.
3. Import a database and create it for you to work on.
4. You can combine, erase, or merge information through data manipulation.
5. When you manipulate data, data analysis becomes simple.

How do you Manipulate Data (EXCEL)?

Manipulation of data in Python and manipulation of data in R are critical aspects of
data manipulation. Before moving through the more profound principles of Data
Manipulation in Python and R, let us now understand how to manipulate data.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Most definitely, you are aware of how to use MS Excel. Here are some tips to help you
manipulate Excel info.
1. Formulas and functions – Addition, subtraction, multiplication, and division are
some of the basic math functions in Excel. You need to know how to use these Excel-
critical features.
2. Autofill in Excel-When you want to use the same equation across several cells, this
feature is useful. One way of doing it is to retype the formula. Another way is to drag
the cursor to the cell’s lower right corner and then downwards. It will help you
simultaneously apply the same formula to several rows.
3. Sort and Filter- Users can save a lot of time when analyzing data by sorting and
filtering options in Excel.
4. Removing duplicates-There are often chances of replication of data in the process of
collecting and assimilating data. In Excel, the Delete Duplicate feature can help
remove duplicate spreadsheet entries.
5. Column splitting, merging, and merging-Columns or rows in Excel may often be
added or removed. Data organization often requires integrating, splitting, or
combining multiple datasheets.

A system is a collection of organized things and combination of parts working together to

accomplish a goal. Whereas a subsystem is derived from system and it is an integral part of a
larger system. A unit or device that is part of a larger system.

For example, a disk subsystem is a part of a computer system. A bus is a part of the
computer. A subsystem usually refers to hardware, but it may be used to describe software.
However, "module," "subroutine" and "component" are more typically used to describe parts
of software.

What Are Information Systems, and How Do They Benefit Business?

A good example of the benefits of business information systems is the success of Walmart.
Since its inception, the massive retail corporation has led the industry in adapting new
information technology to business use.

Walmart “was a pioneer in barcode scanning and analyzing point of sale information, which
was housed in massive data warehouses,” according to data professional Anthony B. Smoak.

“Walmart launched its own satellite network in the mid-1980s, which led to profound
business practice impacts with respect to its supply chain management process. Strategic
systems … enabled data integration and sharing between Walmart and its suppliers. These
systems also enabled the concept of vendor-managed inventory,” Smoak writes.

The retail giant is at the forefront of a field that offers value to many types of businesses.
Since the onset of the Internet Age, the importance of information in business cannot be
overstated. Harvard Business Review editor Nicholas Carr even likened information
technology to a new, necessary commodity, like electricity, in his 2003 article, “IT Doesn’t
Matter.” A decade and a half later, companies that don’t invest heavily in business
information technology may struggle to stay afloat.

Defining What Information Systems Can Do for Business

 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Information systems, in the business sense of the term, are complementary networks and
interconnected components that amass, disseminate, and otherwise make data useful to
bolster management’s decision-making processes.

Information systems have evolved over time, requiring redefinitions as new technologies
(Web 2.0, for example) have proliferated.

Information systems are not just technological, however. “Besides the components of
hardware, software, and data, which have long been considered the core technology of
information systems, it has been suggested that one other component should be added:
communication,” writes researcher Dave Bourgeois.

“An information system can exist without the ability to communicate—the first personal
computers were standalone machines that did not access the internet. However, in today’s
hyper-connected world, it is an extremely rare computer that does not connect to another
device or network,” Bourgeois continues.

To integrate communication, Bourgeois suggests adding people and process to the traditional
hardware, software, and data components of information systems. Business executives in
nearly every industry have discovered that the processes they use, particularly the “as-a-
service” cloud analytics services, and the active participation of customers who want to
customize their experiences more each year are inseparable from business information
systems.

Once all the elements are integrated, every information system plays several roles for
businesses with varying degrees of importance depending on a company’s needs. Tech writer
Julie Davoren details them on Chron.com as follows:

 Store and analyze information: Sophisticated and comprehensive databases,

sometimes cloud-based, are used to store and analyze information pertaining to
business functions, customers, transaction data, and both employee and customer
activity. The results of these analyses provide insight that can help decision-makers
solve current and future issues.
 Assist with making decisions: Information systems can compare in-house analyses
to external sources to, for example, compare internal insights to information about the
general state of the economy or competitors’ financial reports. Decision-makers use
these insights to review the adequacy and quality of their strategic decisions.
 Assist with business processes: Information systems are used to develop value-added
systems for business functions. Business processes can be simplified and unnecessary
activities can be streamlined through the use of information systems adapted to
common business tasks, such as manufacturing, supply chain, and employee
processes.

As information systems become more entrenched in the world of business, companies’

managerial staffs and executives are expected to familiarize themselves thoroughly with
business information systems and what they have to offer. Accordingly, many MBA classes
have added information technology to their curriculum.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Information systems are complementary networks that make data useful to corporate decision-making.

Management Information Systems Capabilities

Managers of business departments that benefit from information systems need to know the
basic capabilities of information technology, data analytics, and business intelligence
systems. Management information systems use all of these capabilities in a way tailored to
managerial and executive decision-making.

Tech writer Ian Linton breaks information system capabilities down into categories in an AZ
Central article:

 Information access: Managers need to have easy and fast access to information

including customer records, sales data, market research, financial records,
manufacturing and inventory data, and human resources records to make informed
decisions.
 Data collection: Management information systems collect and collate data from both
outside and inside an organization. This data is pooled together and housed in data
warehouses, which are then networked together for purposes of analytics.
 Collaboration: One of the most useful functions of information systems is the ease
by which different departments and distributed teams can collaborate on decisions,
taking into account massive amounts of data from a number of different sources,
departments, or even industries.
 Interpretation: After a decision has been made, information systems can help
managers understand the potential implications of that decision by constantly
updating raw data and predicting possible future benefits or problems.
 Presentation: Most information systems, especially those intended for use by
managers, include tools designed to create easy-to-understand reports for review by
higher-level managers or C-suite executives.
 Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF COMPUTER STUDIES

Managers can also take advantage of information systems that are specifically designed for
business functions that affect their department or position. Marketing information systems,
product subsystems, sales forecasting, and product design systems all generate information
that is invaluable to managers.

Reference/s:
https://onlinemba.wsu.edu/blog/what-are-information-systems-and-how-do-they-benefit-business/