IT1915

Information System
Data vs. Information
Data
- A number, statement, image, or video that may represent specific data.
- Examples of data are the following:
o Business transactions and raw facts
 Sale of goods and services, payment of payables to suppliers, investment of cash by the owners, or
internal and external transactions
o Objective measurements of the characteristics of entities
 People, places, things, events, etc.
Information
- It refers to a collection of data, such as words, numbers, images or graphics.
- This is a produced data that contains useful context for some users that may need it.
Characteristics of Information
In an information system, any input and output that may display in the system must be accurate and understandable on
every end user. The following are the characteristics of information to be able to understand what the things are needed for
specific end users:
- Timeliness. Every information must be up to date based on the requirements—not too early and not too late for the
end user.
- Appropriateness. A system must have appropriate and relevant information in every module. It must be relevant to
the user who is using it.
- Accuracy. Information must be correct or precise. For example, systems performing calculations must produce the
exact values.
- Conciseness. Not all information must be displayed in the system. It should only contain the minimum detail that is
appropriate to the user.
- Understandability. Any information should be understandable. The format and how the information is presented
are important. Using colors can enhance the presented information to make it easier for the user to understand.
- Completeness. Any information must be complete based on the requirements. If an information is incomplete, it
may lead to bad decisions.
Systems Concepts
System
- This refers to the components that are interrelated, working together with a common goal to accept inputs and
outputs.
- The components of the system are the following:
o Input is the information or data a user adds in the system.
o Processing is the efficiency of data processing. It enables an organization to process millions of data.
o Output refers to the data or information that has been processed and displayed to the end users.
o Feedback refers to the comments or suggestions in the system. This is used to improve or make any process
more manageable for end users.
o Control is about managing the operations in every process of the system.
System Boundaries
- This is the scope of activities in which it is limited for viewing or accessing any module of a system.
- Every user of the system has a specific access on each module. For example, the person who is responsible for the
inventory can only access the inventory module, while the manager has access to all the modules of the system.
Subsystems
- Every system consists of subsystems that have different objectives and interactions based on the given requirements.
All subsystem uses the given resources to meet the given objective.
Subsystem Interface
- It refers to the connection of each system or subsystem boundaries and serves as the connection to display the
output from one (1) system to the input of another system.

01 Handout 1 *Property of STI

System Environment
- This refers to the people, organizations, and other systems that give and receive data from the system.
System Feedback
- Every system always needs feedback to be able to do its job and to process accurately based on the requirements.
Having an effective feedback and continuing to adjust the activities of the system assures the user that the system
can achieve its goals.
Types of Information System
Information Systems
- It refers to a set of interrelated components that collect any information or data, process, store, and display the
output to support decision-making.
Information Systems in Organization
- Organization
o Information Systems in an organization may consist of hardware, software, people, procedures, and
telecommunication.
o There are many factors in the interaction of information systems and organization. These factors are the
following:
 Organization's structure
 Business processes
 Culture
 Environment
 Management decisions.
Types of Information System
- The following are the different types of information system which are based on the business needs and management
levels of an organization:
o Transaction Procession System
 This system is the most widely used information system. The function of this system is to record data
which are collected at the boundaries of organizations. This system also records the transactions
inside an organization.
o Supply Chain Management System
 Supply chain refers to the sequence of activities. It includes marketing, manufacturing and assembly,
packing and shipping, and billing and collection.
o Customer Relationship Management System
 This system manages the relationship of the organization to its customer.
 Service representatives use this system to talk to their customers via phone.
o Business Intelligence systems
 Most of the organizations use business intelligence systems to compete better with other
organizations. This system accesses massive data, usually larger databases called data warehouses.
o Decision Support System
 This system helps to find actions and answers most of the questions like "What if?"
o Expert Support System
 This system uses artificial intelligence to be able to preserve the knowledge of an expert and to solve
problems.

REFERENCES:
1. Laudon, K. C., & Laudon, J. P. (2014). Management information systems: Managing the digital firm (13th Ed.). United
States of America: Pearson Education Limited.
2. Sousa, K. J., & Oz, E. (2014). Management Information Systems (7th Ed.). Stamford, United States of America: Cengage
Learning.

01 Handout 1 *Property of STI