BATO INSTITUTE OF SCIENCE AND TECHNOLOGY, INC.

Dolho, Bato, Leyte

TEACHERS EDUCATION DEPARTMENT

GE ELECT 1 – LIVING IN THE I.T. ERA

MODULE 1. INTRODUCTION TO INFORMATION SYSTEMS

1.1 Introduction

In the modern world, technology plays a crucial role in almost every aspect of life, especially within
organizations. Information Systems (IS) are integral to managing data, making decisions, and ensuring smooth
operations. Understanding information systems is key to grasping how businesses and organizations function
in today's digital age.

This module will introduce you to the fundamental concepts of Information Systems, explore their key
components, explain their role within organizations, and take you through the historical development of these
systems.

1.2 What is an Information System?

An Information System is a combination of technology, people, and processes that work together to manage
information within an organization. The purpose of an information system is to collect, process, store, and
disseminate data that helps in decision-making, coordination, control, analysis, and visualization within an
organization.

1.2.1 Definition of Information Systems

An Information System (IS) can be defined as a set of interrelated components that collect, process, store, and
distribute information to support decision-making, coordination, control, and analysis in an organization.

Example: A customer service system that logs customer inquiries, processes the data to find trends, and
provides reports to managers for decision-making.

1.2.2 Components of Information Systems

Information Systems are made up of five key components:

1.2.2.1 Hardware

• Definition: The physical devices and equipment used in processing, storing, and managing data.
• Examples: Computers, servers, storage devices, networking equipment.

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 • Function: Hardware provides the infrastructure needed for the operation of an information system. It
includes devices that allow for data input (e.g., keyboards, scanners), processing (e.g., CPUs), storage
(e.g., hard drives), and output (e.g., monitors, printers).

1.2.2.2 Software

• Definition: The programs and applications that instruct hardware on how to perform tasks.
• Examples: Operating systems (like Windows or macOS), application software (like Microsoft Office
or Adobe Photoshop), and specialized software (like database management systems).
• Function: Software enables users to perform tasks on the hardware, such as creating documents,
analyzing data, or managing resources. It acts as a bridge between the user and the hardware, translating
user commands into actions.

1.2.2.3 Data

• Definition: The raw facts and figures that are processed into meaningful information.
• Examples: Numbers, text, images, video, and sound files that can be organized into databases or
spreadsheets.
• Function: Data is the core of information systems. It is collected, stored, and processed to produce
information that can be used for decision-making, reporting, and strategic planning.

1.2.2.4 People

• Definition: The individuals who interact with the information system, ranging from end-users to IT
professionals.
• Examples: Employees using a system to perform their jobs, IT staff who maintain the system, and
managers who rely on the system for decision-making.
• Function: People are essential to the operation of information systems. They input data, make
decisions based on the information generated, and maintain and manage the system to ensure it meets
organizational needs.

1.2.2.5 Processes

• Definition: The procedures and rules that govern the operation of the information system.
• Examples: Data entry protocols, security procedures, and the steps followed to process and analyze
data.
• Function: Processes ensure that data is handled correctly and that the information system operates
efficiently and effectively. They guide how data is collected, processed, stored, and used within the
organization.

1.3 The Role of Information Systems

Information Systems play a pivotal role in modern organizations by enhancing efficiency, supporting decision-
making, facilitating communication, and providing a competitive advantage.

1.3.1 Enhancing Efficiency

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Information Systems automate routine tasks, streamline processes, and reduce the need for manual effort. This
leads to faster and more accurate operations.

Example: An inventory management system automatically tracks stock levels, generates orders when supplies
run low, and updates records without human intervention, reducing errors and saving time.

1.3.2 Supporting Decision-Making

By providing timely and accurate information, Information Systems help managers and executives make
informed decisions. These decisions can range from day-to-day operational choices to long-term strategic
planning.

Example: A Business Intelligence (BI) system that analyzes sales data and market trends to help a company
decide on product launches or marketing strategies.

1.3.3 Facilitating Communication

Information Systems enable better communication within and outside the organization. They connect different
departments, facilitate collaboration, and ensure that everyone has access to the information they need.

Example: An intranet system that allows employees to share documents, communicate through internal
messaging, and access company policies and resources.

1.3.4 Providing Competitive Advantage

Organizations that effectively use Information Systems can gain a competitive edge by being more efficient,
responsive, and innovative than their competitors.

Example: An e-commerce platform that uses customer data to personalize shopping experiences, leading to
higher customer satisfaction and loyalty.

1.4 Historical Overview of Information Systems

The development of Information Systems has been shaped by significant technological advancements, leading
to the sophisticated systems we use today. Understanding the history of Information Systems helps us
appreciate their evolution and potential future developments.

1.4.1 The Mainframe Era (1950s-1960s)

The Mainframe Era marked the beginning of large-scale computing. Mainframe computers were powerful
machines used primarily by large organizations for processing vast amounts of data.

• Characteristics: Mainframes were centralized systems located in large, controlled environments.

They performed batch processing, meaning they processed data in large groups rather than in real-time.
• Impact: This era introduced the concept of using computers for business processes, but the systems
were expensive and required specialized knowledge to operate.

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Example: Early banking systems used mainframes to process transactions and manage accounts, though these
tasks were done in batches, often overnight.

1.4.2 The PC Revolution (1970s-1980s)

The introduction of personal computers (PCs) revolutionized the way people interacted with technology,
making computing power accessible to individuals and small businesses.

• Characteristics: PCs were affordable, user-friendly, and could be used for a wide range of tasks. They
supported local area networks (LANs) and introduced the concept of distributed computing.
• Impact: The PC Revolution democratized computing, allowing more people and organizations to
benefit from digital tools. This period saw the rise of software applications for word processing,
spreadsheets, and more.

Example: Small businesses began using PCs for tasks like accounting, inventory management, and word
processing, which were previously too costly to automate.

1.4.3 The Internet and World Wide Web (1990s-Present)

The development of the Internet and the World Wide Web opened new possibilities for communication,
commerce, and information sharing on a global scale.

• Characteristics: The Internet connected computers worldwide, allowing for instant communication,
information retrieval, and online transactions. The Web provided a user-friendly way to access this
information through web browsers.
• Impact: This era transformed business operations, enabling e-commerce, online banking, and global
collaboration. Information Systems became more interconnected and accessible than ever before.

Example: Companies like Amazon and eBay revolutionized retail by creating online platforms where
customers could buy and sell products globally.

1.4.4 Web 2.0 (2000s-Present)

Web 2.0 introduced a new level of interactivity and collaboration on the web, characterized by user-generated
content, social media, and online communities.

• Characteristics: Web 2.0 platforms allow users to interact with websites and with each other,
contributing content, sharing information, and collaborating in real-time.
• Impact: The rise of social media, blogs, wikis, and other interactive platforms changed the way people
communicate and consume information, making the web a more participatory environment.

Example: Social media platforms like Facebook and Twitter allow users to create content, share it with their
networks, and engage in conversations, making the web a dynamic and interactive space.

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1.5 Conclusion

This module has introduced the fundamental concepts of Information Systems, including their definition, key
components, roles within organizations, and historical development. Understanding these basics is crucial for
grasping how technology supports and drives business operations in the modern world.

As you continue your studies, you will delve deeper into the various aspects of Information Systems, exploring
how they are designed, implemented, and used to solve real-world problems. The knowledge gained in this
module will serve as a foundation for your future learning in this field.

1.6 Summary of Key Points

1. Information Systems (IS): Structured assemblies of hardware, software, data, people, and processes
designed to manage information.
2. Components of IS: Hardware, Software, Data, People, and Processes.
3. Role of IS: Enhances efficiency, supports decision-making, facilitates communication, and provides a
competitive advantage.
4. Historical Evolution:
o Mainframe Era: Centralized, batch processing systems.
o PC Revolution: Personal computing and distributed systems.
o Internet and World Wide Web: Global connectivity and online commerce.
o Web 2.0: Interactive, user-generated content and social media.

Prepared by:

MARY JANE PAGAY-CIERVA, LPT, MSIT

Instructor

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