Module 1

INTRODUCTION TO
INFORMATION SYSTEMS

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 Information Systems
People – to help support decision
making, coordination, control, analysis,
and visualization in an organization

An
Information
System has all
3 dimensions
working
together

Process – collects, Technology – hardware,

processes, stores, and software, and networks
disseminates information that support the business
processes and people

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 Intro. To Information Systems
• System:- A System is defined a set of interrelated
components with a clearly defined boundary,
working together to achieve a common set of
objectives.

• System have Basic Three Functions :-

1. Input :- It involves capturing and assembling elements
that enter the system to be processed. For Ex. Raw
Material
2. Processing :- Involves transformation processes that
convert input into output.
3. Output:- Involves transferring elements that have been
produced by a transformation process to their ultimate
destination.

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 What Is an Information System?
• Information system has been defined in terms of two
perspectives:
– one relating to its function;
– the other relating to its structure.
• From a functional perspective; an information system is
a technologically implemented medium for the purpose of
recording, storing, and disseminating linguistic
expressions as well as for the supporting of inference
making.
• From a structural perspective; an information system
consists of a collection of people, processes, data, models,
technology and partly formalized language, forming a
cohesive structure which serves some organizational
purpose or function.
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 Information System
• An Information System can be any organized
combination of People, hardware, software,
communication networks and data resources that
stores and retrieves, transforms in an
organization.
• People have relied on Information system to
communicate with each other using a variety of
physical devices (Hardware), information
processing instructions and procedures
(Software), communication channels (Networks)
and store data.

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• Information Technologies :-

1) Computer Hardware Technologies :- Including

Microcomputers, midsize servers and large mainframe
system, and the input, output, and storage devices that
support them.
2) Computer Software Technologies:- including operating
system software, Web browsers software productivity
suites, and software for business application like customer
relationship management and supply chain management.
3) Telecommunication Network Technologies :- including
the telecommunication media, processors and software
needed to provide wire-based and wireless access and
support for the Internet and private Internet-based
networks such as intranets and extranets.
4) Data Resource Management Technologies :- Including
database management system software for the
development, access and maintenance of the database of an
organization.

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• Importance of Information Systems :-
1. A Major functional area of business equally as important
to business success as the functions of accounting, finance
operations management, marketing and Human Resource
Management.
2. An Important contributor to operational efficiency,
employee productivity and morals and customer service
and satisfaction.
3. A Major source of information and support needed to
promote effective decision making by managers and
business professionals.
4. It help in developing competitive products and services
that give an organization a strategic advantage in the
global market place.
5. Its providing Dynamic and challenging career opportunity
for millions of men and women.
6. A key component of the resources, infrastructure and for
today’s network business enterprise.

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Functions of an information system

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Components of Information Systems

• Resources of people: (end users and IS

specialists, system analyst, programmers, data
administrators etc.).
• Hardware: (Physical computer equipments and
associate device, machines and media).
• Software: (programs and procedures).
• Data: (data and knowledge bases), and
• Networks: (communications media and
network support).

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Components of Information System

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 Areas of Information System Framework Knowledge :-

Following Five Areas of IS Framework for Business

Knowledge.

1. Foundation Concepts :- It includes basic information

system concepts derived from general systems theory
or competitive strategy, concepts used to develop
business applications of information technology for
competitive advantage.

2. Information Technologies :- major concept,

developments and management issues in information
technology-that is hardware , software, networks,
data resource management and many internet-based
technologies.

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3. Business application: - The major use of
information system for the operations,
Management, and competitive advantage of e-
business enterprise, including Electronic business,
commerce, collaboration and decision making
using the Internet, intranet, and extranet.

4. Development processes: how business professional

and information specialist plan, develop and
implement information systems to meet e-business
opportunities using several strategic planning and
application development approaches.

5. Management challenges: the challenges of

effectively and ethically managing e-business
technologies, strategic and security at the end
users, enterprise and global level of business.

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• Difference between Information System and Information
Technology :-
• Information system
A system of functions concerning the acquisition and
transfer of information, the carriers of which can be
biological, personal, social or technical units. An information
system is dedicated to a certain kind of information (topic),
even if this may be a very broad one. It has always the
purpose of providing information to a user or a group of
users. In most cases a storage device is part of an information
system.
• Information technology
Technology dealing with information processing, storage,
and transmission. This includes in particular computer
technology and the different communication technologies
(electronic, radio wave, optical etc.).
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 Information Systems in Organizations
The table below shows a small list of information systems you can find in a variety
of businesses:
Organization Purpose Description
American Apparel Point-of-Sale (POS) System POS data (the data recorded when merchandise is sold) is integrated with an
inventory database, so more merchandise can be ordered.

Orange County Department of Education Employee Hiring System Web based system that posts job opportunities and lets people apply online.
Hiring systems often filter resumes using the digital keywords from the online
application. Hiring systems also manage the application through the hiring
process.

Sales Dashboard Sales Dashboard The digital dashboard gives a quick view of revenue earned this year compared
to last, number of new leads generated, top 5 products, sales per rep and
regional sales.

Sports Analytics Any professional team Consultants and specialists to look at various data to make a team more
successful and recruit players that add to the team’s success.

Coursera.com Online education. “Take the world’s best courses, online, for free.” Video lectures and online assignments are offered for free. It costs a nominal
fee for a certificate of completion.

Boeing Corporation SAP System Integrated enterprise-wide information system that handles procurement,
manufacturing, marketing, sales, employee benefits, accounting, finance…and
just about every business function you can think of.

Obamacare National healthcare system for the United States Individual exchanges for each state in which people are required to register to
insurance.

Waze.com Geographic information system. App that provides mapping, traffic reporting and routing to avoid traffic.

WireShark Network Analyzer Software that helps users to examine network traffic to identify problems.

AS-Software.com Sonograms (ex. Seeing a fetus inside the mother’s womb) Specialized software for ultrasound reporting and image management, reporting
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TYPES OF SYSTEMS

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TYPES OF SYSTEMS

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 Conversion/Installation Modes of Information Systems
• Conversion is the process of changing from the old
system to the new one. It must be properly planned and
executed. Four methods are common in use. They are:
parallel systems, direct conversion, pilot system and
systems phase-in. Each method should be considered in
the light of the opportunities that it offers and problems
that it may create.
• However, it may be possible that sometimes, we may be
forced to apply one method over others, even though
other methods may be more beneficial. In general,
systems conversion should be accomplished in shortest
possible time. Long conversion periods create problems
for all persons involved including both analysts and
users. 33
Parallel Systems
• The most secure method of converting from an old to
new system is to run both systems in parallel. Under
this approach, users continue to operate the old
system in the usual manner but they also start using
the new system. This method is the safest one
because it ensures that in case of any problems in
using the new system, the organisation can still fall
back to the old system without loss of time and
money.
• The disadvantages of the parallel systems approach
are:
• It doubles operating costs.
• The new system may not get fair trial.
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Direct Conversion
• This method converts from the old to the new
system abruptly, sometimes over a weekend (
even overnight. The old system is used until a
planned conversion day, when it is replaced by
the new system.
• There are no parallel activities. The
organisation relies fully on the new system.
The main disadvantages of this approach are:
no other system to fall back on, if difficulties
arise with new system. Secondly, wise and
careful planning is required.
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Pilot System
• Pilot approach is often preferred in the case of the new
system which involves new techniques or some drastic
changes in organisation performance. In this method, a
working version of the system is implemented in one part
of the organisation, such as a single work area or
department.
• The users in this area are aware that they are piloting a
new system and that changes can be made to improve the
system. Based on the feedback, changes are made and the
system is installed in the remaining departments of the
organisation, either all at on (direct conversion method)
or gradually (phase-in method). This approach provides
experience and live test before implementation.
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Phase-in Method
• This method is used when it is not possible to
install a new system throughout an organisation
all at once. The conversion of files, training of
personnel or arrival of equipment may force the
staging of the implementation over a period of
time, ranging from weeks to months.
• It allows some users to take advantage of the
new system early. Also it allows training and
installation without unnecessary use of
resources.

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 Anthony’s Triangle
Convenient way to categorize and understand the purpose
of different information systems in organizations:
Executive Information
Systems (EIS) for
senior management
Strategic decision making

Management
Information Systems
Tactical (MIS) for decision
making by middle
management

Transaction
Processing Systems
Operational (TPS) for daily
transactions of the
business
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 Type of Information System
Types of Information System can be classified as
either Operations or Management Support Systems.
Operations Support Systems :-
Transaction Processing Systems
Process Control Systems
Enterprise Collaboration Systems
Management Support Systems:-
Management Information Systems
Decision Support Systems
Executive Information Systems

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Operation Support Systems :--
A. Transaction Processing Systems:-
Process data resulting from business
transactions, update operational databases, and
produce business documents. Sales and
Inventory and accounting systems.
TPS provide the basic input to the
company's database. A failure in the TPS often
means disaster for the organization. Imagine what
happens when the reservation system of AIR
INDIA Airlines fails: all operations stop, no
transactions can be carried out until the system is
up again. Long queues form in front of ATMs and
tellers when a bank's TPS crashes.
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Transaction Processing Systems
These systems have been designed to collect, process
and store transactions that occur in the day to day
operations of a company.
The system can also be used to cancel or modify
transactions done in the past if the need arises. One
property of this system that enables them to work
effectively is the ability to accurately record multiple
transactions even if the different transactions take place
simultaneously.
They are built to be able to handle large volumes of
transactions. Examples include stock control systems,
payroll systems, order processing systems etc.
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Transaction Processing Systems (TPS)
• Activities:
– Transaction handling
– Record-keeping
• Action documents
• Scheduled reports
• Primarily support:
– Clerical personnel
– Operational-level managers
• Inflexible

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B. Process Control Systems :- Process Control
Systems monitor and control physical processes. For
Ex. Petroleum refining, Power generation etc..

C. Enterprise Collaborative Systems :- It enhances

team and work group communications and
productivity and include application that are some times
called office automation Systems. For Ex. Knowledge
workers in a project team may use e-mail to send
and receive e-message or use video conferencing to
hold electronic meetings to coordinate their activities.

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Management Support Systems :-
It provides information and support for decision
making to managers.
A. Management Information Systems :- MIS
provide information in the form of reports and
display to managers and many business
professionals. Provide Information in the form
of Pre-specified reports and displays to support
business decision making. Ex. Sales Analysis,
Production Performance.

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Management Information Systems.
These systems make use of information technology to
help managers ensure a smooth and efficient running of
the organization.
Information collected by these systems is structured so
that the managers can easily evaluate the company’s
current performance vis-à-vis previous outputs.
Some of the common types of Management Information
Systems include process control systems, human resource
management systems, sales and marketing systems,
inventory control systems, office automation systems,
enterprise resource planning systems, accounting and
finance systems and management reporting systems.

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B. Decision Support Systems.
These systems help decision makers to make
the best decisions by generating statistical
projections from analyzed data.
Although it does not eliminate the need for
the manager’s judgment, it significantly
improves the quality of the decision by
offering forecasts that help determine the best
course of action.
These systems compile information from several
sources for purposes of aiding in decision making.
Examples of these systems include computer
supported cooperative work, group decision support
systems, logistics systems and financial planning
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Decision Support Systems:-
Provide Interactive ad hoc support for the
decision making processes of managers and other
business professionals. Ex: Product Pricing,
Profitability Forecasting.

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C. Executive Information Systems :-
(EIS) provide a generalized computing and
communication environment to senior
managers to support strategic decisions.
EIS are designed to facilitate senior managers‘
access to information quickly and effectively’.
Ex: System for Easy access to analyses of
business performance, action of Competitors.

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Executive Information Systems.
Also known as Executive Support System, this is a tool
used for reporting enterprise-wide data to top executives.
These systems provide quick and easy to use reports that
are presented in graphical displays that are easy to
compare. They can be taken as specialized decision
support systems because they provide information
necessary to help improve the quality of decisions.
Owing to the high expectations from such a system,
these systems need to be highly individualized hence
they are usually custom made for specific clients. They
are also customizable to fit the specific needs of the
clients.

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• Information System Data Pyramid :-

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