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Information System

1. Data are raw facts that are organized into information, which helps decision makers by providing value beyond the facts. 2. An information system includes hardware, software, databases, telecommunications, people, and procedures that collect, manipulate, store and process data into information. 3. Common business information systems are transaction processing systems, management information systems, decision support systems, and specialized systems like e-commerce or artificial intelligence systems.

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Dr. Shailendra Kumar Srivastava
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52 views26 pages

Information System

1. Data are raw facts that are organized into information, which helps decision makers by providing value beyond the facts. 2. An information system includes hardware, software, databases, telecommunications, people, and procedures that collect, manipulate, store and process data into information. 3. Common business information systems are transaction processing systems, management information systems, decision support systems, and specialized systems like e-commerce or artificial intelligence systems.

Uploaded by

Dr. Shailendra Kumar Srivastava
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Basics of Information Systems

1
Information Concepts:
Data, Information, and Knowledge

• Data: raw facts


– Alphanumeric, image, audio, and video
• Information: collection of facts organized in such a way
that they have additional value beyond the value of the
facts themselves
– Value of Information is directly linked to how it
helps decision makers achieve their organization’s goals
and can be measured
• in time required to make a decision
• Increased profits to the company

2
Data, Information, and Knowledge

Figure 1.2: The Process of Transforming Data into Information

3
The Characteristics of Valuable
Information

Table 1.2: Characteristics of Valuable Information

4
The Characteristics of Valuable
Information (continued)

Table 1.2: Characteristics of Valuable Information (continued)

5
What Is an Information System?

Figure 1.3: The Components of any Information System

6
Computer-Based Information Systems
Computer-based information system (CBIS): single
set of hardware, software, databases,
telecommunications, people, and procedures
configured to collect, manipulate, store, and process
data into information

7
CBIS
Telecommunications:
Electronic transmission of signals for
communication

 Networks: Distant electronic communication


 Internet: Interconnected Networks
 Intranet: Internal Corporate Network
 Extranet: Linked Intranets
Computer-Based Information Systems
• CBIS components
– Hardware: computer equipment used to perform input,
processing, and output activities
– Software: computer programs that govern the operation
of the computer
– Database: organized collection of facts and information
– Telecommunications: electronic transmission of signals
for communications
– Networks: connect computers and equipment in a
building, around the country, and around the world

9
Business Information Systems
Management Information System:
A system used to provide routine information to
managers and decision makers

Decision Support System:


A system used to support problem- specific
decision making
Business Information Systems
Most common types of information systems used in
business organizations
Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems

11
Electronic and Mobile Commerce
E-commerce: any business transaction executed
electronically between parties
Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector

12
Transaction Processing Systems

Transaction: business-related exchange


Payments to employees
Sales to customers
Payments to suppliers
Transaction processing system (TPS): organized
collection of people, procedures, software, databases, and
devices used to record completed business transactions

13
Additional Business Information
Systems
• Management Information Systems (MIS)
– provide routine information to managers and decision
makers
• Knowledge Management Systems (KMS)
– create, store, share, and use the organization’s knowledge
and experience
• Artificial intelligence (AI)
– field in which the computer system takes on the
characteristics of human intelligence
• Decision support system (DSS)
– used to support problem-specific decision making

14
TPS and ERP
Transaction
business related exchange
Evidence of a business event
Transaction Processing System (TPS)
A system which records completed business transactions
Enterprise Resource Planning (ERP)
A set of integrated programs for managing the entire
business operations
Specialized Business I.S.
Artificial Intelligence (AI):

A field in which the computer takes on the


characteristics of human intelligence
Expert System:
A system that gives a computer the ability to make
suggestions and act like an expert in a particular field.

Knowledge Base:
The collection of data, rules, procedures, and
relationships that must be followed to
achieve value or the proper outcome.
General Information Systems
Diagram Management
Decisions
(Environment)

Data Input Process Output Information

Control

Feedback
Data:
Raw unorganized facts

Information:
Data organized in a meaningful way for
the user (in consideration of the
environment)
Informal Information System

Each organization has a unique culture,


or fundamental set of assumptions,
values, and ways of doing things, that
has been accepted by most of its
members
Environment:
 Business - other functional areas
 Computer – hardware, software, other IS

Sub System:
Component of a larger system

System Boundary:
Interaction with environment (user or other system) via
an interface
Information System Activities

1. Input of Data Resources


2. Process Data into Information
3. Output of Information
Input of Data Resources
Data entry
Editing
Machine readable
Source documents
Formal record of a transaction
User interface
How users interact with information system
Optical scanning; menu; prompts; fill in blanks
Process Data into Information
Calculate
Compare
Sort
Classify
Summarize

The quality of the data must be maintained by a


continual process of correcting and updating activities
Output of Information
Transmit information to users
Display; paper; audio
Storage of data
Data are retained in an organized manner
 Fields; records; files; data bases

Control of system performance


Feedback must be monitored and evaluated to determine
if the information system is meeting established
performance standards
Systems Applications in the Organization

Decisions Management Levels Information


Systems
Unstructured Senior ESS
Strategic Management
DSS
Knowledge and
GIS, CAD/CAM,
Tactical Data Worker
OAS
Middle
Management MIS

Lower
TPS
Management
Technical
(Operational)
Buy Make Sell Keep
Functions
Structured Track

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