Chapter: THREE Lecture: FOUR
INFORMATION SYSTEMS
This lecture will cover following topics:
•System Concept
•Information Systems
•Information Technology
•Activities of Information Systems
System Concepts
A system can be defined as a group of interrelated
or interacting elements forming a unified whole.
According to James A O’Brien, “A system is
defined as a set of interrelated components, with
a clearly defined boundary, working together to
achieve a common set of objectives by accepting
inputs and producing outputs in an organized
transformation process”.
System Concepts
Many examples of systems can be found in the
physical and biological sciences, in modern
technology, and in human society. Thus, we can talk
of the physical system of the sun and its planets, the
biological system of the human body, the
technological system of an oil refinery, and the
socioeconomic system of a business organization.
Information System
“Information System (IS) - A system that
creates, processed, stores, and retrieves
information”- Gupta
The information system receives the inputs of
the data and the instructions, processes the
data according to the given instructions, and
gives the output of the processed results.
Information systems contain information about
significant people, places, and things within the
organization or in the environment surrounding
it.
Information System
According to Laudon and Laudon:
“An information system can be defined
technically as a set of interrelated components
that collect (or retrieve), process, store, and
disseminate information to support decision
making, coordination, control, analysis, and
visualization in an organization.
“An information system is an organized
combination of people, hardware, software,
communication networks, and data resources
that collects, transforms and disseminates
information in an organization.”-James A.
O’Brien
Information Technology
Information Technology (IT) refers to the
resources used by an organization to manage
information that needs to carry out its
mission.
Information Technologies are tools and
techniques that support the design and
development of information system. IT
consists of:
•Computer hardware
•Software
•Database and
•Telecommunication.
Differences between Information
System and Information
An Information System is a tool that creates,
processes, stores, and disseminates
information to help managers make decisions.
Information Technologies on the other hand,
are technologies that support the design and
development of information system.
Activities of an Information System
Five activities in an information system produce
the information organization need for making
decisions, controlling operations, analyzing
problems, and creating new products and
services.
•Input
•Processing
•Output
•Storage, and
•Control
Activities of an Information System…Contd..
a. Input of data resources
In information systems, input captures or collects
raw data from within the organization or from
its external environment. Data about business
transactions and other events must be captured
and prepared for processing by input or data
entry activities such as recording and editing.
End users typically record data about
transactions on some type of physical medium
such as a paper form, or enter it directly into a
computer system. Once entered, data may be
transferred magnetic disk or tape, until needed
for processing
Activities of an Information System…Contd..
b. Processing of data into information
Processing involves transformation processes
that convert input into output i.e.,
manufacturing process. Processing converts
this raw input into a more meaningful form.
Data is typically manipulated by such activities
as calculating, comparing, sorting, classifying,
and summarizing. These processing activities
organize, analyze, and manipulate data, thus
converting it into information for end users.
The quality of any data stored in an information
system must also be maintained by a continual
process of correcting and updating activities.
Activities of an Information System…Contd..
For example, Data received about a purchase
can be
(1)Added to a running total of sales results,
(2)Compared to a standard to determine
eligibility for a sales discount,
(3)Sorted in numerical order based on product
identification numbers,
(4)Classified into product categories (such as
food and nonfood items),
(5)Summarized to provide a sales manager with
information about various items,
(6)Used to update sales records.
Activities of an Information System…Contd..
c. Output of information products
Output involves transferring elements that have
been produced by a transformation process to their
ultimate destination i.e. finished goods. In
information systems output transfers the
processed information to the people or activities
where it will be used. Information in various forms
is transmitted to end-users and made available to
them in the output activity. The goal of information
system is the production of appropriate
information products for end users. Common
information products are video displays, paper
documents, and audio response that provide us
with messages, forms, reports, listings, graphics,
displays, and so on.
Activities of an Information System…Contd..
d. Storage of data resources
Storage is a basic system component of
information systems. Storage is the information
system activity in which data are retained in an
organized manner for later use.
For example, just as written text material is
organized into work, sentences, paragraphs,
and documents, stored data are commonly
organized into a variety of data elements and
databases. This facilitates their later use in
processing or retrieval as output when needed
by users of a system.
Activities of an Information System…Contd..
e. Control of system performance
An information system activity is the control of
system performance. An information system
should produce feedback about its input,
processing, output, and storage activities. This
feedback must be monitored and evaluate to
determine if the system is meeting established
performance standards. Then appropriate
system activities must be adjusted so that
proper information product is produced for end
users. These activities are known as control.
Activities of an Information System…Contd..
Information System Activities
Input. Optical scanning of bar-coded tags
on merchandise.
Processing. Calculating employee pay,
taxes, and other payroll deductions.
Output. Producing reports and displays
about sales performance.
Storage. Maintaining records on
customers, employees, and products.
Control. Generating audible signals to
indicate proper entry of sales data.
Figure : Business examples of the basic
activities of information systems
