Introduction to

Information Systems
Information Concepts (1)
Data vs. Information
Data
 Raw facts
 Distinct pieces of information, usually formatted in a special

way
Information
 A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves
Data
(1) Distinct pieces of information, usually formatted in a special
way. All software is divided into two general categories: data and
programs. Programs are collections of instructions for manipulating
data.

Data can exist in a variety of forms -- as numbers or text on pieces

of paper, as bits and bytes stored in electronic memory, or as facts
stored in a person's mind.

Strictly speaking, data is the plural of datum, a single piece of

information. In practice, however, people use data as both the
singular and plural form of the word.

(2) The term data is often used to distinguish binary

machine-readable information from textual human-readable
information. For example, some applications make a distinction
between data files (files that contain binary data) and text files
(files that contain ASCII data).

(3) In database management systems, data files are the files that
store the database information, whereas other files, such as index
files and data dictionaries, store administrative information, known
as metadata.
Terminology
Process
 A set of logically related tasks performed to achieve a defined
outcome
Process
 (n) An executing program. The term is used loosely as a
synonym of task.
 (v) To perform some useful operations on data.
Terminology

Knowledge
 An awareness and understanding of a set of information and
how that information can be made useful to support a specific
task
Types of Data
Data Represented by
Alphanumeric data Numbers, letters, and other characters

Image data Graphic images or pictures

Audio data Sound, noise, tones

Video data Moving images or pictures
Data  Information

Data Transformation Information

Characteristics of Valuable Information
Accurate
Complete
Economical
Reliable
Relevant
Simple
Timely
Verifiable
Accessible
Secure
System
System
A set of elements or components that interact to
accomplish goals
A combination of components working together
System
Is a combination of components working together.
For example, a computer system includes both hardware and
software.

A Windows system is a personal computer running the

Windows operating system.
System Elements
Inputs
Processing mechanisms
Outputs
System Example
Elements
System Processing Goal
Inputs Outputs
elements
Actors, director, Filming, Finished Entertaining
staff, sets, editing, film movie, film
Movie equipment special delivered to awards,
effects, movie profits
distribution studio
System Components and Concepts
System boundary
Defines the system and distinguishes it from everything
else
System types
Simple vs. complex
Open vs. closed
Stable vs. dynamic
Adaptive vs. nonadaptive
Permanent vs. temporary
System Performance and
Standards
Efficiency
A measure of what is produced divided by what is
consumed
Effectiveness
A measure of the extent to which a system achieves its
goals
System performance standard
A specific objective of the system
System Variables and Parameters
System variable
A quantity or item that can be controlled by the decision
maker
E.g. the price a company charges for a product
System parameter
A value or quantity that cannot be controlled by the
decision maker
E.g., cost of a raw material
Modeling a System
Model
An abstraction or an approximation that is used to
represent reality
Types of models
Narrative
Physical
Schematic
Mathematical

Next slide
Information System (IS)
Definition
A set of interrelated elements or components that
collect (input), manipulate (process), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective
For many companies, IS is the name of the department
responsible for computers, networking and data
management. Other companies refer to the department
as IT (Information Technology) and MIS (Management
Information Services).
What is an Information System?
Schematic model of an information system

Feedback

Input Processing Output

Input, Processing, Output,
Input
The activity of gathering and capturing data
Whatever goes into the computer
Processing
Converting or transforming data into useful outputs
Output
Useful information, usually in the form of documents
and/or reports
Anything that comes out of a computer
Input
Whatever goes into the computer.
Input can take a variety of forms, from commands you enter on a
keyboard to data from another computer or device.
A device that feeds data into a computer, such as a
keyboard or mouse, is called an input device.
Output ‘Discussion’
Anything that comes out of a computer. Output can be
meaningful information and it can appear in a variety of forms -- as
binary numbers, as characters, as pictures, and as printed pages, as a
sound, as a video etc.
Output devices include display screens,
loudspeakers, and printers.
Feedback
Feedback
It is an activity/ process to know the actual
performance of a system.
Simply done by gathering data.
The actual performance is compared with the desired
performance.
It is followed by various correction activities if
required.
A system without feedback is not efficient.
Manual vs. Computerized
Systems
Manual systems still widely used
E.g., some investment analysts manual draw charts and
trend lines to assist them in making investment
decisions
Computerized systems
E.g., the above trends lines can be drawn by computer
Evolution
Many computerized system began as manual systems
Computer-based Information
Systems
A CBIS is composed of…
Hardware
Software
Databases
Telecommunications
People
Procedures
Together they are…
Configured to collect, manipulate, store, and process
data into information
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Hardware
Hardware
Computer equipment used to perform input,
processing, and output activities
The objects that you can actually touch, like disks, disk
drives, display screens, keyboards, printers, boards, and
chips.
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Software
Software
Computer programs that govern/determine/control the
operation of the computer
Computer instructions or data
Software
Software is computer instructions. Anything that can be
stored electronically is software.
•Collection of programs written in some specific
language, to perform some task.
•A program is a collection of codes in some specific
manner, which executes sequentially.
Software
Software is often divided into two categories.
Systems software includes the operating system and all
the utilities that enable the computer to function.
Applications software includes programs that do real
work for users. For example, word processors, spreadsheets,
and database management systems fall under the category of
applications software.
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Database
Database
An organized collection of facts and information
A collection of information organized in such a way that
a computer program can quickly select desired pieces of
data
Database
A database is a collection of information organized in
such a way that a computer program can quickly select
desired pieces of data.
Traditional databases are organized by fields, records, and
files.
•A field is a single piece of information.
• Record is one complete set of fields;
• A file is a collection of records
Database
An alternative concept in database design is known as
Hypertext. In a Hypertext database, any object, whether it be
a piece of text, a picture, or a film, can be linked to any other
object.
To access information from a database, you need a
database management system (DBMS). This is a collection of
programs that enables you to enter, organize, and select data
in a database.
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Telecommunications
Telecommunications
The electronic transmission of signals for
communications; enables organizations to link
computer systems into effective networks
Refers to all types of data transmission, from voice to
video
Parts of a CBIS
Five parts
Hardware
Software
Database
Telecommunications
Networks
Networks
Network
Used to connect computers and computer equipment in
a building, around the country, across the world, to
enable electronic communications
A group of two or more computer systems linked
together
Network
There are many types of computer networks, including:
local-area networks (LANs) : The computers are
geographically close together (that is, in the same
building).
wide-area networks (WANs) : The computers are farther
apart and are connected by telephone lines or radio waves.
Internet and Intranet
Internet
The world’s largest telecommunications network
A network of networks
Free exchange of information
A global network connecting millions of computers
Intranet
A network that uses Internet technology within an
organization
A network belonging to an organization
People and Procedures
People
The most important element in most computer-based
information systems
Includes people who manage, run, program, and
maintain the system
E.g., IT professionals
Procedures
Includes the strategies, policies, methods, and rules for
using the CBIS
Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Transactions Processing Systems
Transaction
Any business-related exchange
E.g., generating a weekly payroll
Transaction processing system (TPS)
An organized collection of people, procedures, software,
databases, and devices used to record completed for for
business related exchanges
Payroll Example
Hours
Hours
worked
worked
Payroll
Payroll Payroll
Payroll
transaction
transaction checks
checks
processing
processing
Pay
Pay
rate
rate
Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
E-Commerce System
E-commerce
Involves any business transaction executed
electronically
Conducting business on-line
For example, between…
 Companies
 Companies and consumers

 Business and the public sector

 Consumers and the public sector

Example for placing a purchase order

Purchase Order - Traditional
Purchase Order – E-commerce
Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Management Information Systems
An MIS is…
An organized collection of people, procedures, software,
databases, and devices used to provide routine
information to managers and decision makers
Schematic of MIS
Marketing
Marketing Manufacturing
management Manufacturing
management management
management
information
information Information
system Information
system system
system

Common
databases
Financial
Financial Order
Order
management
management management
management
Information
Information information
information
system
system system
system
TPS
TPS
 MIS ‘Discussion’
MIS
refers to a class of software that provides managers with tools for
organizing and evaluating their department. Typically, MIS systems
are written in COBOL and run on mainframes or minicomputers.

Within companies and large organizations, the department

responsible for computer systems is sometimes called the MIS
department. Other names for MIS include IS (Information
Services)
Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Decision Support Systems
A DSS is…
An organized collection of people, procedures, software,
databases, and devices used to support problem-specific
decision making
A DSS helps a manger “do the right thing”
Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Expert Systems
An expert system is…
A computer application that performs a task that would
otherwise be performed by a human expert
gives the computer the ability to make suggestions and
to act like an expert in a particular field
Examples: diagnose human illnesses, make financial
forecasts, schedule routes for delivery vehicles
Expert systems typically include “artificial
intelligence” (next slide)
 Artificial Intelligence (1)
The branch of computer science concerned with making computers
behave like humans. Artificial intelligence includes
 games playing: programming computers to play games such as
chess and checkers
 expert systems : programming computers to make decisions in real-life
situations (for example, some expert systems help doctors diagnose
diseases based on symptoms)
 natural language : programming computers to understand natural
human languages
 Artificial Intelligence (2)
 neural networks : Systems that simulate intelligence by attempting
to reproduce the types of physical connections that occur in animal
brains
 robotics : programming computers to see and hear and react to
other sensory stimuli

Currently, no computers exhibit full artificial intelligence (that is,

able to simulate human behavior). The greatest advances have
occurred in the field of games playing. The best computer chess
programs are now capable of beating humans. In May, 1997, an IBM
super-computer called Deep Blue defeated world chess champion
 Artificial Intelligence (3)
Gary Kasparov in a chess match.

In the area of robotics, computers are now widely used in assembly

plants, but they are capable only of very limited tasks. Robots have
great difficulty identifying objects based on appearance or feel, and
they still move and handle objects clumsily.

Natural-language processing offers the greatest potential rewards

because it would allow people to interact with computers without
needing any specialized knowledge. You could simply walk up to a
 Artificial Intelligence (4)
computer and talk to it. Unfortunately, programming computers to
understand natural languages has proved to be more difficult than
originally thought. Some translation systems that
translate from one human language to another are in existence, but
they are not nearly as good as human translators. There are also
voice recognition systems that can convert spoken sounds into
written words, but they do not understand what they are writing;
they simply take dictation. Even these systems are quite limited --
you must speak slowly and distinctly.
 Artificial Intelligence (5)
In the early 1980s, expert systems were believed to represent the
future of artificial intelligence and of computers in general. To date,
however, they have not lived up to expectations. Many expert
systems help human experts in such fields as medicine and
engineering, but they are very expensive to produce and are helpful
only in special situations.
Working with Systems (1)
Systems development
The activity of creating or modifying an existing
business system
Systems investigation and analysis
Defines the problems and opportunities of an existing
system
Systems design
Determine how a new system will work to meet business
needs
Working with Systems (2)
Systems implementation
Creating and acquiring system components defined in
the design
Systems maintenance and review
Checks and modifies the system so that it continues to
meet changing business needs
End of Chapter 1