WHAT IS A SYSTEM?

 A system
 Isa 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
Figure 1.1 Input-process-output

MIS 715 Eaton Fall 2001 2

SYSTEMS HAVE THREE BASIC
FUNCTIONS:
 Input involves capturing and assembling
elements that enter the system to be
processed
 Processing involves transformation process
that convert input into output
 Output involves transferring elements that
have been produced by the transformation
process to their ultimate destination
 Subsystem: One part of a system where the
products of more than one system are combined
to reach an ultimate goal
 Closed system: Stand-alone system that has no
contact with other systems
 Open system: System that interfaces with other
systems
SYSTEMS AND SUBSYSTEMS
BUSINESS
 Business is a system where
economic resources(inputs)
are transformed by various
organizational processes into
goods/services(outputs).
A BUSINESS AS A SYSTEM
 A business can be viewed as a system.
 does not operate in a vacuum
 functions in an environment containing other
systems.
 A open system in that it interacts with other
systems in the environment.
 It is also an adaptive system in that it can
change itself or its environment in order to
survive.
 Organization: Two or more people coming
together to achieve predetermined goal or
objective.
 Every organization is a system but not every
system is an organization
WHAT IS AN INFORMATION SYSTEM
WHAT IS AN INFORMATION
SYSTEM?
 An organized combination of
 People
 Hardware
 Software
 Communications networks
 Data resources
 Policies and procedures
 That stores, retrieves, transforms, and
disseminates information in an organization
INFORMATION SYSTEMS
 Information System (IS). Collects, processes,
stores, analyzes and disseminates
information for a specific purpose.
 Computer-based Information System (CBIS).
An information system that uses computer
technology to perform some or all of its
intended tasks.

Copyright 2007 Wiley & Sons,

Chapter 1 Inc. 12
INFORMATION TECHNOLOGY
 Hardware and software networks databases
etc used by information systems
INFORMATION SYSTEM (IS) VERSUS
INFORMATION TECHNOLOGY (IT)
 IS is all the components and resources
necessary to deliver information and
functions to the organization
 IT is hardware, software, networking and
data management

 In theory, IS could be paper based

 But we will focus on Computer-Based
Information Systems (CBIS)
 MANAGEMENT FIRM
Information
Information System
Technology
 Payroll
IS VS IT System

INFORMATION
TECHNOLOGY Inventor
y System
Hardware
Software are used to build
INFORMATION
Databases
SYSTEMS
Networks
Marketin
Other related
g System
components

Customer
Service
System
INFORMATION SYSTEMS MODEL
 COMPUTER EQUIPMENT FOR
INFORMATION SYSTEM

 Input devices: introduce data into the IS

 Processor: manipulates data through the IS
 Output devices: display information
 Storage devices: store data and information
IS ACTIVITIES
 Input of data resources
 Data entry activities
 Processing of data into information
 E.g.,
calculate, compare, sort, classify,
summarize
 Output of information products
 Messages, reports, forms and graphic images
 Storage of data resources
 Data elements and databases
 Control of system performance
 Monitoring and evaluating feedback
COMPONENTS OF AN IS
 People Resources
 End users: the people who use the IS or the
information from the IS
 IS specialists: the people who develop and
operate IS
 Hardware Resources
 All
physical devices used in information processing
 Machines, data media, peripherals
 Software Resources
 Allinformation processing instructions including
programs and procedures
 System software, application software and
procedures
COMPONENTS OF AN IS (CONT.)
 Data Resources
 Factsabout the business transactions
 Processed and organized information
 Databases of organized data
 Network Resources
 Communications media
 Network infrastructure: hardware and software
 The Internet, intranets and extranets
RECOGNIZING IS
 As a business professional, you should be
able to look at an IS and identify
 The people, hardware, software, data and
network resources they use
 The type of information products they produce
 The way they perform input, processing, output,
storage and control activities
INFORMATION SYSTEMS
 Why Do People Need Information?

 Individuals - Entertainment and enlightenment

 Businesses - Decision making, problem solving and

control

MIS 715 Eaton Fall 2001 23

WHY STUDY INFORMATION SYSTEMS
AND INFORMATION TECHNOLOGY?
 Vital component of successful businesses
 Helps businesses expand and compete
 Businesses use IS and IT
 To improve efficiency and effectiveness of
business processes
 For managerial decision making
 For workgroup collaboration
2.3 WHY ARE INFORMATION SYSTEMS
IMPORTANT TO ORGANIZATIONS & SOCIETY

 IT will reduce the number of middle managers.

 IT will change the manager’s job.
 IT impacts employees at work.
 IT provides quality-of-life improvements.
THE PRINCIPLES OF INFORMATION TECHNOLOGY
THE BENEFITS OF INFORMATION TECHNOLOGY

Senn, Information Technology, 3rd Edition

© 2004 Pearson Prentice Hall 26
WHY STUDY IS?
 Information Systems Careers
 Systems analyst, specialist in enterprise resource planning
(ERP), database administrator, telecommunications specialist,
consulting, etc.
 Knowledge Workers
 Managers and non-managers
 Employers seek computer-literate professionals who know how
to use information technology.
 Computer Literacy Replacing Traditional
Literacy
 Key to full participation in western society

MIS 715 Eaton Fall 2001 27