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Fundamentals of Information Systems

This document defines key concepts related to information and information systems. It discusses how data is processed into information, classifications of information, benefits and quality of information, basics of information systems including their functions and components, uses of information systems in business, and limitations and design considerations of information systems.

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sandeepkau
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135 views25 pages

Fundamentals of Information Systems

This document defines key concepts related to information and information systems. It discusses how data is processed into information, classifications of information, benefits and quality of information, basics of information systems including their functions and components, uses of information systems in business, and limitations and design considerations of information systems.

Uploaded by

sandeepkau
Copyright
© Attribution Non-Commercial (BY-NC)
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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Fundamentals of Information

Systems
Objectives

• Defining Information
• Information – Classification, Presentation,
Benefits, Quality
• Basics of Information Systems
• Use of Information Systems in Business
• Limitations of Information Systems
• Information System Design
Introduction

• Information is the key requirement of every


organization.
• Information affects the decision-making at various
levels in the organization.
• Information systems play a vital role in the success of
an organization.
• Information technology is transforming the way
business is done.
Definitions

• Data – Raw form of an information, unorganized and


unprocessed.
• Information – is processed data that is presented in a
usable form.
• Data that has been processed into a form that is
meaningful to the recipient and is of real or
perceived value in current or prospective actions or
decisions -
Gordon B Davis -
Margrethe H Oslon
Classification of Information

• Facts
• Opinions
• Concepts
• Procedures
• Processes
• Principles
• Objective information
Basic Classification

• Objective Information
- Facts, refer to information that is unique and true in
nature.
• Subjective Information
- information or opinions based on the views of an
individual or a group of individuals about a particular
object, place person or a situation.
Cont..

• Concepts
- A concept is basically a feature or a characteristic
that is common and/or shared among a group of
items, ideas, or entities.
• Procedures
- Refers to a series of steps that indicate or show how
a task is to be performed.
• Processes
- Describes the method of work or operation.
Cont…

• Principles
- Information about guidelines, rules, criteria and
heuristics that are used for predicting an outcome to a
situation.
• Primary Information
- Information that is created at the time at which an
event took place.
• Secondary Information
- Taken from primary information and is represented
based on the purpose for which it is collected.
Based on Nature

• Quantitative Information

• Qualitative Information

• Formal Information

• Informal information
Based on Usage

• Based on Application
- Planning Information
- Control Information
- Knowledge Information

• Based on Structure
- Detailed Information
- Summarized Information
- Sampled Information
- Aggregated Information
Based on Form

• Classification by Prof. John Dearden


- Action and no action information
- Recurring and non recurring information
- Internal and external information

• Other Classifications.
Presentation Information

• Methods of Data Collection


- Primary Data
- Secondary Data

• Commonly used methods


- Observation, experiment, survey,
subjective estimation etc.
Transmission of Information

Information Transmission
Source Modulator Sender Channel
Receiver Demodulator Destination

Noise
Summarization of Information

• Presenting information in a consolidated form


without changing the actual meaning.
• Can be done based on the management position.
• Based on the management functions like production,
finance, marketing, personnel etc.
• Can take palce based on exceptional circumstances
or situations.
Information Discretion

• Message Delay

• Modification or Filtering

• Inference or uncertainty absorption

• Presentation bias
Benefits of Information

• Information plays a very important role in


management.
• The value of information depends on the following
aspects :
- The information should convey something that
people are unaware of.
- The information should instigate some action.
- The action taken up should result in good profits.
Quality of Information

• Quality is subjective in nature and hence its


parameters should be clearly defined.
• Validity
• Consistency
• Relaibility
• Impartiality
• Age
Errors

• Errors may occur due to


- Incorrect data collection methods.
- Incorrect data measurement methods.
- Loss of data.
- Mistakes in recording the data.
- Incomplete data.
- Incorrect master file.
Basics of Information Systems

• Functions of Information System.

• Components of Information Systems.


Functions of Information System

• Accepting input in the form of data resources


• Processing the data resources into
information products
• Storing the data resources
• Generating output
• Controlling the performance of the system
Components of Information Systems

• People
• Equipment
• Data
• Network
Use of Information Systems in Business

• Information systems three vital roles in any


type of organization.
- Support business operations.
- Guide managerial decision making.
- Provide strategic and competitive
advantage to the organization.
Use of Information systems in Business

• IS are used by organizations for the following


purpose :
- Market Research
- Purchasing
- Production
- Sales
- Accounting
- Finance
- Public Relations
Limitations of IS

• Development of useful information is a very difficult


task.
• The technology standards change ,much too often.
• Resistance from the employees.
Information System Design

• As effective IS should
- Build a knowledge base.
- Reduce errors by conducting proper
validation.
- Minimize noise and other distortions by
making an appropriate presentation.
- Have a design that does not encourage any
misuse of information.

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