Accounting & Finance, Management
(2nd Year)
Fundamentals of Information System
Unite Three
Fundamentals of Information Systems
Set by Alehegn E
Data
Data can be defined as any types of representation of an
object or an event.
It is a collection of raw facts and figures.
It is raw input which when processed or arranged makes
meaningful output.
It simply exists and has no significance beyond its existence.
It can exist in any form.
It does not have meaning of itself.
Users need data to create useful information.
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Example:
Students fill an admission form when they get admission in
school/college.
The form consists of raw facts such as student’s name, father
name, mother name, address, etc.
The purpose of collection of this data is to maintain the
records of the students during their study period in the
school/college.
In computer terms, symbols, characters, images, or
numbers are data.
These are the inputs for the system to give a meaningful
interpretation.
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Information
Information can be defined as a processed or summarized
data for a particular analysis or decision-making.
Information is the data that is organized, meaningful and
useful for making a decision.
Computers process data to create information, such as the
total marks for each student, which are used to decide
who is the topper.
Data processing is the transformation of data into
meaningful information.
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Differences between Data and Information:
Data Information
It is a collection of facts and It is a collection of final
figures. results.
It is in an unorganized (raw) It is in an organized form.
form.
It is not in directly useful form. It is in directly useful form.
It needs processing. It does not need any
processing.
It is also termed as input. It is also termed as output.
It requires observations and It requires analysis.
recordings.
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Sources of Information
Sources of information are often categorized as primary,
secondary, or tertiary material.
These classifications are based on the originality of the
material and the proximity of the source or origin.
1. Primary sources:
Primary sources of information are original materials that
often convey new ideas, discoveries, or information.
These sources originate from the time period under study.
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Examples of primary sources:
Original research studies also called empirical studies
Patents, technical reports
Original documents such as diaries, letters, e-mails etc.
Newspaper articles from the time period under study
Autobiographies, first-person accounts, case studies
Artifacts and archival material such as official documents, coins,
fossils etc…
Works of art such as literature, music, architecture, or paintings.
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2. Secondary sources:
Secondary sources of information are based on primary
sources.
They are generally written at a later date and provide some
discussion, analysis, or interpretation of the original primary
source.
Examples of secondary sources include:
Review articles or analyses of research studies about the same
topic (also often in peer-reviewed publications)
Analyses of original documents or archival material
Biographies, reviews, or critiques of an author.
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3. Tertiary sources:
Tertiary sources of information are based on a collection of
primary and secondary sources.
Examples of tertiary sources include:
Textbooks (sometimes considered as secondary sources)
Dictionaries
Encyclopedias
Manuals
Guidebooks
Indexes
Bibliographies
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Attributes of Information
Following attributes add value to the quality of information:
Accurate:
Accuracy is the degree of the absence of error in the process of
generation of information.
It is an important attribute of good information.
However, increasing the accuracy may have a cost.
Accurate information is free from error.
Complete:
Complete information contains all of the important facts.
Information communicated to a manager should be complete and
meet all his needs.
Incomplete information can be misleading and may result in wrong
decisions.
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Flexible:
Flexible information can be used for a variety of purposes, not just one.
Up to date:
Decision is to be taken within a time frame and therefore, information
must be available within the desired time frame.
Some types of information are required periodically and should be made
available to the user regularly and timely so as to avoid delay in decision
making.
Unambiguity:
Clarity of information is an important attribute of good information.
Information must be unambiguous and should be communicated in such
a way that it conveys the same meaning to different users.
Modern data bases maintain data dictionaries that clearly define the
variable used in the information in order to standardize the terminology
used in reports.
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Information Technology
Information Technology (IT) refers to anything related to
computing technology, such as networking, hardware,
software, the Internet, or the people that work with these
technologies.
Information Technology is the study, design, development,
implementation support and/or management of any
computer based information systems.
This relates particularly to software applications and
computer hardware.
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Components of Information Technology
1. Computer Hardware and Software:
It is an electronic digital processing system composed of
hardware and software its hardware are the devices that
make up the physical components of the system.
A computer is controlled by a sequence of controlled
instructions called a program.
A collection of program makes up its software.
2. Communication technology:
Communications technology helps to interact over a
distance to overcome that distance.
It usually means the transmission of words, sounds, pictures
or data in the form of electronic signals or impulses, sent
either as an individual message between two parties or as a
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broadcast
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of Information System at many locations. 12/28/2020
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3. Data and information:
The primary purpose of the use of computer and communication
technology is in transferring data and information.
4. People:
People operate the computer hardware, and they create and use
computer software.
They enter the data and use the information generated from the
system.
They also fallow the procedure when they use the hardware and
software.
5. Procedure:
It is description of how things are done, steps for
accomplishing a result.
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Information Systems
System is a set of related parts that operate together to
perform a specific function.
System is a collection of elements or components that are
organized for a common purpose.
Information System is an integration of components for
collection, storage and processing of data of which the data
is used to provide information, contribute to knowledge as
well as digital products.
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The basic components of computer-based information systems are:
Hardware:
These are the devices like the monitor, processor, printer, and keyboard,
all of which work together to accept, process, show data, and information.
Software:
They are the programs that allow the hardware to process the data.
Databases:
They are the gathering of associated files or tables containing related data.
Networks:
They are a connecting system that allows diverse computers to distribute
resources.
Procedures:
They are the commands for combining the components above to process
information and produce the preferred output.
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