OIT 111: Fundamentals of

Information Systems
Introduction to Information Systems
 IS Concepts
• An information system (IS) is a set of interrelated
components that collect, manipulate, store, and
disseminate data and information and provide a
feedback mechanism to meet an objective.
• It is the feedback mechanism that helps
organizations achieve their goals, such as
increasing profits or improving customer service.
• Businesses can use information systems to
increase revenues and reduce costs.
 INFORMATION CONCEPTS
• Data Raw facts, such as an employee number, total
hours worked in a week, inventory part numbers, or
sales orders.
• Types of data; alphanumeric, image, audio, video
• Information A collection of facts organized in such a
way that they have additional value beyond the
value of the individual facts.
• Turning data into information is a process, or a set
of logically related tasks performed to achieve a
defined outcome
• The process of defining relationships among data to create
useful information requires knowledge.
• Knowledge is the awareness and understanding of a set of
information and the ways that information can be made useful
to support a specific task or reach a decision.
• Knowledge workers (KWs) are people who create, use, and
disseminate knowledge, and are usually professionals in
science, engineering, business, and other areas.
• A knowledge management system (KMS) is an organized
collection of people, procedures, software, databases, and
devices used to create, store, and use the organization’s
knowledge and experience.
The Characteristics of Valuable Information
 WHAT IS AN INFORMATION SYSTEM?
• IS is a set of interrelated elements or
components that collect (input), manipulate
(process), store, and disseminate (output)
data and information, and provide a corrective
reaction (feedback mechanism) to meet an
objective
• Input is the activity of gathering and capturing raw data
• Processing means converting or transforming data into
useful outputs. Processing can involve making calculations,
comparing data and taking alternative actions, and storing
data for future use.
• Output involves producing useful information, usually in
the form of documents and reports
• Feedback is information from the system that is used to
make changes to input or processing activities. For
example, errors or problems might make it necessary to
correct input data or change a process
• An information system can be manual or
computerized
• A computer-based information system (CBIS)
is a single set of hardware, software,
databases, telecommunications, people, and
procedures that are configured to collect,
manipulate, store, and process data into
information.
 Components of an IS
• Hardware consists of computer equipment used to perform input,
processing, and output activities
• Software the computer programs that govern the operation of the
computer.
• A database is an organized collection of facts and information, typically
consisting of two or more related data files
• Telecommunications is the he electronic transmission of signals for
communications, which enables organizations to carry out their
processes and tasks through effective computer networks. Networks
connect computers and equipment in a building, around the country,
or around the world to enable electronic communication. The Internet
is the world’s largest computer network, consisting of thousands of
interconnected networks, all freely exchanging information.
 Cont…
• People can be the most important element in most computer-
based information systems. They make the difference
between success and failure for most organizations.
Information systems personnel include all the people who
manage, run, program, and maintain the system.
• Procedures include the strategies, policies, methods, and
rules for using the IS, including the operation, maintenance,
and security of the computer. For example, some procedures
describe when each program should be run. Others describe
who can access facts in the database or what to do if a
disaster, such as a fire, earthquake, or hurricane, renders the
IS unusable.
• Examples of Information Systems
- An inventory control system
- An order entry system
- A production scheduling system
 SYSTEMS DEVELOPMENT
• Systems development The activity of creating or modifying
business systems
• Systems development projects can range from small to very
large and are conducted in fields as diverse as stock analysis and
video game development
• Developing information systems to meet business needs is
highly complex and difficult—so much so that it is common for
IS projects to overrun budgets and exceed scheduled
completion dates.
• Therefore, one strategy for improving the results of a systems
development project is to divide it into several steps, each with
a well-defined goal and set of tasks to accomplish
• Systems Investigation and Analysis
The goal of the systems investigation is to gain a clear
understanding of the problem to be solved or opportunity to
be addressed.
After an organization understands the problem, the next
question is, “Is the problem worth solving?”
If the decision is to continue with the solution, the next step
• Systems analysis, defines the problems and opportunities
of the existing and new system respectively
• Systems design determines how the new system will
work to meet the business needs defined during
systems analysis
• Systems implementation involves creating or acquiring
the various system components (hardware, software,
databases, etc.) defined in the design step, assembling
them, and putting the new system into operation
• Systems maintenance and review purpose is to check
and modify the system so that it continues to meet
changing business needs.
 GLOBAL CHALLENGES IN INFORMATION
SYSTEMS
• Today’s information systems have led to
greater globalization. High-speed Internet
access and networks that can connect
individuals and organizations around the
world create more international opportunities
• These opportunities, however, introduce
numerous obstacles and issues, including
challenges involving culture, language, and
many others:
- Cultural challenges. Countries and regional areas have their own
cultures and customs that can significantly affect individuals and
organizations involved in global trade
- Language challenges. Language differences can make it difficult to
translate exact meanings from one language to another
- Time and distance challenges
- Infrastructure challenges
- Currency challenges
- Product and service challenges
- Technology transfer issues
- State, regional, and national laws
- Trade agreements
 Benefits of Information Systems

- Better information
- Improved service
- Increased productivity
- Competitive advantage
THE END