INTRODUCTION TO

INFORMATION SYSTEMS

INFORMATION CONCEPTS
 INFORMATION CONCEPTS
 People and organizations use information every day.
 Many retail chains, for example, collect data from their stores to help them
stock what customers want and to reduce costs.
 The components that are used are often called an information system.
 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.
 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, speed,
accuracy and reduce costs.
 INFORMATION CONCEPTS

 The value of information is directly linked to how it helps

decision makers achieve the organization’s goals
 To be an effective manager in any area of business, you
need to understand that information is one of an
organization’s most valuable resources.
 This term, however, is often confused with data
 INFORMATION CONCEPTS

 Knowing the potential impact of information systems and

having the ability to put this knowledge to work can result
in a successful personal career, organizations that reach
their goals, and a society with a higher quality of life.
 System users, business managers, and information
systems professionals must work together to build a
successful information system
 INFORMATION SYSTEMS IN ORGANIZATIONS
 The use of information systems to add value to the organization
can also give an organization a competitive advantage
 IS personnel is a key to unlocking the potential of any new or
modified system
 Information systems used by:
1. Sales representatives
2. clerks
3. Managers
4. Financial advisors
 DISCUSSION POINT

Identify the basic types of business

information systems and discuss who
uses them, how they are used, and what
kinds of benefits they deliver
 DATA, INFORMATION, AND KNOWLEDGE
 Data consists of raw facts, such as an employee number, total
hours worked in a week, inventory part numbers, or sales orders.
 Several types of data such as alphanumeric, video, audio and
image can represent these facts.
 When facts are arranged in a meaningful manner, they become
information.
 Information is a collection of facts organized so that they have
additional value beyond the value of the individual facts.
 For example, sales managers might find that knowing the total
monthly sales suits their purpose more (i.e., is more valuable) than
knowing the number of sales for each sales representative.
DATA
DATA, INFORMATION, AND KNOWLEDGE (CONTINUED)

 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.
 Having knowledge means understanding relationships in information.
 Information can be thought of as data made more useful through the
application of knowledge.
DATA, INFORMATION, AND KNOWLEDGE (CONTINUED)
 DATA PROCESSING

 Much of data management is essentially about extracting useful information

from data.
 To do this, data must go through a data mining process to be able to get
meaning out of it.
 There is a wide range of approaches, tools and techniques to achieve this.
 Data processing is simply the conversion of raw data to meaningful
information through a process.
 Data is manipulated to produce results that lead to a resolution of a problem or
improvement of an existing situation. Similar to a production process, it follows a
cycle where inputs (raw data) are fed to a process (computer systems, software,
etc.) to produce output (information and insights).
 DATA PROCESSING CYCLE

 The Data Processing Cycle is a series of steps carried out to

extract information from raw data.
 Generally, organizations employ computer systems to carry out a
series of operations on the data in order to present, interpret, or
obtain information.
 The process includes activities like data entry, summary,
calculation, storage, etc.
 Useful and informative output is presented in various appropriate
forms such as diagrams, reports, graphics, etc.
DATA PROCESSING CYCLE
 1) COLLECTION

 Collection is the first stage of the cycle, and is very crucial, since the quality of
data collected will impact heavily on the output.
 The collection process needs to ensure that the data gathered are both defined
and accurate, so that subsequent decisions based on the findings are valid.
 This stage provides both the baseline from which to measure, and a target on
what to improve.
 Some types of data collection include census (data collection about everything
in a group or statistical population), sample survey (collection method that
includes only part of the total population), and administrative by-product (data
collection is a by product of an organization’s day-to-day operations).
 2) PREPARATION

 Preparation is the manipulation of data into a form suitable for

further analysis and processing.
 Raw data cannot be processed and must be checked for accuracy.
 Preparation is about constructing a dataset from one or more data
sources to be used for further exploration and processing.
 Analyzing data that has not been carefully screened for problems
can produce highly misleading results that are heavily dependent
on the quality of data prepared.
 3) INPUT
 Input is the task where verified data is coded or converted into
machine readable form so that it can be processed through a
computer.
 Data entry is done through the use of a keyboard, digitizer,
scanner, or data entry from an existing source.
 This time-consuming process requires speed and accuracy.
 Most data need to follow a formal and strict syntax since a great
deal of processing power is required to breakdown the complex
data at this stage.
 Due to the costs, many businesses are resorting to outsource this
stage.
 4) PROCESSING

 Processing is when the data is subjected to various means and methods

of manipulation, the point where a computer program is being executed,
and it contains the program code and its current activity.
 The process may be made up of multiple threads of execution that
simultaneously execute instructions, depending on the operating system.
 While a computer program is a passive collection of instructions, a
process is the actual execution of those instructions.
 Many software programs are available for processing large volumes of
data within very short periods.
 5) OUTPUT AND INTERPRETATION

 Output and interpretation is the stage where processed

information is now transmitted to the user.
 Output is presented to users in various report formats like printed
report, audio, video, or on monitor.
 Output need to be interpreted so that it can provide meaningful
information that will guide future decisions of the company.
 6) STORAGE

 Storage is the last stage in the data processing cycle, where data,
instruction and information are held for future use.
 The importance of this cycle is that it allows quick access and
retrieval of the processed information, allowing it to be passed on
to the next stage directly, when needed.
 Every computer uses storage to hold system and application
software.
 CHARACTERISTICS OF VALUABLE INFORMATION

1. Accessible: Information should be easily accessible by authorized users so they

can obtain it in the right format and at the right time to meet their needs.

2. Accurate: Accurate information is error free. In some cases, inaccurate

information generated because inaccurate data is fed into the transformation
process. [This is commonly called garbage in, garbage out [GIGO].] Accuracy is
important. As an example, if government statistics based on the last census
wrongly show an increase in births within an area, plans may be made to build
schools and construction companies may invest in new housing developments.
In these cases any investment may not be recouped.

3. Complete: Complete information contains all the important facts. For example,
an investment report that does not include all important costs is not complete.
 CHARACTERISTICS OF VALUABLE INFORMATION
(CONT’D)

4. Economical: Information should also be relatively economical to produce. Decision

makers must always balance the value of information with the cost of producing it.

5. Flexible: Flexible information can be used for a variety of purposes, For example,
information on how much inventory is on hand for a particular part can be used by a
sales representative in closing a sale, by a production manager to determine
whether more inventory is needed, and by a financial executive to determine the
total value the company has invested in inventory.

6. Relevant: Relevant information is important to the decision maker. Information

showing that lumber prices might not be relevant to a computer chip manufacturer.
 CHARACTERISTICS OF VALUABLE INFORMATION
(CONT’D)
7. Reliable: Reliable information can be depended on. In many cases, the
reliability of the information depends on the reliability of the data-collection
method. In other instances, reliability depends on the source of the information.
Compare that to finding information on the Internet where anybody can write
unedited and unverified material and 'publish' it on the web. Unless you know
who the author is, or a reputable university or government agency backs up the
research, then you cannot be sure that the information is reliable.

8. Secure: Information should be secure from access by unauthorized users.

9. Simple: Information should be simple, not overly complex. Sophisticated and

detailed information might not be needed. In fact, too much information can
cause information overload, whereby a decision maker has too much information
and is unable to determine what is really important.
 CHARACTERISTICS OF VALUABLE INFORMATION
(CONT’D)

10. Timely: Timely information is delivered when it is needed. Having a Mobile application
shows last week's weather conditions will not help when trying to decide what coat to
wear today.

11. Verifiable: Information should be verifiable. This means that you can check it to make
sure it is correct, perhaps by checking many sources for the same information, such as
codes resources and in providing any information should contain or link to a reference.
 THE VALUE OF INFORMATION

 The value of information is directly linked to how it helps decision

makers achieve their organization’s goals.
 Valuable information can help people and their organizations
perform tasks more efficiently and effectively.
THE END
COMPLIED BY F. ZINYOWERA