Meaning, Components and Role of Information Systemsof Information Systems

Data Versus Information

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What is a system?• A group of interrelated or interacting elements

forming a unified whole, OR• A group of interrelated components working

together toward a common goal by accepting together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).

• Five basic interacting components:– Input - Processing (transformation process)– Output - Feedback– Control

Information Technologies

• Computer hardware technologies• Computer software technologies• Telecommunications network technologies• Data resource management technologies• Data resource management technologies

Using Information in Finding Problems

• Amount of inventory safety stock• Personnel selection• New product pricing• Expenditure control• Expenditure control

Need for Database

• Data needs to be managed in order to be available for processing and have appropriate quality.

• Easy updating of the data.• Easy updating of the data.• Easy sharing of the data.

Data Processing

• Processes transactions and produces reports.• Represents the automation of fundamental,

routine processing to support operations.

Information Systems

• Information System (IS). Collects, processes, stores, analyzes and disseminates information for a specific purpose.

• Computer-based Information System (CBIS).• Computer-based Information System (CBIS).An information system that uses computer technology to perform some or all of its intended tasks.

Definition of an Information System

• An information system can be any organized combination of people, hardware, software, communication networks, and data resources that collects, transforms, and disseminates information in an organization.

• People have relied on information systems to communicate • People have relied on information systems to communicate with each other using a variety of physical devices (hardware), information processing instructions and procedures (software), communication channels (networks), and stored data (data resources) since the dawn of civilization.

INFORMATION TECHNOLOGY

Hardware

Software

Databases

are used to buildINFORMATION SYSTEMS

Payroll System

Inventory System

IS Vs IT

Databases

Networks

Other related components

SYSTEMS

Marketing System

Customer Service System

Information Systems Framework

Information Systems Framework

An IS Framework for Business Professionals – The IS knowledge that a business manager or professional needs to know include the following:

ü Foundation Concepts: fundamental behavior, technical, business, and managerial concepts like system components and functions, or competitive strategies;

ü Information Technologies: concepts, developments, or management issues regarding hardware, ü Information Technologies: concepts, developments, or management issues regarding hardware, software, data management, networks, and other technologies;

ü Business Applications: major uses of IT for business processes, operations, decision making, and strategic/competitive advantage;

ü Development Processes: how end users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in business; and

ü Management Challenges: how to effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise.

Components of Information System

• People Resources• Hardware Resources• Software Resources• Software Resources• Data Resources• Network Resources• Information Products

People Resources

ØSpecialists: system analysts, software developers, systems operatorsØEnd Users: anyone else who uses information ØEnd Users: anyone else who uses information

systems

Hardware Resources

ØMachines: computers, video monitors, magnetic disk drives, printers, optical scannersØMedia: floppy disk, magnetic tape, optical ØMedia: floppy disk, magnetic tape, optical

disks, plastic cards, paper forms

Software Resources

ØPrograms: operating system programs, spreadsheet programs, word processing programs, payroll programsprograms, payroll programsØProcedures: data entry procedures, error

correction procedures, paycheck distribution procedures

Data Resources

ØProduct Descriptions, customer records, employee files, inventory databases

Network Resources

ØCommunications media, communications processors, network access and control softwaresoftware

Information Products

ØManagement reports and business documents using text and graphics displays, audio responses, and paper formsresponses, and paper forms

Major Roles of IS

Support CompetitiveAdvantage

Support Business

Decision Making

Support of Business Processes and Operations

Major Roles of IS• Three major roles of the business applications of information

systems include:

• Support Business Processes –involves dealing with information systems that support the business processes and operations in a business.

• Support Decision Making – help decision makers to make better decisions and attempt to gain a competitive advantage.

• Support Competitive Advantage – help decision makers to gain a strategic advantage over competitors requires innovative use of information technology.