basics of information system

8/7/2019 basics of information system

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Information technology in

Business management

Introduction


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Foundation concepts information

systems and technologies

Information A Vital Corporate Resource

Information revolution success or failure of product

or organization. Information being a vital corporate resource, it needs

to be managed just as any other organizationalresource

Formal methods to plan, monitor, control and evaluatethe utilization of this resources are needed


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Why Business need Information

System?Information system is reshaping the basics of

business. Customers service, operations,

product and marketing strategies and

distribution are heavily or some times even

entirely dependent on Information System.


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Fifth EditionJames A. OBrien 4M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw-Hill Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.

An IS Framework for Business Professionals


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Foundation concepts include basic

information system concepts derived from

general theory.

Information technologies: include hardware,

software, networks, data resource

management and many internet based

technologies.


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Business applications: include the major uses

of information systems for the operations,

management and competitive advantage of

business

Development process: include development

and implementation of information systems to

meet business opportunities.


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Management challenges: include the

challenges of effectively and ethically

managing information technologies and

security at the end user.


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What is an information system?

An information system is an organized

combination of people, hardware, software,

communication networks and data resources

that collects, transforms and disseminates

information in an organization.


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Fifth E itiJames A. OBrien 5M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw-Hill Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.

What is an Information System?

Input ofData

Resources

Processing

Data

Output ofInformation

Products

Con rol o e Per or ance

orage o Da a Re ource


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What are the data processing activities

that occur in information systems? Input of data resources: input actually takes

the form of data entry activities such as

recording and editing. Ex: data about sales

transactions can be recorded on source

documents such as paper sales order forms.

Data can be captured using key boards or

optical scanning devices.


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Processing of data: data are subjected to

processing activities such as calculating,

comparing, sorting, classifying and

summarizing. These activities organize,

analyze and manipulate data thus converting

them into information for end users.

Ex: calculating employee pay, taxes and other

payroll deductions.


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Out put of information products: information

in various forms is transmitted to end users

and made available to them in the out put

activity. Common information products

include messages, reports, forms and graphic

images etc. ex: sales manager may view a

video display to check the performance of asales person.


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Storage of data resources: it is a basic system

component of information systems. It is the

activity in which data and information are

retained in the organized manner for later use.

Ex: maintaining records on customers.


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Control of system performance: An

information system should produce feedback

about its input, processing, output and

storage activities. This feedback, must be

monitored and evaluated to determine if the

system is meeting established performance.

Ex: generating audible signals to indicateproper entry of sales data.


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What is a system?

A system can be defined as a group of

interrelated components working togethertoward a common goal by accepting inputs

and producing outputs in an organized

transformation process.


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The basic components of system are:

Input: involves capturing and assembling

elements that enter the system to beprocessed. Ex: raw materials

Processing: involves transformation processes

that convert input into output. Ex:

manufacturing process.


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Output: involves transferring elements that

have been produced by a transformationprocess to their ultimate destination.

Feedback: it is the data about the

performance of a system. Ex: sales

performance


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Control: involves monitoring and evaluating

feedback to determine whether a system is

moving the achievement of its goal. Ex: sales

manager exercises control when reassigning

salespersons to a new sales territories after

evaluating feedback about their sales

performance.


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Components ofan Information System


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People resources: people are required for the operation ofall information system. They include end users and ISspecialists.

End users are people who use an information system or the

information it produces. They can be customers, salespersons, clerks.Most end users are knowledge workers thatare people who spend most of their time communicatingand collaborating in teams and work groups and creating,using, and distributing information.

IS specialists: are people who develop and operateinformation systems. They include system analysts,software developers, and system operators


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Hardware resources: includes all physical

devices and materials used in information

processing. It not only includes machines but

also data media

Software resources: includes all sets of

information processing instructions. Consists

of system software, application software andprocedures.


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Data resources: they are organized, stored and

accessed by a variety of data resources. Ex:

product description, customer records etc.

Network resources: includes communication

media, communication processors, and

network access and control software.


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Data Vs Information

The terms data and information do not mean

the same thing. Data may take the form of a number, a

statement, or a picture.


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Data are objective measurement of attributes(characteristics) of entities such as people, place,things, codes etc,.

Data are the raw materials in the production ofinformation.

Information is a refined form of data

Information can be raw data or data manipulationthrough tabulation, addition, subtraction,division, or any other operation that leads togreater understanding of a situation


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Information is a collection of facts (data)

organized in some manner so that they are

meaningful to a recipient.

Ex: Customer name with Bank Balance.

Packaging


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Time dimension

Timeliness: information should be provided when

it is needed.

Currency: information should be up to date when

it is provided

Frequency: information should be provided as

often as needed Time period: information can be provided about

past, present and future time periods.


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Content dimension

Accuracy: information should be free from errors

Relevance: information should be related to the needs

of a specific recipients for a specific situation Completeness: all the information that needed should

be provided

Conciseness: only the information that is needed

should be provided. Performance: it can reveal performance by measuring

activities, accomplished, progress made, or resourcesaccumulated.


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Form dimension: Clarity: information should be provided in a form that

is easy to understand

Detail: information can be provided in detail orsummary

Order: information can be arranged in apredetermined sequence

Presentation: it can be presented in narrative,

numeric, graphic, or other forms Media: information can be provided in the form ofprinted paper, documents, video displays or othermedia.

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