Section 2

System Concepts

Fundamental Information System Concepts

System concepts :
That Computer networks are
systems of information processing
components.
That Business uses of Computer
networks are really interconnected
business information systems.

That developing ways to use computer

networks in business includes designing
the basic components of information
systems.
That managing information technology
emphasizes the quality , business value,
and security of an organizations
information systems.

System is a group of interrelated components

working together toward a common goal by
accepting input and producing outputs in an
organized transformation process. System has
three basic interacting components or Functions:

Input :
Processing
Output :

 Input : Involves capturing and assembling

elements that enter the system to be processed.
For ex. Rae materials , energy , data , and
human effort must be secured and organized for
processing.

Processing involves transformation

processes that convert into output. Ex
manufacturing process, the human breathing
process . Or mathematical calculations.

Output : involves transferring elements

that have been produced by a transformation
process to their ultimate destination . Ex
finished products, human services , and
management information must be transmitted
to their human users.

The system concept becomes even more

useful by including two addition
components : feedback and control. A
system with feedback and control
components is sometimes called a
Cybernetic system ,that is self monitoring
, self regulating system.

Feedback : is data about the performance of

a system. Ex. Data about sales performance is
feedback to a sales manager.

Control :involves monitoring and

evaluating feedback to determine whether a
system is moving toward the achievement of
its goal.The control function then makes
necessary adjustments to a systems input and
processing components to ensure that it
produces proper output.

Manufacturing system (open system)

2.2

A business is an organizational system

where economic resources of (input) are
transformed by various organization
processes ( processing) into goods and
services (output). Information Systems
provide information ( feedback) on the
operations of the system to management
for the direction and maintenance of the
system (control) , as it exchanges inputs
and outputs with its environment.

2.3

Components of Information System

Information system Model that expresses a
fundamental conceptual framework for major
components and activities of information
systems.

Information System depends on the resources

of people ( End user and IS specialists)
Hardware (Machine and Media) Software
(program and procedures) Data ( data and
knowledge base) and Network ( communication
media and Network support) to perform input ,
processing ,output ,storage and control
activities that convert data resources into
information products.

Information system model highlights

the relationships among the components
and activities of information systems. It
provide a framework that emphasizes
four major concepts that can applied to
all types of information systems.

 People ,hardware, software ,data, and

networks are the five basic resources of
information system.
People resources include end users and IS
specialists, hardware resources consist of
machine and media , software resources
include both programs and procedures , data
resources can include data and knowledge
base, and network resources include
communications media and networks.

Data resources are transformed by

information processing activities into a
variety of information products for end
users.
Information processing consists of
input, processing ,output ,storage, and
control activities.

Information System depends on the resources of

people ( End user and IS specialists)
Hardware (Machine and Media)
Software (program and procedures)
Data ( data and knowledge base)
Network ( communication media
and Network support)

Components of Information System

2.4

Information System resources

1. People Resource :
Specialist :- System analysis
,programmer ,computer operators.
End user :- any one else who uses
information system.

Information System resources

2. Hardware resource : Machines: Computers ,Video
monitors, magnetic disk drive,
printers , output scanners.
Media : Floppy disk, magnetic
tape, optical disks , paper forms,
plastic card.

Information System resources

3. Software Resources : Programs : operating system ,
spreadsheet programs, word processing
programs ,payroll program.
Procedures : data entry
procedures,error correction procedures,
paycheck distribution procedures.

Information System resources

4. Data Resources : Procedure descriptions , customer
records , employee files , inventory
database.
5. Network Resource : Communications media ,
communications processors , network
access and control software.

Information System resources

6. Information Products: Management reports , and Business
documents using text and graphics
displays , Audio responses and paper
forms.
2.6

Information System Activities

1. Input :- Optical scanning of bar-code
tags on merchandise.
2. Processing :- Calculating employee
pay , taxes and other payroll deductions.
3. Output :- Producing reports and
display about sales performance.

Information System Activities

4. Storage :- Maintaining records on
customers , employees, and products.
5. Control :- Generating audible single
to indicate proper entry of sales data.

Logical data elements. This is a common

method of organizing stored data in
information system.

2.9

Overview of Information Systems

Information system play three information
roles in the business success of an enterprise.
Support of its business processes and
operations.
Support of decision making by its
managers.
Support of its strategies for competitive
advantage.

Trends in Information system

1950-1960 : Data processing
Electronic data processing system
Transaction processing , record
keeping , and tradition accounting
applications.

1960-1970 : Management reporting

Management information systems
management reports of prespecified
information to support decision making.
1970-1980 : Decision support
Decision support systems
Interactive ad hoc support of the
managerial decision making process.

1980-1990 : Strategic and end user support

End user computing systems

Direct computing support for end user productivity and
work group collaboration

Executive information systems

Critical information for top management

Expert systems
Knowledge base expert advice for end users
Strategic information system
strategic products and services for competitive advantage.

 1990-2000: Enterprise and global

internetworking.
Internetworked information system
For end user .enterprise and interorganizational

computing , communications , and collaboration ,

include global operations and management on the
internet , intranets , extranets and other enterprise
and global networks.

Types of Information Systems

Information system

Operations
Support Systems

Management
Support Systems

Support of business operations Support of managerial Decision Making

Operations support systems : produce a

variety of information products for internal and
external use.However ,they do not emphasize
producing the specific information products that can
best be used by managers. Further processing by
management information systems is usually
required. The role of business firms operation
support systems is to efficiently process business
transactions , control industrial processes, support
enterprise communications and collaboration , and
update corporate database.

Operations
Support Systems
Transaction
processing Systems
Process business
transaction

Process Control
Systems
Control of industrial
process

Enterprise collaboration
Systems
Team and workgroup
collaboration

Transaction processing systems process data

resulting from business transactions, update
operational database , and product business
documents.
Process control systems monitor and control
industrial process.
Enterprise collaboration systems support
team, workgroup , and enterprise
communications and collaboration.

Management
Support Systems
Management
information Systems
Prespecified
Reporting for
managers

Decision Support
Systems
Interactive decision
support

Executive Information
Systems
Information tailored
for executive