Lecture-1

INTRODUCTION TO INFORMATION SYSTEM AND ENVIRONMENT

Data:
Data are only the raw facts, the material for obtaining information. Information systems use
data stored in computer databases to provide needed information. Information systems
capture data from the organization (internal data) and its environment (external data).
Information:
 knowledge obtained from investigation, study, or instruction
 Information is organized or classified data, which has some meaningful values for the
receiver. Information is the processed data on which decisions and actions are based.
 When information is entered into and stored in a computer, it is generally referred to
as data. After processing (such as formatting and printing), output data can again be
perceived as information.
System:
 According to Marshall McLuhan,
"System" means "something to look at".
 A system is a group of interacting or interrelated elements that act  according to a
plan to achieve a specific objective.
 A system is a way of working, organizing, or doing something which follows a fixed
plan or set of rules.
CHARACTERISTICS OF A SYSTEM:
 Organization
 structure and order
 Example: Hierarchical organization in a company.
 Computer system: organization of various components like input devices,
output devices, CPU and storage devices 
 Interaction
 Between sub systems or the components 
 Example: the main memory holds the data that has to be operated by the ALU.
 Interdependence
 Component linkage 
 Component dependence
 Integration
 How subsystems are tied together to achieve the system objective
 Central Objective
  Should be known in early phases of analysis

Our definition of a system suggests some characteristics that are present in all system.
Which is as follows :-

Elements of a System:
In most cases, systems analysts operate in a dynamic environment where change is a way
of life. The environment may be a business firm, a business application, or a computer
system. To reconstruct a system, the following key elements must be considered:
1. Outputs and inputs.
2. Processor(s).
3. Control.
4. Feedback.
5. Environment.
6. Boundaries and interface

Output
First of all, we must determine what the objectives or goals are, what we intend to achieve.
Once we know our aim, we can try to achieve it in the best possible way.

Input
Once we know the output, we can easily determine what the input should be.

Processes
Here we come to the details of how the inputs & files are converted into outputs. Processes
may modify the input totally or partially depending on the specifications of the output. 

Control
Control of the system is the decision-maker that controls the activities of accepting input
processing and producing output.

For Eg.

In an organizational context, management as a decision making body controls the inflow,

handling, and outflow of activities that affect the welfare of the business 

Feedback
The feedback of the output allows it to be measured against some standards& making
adjustments in the processing accordingly.

Environment
The environment is the source of external elements that have an effect on the system. In
fact, it determines how a system must function.

Boundaries & Interfaces

A system should be defined by its boundaries- the limits that identify its components,
processes & interrelationships when interfaces with another system.

For Eg.

A teller system in a commercial bank is restricted to the deposits, withdrawals & related
activities of customers checking and savings accounts.

Types of systems:
Systems have been classified in different ways. Common classifications are:
 1. Physical or Abstract System

 Physical system: tangible entities 

 static or dynamic in nature.
 Example : system-computer centre
 Desks and chairs are the static parts
 Programs, data, and applications can change according to the user's needs.
 Abstract systems are conceptual. These are not physical entities. They may be
formulas, representation or model of a real system.

2. Open Closed System- Majority of systems are open systems

 open system has many interfaces with its environment

 can also adapt to changing environmental conditions
 can receive inputs from, and delivers output to the outside of system
 Closed systems: Systems that don't interact with their environment. Closed systems
exist in concept only.

3. Man made Information System

 Information system is the basis for interaction between the user and the analyst.
 Main purpose-manage data for a particular organization.

An information system (IS) is a formal, sociotechnical, organizational system designed to

collect, process, store, and distribute information.
An information system (IS) is an arrangement of people, data, processes, communications,
and information technology that interact to support and improve day-to-day operations in
a business, as well as support the problem-solving and decision-making needs of
management and users.

Information Systems are classified in four types of information systems:

1. Transaction processing systems (TPSs) process business transactions such as orders,
tune cards, payments, and reservations.
2. Management Information systems (MISs) use the transaction data to produce
information needed by managers to run the business.
3. Intelligent support systems (ISS), which consist of decision support systems (DSS),
executive information systems (EIS), and expert systems (ES).

Decision support systems (DSSs) help various decision makers Identify and

choose between options or decisions.

Executive information system (EIS) are tailored to the unique information

needs of executives who plan for the business and assess performance against those
plans.

Expert systems (ES) capture and reproduce the knowledge of an expert

problem solver or decision-maker and then simulate the “thinking" of that expert.

4. Finally, office automation systems help employees create and share documents that

support day-to-day office activities
Information technology is a contemporary term that describes the combination of
computer technology (hardware and software) with telecommunications technology (data,
image, and voice networks).

Information technology is the study, design, development, implementation, support or

management of computer-based information systems—particularly software applications
and computer hardware. IT workers help ensure that computers work well for people.

Information technology is building communications networks for a company, safeguarding

data and information, creating and administering databases, helping employees
troubleshoot problems with their computers or mobile devices, or doing a range of other
work to ensure the efficiency and security of business information systems.
A stakeholder is any person who has an interest in an existing or new information system.
Stakeholders can be technical or nontechnical workers.
• For information systems, the stakeholders can be classified as:
– System owners
– System users
– Systems analysts
– System designers
– System builders
– IT vendors and consultants
In business, a stakeholder is any individual, group, or party that has an interest in an
organization and the outcomes of its actions. Common examples of stakeholders include
employees, customers, shareholders, suppliers, communities, and governments.
Stakeholder vs Shareholder

This is an important distinction to make. A stakeholder is anyone who has any type of

stake in a business, while a shareholder is someone who owns shares (stock) in a business
and thereby has an equity interest

Information versus Knowledge Workers

Information Workers Knowledge Workers

Information workers are those workers Knowledge workers are a subset of

whose jobs involve the creation, information workers whose
collection, processing, distribution, and responsibilities are based on a
use of information. specialized body of knowledge.

Engineers Contact agent centers

Executives Bank tellers
Salespeople Nurses
Managers Policeman

System owners are the information system’s sponsors and chief advocates. They are usually
responsible for funding the project to develop, operate, and maintain the information
system.
The information system owner is an organizational official responsible for the procurement,
development, integration, modification, operation, maintenance, and disposal of an
information system.
System users are the people who use or are affected by the information system on a regular
basis—capturing, validating, entering, responding to, storing, and exchanging data and
information. A common synonym is client. Types include:
– Internal users
• Clerical and service workers
• Technical and professional staff
• Supervisors, middle managers, and executive managers
• Remote and mobile users (internal but disconnected)
– External users
System designers create detailed design documentation for the development of computer
systems in accordance to business needs. They design the computer files, databases,
inputs, outputs, screens, networks, and programs that will meet the system users’
requirements.
Systems designers are the people who are responsible for the analysis and design of
information systems that are involved in the operation of organizations.
System builders construct the information system components based on the design
specifications from the system designers. In many cases, the system designer and builder
for a component are one and the same.
systems builder as a person who is central to the success of any systems development
project.
A systems analyst analyses the problems and needs of an organization to determine how
people, data, processes, communications, and information technology can best accomplish
improvements for the business. When information technology is used, the analyst is
responsible for:
– The efficient capture of data from its business source,
– The flow of that data to the computer,
– The processing and storage of that data by the computer, and
– The flow of useful and timely information back to the business and its people.
A systems analyst, also known as business technology analyst, is an information
technology (IT) professional who specializes in analyzing, designing and
implementing information systems.  They may be responsible for developing cost analysis,
design considerations, staff impact amelioration, and implementation timelines.
A business analyst is a systems analyst that specializes in business problem analysis and
technology-independent requirements analysis.
A programmer/analyst (or analyst/programmer) includes the responsibilities of both the
computer programmer and the systems analyst.
Other synonyms for systems analyst include:
– Systems consultant
– Systems architect
– Systems engineer
– Information engineer
– Systems integrator
IT vendors and consultants sell hardware, software, and services to businesses for
incorporation into their information systems.
Where Systems Analysts Work
– In traditional businesses
 – Working in traditional information services organizations
(permanent project teams)
– Working in contemporary information services organizations
(dynamic project teams)
– In outsourcing businesses
– Contracted to traditional businesses
– In consulting businesses
– Contracted to traditional businesses
– In application software businesses
– Building software products for traditional businesses
General Problem-Solving Approach
– Identify the problem.
– 2. Analyze and understand the problem.
– 3. Identify solution requirements or expectations.
– 4. Identify alternative solutions and decide a course of action.
– 5. Design and implement the “best” solution.
– 6. Evaluate the results. If the problem is not solved, return to step 1 or 2 as
appropriate.

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Lecture-2
PLAYERS IN THE SYSTEMS GAME

 CATEGORIES OF INFORMATION
There are three main categories of business information, and these are related to the
purpose for which the information is utilized. These are:
1. STRATEGIC INFORMATION :- This relates long-term planning policies and is therefore of
most interest to top management. For example, acquiring a new plant, a new product,
diversification of business etc, comes under strategic information.
2. TACTICAL INFORMATION :- This is of use in sort-term planning, i.e. months rather than
year, and is of more interest at departmental level. like budgeting, quality control,
service level, inventory level, productivity level etc.
3. OPERATIONAL INFORMATION :- This applies to the short-term, perhaps hourly, running
of a department. Various operator specific, machine specific and shift specific jobs for
quality control checks comes under this category.
All good information has the characteristics discussed below:
All good information has the following characteristics:
 Subjectivity:
The value and usefulness of information are highly subjective, because what is information
for one person may not be for another.
 Relevance:
Information is good only if it is relevant - that is, pertinent and meaningful to the decision
maker.
 Timeliness:
Information must be delivered at the right time and the right place to the right person.
 Accuracy:
Information must be free of errors, because erroneous information can result in poor
decisions and erode the confidence of users.
 Correct information format:
Information must be in the right format to be useful to the decision maker.
 Completeness:
Information is said to be complete if the decision maker can satisfactorily solve the problem
at hand using that information.
 Accessibility:
Information is useless if it is not readily accessible to decision makers, in the desired format,
when it is needed.
THE PROCESS OF CONVERTING DATA INTO INFORMATION
How is data converted into information?
The steps in this process may include the following:
• COLLECTION
• CLASSIFICATION
• SORTING, ADDING, MERGING, AND SO ON
• SUMMARIZING
 • STORING
• RETRIEVAL
• DISSEMINATION

Total quality management (TQM) is a comprehensive approach to facilitating quality

improvements and management within a business.
The term ‘total’ means the entire organization—all teams, departments and functions—is
involved in quality management. TQM describes a management approach to long-term
success through customer satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture in which they work.

• Information systems quality standards:

– ISO 9001, Quality systems – Model for quality assurance in
design/development, production, installation, and servicing.
– Capability Maturity Model (CMM) is a framework to assess the maturity level
of an organization’s information systems development and management
processes and products. It consists of five levels of maturity as measured by a
set of guidelines called the key process areas.
An Enterprise resource planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain operations. A complete
ERP suite also includes software that helps planning, purchasing inventory, sales, marketing,
finance, human resources, budget, predict, and report on an organization’s financial results.
Examples of ERP software vendors include.
– Baan
– J. D. Edwards
– Oracle
– Peoplesoft
– SAP
Electronic commerce (e-commerce or EC) involves conducting both internal and external
business over the Internet, intranets, and extranets.
– Electronic commerce includes the buying and selling of goods and services, the
transfer of funds, and the simplification of day-to-day business processes – all
through digital communications.
– Three basic types of electronic commerce applications include:
• Marketing
• Business-to-consumer (B2C)
• Business-to-business (B2B)
Skills Required by Systems Analysts
• Working knowledge of information technology
• General business knowledge
• Strong analytical skills
• Teamwork skills
• Technical skills
• Problem-solving skills
• Interpersonal communication skills
• Interpersonal relations skills
• Flexibility and adaptability
• Character and ethics
• Systems analysis and design skills
The Ten Commandments of Computer Ethics
1. Thou shalt not use a computer to harm other people.
2. Thou shalt not interfere with other people's computer work.
3. Thou shalt not snoop around in other people's computer files.
4. Thou shalt not use a computer to steal.
5. Thou shalt not use a computer to bear false witness.
6. Thou shalt not copy or use proprietary software for which you have not paid.
7. Thou shalt not use other people's computer resources without authorization or proper
compensation.
8. Thou shalt not appropriate other people's intellectual output.
9. Thou shalt think about the social consequences of the program you are writing or the
system you are designing.
10. Thou shalt always use a computer in ways that insure consideration and respect for
your fellow human