Management Information System

Foundation of Information System in Business:

 System Concepts:

Definition of System
Feedback and Control
Purpose of Information System (IS)

B.B.Mishra
 Concept of Information Technology
Information is a resource which has no value until
it is extracted, processed and utilised. Information
technology deals with information system, data
storage, access, retrieval, analysis and intelligent
decision making
making.. Information technology refers to
the creation, gathering, processing, storage,
presentation and dissemination of information
and also the processes and devices that enable all
this to be done.
Information technology is affecting us as
individual and as a society. Information
technology stands firmly on Hardware and
Software of a computer and Networking & Tele Tele--
communication infrastructure
infrastructure.
 Introduction to Information Technology
Information technology reflects the combination of
three technologies.
digital computing
data storage and ability to transmit digital signal
through telecommunication network. Rapid change
in semiconductors technology, information storage
& networking
combined with advance in software, has enabled
new application, cost reduction & widespread
diffusion of IT
The expanding array of applications makes IT more
useful & further fuels the expansion of IT.
 Information Technology Concepts
Information technology (IT) is concerned with
technology to treat information.
The acquisition, processing, storage and
dissemination of vocal, pictorial, textual and
numerical information by a microelectronics-based
combination of computing and telecommunications
are its main fields.

 The English word was apparently derived from the Latin stem
(information-) of the nominative (informatio): this noun is in its turn derived
from the verb "informare" (to inform) in the sense of "to give form to the mind",
"to discipline", "instruct", "teach". Information, in simple terms is the exchange
of data with one another.
 Raw data is given structure and then is called information.
Understanding this information is then called knowledge, which leads to an
information ladder.
 Technology
 IT is the area of managing technology and spans wide variety of areas
that include computer software, information systems, computer
hardware, programming languages but are not limited to things such as
processes, and data constructs.
 In short, anything that renders data, information or perceived
knowledge in any visual format whatsoever, via any multimedia
distribution mechanism, is considered part of the IT domain.
 IT provides businesses with four sets of core services to help execute the
business strategy: business process automation, providing information,
connecting with customers, and productivity tools.
 Technology is the making, usage, and knowledge of tools, machines,
techniques, crafts, systems or methods of organisation in order to solve a
problem or perform a specific function.
 It can also refer to the collection of such tools, machinery, and procedures.
The word technology comes from Greek τεχνολογία (technología); from
τέχνη (téchnē), meaning "art, skill, craft", and -λογία (-logía), meaning "study
of-". The term can either be applied generally or to specific areas: examples
include construction technology, medical technology, and information
technology.
Information & Communications Technology
Information and communications technology,
usually abbreviated as ICT, is often used as an
extended synonym for information technology (IT),
but is usually a more general term that stresses the
role of unified communications and the integration
of telecommunications (telephone lines and wireless
signals), computers, middleware as well as necessary
software, storage- and audio-visual systems, which
enable users to create, access, store, transmit, and
manipulate information. In other words, ICT consists
of IT as well as telecommunication, broadcast media,
all types of audio and video processing and
transmission and network based control and
monitoring functions.
Information Systems: Concepts & Definitions
Data Item. Elementary description of things, events, activities and
transactions that are recorded, classified and stored but are not
organized to convey any specific meaning.
Information. Data organised so that they have meaning and value
to the recipient.
Knowledge. Data and/or information organised and processed to
convey understanding, experience, accumulated learning and
expertise as they apply to a current problem or activity.
 Information Technology Architecture. A high-level map or
plan of the information assets in an organisation, which guides
current operations and is a blueprint for future directions.
 Information Technology Infrastructure. The physical facilities,
IT components, IT services and IT management that support an
entire organization.
 System & Application Programs
Systems Software is a computer program / package that
helps the computer to get ready to accept user
interaction.
Application program / Software is a computer program
designed to support a specific task , a business process or
another application program.

 Information System (IS). Collects, processes,

stores, analyzes and disseminates information for
a specific purpose.
 Computer-based Information System (CBIS).
An information system that uses computer
technology to perform some or all of its intended
tasks.
 Basic Components of Information Systems
Hardware is a device such as a processor, monitor,
keyboard or printer
Software is a program or collection of programs that
enable hardware to process data.
Database is a collection of related files or tables
containing data.
Network is a connecting system (wire-line or wireless)
that permits different computers to share resources.
Procedures are the set of instructions about how to
combine the above components in order to process
information and generate the desired output.
People are those individuals who use the hardware and
software, interface with it, or uses its output.
 Information Systems
Why Do People Need Information?
Individuals - Entertainment and enlightenment
Businesses - Decision making, problem solving and
control
Generating Information
Information In
In--Context (Relevant, Complete,
Accurate, Current & Economical)
 Data Information and Systems
Data vs. Information
Data
A “given,” or fact; a number, a statement, or a picture
Represents something in the real world
The raw materials in the production of information
Information
Data that have meaning within a context
Data in relationships
Data after manipulation
Data Manipulation
Example: customer survey
Reading through data collected from a customer survey with
questions in various categories would be time-consuming and
not very helpful.
When manipulated, the surveys may provide useful
information.
 Data Information and Systems
What Is a System?
System
System: A set of components that work together to
achieve a common goal
Subsystem
Subsystem: One part of a system where the products of
more than one system are combined to reach an
ultimate goal
Super System
Formal & In In--formal Systems
Closed system
system: Stand-alone system that has no contact
with other systems
Open system
system: System that interfaces with other systems
 Data Information and Systems
Information and Managers
Systems thinking
Creates a framework for problem solving and
decision making.
Keeps managers focused on overall goals and
operations of business.
The Benefits of Human-Computer Synergy
Synergy
When combined resources produce output that
exceeds the sum of the outputs of the same resources
employed separately
Allows human thought to be translated into
efficient processing of large amounts of data
 Data Information and Systems
The Four Stages of Data Processing
Input
Input: Data is collected and entered into
computer.
Data processing
processing: Data is manipulated into
information using mathematical, statistical, and
other tools.
Output
Output: Information is displayed or presented.
Storage
Storage: Data and information are maintained
for later use.
 Systems View
 Framework For Seeing Interrelationships
 SYSTEM: Set of interrelated components working together
to achieve common purpose
 INFORMATION SYSTEM (IS): Collection of information
technology, procedures, & people that captures, moves,
manages, distributes data & information ENVIRONMENT

GENERAL STRUCTURE OF SYSTEM

Output 1

Interface
Interface
Input 2
COMPONENT 1 COMPONENT 2

Interface
Input 1
COMPONENT 3 STORAGE 1

SYSTEM
BOUNDARY
 System Boundary
Dividing Line
Placed Based on The Purpose: Usually Not A Fixed Line
Control or Redesign Within The Boundary
Environment Outside The Boundary
What Can Be Controlled: External Elements Are
Constraints
What Scope Manageable Within Given Time Period:
Complex Systems Take Longer To Design, Modify
What Is Impact of Boundary Change: Dynamic Changes
Require Accommodation
 Component Decomposition
Break System into Subsystems
Components of Subsystem May Form More
Subsystems
Often Subsystems are Easier To Understand,
Create, Modify
Goals of Hierarchical Decomposition
1. Cope With Complexity of System
2. Analyse or Change Only Part of System
3. Design, Build Subsystems at Different Times
4. Direct Attention of Target Audience
5. Allow Components To Operate Independently
 System
A system can be described simply as a set of elements
joined together for a common objective.
A sub-system is a part of a larger system with which we
are concerned.
All systems are parts of larger systems. For our purposes
the organisation is the system, and the parts (divisions,
departments, functions, units etc.) are the sub-systems.
• Boundaries and Interface: Several systems may share the
same environment. Some of these systems may be
connected to one another by means of a shared boundary
or interface. Open System is a system that interacts with
pother systems in its environment.
• Environment: A system exists and functions in an
environment containing other systems. If a system is one of
the components of a larger system, it is a subsystem, and
the larger system is it environment. The organization
environment consisting of vendors , competitors.
 What is a System?
The term “system” originates from the Greek term
syst¯ema, which means to “place together.” Multiple
business and engineering domains have definitions
of a system.
Here we defines a system as: An integrated set of
interoperable elements, each with explicitly
specified and bounded capabilities, working
synergistically to perform value-added processing
to enable a User to satisfy mission-oriented
operational needs in a prescribed operating
environment with a specified outcome and
probability of success.
 What a System really is!
A system can be broadly defined as an integrated
set of elements that accomplish a defined objective.
People from different engineering disciplines have
different perspectives of what a "system" is. For
example, software engineers often refer to an
integrated set of computer programs as a "system."
Electrical engineers might refer to complex
integrated circuits or an integrated set of electrical
units as a "system." As can be seen, "system" depends
on one’s perspective, and the “integrated set of
elements that accomplish a defined objective” is an
appropriate definition.
 System is the first step to define the
computer use (in application prospect)
• A lot of jobs these days involve computers - in particular,
standard PC use.
• The chances are that if your job heavily involves the use of a
computer, you already know what to do. But if like many,
you're new to computing, then this will be useful for you.

A computer is a system, like many others. A system has

3 components: Feed-Back

 Input
 Process Input Process Output

 Output
Control
 Therefore a System can be defined as:-
as:-
A group of interdependent items that interact regularly to
perform a task.
An established or organized procedure; a method.
A computer system refers to the hardware and software
components that run a computer or computers.
An information system is a system that collects and stores data.
On Macintoshes, System is short for System file, an essential
program that runs whenever you start up a Macintosh. The
System provides information to all other applications that run
on a Macintosh. The System and Finder programs together
make up the Mac OS.
System often simply refers to the operating system.
 Or a System can be defined as:-
as:-
Control
1. Set of detailed methods
methods,,
procedures,, and routines
procedures
Management
established or formulated
Feedback to carry out a specific
Information system activity,, perform a duty
activity duty,,
or solve a problem
problem..
2. Organised
Organised,, purposeful
Economic Business Goods and
structure regarded as a
Resources: Processes: services: 'whole' consisting of
People Market, Products
Services interrelated and
Money Develop
Product,
Payments
Information
interdependent elements
Material Deliver
products, Output
(components
components,, entities,,
entities
Machine
Land
Services factors,, members
factors members,, parts
Input
Processing etc..).
etc
 Information System Purposes

Information System is such a type of system, which

not only processes data, but also stores the data as
well and provides necessary information as per the
user requirement.
 Systems Development
Software that is built correctly can transform as the
organization and its business processes.
Software that effectively meets employee needs will help
an organization become more productive and enhance
decision making.
Software that does not meet employee needs may have a
damaging effect on productivity and can even cause a
business to fail.

 Increase in revenue for the organization.

 Improvement in brand reputation.
 Prevent Liabilities.
 Maximizing productivity.
 Ensuring high quality of output.