Introduction to

INFORMATION
SYSTEMS
Prepared By Ratna Dwi Wulandari
Dept. of Health Policy & Administration
School of Public Health–University of Airlangga
What is a System?
A set of elements that are
integrated with the common
purpose of achieving an objective
The whole is greater that the
sum of the parts
Systems can be composed of
sub-systems or elements
 A General Systems Model
Environment
Feedback and control

Input Processing Output

 The Systems Approach
• A problem solving technique that uses a
systems orientation to define problems and
opportunities and develop appropriate and
feasible solutions.
• Analyzing a problem and formulating a solution
involves the following interrelated activities:
1. Recognize and define a problem or
opportunity using systems thinking
2. Develop and evaluate alternative system
solutions
3. Select the system solution that best meets
your requirements
4. Design the selected system solution
5. Implement and evaluate the success of the
designed system
 What is Systems Thinking?
• Seeing the forest and the trees in any situation by:
– Seeing interrelationships among systems rather
than linear cause-and-effect chains whenever
events occur
– Seeing processes of change among systems rather
than discrete snapshots of change, whenever
changes occur

• See the system in any situation:

– Find the input, processing,
output, feedback and control
components
Systems Thinking Example
 What is an Information System?
Information system
 is an collection of people, procedures and

technology that transforms data inputs into

informational outputs
 often integrated with the physical activities in the

organization
 fulfills the problem-solving and decision-making

information needs of people in the organization.

 Information Systems
Information System:
Collect
Process
Store
Analyze
Disseminate

(Turban, McLean, Wetherbe)

 Information System –
Primary Purpose

Collects data, processes it into

information then converts
information into knowledge for
a specific purpose.
 Information System
• An information system (IS) collects, processes, stores,
analyzes, and disseminates information for a specific
purpose. Like any other system, an information system
includes inputs (data, instructions) and outputs
(reports, calculations). It processes the inputs by using
technology such as PCs and produces outputs that are
sent to users or to other systems via electronic networks
and a feedback mechanism that controls the operation.
How to study complex systems?

• Analysis
– Break a system down into its
parts and understand the parts
and their interrelationships
• Synthesis
– Construct a system from its
parts and understand its
functioning and emergent
properties
One way to analyze information systems

Input Processing Output

Who People
What Data

Where Location
How Process
Hardware
Software
IS Term
DATA:
Facts that are needed to operate a business.
The raw material used to create useful information.
Elementary description of things, events, activities, and
transactions that are recorded, classified, and stored, but
not organized to convey any specific meeting.
INFORMATION:
Data organized into a form needed by an application.
Data that has been organized so that they have meaning
and value to the recipient.
PROCESSES:
The activities (including management) that carry out the
mission of the business.
IS Term
INTERFACES:
How the system interacts with people and other
systems.
GEOGRAPHY:
Where the data is captured and stored; where the
processes happen; where the interfaces happen.
INFORMATION SYSTEM:
Hardware, software and procedures that maintain
data and convert it into usable information.
KNOWLEDGE
Information that has been organized and processed
to convey understanding, experience and expertise as
they apply to a current problem or activity.
 Information System –
Classification By Support Function
•5-year sales trend
•Profit Planning
•5-year budget forecasting
Senior Mgr •Product development
Executive Support System
•Sales Management
•Inventory Control
Management Information System •Annual budget
Decision Support System Middle Managers •Production Scheduling
•Cost Analysis
Intelligent Support Systems •Pricing Analysis

•Simulation
•Pgm coding
Knowledge Management System •System support
Data Workers •Word Processing
Office Automation System •Desktop Publishing

•Order Processing
•Fulfillment
•Material Movement
Transaction Processing System Operational Managers •A/R, A/P, GL
•Payroll
•POS
 The Value Chain Model
The value chain model divides a firm’s activities
into primary and 5 support activities. Information
systems can be evaluated in the context of the part
of the value chain they support.
Primary Activities
Inputs
Operations
Output
Marketing and Sales
Service
 Strategic Information
Systems
Information systems designed to
support or shape competitive
strategy.
– Long-range planning
– Response Management
– Innovation
 Strategic Advantage
• Only when SIS combine with structural
changes can they help provide stategic
advantage