Course LM01-BABA

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Learning Module

Fundamentals of
Business Analytics
Course Packet 03

Understanding Information
System

Knowledge Area Code : BSBA

Course Code : BMGT412
Learning Module Code : LM01- BMGT412
Course Packet Code : LM01- BMGT412-01

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Course Packet 03

Understanding Information System

Course Packet 03

Introduction
This topic will cover the value of information is directly linked to how it helps decision makers
achieve the organization’s goals
Objectives
At the end of the lesson the students would be able to
1. Distinguish data from information and describe the characteristics used to evaluate the
quality of data
2. Identify the basic types of business information systems and discuss who uses them,
how they are used, and what kinds of benefits they deliver.
3. Understand that database management system is do the most part in information
system

Learning Management System

Google Classroom BSBA 3OM Fundamentals of Business Analytics
Class Code:
Facebook Account: Kompyuter Labtwo

Duration
 Topic 03: Understanding Information System= 8 hours
(8 hours self-directed learning with practical exercises & assessment)

Delivery Mode
Synchronous

Assessment with Rubrics

An essay type of assessment will be given

Requirement with Rubrics

No other requirement will be provided aside from the given Activities, Assignment and post
assessment. Numerical rating will be used.

Readings
Refer to your Google classroom for the copy of Instructional Materials – Course Packet 02 and
readings applicable to this topic.

Introduction
Information systems are used in almost every imaginable profession.
Entrepreneurs and small business owners use information systems to reach
customers around the world. Sales representatives use information systems to
advertise products, communicate with customers, and analyze sales trends.
Managers use them to make multimillion-dollar decisions, such as whether to
build a manufacturing plant or research a cancer drug. Financial advisors use
information systems to advise their clients to help them save for their children’s
education and retirement. From a small music store to huge multinational

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companies, businesses of all sizes could not survive without information

systems to perform accounting and finance operations. Regardless of your
Key Points:
college major or chosen career, information systems are indispensable tools
Course Packet 03
to help you achieve your career goals. Learning about information systems can In this part, you may
help you land your first job, earn promotions, and advance your career. provide the key points of
Why learn about information systems in organizations? What is in it for you? the topics being presented
Learning about information systems will help you achieve your goals. Let’s get in this particular Course
Packet.
started by exploring the basics of information systems.
The key points may be
Pre-Assessment bulleted like this:
__________________1. A single set of hardware, software, databases,
telecommunications, people, and procedures that are configured to collect,  Key point 01
manipulate, store, and process data into information.  Key point 02
__________________2. It is called if any business transaction executed  Key point 03
electronically between parties.
__________________3. Systems development: the activity of creating or
modifying existing business systems Definition of Terms:
__________________4. It’s give the computer the ability to make suggestions
and act like an expert in a particular field. You may provide
__________________5. An organized collection of people, procedures, software, definition of terms to
facilitate better
databases, and devices used to support problem- specific decision making.
understanding of the
__________________6. A set of interrelated components that collect, concepts being presented.
manipulate, and disseminate data and information, and provide feedback to meet
an objective. You may adopt this
__________________7. A set of elements or components that interact to format:
accomplish goals.
Term. Its definition,
__________________8. An organized collection of people, procedures, software, mostly technical.
databases, and devices used to record completed business transactions. Term. Its definition,
__________________9. A set of integrated programs that manages the vital mostly technical.
business operations for an entire multisite, global organization. Term. Its definition,
__________________10. Simulation of a real or imagined environment that can mostly technical.
Term. Its definition,
be experienced visually in three dimensions.
mostly technical.
__________________11. An organized collection of people, procedures, software,
databases, and devices to create, store, share, and use the organization’s
knowledge and experience.
__________________12. Gain a clear understanding of the problem to be solved Hazard Alerts:
or opportunity to be addressed
This may be in a form of
__________________13. Terms in knowledge of computer systems and
notice, caution, or
equipment and the ways they function. warning.
__________________14. Check and modify the system so that it continues to meet
changing business needs Include appropriate
__________________15. Types of Data Represented by Numbers, letters, and hazard alert where and
other characters. when needed.
Note: You need to search from internet for some question in the pre assessment This should appear
before the conduct of an
Lesson Proper activity.
1. Information Concepts
1.1 Data, Information, and Knowledge
1.2 System Concept

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2. Information System
2.1 Input, Processing, Output, Feedback
2.2 Manual Information Systems
Course Packet 03
2.3 Computer-Based Information Systems
2.4 Information Technology VS Information System
3. Business Information System
3.1 E-commerce
3.2 Transaction Processing Systems
3.3 Enterprise Resource Planning
4 Management information system (MIS)
5 Decision Support System

Review.
Database
A database is an organized collection of structured information, or data,
typically stored electronically in a computer system. A database is usually
controlled by a database management system (DBMS). Together, the data and
the DBMS, along with the applications that are associated with them, are
referred to as a database system, often shortened to just database.
Data within the most common types of databases in operation today is
typically modeled in rows and columns in a series of tables to make processing
and data querying efficient. The data can then be easily accessed, managed,
modified, updated, controlled, and organized.

A spreadsheet has always been a strong analogy for a database. A

database has tables, which is like a single spreadsheet. Imagine a spreadsheet
for tracking RSVPs for a wedding. Across the top, column titles like First Name,
Last Name, Address, and Attending?. Those titles are also columns in a database
table. Then each person in that spreadsheet is literally a row, and that’s also a
row in a database table (or an entry, item, or even tuple if you’re really a nerd).
It’s been getting more and more common that this doesn’t have to be an
analogy. We can quite literally use a spreadsheet UI (User interface) to be our
actual database. That’s meaningful in that it’s not just viewing database data as
a spreadsheet but making spreadsheet-like features first-class citizens of the app
right alongside database-like features.

Activity.
What is the hierarchy of data in a database?

What is DBMS?

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Processing of the Activity.

Course Packet 03
The importance of organizing data in a business organization.
Brief Lesson

1. Information Concepts
Information is one of an organization’s most valuable resources.
Information is different from data

1.1 Data, Information, and Knowledge

Data consists of raw facts, such as an employee number, total hours

worked in a week, inventory part numbers, or sales orders When facts are
arranged in a meaningful manner, they become information.

Information is a collection of facts organized and processed so that they

have additional value beyond the value of the individual facts. For example,
sales managers might find that knowing the total monthly sales suits their
purpose more than knowing the number of sales for each sales representative.

Turning data into information is a process, or a set of logically related tasks

performed to achieve a defined outcome. The process of defining relationships
among data to create useful information requires knowledge.

Knowledge is the awareness and understanding of a set of information

and the ways that information can be made useful to support a specific task or
reach a decision.

Figure 3.1: The Transformation Process

Information is data that has been processed in such a way as to be meaningful

to the person who receives it.

A report showing total sales in the day, or which are the best-selling products.
So, the data concerning all shop transactions in the day needs to be captured,
and then processed into a management report.

1.2 System Concepts

System is a set of elements or components that interact to accomplish
goals.

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Components of a system
Course Packet 03
Input
Processing
Output
Feedback

2. Information System
As mentioned in Course Packet 2, an information system (IS) is a set of
interrelated elements or components that collect (input), manipulate (process),
store, and disseminate (output) data and information and provide a corrective
reaction (feedback mechanism) to meet an objective (see Figure 3.2). The
feedback mechanism is the component that helps organizations achieve
their goals, such as increasing profits or improving customer service.

Figure 3.2: The Components of an Information System

2.1 Input, Processing, Output, Feedback

Input
In information systems, input is the activity of gathering and capturing
raw data. In producing paychecks, for example, the number of hours every
employee works must be collected before paychecks can be calculated or
printed.

Processing
In information systems, processing means converting or transforming
data into useful outputs. Processing can involve making calculations, comparing
data and taking alternative actions, and storing data for future use. Processing
data into useful information is critical in business settings.
Processing can be done manually or with computer assistance. In a
payroll application, the number of hours each employee worked must be
converted into net, or take-home, pay.
Storage involves keeping data and information available for future use,
including output,

Output
In information systems, output involves producing useful information,
usually in the form of documents and reports. Outputs can include paychecks
for employees, reports for managers, and information supplied to stockholders,

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banks, government agencies, and other groups.

Feedback
Course Packet 03
In information systems, feedback is information from the system that is
used to make changes to input or processing activities. For example, errors or
problems might make it necessary to correct input data or change a process.
Consider a payroll example. Perhaps the number of hours an employee worked
was entered as 400 instead of 40. Fortunately, most information systems check
to make sure that data falls within certain ranges. For number of hours worked,
the range might be from 0 to 100 because it is unlikely that an employee would
work more than 100 hours in a week.

2.2 Manual Information Systems

A manual-based information system does not use any computer

devices. All data would be kept in other ways, mainly paper. As a few examples:
Before accounts, payroll and spreadsheet applications, people would have
worked out this kind of information on paper. Another example some
investment analysts manually draw charts and trend lines to assist them in
making investment decisions. Tracking data on stock prices (input) over the last
few months or years, these analysts develop patterns on graph paper
(processing) that help them determine what stock prices are likely to do in the
next few days or weeks (output).

2.3 Computer-based information system (CBIS)

A single set of hardware, software, databases, telecommunications,
people, and procedures that are configured to collect, manipulate, store, and
process data into information
The components of a CBIS are illustrated in Figure 3.3. Information
technology (IT) refers to hardware, software, databases, and
telecommunications. Telecommunications also includes networks and the
Internet. A business’s technology infrastructure includes all the hardware,
software, databases, telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process data into information. The
technology

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infrastructure is a set of shared IS resources that form the foundation of each

computer-based information system. Key Points:

In this part, you may

Course Packet 03
provide the key points of
the topics being presented
in this particular Course
Packet.

The key points may be

bulleted like this:

 Key point 01
 Key point 02
 Key point 03

Definition of Terms:
Figure 3.3 Components of a CBIS
You may provide
Hardware definition of terms to
Hardware consists of the physical components of a computer that facilitate better
perform the input, processing, storage, and output activities of the computer. understanding of the
concepts being presented.
Software You may adopt this
Software consists of the computer programs that govern the operation format:
of the computer.
Term. Its definition,
Databases mostly technical.
Term. Its definition,
A database is an organized collection of facts and information, typically
mostly technical.
consisting of two or more related data files. An organization’s database can Term. Its definition,
contain facts and information on customers, employees, inventory, competitors’ mostly technical.
sales, online purchases, and much more. Term. Its definition,
mostly technical.
Telecommunications, Networks, and the Internet
Telecommunications is the electronic transmission of signals for
communications, which enables organizations to carry out their processes and Hazard Alerts:
tasks through effective computer networks.
This may be in a form of
People notice, caution, or
People are the most important element in most computer-based warning.
information systems. They make the difference between success and failure for
Include appropriate
most organizations. Information systems personnel include all the people who hazard alert where and
manage, run, program, and maintain the system including the CIO(chief when needed.
information officer), who manages the IS department
This should appear
before the conduct of an
Procedures
activity.
Procedures include the strategies, policies, methods, and rules for using
the CBIS, including the operation, maintenance, and security of the computer.
For example, some procedures describe when each program should be run.

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2.4 Information Technology VS Information System

One of the reasons people may not distinguish between IS and IT is that they
assume all information systems are computer-based systems. An information
Course Packet 03
system, however, can be as simple as a pencil and a piece of paper. Separate, the
objects are just tools. Used together, they create a system for recording
information. – (Ashftord University)

Information System refers to an entire set of information: not only the

technology involved but the people and process as well.
Information Technology is the study, design, implementation, support or
management of data within an information system.

Comparison of Information System and Information Technology

Information system and information technology are similar in many ways but at the same
time they are different. Following are some aspects about information system as well as
information technology.

 Origin: Information systems have been in existence since pre-mechanical era in form
of books, drawings, etc. However, the origin of information technology is mostly
associated with invention of computers.
 Development: Information systems have undergone great deal of evolution, i.e. from
manual record keeping to the current cloud storage system. Similarly, information
technology is seeing constant changes with evermore faster processor and constantly
shrinking size of storage devices.
 Business Application: Businesses have been using information systems for example
in form of manual books of accounts to modern TALLY. The mode of communication
has also gone under big change, for example, from a letter to email. Information
technology has helped drive efficiency across organization with improved
productivity and precision manufacturing.

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3. Business Information Systems

With the previous definitions of information and systems we can now

Course Packet 03
define a business information system as a group of interrelated components that
work collectively to carry out input, processing, output, storage and control
actions in order to convert data into information products that can be used to
support forecasting, planning, control, coordination, decision making and
operational activities in an organization.

3.1 Electronic and mobile commerce systems

E-commerce involves any business transaction executed electronically
between companies(business-to-business, or B2B), companies and consumers
(business-to-consumer, or B2C), consumers and other consumers (consumer-to-
consumer, or C2C), business and the public sector, and consumers and the
public sector.

Figure 3.4 E-Commerce

Transaction Processing System (TPS)

A transaction is any business-related exchange such as payments to
employees, sales to customers, or payments to suppliers. Processing business
transactions was the first computer application developed for most
organizations. A transaction processing system (TPS)is an organized collection
of people, procedures, software, databases, and devices used to perform and
record business transactions. If you understand a transaction processing system,
you understand basic business operations and functions. One of the first
business systems to be computerized was the payroll system.

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Course Packet 03

TPS is Decentralized systems means don’t have one central owner.

Enterprise Resource Planning

Enterprise Resource Planning (ERP)systems are core software programs
used by companies to integrate and coordinate information in every area of the
business. ERP (pronounced “E-R-P”) programs help organizations manage
company-wide business processes, using a common database and shared
management reporting tools.
ERP is a set of integrated programs that manages the vital business
operations for an entire multisite, global organization
It is integrated internal and external management information across an
entire organization. ERP automate this activity with an integrated software
application.
It can replace many applications with one unified set of programs,
making the system easier to use and more effective
ERP is in a centralized system which all users are connected to a central
network owner or “server”. The central owner stores data, which other users can
access, and also user information.

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Course Packet 03

About SAP
Business Processes included in SAP ERP are Operations (Sales &
Distribution, Materials Management, Production Planning, Logistics Execution,
and Quality Management), Financials (Financial Accounting, Management
Accounting, Financial Supply Chain Management), Human Capital Management
(Training, Payroll, e-Recruiting) and Corporate Services (Travel Management,
Environment, Health and Safety, and Real-Estate Management)

"Systems, Applications & Products in Data Processing"

Some of products
SAP Business One
SAP Business All-in-One

About NetSuite
NetSuite is a business technology vendor based in San Mateo, California.
Its portfolio includes applications for enterprise resource planning (ERP),
financial management, e-commerce, omnichannel commerce, customer
relationship management (CRM) and professional services automation (PSA).
The vendor sells cloud-based applications and software as a service (SaaS)
products and is commonly viewed by users and experts as a leading alternative
to on-premises ERP.

4. Management Information System

A management information system (MIS)is an organized collection of
people, procedures, software, databases, and devices that provides routine
information to managers and decision makers. An MIS focuses on operational
efficiency. Manufacturing, marketing, production, finance, and other functional
areas are supported by MISs and linked through a common database. MISs
typically provide standard reports generated with data and information from
the TPS or ERP.

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An information system that evaluates, analyzes, and processes an

organization's data to produce meaningful and useful information based on
which the management can take right decisions to ensure future growth of the
Course Packet 03
organization. Considered a subset of IS. This subset is most relevant when
securing and delivering information required to help corporate managers make
operational, strategic and proactive decisions.

5. Decision Support System

A decision support system (DSS)is an organized collection of people,
procedures, software, databases, and devices that support problem-specific
decision making. The focus of a DSS is on making effective decisions. Whereas an
MIS helps an organization “do things right,” a DSS helps a manager “do the right
thing.”
Focus of a DSS is on decision-making effectiveness.
DSS uses the summary information, exceptions, patterns, and trends
using the analytical models. A decision support system helps in decision-making
but does not necessarily give a decision itself. The decision makers compile useful
information from raw data, documents, personal knowledge, and/or business
models to identify and solve problems and make decisions.

Enhancement Activity.
Refer to Activity Sheet No. 03.

Generalization.

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You must write a personal synthesis of the topic/lesson, or a

reflection to process what you have learned from the lesson.
Course Packet 03
Application
Refer to your Assessment Sheet 03

Course Packet Discussion Forum

To be provided in Google class or during scheduled online class.

Post-Assessment
To evaluate your level of mastery in achieving the learning outcomes,
validate the concepts learned and provide more opportunities to
deepen your learning. You have to take an assessment test/quiz for the
topic which will be in Google form and shall be available only for a
considerable period of time. The link shall be posted in the
LMS/Google classroom. You have to get 60% out of the total number
of items to pass. Good luck!

References.

Books

1. Hardcastle, E. (2008), Business Information System, Elizabeth Hardcastle &

Ventus Publishing ApS
2. Reynolds, G. W. & Stair, R. M. (2012), Fundamentals of Information Systems,
(6th Edition), Course Technology, Cengage Learning

Online Resources
1. NetSuite Services (n.d.). Retrieved from https://www.netsuite.com/portal/services.shtml
2. Services and Support from SAP (n.d.). Retrieved from
https://www.sap.com/sea/support.html
3. Information system (n.d.). Retrieved from https://www.britannica.com/topic/information-
system

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Activity Sheet
Activity Sheet 03
Activity Sheet
INTENDED FOR WEEK 1

Download the Top 10 Schools and Coffee Shop Sales in our google classroom then follow the
instruction.

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Assessment
Assessment 03
Assessment
FUNDAMENTALS OF BUSINESS ANALYTICS - Course Packet 3
Understanding Information System
NAME:__________________________ SECTION:_______________
INTENDED FOR WEEK 1

The value of information is directly linked to how it helps decision makers achieve the
organization’s goals.

1. A _________________ is a set of interrelated components that collect, manipulate, and

disseminate data and information and provide a feedback mechanism to meet an objective.
2. What consists of raw facts, such as an employee number?
a. bytes b. data
c. information d. knowledge
Knowing the potential impact of information systems and having the ability to put
this knowledge to work can result in a successful personal career, organizations that reach
their goals, and a society with a higher quality of life.

3. A ______________ consists of hardware, software, databases, telecommunications, people,

and procedures.
4. Computer programs that govern the operation of a computer system are called __________.
a. feedback b. feedforward
c. software d. transaction processing system
5. What is an organized collection of people, procedures, software, databases and devices
used to create, store, share, and use the organization’s experience and knowledge?
a. TPS (transaction processing system) b. MIS (management information system)
c. DSS (decision support system) d. KMS (knowledge management system)
System users, business managers, and information systems professionals must work
together to build a successful information system.

6. What involves creating or acquiring the various system components (hardware, software,
databases, etc.) defined in the design step, assembling them, and putting the new
system into operation?
a. systems implementation b. systems review
c. systems development d. systems design
7. ___________________ involves anytime, anywhere commerce that uses wireless
communications.
8. _________________ involves contracting with outside professional services to meet specific
business needs.
The use of information systems to add value to the organization can also give an
organization a competitive advantage.

9. __________________ change can help an organization improve raw materials supply, the
production process, and the products and services offered by the organization.
10. Technology infusion is a measure of how widely technology is spread throughout an
organization. True or False?

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IS personnel is a key to unlocking the potential of any new or modified system.

11. Who is involved in helping users determine what outputs they need and constructing the
Assessment
plans needed to produce these outputs?

Essay:
1. What are the components of any information system?

2. Identify at least six characteristics of valuable information. (internet research)

3. What is a computer-based information system? What are

its components?

4. Differentiate Information technology from Information System.

5.. What is the difference between e-commerce and m-commerce?

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Assignment
Assignment 03
Assignment
FUNDAMENTALS OF BUSINESS ANALYTICS - Course Packet 3
Understanding Information System
NAME:__________________________ SECTION:_______________

INTENDED FOR WEEK 1

Internet Research

1 What are the most common types of computer-based information systems used in business
organizations today? Give an example of each.

2, How ERP used in supply chain management? A business scenario example.

3. Define the term productivity. Why is it difficult to measure the impact that investments in
information systems have on productivity?

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Learner’s Feedback Form

Name of Student: __________________________________________________________
Learner’s Feedback Form
Program : __________________________________________________________
Year Level : ______________ Section : __________________
Faculty : __________________________________________________________
Schedule : __________________________________________________________

Course Packet : Code : _________ Title : __________________________________

How do you feel about the topic or concept presented?

 I completely get it.  I’m struggling.
 I’ve almost got it.  I’m lost.

In what particular portion of this course packet, you feel that you are struggling or lost?
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________

Did you raise your concern to you instructor?  Yes  No

If Yes, what did he/she do to help you?

_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________

If No, state your reason?

_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________

To further improve this course packet, what part do you think should be enhanced?
_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________

How do you want it to be enhanced?

_____________________________________________________________________________
_____________________________________________________________________________
__________________________________________________________________________

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