INFO CH1 PART1

Data Vs. Information

Data is raw, unorganized facts that need to be processed. Data can be
something simple and seemingly random and useless until it is
organized.

Information : When data is processed, organized, structured or

presented in a given context so as to make it useful, it is called
information. Information actually consists of data that has been
organized to help answer questions and to solve problems.

Information comes from data.

The amount of information is increasing continuously.

An information system is defined as the software that helps organize

and analyze data.

So, the purpose of an information system is to turn raw data into

useful information for the purpose of facilitating planning, control,
analysis, and decision making in business organizations.

IS – a set of interrelated components working together to collect,

retrieve, process, store, and distribute information.

Two ways used by IS:

● Input-process-output perspective.
● People-organization-technology perspective.

1ST Perspective used in IS to produce information needed by

organizations: (Input-process-output perspective)
 ● Input:Captures raw data from organization or external
environment.
● Process: Converts raw data into meaningful information form.
● Output: Transfers processed information to people or activities
that use it.
2ND Perspective :
● Feedback: Output returned to appropriate members of the
organization to help evaluate or correct input stage.

Types of Information systems:

General IS: it is the information systems which developed to
support and serve general purposes.
Eg: (DBMS):is a combination of software and data that makes
it possible to organize and analyze data. DBMS software is
typically not designed to work with a specific organization or
a specific type of analysis.

Specialized IS (SIS): specialized information systems that have

been specifically designed to support a particular process within
an organization or to carry out very specific analyzed tasks.

Eg: Enterprise resource planning (ERP):is an information

system used to integrate the management of all internal and
external information across an entire organization.

Geographic information system(GIS):which is used to

manage and analyze all types of geographical data.

Expert System(ES): An information system that is used to solve

complex problems by the reasoning of an expert.
Components of an information system:
● Hardware: are processors, monitors, keyboard, and printers
that are used by computer-based IS.
● Software: the programs used to organize, process and
analyze data.
● Databases: data that is organized into tables and files.
● Network: connection needed to connect different elements
to each other in an IS that is used by many people in
organization.
● Procedures: Description of how specific data are processed
and analyzed in order to get the answers for which the
information system is designed.

The Role of Information Systems in Business Today:

● Increased the usage of wireless technology.
● Increased the usage of web technology.
● Introduced Cloud computing, mobile digital platforms
that allow more distributed work, decision-making, and
collaboration.

Gave more Globalization opportunities:

● The Internet has drastically reduced costs of

operating on a global scale.

● Presents both challenges and opportunities.

INFO CH1 PART2

Business process:is the collection of activities

required to produce a product or service in an
organized,coordinated,and focused manner.

These activities are supported by flows of

material, information, and knowledge among the
participants in the business process.

The performance of business firm depends on

how well its business processes are designed
and coordinate.

Examples of functional business processes:

● Manufacturing and production:

● Sales and marketing:
● Finance and accounting:
● Human resources:

Information technologies can help firms to enhance the

performance of a business process and its firm by changing the
flow of information, making it possible for many more people to
access and share information related to their tasks.

It enhances their ability to perform in two main ways:

● Increasing efficiency of existing processes
● Enabling entirely new processes that are capable of
transforming the businesses by:
 ● Changing the flow of information
● Replace sequential steps with parallel steps
● Eliminating delays in decision making

A typical business organization has systems that support each of

the major business function:

Types of information systems:

Transaction Process Systems (TPS):A Transaction Processing

Systems is a computerized system that performs and records
the daily routine transitions.
Eg: Bank entry, Hotel reservation,Airlines,payroll, employee
record keeping, amazon(sales),shipping.
It allow managers to monitor status of operations and
relations with the external environment.
(TPS serve operational levels.)

Management Information System (MIS):MIS summarizes and

reports data on a firm's current performance, based on data from
TPS.TPS output is MIS input. The TPS to MIS process is similar
to the “input-process-output” perspective.Middle management
needs systems to help with monitoring, controlling,
decision-making, and administrative activities.

Decision Support Systems (DSS):Helps support middle

management’s decision-making by data provided by TPS and
MIS:
● Serves middle management.
 ● Supports non-routine decision-making by focusing on
problems that are unique and rapidly changing the
procedure that helps in creating a solution.
● Although it's a system that relies on internal information from
TPS and MIS but often brings info from external factors like
stock or product prices of competitors.

Executive Support Systems (ESS):ESS help senior

management make these decisions that require
judgment,evaluation and insight.It presents graphs and data from
many resources in an interface that is easy for them to
understand and use.

LINKING APPLICATIONS:
Databases helped reduce redundancy problems by linking the
enterprises by using the four following applications:
● Enterprise system(ES)
● Supply chain management system(SCM)
● Customer relationship management system(CRM)
● Knowledge management system(KMS)

ES:
1. Collects data from different firm functions and stores data in
a repository.
2. Helps reduce fragmentation and redundant problems.
3. Enabled coordination of daily activities,efficient response to
customer orders,provision of information for management
decision making.
SCM:
1. It helps manage the relationships with their suppliers.
2. Helps get the right product, on time with the right lowest
cost.
3. Helps increase an organization or firm’s profitability by
facilitating the decision making of managers by
scheduling the right sourcing, production and
distributing.