Professional Documents
Culture Documents
UNIT 01
INFORMATION TECHNOLOGY AND INFORMATION SYSTEM
What is Data?
Data is a collection of raw, unorganized facts and details like text, observations, figures, symbols and
description of things etc. In other words, data does not carry any specific purpose and has no significance
by itself. Moreover, data is measured in terms of bits and bytes – which are basic units of information in the
context of computer storage and processing.
What is Information?
Information is the processed, organized and structured data. It provides context for data and enables
decision making. For example, a single customer’s sale at a restaurant is data – this becomes information
when the business is able to identify the most popular or least popular dish.
INFORMATION SYSTEM:
• “Information systems (IS) is the study of complementary networks of hardware and software
that people andorganizations use to collect, filter, process, create, and distribute data.”
• “Information systems are combinations of hardware, software, and telecommunications networks that
people build and use to collect, create, and distribute useful data, typically in organizational settings.”
• “Information systems are interrelated components working together to collect, process, store, and
disseminate information to support decision making, coordination, control, analysis, and visualization in an
organization.”
Information systems are made up of different components that work together to provide value to an
organization.
The first way I describe information systems to students is to tell them that they are made up of five
components: hardware, software, data, people, and process.
The first three, fitting under the category technology, are generally what most students think of when asked
to define information systems. But the last two, people and process, are really what separate the idea of
information systems from more technical fields, such as computer science. In order to fully understand
information systems, students must understand how all of these components work together to bring value to
an organization.
1.Technology: Technology can be thought of as the application of scientific knowledge for practical
purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology
is a part of our lives in so many ways that we tend to take it for granted. As discussed before, the first three
components of information systems – hardware, software, and data – all fall under the category of
technology. Each of these will get its own chapter and a much lengthier discussion, but we will take a
moment here to introduce them so we can get a full understanding of what an information system is.
2. Hardware: Information systems hardware is the part of an information system you can touch – the
physical components of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all
examples of information systems hardware. We will spend some time going over these components.
3.Software: Software is a set of instructions that tells the hardware what to do. Software is not tangible – it
cannot be touched. When programmers create software programs, what they are really doing is simply
typing out lists of instructions that tell the hardware what to do. There are several categories of software,
with the two main categories being operating-system software, which makes the hardware usable, and
application software, which does something useful.
4. Data :The third component is data. You can think of data as a collection of facts. For example, your
street address, the city you live in, and your phone number are all pieces of data. Like software, data is also
intangible. By themselves, pieces of data are not really very useful. But aggregated, indexed, and organized
together into a database, data can become a powerful tool for businesses.
5.People: When thinking about information systems, it is easy to get focused on the technology
components and forget that we must look beyond these tools to fully understand how they integrate into an
organization
6.Process :The last component of information systems is process. A process is a series of steps undertaken
to achieve a desired outcome or goal. Information systems are becoming more and more integrated with
organizational processes, bringing more productivity and better control to those processes.
Advantages:
Communication – with help of information technologies the instant messaging, emails, voice and
video calls becomes quicker, cheaper and much efficient.
Globalization and cultural gap – by implementing information systems we can bring down the
linguistic, geographical and some cultural boundaries. Sharing the information, knowledge,
communication and relationships between different countries, languages and cultures becomes much
easier.
Availability – information systems has made it possible for businesses to be open 24×7 all over the
globe. This means that a business can be open anytime anywhere, making purchases from different
countries easier and more convenient. It also means that you can have your goods delivered right to
your doorstep with having to move a single muscle.
Creation of new types of jobs – one of the best advantages of information systems is the creation
of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and Software
developers and Web designers are just some of the many new employment opportunities created
Disadvantages:
Unemployment and lack of job security – implementing the information systems can save
a great deal of time during the completion of tasks and some labor mechanic works. Most
paperwork’s can be processed immediately, financial transactions are automatically
calculated, etc. As technology improves, tasks that were formerly performed by human
employees are now carried out by computer systems.
Dominant culture – while information technology may have made the world a global
village, it has also contributed to one culture dominating another weaker one. For example it
is now argued that US influences how most young teenagers all over the world now act,
dress and behave.
Security issues – thieves and hackers get access to identities and corporate saboteurs target
sensitive company data. Such data can include vendor information, bank records, intellectual
property and personal data on company management. The hackers distribute the information
over the Internet, sell it to rival companies or use it to damage the company’s image.
Implementation expenses – to integrate the information system it require pretty good
amount of cost in a case of software, hardware and people. Software, hardware and some
other services should be rented, bought and supported. Employees need to be trained with
unfamiliar information technology and software.
Information systems contribute to the efficient running of organizations.
Information systems are showing the exponential growth in each decades. Today’s
information technology has tremendously improved quality of life. Modern medicine has
benefited the most with better information system using the latest information technology.
1. Information System:
Information System, as name suggests, is study and use of system to process data from input to
generate information that is essential and useful for managing operations. It helps in analyzing
independent processes and enables organized work activities. It is considered key factor to provide
correct knowledge for decision-making within an organization.
2. Information Technology:
Information Technology, as name suggests, is basically study and use of system to establish faster
communication, maintain electronic storage and provide protection to business’s records or
company records. It simply refers to anything related to computing technology like software,
hardware, networking, etc.
Many businesses today do not make use of internet which is very important in this day. Upgrading the
computer information system is not an option in this technology-driven era, it is essential. The follow are
reasons why businesses need to use information systems.
Operational Excellence: In order for a business to achieve high levels of profitability, they need to
improve the efficiency of their operations. Information systems is a tool that is used in order to achieve
high levels of efficiency and productivity in business operations.
New Products, Services and Business Models: Information systems can be used to create new
products and services and also an entirely new business model. A business model describes how a
company produces, delivers and how they sell a product or service to create wealth.
Customer/Supplier Intimacy: When a business provides a good product or service customers tend to
return and purchase more frequently which raises revenue and profits. The more a business engages
with its suppliers, the better the supplier can provide vital inputs which can lower costs.
Improved Decision-Making: Many managers who operation in an information bank may never have
the right information at the right time to make an informed decision. This can raise costs and lose
customers. However, information systems allow the managers to use real-time data from the
marketplace when making decision.
Competitive Advantage: When a firm achieved one or more of these business objectives (operational
excellence, new products, services and business models, customer/supplier intimacy and improved
decision-making), they may have a competitive advantage. By performing better than competitors,
charging less for superior goods and responding to customers and suppliers, higher sales and profits can
be made.
Day To Day Survival: Businesses must invest in information systems and technology as they are
essential to doing business. This necessity is caused by the industry level changes and firms need to use
information systems and technology in order to provide the capability to respond to these.
Information systems enables companies to react, respond, cater, store, retrieve, disseminate and control
their new valuable asset that is information. In the future, a good information system in a business will
no longer be an option, it will become a compulsory in determining success.
An EIS can be used to increase business productivity and reduce service cycles, product development
cycles and marketing life cycles. It may be used to amalgamate existing applications. Other outcomes
include higher operational efficiency and cost savings.
Financial value is not usually a direct outcome from the implementation of an enterprise information
system.
Design Stage:At the design stage the main characteristic of EIS efficiency evaluation is the probability of
timely delivery of various messages such as command, service, etc.
6. Mobile Technology:Thanks to mobile technology, it has truly become easier to take your work
anywhere. If you don’t have a laptop or pad at your disposal, it is now possible to use your phone
to complete your work. Mobile technology has picked up momentum owing to its convenience,
efficiency, and speed. You can have your work with you in your back pocket!
The trend of BYOD (Bring Your Device) is on the rise at many organizations, where employees can bring
Improvement in productivity
Boost in employee satisfaction
Lower enterprise costs
A perk that could attract prospective employers
Technology has driven a lot of advanced processes in many businesses. As technology becomes even
more advanced, its role with businesses will continue to grow.
3. Output – The form of outputs includes common variations such as results that are printed or
displayed on a computer monitor.
4. Interpretation – Assessing and analyzing results: What does the data mean?
5. Feedback – Comparing output with desired results: How can data be processed better?
6. Storage – Archiving the data (either physically or electronically) for future use.
1. Input of Data Resource: Data about business transactions and other events must be captured and
prepared for processing by the input activity. Input typically takes the form of data entry activities such as
recording and editing. End uses typically record data about transactions on some type of physical medium
such as paper form, or enter it directly into a computer system. This usually includes a variety of editing
activities to ensure that they have recorded data correctly. Once entered, data may be transferred onto a
machine-readable medium such as a magnetic disk until needed for processing.
2. Processing of Data into Information: Data is typically subjected to processing activities such as
calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze and
manipulate data, thus converting them into information for end users. The quality of any data stored in an
information system must also be maintained by a continual process of correcting and updating activities.
3. Output of Information Products: Information in various forms is transmitted to end-users and made
available to them in the output activity. The goal of information systems is the production of appropriate
information products for end users. Common information products messages, reports, forms, and graphic
images, which may be provided by video displays, audio responses, paper products, and multimedia. For
example, a sales manager may view a video display to check on the performance of a salesperson, accept a
computer-produced voice message by telephone, and receive a printout of monthly sales results
4. Storage of Data Resource: Storage is a basic system component of information systems. Storage is the
information system activity in which data and information are retained in an organized manner for later use.
For example, just as written text material is organized into words, sentences, paragraphs, and documents,
stored data is commonly organized into fields, records, files, and database. This facilitates its later use in
processing or its retrieval as output when needed by users of a system.
5. Control of System Performance: An important information system activity is the control of its
performance. An information system should produce feedback about its input, processing, output, and the
system is meeting established performance standards. Then appropriate system activities must be adjusted
so that proper information products are produced for end users.
Every organization needs records of its activities, to find the cause of problems and proper solutions.
Information systems are useful for storing operational data, communication records, documents, and
revision histories.
Input
The input in an information system has two types:
Output is created with detailed data which is stored and processed
The specification of what type of analysis is done must be specified by the user
Storage: The storage of Data should be done at the most detailed level possible. Regular backups
and various summaries should be completed to avoid losing any important data due to errors. The backups
should also be stored in a geographically different location to avoid any major disasters such as flooding or
fires etc.. Which could impact on both the original data storage and the backup data storage.
Processing: A process is a function which transforms data into information. A simple process
would be adding up a number of items that is sold by a business by a variable such as the location of a store
or the product or the time and date. More complex processes are the functions that perform calculations and
can make assumptions about missing data in order to create information from the data available.
Feedback / control loops: A feedback / control loop is what happens to output when it is processed
and produced. The system continuously repeats the same processes depending on the output of the last loop
which can then impact on the input of the next data in to the loop. For example if a business might want to
buy stock from a supplier if the stock level reaches 10. The system might check stock levels every hour (in
a loop) and if the stock level is above 10, the loop continues without action until the point it hits 10 or under
at which stage the command gets executed and new stock is ordered.
Output
There are two types of output in this context, graphical and textual:
Graphical output is usually used to look at information on a larger scale which is then
presented as charts, graphs, diagrams and pictures.
Textual output is information on a smaller scale which is presented as charters, text or
numbers.
Users of Information Systems:
1. Systems Analyst: The role of the systems analyst is to straddle the divide between identifying
business needs and imagining a new or redesigned computer-based system to fulfill those needs.
This individual will work with a person, team, or department with business requirements and
identify the specific details of a system that needs to be built.
3. Computer Engineer: Computer engineers design the computing devices that we use every day.
There are many types of computer engineers, who work on a variety of different types of devices
and systems. Some of the more prominent engineering jobs are as follows:
Hardware engineer. A hardware engineer designs hardware components, such as
microprocessors. Many times, a hardware engineer is at the cutting edge of computing technology,
creating something brand new. Other times, the hardware engineer’s job is to engineer an existing
component to work faster or use less power.
Software engineer. Software engineers do not actually design devices; instead, they create
new programming languages and operating systems, working at the lowest levels of the hardware
to develop new kinds of software to run on the hardware.
Systems engineer. A systems engineer takes the components designed by other engineers
and makes them all work together.
Network engineer. A network engineer’s job is to understand the networking requirements
of an organization and then design a communications system to meet those needs, using the
networking hardware and software available.
4. Computer Operator:A computer operator is the person who keeps the large computers running.
This person’s job is to oversee the mainframe computers and data centers in organizations. Some of
their duties include keeping the operating systems up to date, ensuring available memory and disk
storage, and overseeing the physical environment of the computer.
5. Database Administrator:A database administrator (DBA) is the person who manages the
databases for an organization. This person creates and maintains databases that are used as part of
applications or the data warehouse. The DBA also consults with systems analysts and programmers
on projects that require access to or the creation of databases.
Management information system provides knowledge about the relative position of the
organization and basic forces at work. It provides the right information needed in decision making
process and help the organizations control, planning and operational functions to be carried out
effectively.
Management information systems can help you make valid decisions by providing accurate and
up-to-date information and performing analytic functions. You have to make sure the
management information system you choose can work with the information formats available in
your company and has the features you need.
1.Information from Company Operations: When you base your decisions on data available
from management information systems, they reflect information that comes from the operations
of your company. Management information systems take data generated by the working level and
organize it into useful formats. Management information systems typically contain sales figures,
expenses, investments and workforce data. If you need to know how much profit your company
has made each year for the past five years to make a decision, management information systems
can provide accurate reports giving you that information.
2.Capability to Run Scenarios: The capability to run scenarios is a key decision-making tool.
Some management information systems have this feature built in, while others can provide the
information required for running scenarios on other applications, such as spreadsheets. Your
decision is influenced by what happens if you decide a certain way. What-if scenarios show you
how different variables change when you make a decision.
3.Projections to Assist in Decision Making: Any decisions you make result in changes in the
projected company results and may require modifications to your business strategy and overall
goals. Management information systems either have trend analysis built in or can provide
information that lets you carry out such an analysis. Typical business strategies include
projections for all fundamental operating results.
4.Implementation and Evaluation: While you make your decisions with specific goals in mind
and have the documentation from management information systems and trend analysis to support
your expectations, you have to track company results to make sure they develop as planned.
Management information systems give you the data you need to determine whether your
decisions have had the desired effect, or whether you have to take corrective action to reach your
goals. If specific results are not on track, you can use management information systems to
evaluate the situation and decide to take additional measures if necessary.
Information System Strategy is an essential feature in Corporate and Information Technology (IT)
world and provide them with better bargaining power. In a nutshell, it helps firms and companies to
allocate, store, process data, move the data and information they develop and receive.
Important Questions:
1. Differentiate between Information system and Information Technology?
2. Write an impact of IT in Business.
3. Explain Business Processing Cycle.
4. Write a short note on Managers and Activities in IS.
5. Write the importance of Is in decision making.
6. Why we need for information system.
7. Explain Components of Information Systems (Features).
8. Explain the functions of IS.
9. Explain the Users of IS.
10. Explain Intra and Inter organizational Communications using in Network
Technology.
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