IT1915

Information System
Data vs. Information
Data
- A number, statement, image, or video that may represent specific data.
- Examples of data are the following:
o Business transactions and raw facts
 Sale of goods and services, payment of payables to suppliers, investment of cash by the owners, or
internal and external transactions
o Objective measurements of the characteristics of entities
 People, places, things, events, etc.
Information
- It refers to a collection of data, such as words, numbers, images or graphics.
- This is a produced data that contains useful context for some users that may need it.
Characteristics of Information
In an information system, any input and output that may display in the system must be accurate and understandable on
every end user. The following are the characteristics of information to be able to understand what the things are needed for
specific end users:
- Timeliness. Every information must be up to date based on the requirements—not too early and not too late for the
end user.
- Appropriateness. A system must have appropriate and relevant information in every module. It must be relevant to
the user who is using it.
- Accuracy. Information must be correct or precise. For example, systems performing calculations must produce the
exact values.
- Conciseness. Not all information must be displayed in the system. It should only contain the minimum detail that is
appropriate to the user.
- Understandability. Any information should be understandable. The format and how the information is presented
are important. Using colors can enhance the presented information to make it easier for the user to understand.
- Completeness. Any information must be complete based on the requirements. If an information is incomplete, it
may lead to bad decisions.
Systems Concepts
System
- This refers to the components that are interrelated, working together with a common goal to accept inputs and
outputs.
- The components of the system are the following:
o Input is the information or data a user adds in the system.
o Processing is the efficiency of data processing. It enables an organization to process millions of data.
o Output refers to the data or information that has been processed and displayed to the end users.
o Feedback refers to the comments or suggestions in the system. This is used to improve or make any process
more manageable for end users.
o Control is about managing the operations in every process of the system.
System Boundaries
- This is the scope of activities in which it is limited for viewing or accessing any module of a system.
- Every user of the system has a specific access on each module. For example, the person who is responsible for the
inventory can only access the inventory module, while the manager has access to all the modules of the system.
Subsystems
- Every system consists of subsystems that have different objectives and interactions based on the given requirements.
All subsystem uses the given resources to meet the given objective.
Subsystem Interface
- It refers to the connection of each system or subsystem boundaries and serves as the connection to display the
output from one (1) system to the input of another system.

01 Handout 1 *Property of STI

student.feedback@sti.edu Page 1 of 2
 IT1915

System Environment
- This refers to the people, organizations, and other systems that give and receive data from the system.
System Feedback
- Every system always needs feedback to be able to do its job and to process accurately based on the requirements.
Having an effective feedback and continuing to adjust the activities of the system assures the user that the system
can achieve its goals.
Types of Information System
Information Systems
- It refers to a set of interrelated components that collect any information or data, process, store, and display the
output to support decision-making.
Information Systems in Organization
- Organization
o Information Systems in an organization may consist of hardware, software, people, procedures, and
telecommunication.
o There are many factors in the interaction of information systems and organization. These factors are the
following:
 Organization's structure
 Business processes
 Culture
 Environment
 Management decisions.
Types of Information System
- The following are the different types of information system which are based on the business needs and management
levels of an organization:
o Transaction Procession System
 This system is the most widely used information system. The function of this system is to record data
which are collected at the boundaries of organizations. This system also records the transactions
inside an organization.
o Supply Chain Management System
 Supply chain refers to the sequence of activities. It includes marketing, manufacturing and assembly,
packing and shipping, and billing and collection.
o Customer Relationship Management System
 This system manages the relationship of the organization to its customer.
 Service representatives use this system to talk to their customers via phone.
o Business Intelligence systems
 Most of the organizations use business intelligence systems to compete better with other
organizations. This system accesses massive data, usually larger databases called data warehouses.
o Decision Support System
 This system helps to find actions and answers most of the questions like "What if?"
o Expert Support System
 This system uses artificial intelligence to be able to preserve the knowledge of an expert and to solve
problems.

REFERENCES:
1. Laudon, K. C., & Laudon, J. P. (2014). Management information systems: Managing the digital firm (13th Ed.). United
States of America: Pearson Education Limited.
2. Sousa, K. J., & Oz, E. (2014). Management Information Systems (7th Ed.). Stamford, United States of America: Cengage
Learning.

01 Handout 1 *Property of STI

student.feedback@sti.edu Page 2 of 2
 IT1915

Systems Development Life Cycle

Systems Life Cycle – Stages and Activities
Systems Development Life Cycle (SDLC), also called waterfall development, consists of well-defined phases that are followed
methodically. Most of the larger organizations use the SDLC process in their development to check if the requirements are
followed, including its progress.
Systems Life Cycle is the oldest method when building information systems. It is a phased approach in creating or building a
system by dividing systems development into formal stages. It is still used for large complex systems that require a formal
requirements analysis, predefined specifications, and tight control in the process of creating a system.
Every step or stage in the system life cycle has a corresponding activity. These activities are sequential and happen during
the process of developing a system. These are the following stages and activities:
a. Systems Analysis – This is the first stage in a system life cycle that has certain steps to come up on the data. It requires
analyzing the data, identifying the problems, and determining the information requirements and objectives of the
system.
These are the steps and sample of questions for identifying the possible needs to create a system:
1. Investigation
 What is the business process needed to support a system?
 What problems do you want to solve?
2. Technical Feasibility Study
 Is the technology available to create the system?
 Which of the available technologies should be used?
3. Economic Feasibility Study
 What are the resources needed to implement the system?
 Will the system’s benefits outweigh its costs?
4. Operational Feasibility Study
 Will the system be used to its full capacity?
 Will the system be used appropriately by its intended users?
5. Requirements Definition
 Does it support other systems such as web and mobile technologies?
b. System Design – In this phase, the system design shows how the system will fulfill the objectives based on the
requirements that have come up. The designer of the system will be responsible for giving the details of the system
specification, which will deliver all the functions that have been identified in the system analysis phase.
This phase comprises three (3) steps: description of the functions or components and how they will work,
construction, and testing.
To communicate ideas about the data that have been gathered, systems analysts and programmers use convention
symbols, such as the Data Flow Diagram (DFD). DFD symbols are suitable for describing any information systems (IS)
even if this is not computer-based. It helps pinpoint the weaknesses in an existing system. While DFDs are easy to
learn and use, these still have limitations like any diagramming method and cannot describe a system completely.
Another way to communicate ideas is the Unified Modeling Language (UML). UML is a graphical standard for
visualizing, specifying, and documenting software. This tool helps developers to communicate and logically validate
desired features in the design phases of software development projects. It consists of diagrams that describe the use
case, class, interaction, activity, and physical components.
c. Programming – In this stage, the system specifications that were prepared during the design stage are translated
into program code or software.
d. Testing – This phase is the most respected in systems development. Testing each module in every simulation does
not mean that the functionalities are in good condition; rather, it is important to test the entire system. It should
include attempts to get the system to fail and to violate processes and security controls.

02 Handout 1 *Property of STI

student.feedback@sti.edu Page 1 of 3
 IT1915

There are three (3) testing that should be performed: unit testing, systems testing, and acceptance testing.
e. Implementation – In the new IS, implementation is referred to as delivery. This consists of conversion and training.
Conversion takes place when an operation in an organization switches from using an existing or old system to the
new system.
f. Production and Maintenance – When the new system is installed, it is said to be in production. In this stage, the
system will be reviewed by both users and technical specialists to check if it meets the original objectives. If the
system is fine and meets all the objectives, then it should be maintained.
When the system is in production, the errors will be corrected, meet all the requirements, or improve processing
efficiency. If there are some changes or new requirements in software or hardware, or if there is an improvement of
the process, it is called maintenance.
Tasks in the Development Process Life Cycle
The system developers and their clients share a common goal for developing the information systems that effectively support
the objectives of the business process. In order to make sure the cost-effective, develop quality systems that will address the
organization’s business needs. The usual activities performed include the following:
 System conceptualization  System integration and testing
 System requirements and benefits analysis  Installation at site
 Scope and adoption of the project  Site testing acceptance
 Software requirement specifications  Training and documentation
 Detailed and architectural design  Implementation
 Software integration and testing  Maintenance

Different Approaches in System Development

The different approaches to developing a system help for faster development and meeting the requirement. Here are the
common approaches in system development:
 Ad-Hoc Development – This approach relies on the skills and experience of the individual staff. It only refers to the
small projects at which the staff is skilled.
 Waterfall Model – This method is the most common and the earliest structured system development and is still
widely used. This model consists of the following steps:
o Systems analysis o Testing
o System design o Deployment
o Programming o Maintenance
 Prototyping – It is developed on the assumption that it knows all the requirements at the beginning of the project.
When using this approach, the developer only builds a simplified version of the proposed system and presents it to
the client. After presenting, the client will give feedback for revisions or adjustments based on the requirements.
Like the waterfall model, the prototyping also has various steps:
o Requirements definition – This is where the client needs are gathered for developing the software. The
requirements of the system are defined in detail.
o Design – A simple design of the software is created, which gives a brief idea of the system to the user.
o Prototype creation – An actual prototype is designed based on the information gathered from the design
phase.
o Assessment – A proposed system is presented to the client for assessment. The client will then look for the
strength and weaknesses of the created software.
o Prototype refinement – If the client is not satisfied, the software needs to be refined according to the client’s
feedback and suggestion.
o System implementation – The final system is developed based on the final prototype. It is already tested and
deployed to production. Then, it undergoes routine maintenance.
 Spiral Model – This approach is designed to include the best features from the waterfall and the prototype models.

02 Handout 1 *Property of STI

student.feedback@sti.edu Page 2 of 3
 IT1915

It describes the process that is followed as the development takes place. These are the steps in a spiral model:
o Project objectives – Requirements are gathered from the customers, and the objectives are identified.
o Risk assessment – During the second quadrant, all the possible solutions are evaluated to select the best
possible solution. Then the risks associated with that solution are identified and resolved using the best
possible strategy.
o Production – The identified features are developed and verified through testing.
o Planning and management – Customers evaluate the developed version of the software and check for
improvements. They also manage the developed software while looking for possibilities of errors.
 Agile development – This approach focuses on the fast delivery of the working software by dividing a large project
into a series of small subprojects, which will be completed in short periods using iteration and continuous feedback.
Since the project is divided, each team works on a small project. It helps minimize the overall risk and allows the
project to adapt to changes more quickly. In addition, there is face-to-face communication over written documents,
so it encourages the members to collaborate and make decisions quickly.

REFERENCES:
Laudon, K. C., & Laudon, J. P. (2014). Management information systems: Managing the digital firm (13th Ed.). USA: Pearson
Education Limited.
Sousa, K. J., & Oz, E. (2014). Management information systems (7th Ed.). Stamford, USA: Cengage Learning.

02 Handout 1 *Property of STI

student.feedback@sti.edu Page 3 of 3
 IT1915

Managing Data Resources

Every organization faces different challenges when managing data resources. Some of them are still in the traditional way of
saving and managing data files. As such, there are particular ways of effective use of information, depending on how data
should be stored and organized. But the most important thing is the proper delivery of information. This not only depends
on the computer’s hardware and software capabilities but also on the ability of the organization to manage data as an
important resource.
Database Management System (DBMS) is a software that allows an organization to collect and manage data efficiently.
DBMS acts as an interface between data resources and application programs. Transferring from a traditional file environment
into a database environment can be a costly long-term process, so it is important to understand the managerial and
organizational requirements as well as the technologies for managing data.
Organizing Data
Organizing data is difficult for every organization or business. Data resources must be accurate and organized for them to be
able to give the exact information. Most of the organizations realized the competitive advantage they can achieve over their
competition using useful information and not just data.
Accessing the Records
 When accessing records within the database records of an organization, there are two (2) kinds of files that are
accessible:
o Sequential File Organization – typically used for processing the same information/start until the end
o Direct/Random File Organization – used with magnetic disks/ it find its direct location
 Index Sequential Access Method – Records are stored in the file using the primary key. An index value is generated
for each primary key and mapped with the record.
 Direct File Access Method – It also uses primary key in combination with mathematical calculations to determine the
location of a record.
Integration of Information
Coordinating the many aspects of business requires a wide variety of information from many resources. Integrating data is
the first step. Most of the modern companies are increasingly based on teams and each person may be assigned separate
tasks, but the work must be assembled into a final project evaluated and approved by the entire team. /use of fconverter
A difficulty that arises when trying to integrate information is the diversity in hardware and software. For example, each
software package uses its own format to store data files. As a result, there are more than 50 different formats. The problem
multiplies rapidly when we consider that most of these formats change with each software revision. To integrate these
different types of information, look for a software that can either read different file types or use a common format.
Role of Enterprise Resource Planning
Enterprise Resource Planning (ERP)
- It integrates business processes in manufacturing and production, finance and accounting, sales and marketing, and
human resources into a single software system.
- The field is dominated by large and expensive software packages from companies such as SAP, Peoplesoft, and
Oracle.
- It handles all of the financial accounting systems.
- It also emphasizes purchasing, human resource management, and investment management.
- The system uses databases, processes, and rules to provide up to the minute data on the major financial issues in a
firm.
- Its primary strength is handling data for large companies operating in an international environment.
Information Systems, Organizations, and Business Processes
Organization
- It is a stable, formal social structure that takes resources from the environment and processes them to produce
outputs.
- It is more stable than an informal group in terms of longevity and routines.
- Its information systems (IS) consist of data, hardware, software, telecommunications, people, and procedures (which
are further discussed on the next page).
03 Handout 1 *Property of STI
student.feedback@sti.edu Page 1 of 3
 IT1915

o Data – input that the system takes to produce information

o Hardware – the computer and its peripherals
o Software – sets of instructions that tell the computer how to take data in, how to process, how to display
information, and how to store data and information
o Telecommunications – hardware and software that facilitate fast transmission
o People – information systems professionals and users who analyze organizational information needs, design
and construct IS, write computer programs, operate the hardware, and maintain software
o Procedures – rules for achieving ideal and secure operations in data processing; include priorities in
dispensing software applications and security measures.
Business Process
- It refers to how work is organized, coordinated, and focused on producing a valuable product or service.
- It can also be liabilities if they are based on inefficient ways of working that impede organizational responsiveness
and efficiency.
- Other business processes cross many different functional areas and require coordination across departments.
- Many business processes are tied to a specific functional area. The following are examples of functional areas with
business processes:
o Manufacturing and production
 Assembling the product
 Checking for quality
 Producing bills of materials
o Sales and marketing
 Identifying customers
 Making customers aware of the product
 Selling the products
o Finance and accounting
 Paying creditors
 Creating financial statements
 Managing cash accounts
o Human resources
 Hiring employees
 Evaluating employees’ job performance
 Enrolling employees in benefits plans
Management Information Systems (Laudon K. C. & Laudon J. P., 2017)
The field of management information systems (MIS) tries to achieve this broader information systems literacy. MIS deals
with behavioral issues, as well as technical issues surrounding the development, use, and impact of information systems used
by managers and employees in a firm.
There’s a whole new world of doing business using new technologies for managing and organizing. What makes the MIS field
exciting is the continuous change in technology, management, and business processes. With this, five (5) changes are of high
importance in MIS:
 IT innovation – A continuing stream of information technology innovation is transforming the traditional business
world. Examples include the emergence of cloud computing, the growth of mobile digital business platforms based
on smartphones and tablet computers, Big Data, and business analytics, and the use of social networks by managers
to achieve business objectives.
 New business models – The emergence of online video streaming services like Netflix, Apple TV, Amazon’s Prime
Video, and many others for downloading video has forever changed how premium video is distributed and created.
 E-commerce expanding – E-commerce is changing how firms design, produce, and deliver their products and
services. It has reinvented itself, disrupting the traditional marketing and advertising industry and putting major
media and content firms in jeopardy.
 Management changes – The management of business firms has changed: With new mobile smartphones, high-
wireless Wi-Fi network, and tablets, remote salespeople on the road are only seconds away from their managers’
questions and oversight. In other words, business is going mobile along with consumers.
03 Handout 1 *Property of STI
student.feedback@sti.edu Page 2 of 3
 IT1915

 Changes in firms and organizations – New, fast-going 21st-century business firms put less emphasis on hierarchy
and structure and more emphasis on employees.
Information Technology in Organization
Information Technology (IT) has become a vital and integral part of every business plan, from multi-national corporations
that maintain mainframe systems and databases down to small businesses that own a single computer.
The organizational structure of the IS function within a company and the distribution of IS specialists are designed to meet
the changing strategies of a business. The form of an IT organization depends on the managerial philosophy and business/IT
strategies formulated during the strategic planning process.
Information System and Strategy
Strategy is described as the determination of the basic long-term goals and objectives of an enterprise and the adoption of
courses of action and allocation of resources necessary for achieving these goals.
Information Systems and Business Strategy
 Leveraging technology in the value chain – Areas of the organization most affected by leveraging technology are
producing the product, getting it to the stores, and making the customer happy.
 Information system products and services
Use of Systems for Competitive Advantage
Using IS to beat the competition and increase the value of a product is not easy. It requires changing the processes and
methods that probably have been in the organization for a long time. The responsibility for successfully developing and then
using an integrated IS will usually fall on the managers throughout the organization.

REFERENCES:
Laudon, K. C., & Laudon, J. P. (2017). Management information systems: Managing the digital firm (15th Ed.). United States
of America: Pearson Education Limited.
Sousa, K. J., & Oz, E. (2014). Management Information Systems (7th Ed.). Stamford, United States of America: Cengage
Learning.
03 Handout 1 *Property of STI
student.feedback@sti.edu Page 3 of 3