Unit-4

INFORMATION
SYSTEMS
Difference between data and information-
Data processing – Components of
information system - Information system
benefits - Information system and
Business - Information system resources
- Types of information system - TPS, OAS,
DSS, ESS MIS, -Need for MIS -
Definitions, functions, characteristics of
MIS, MIS & Decision-making. (Lab 2
HOURS)
 WHAT IS INFORMATION?

 The word information is derived from Latin informare

which means "give form to".

 Information can thus be defined as data that has been

processed, manipulated and organised in a way suitable
for human interpretation and that adds to the
knowledge of the person receiving it
 Information is usually compiled in response to a specific
need and often with the purpose of revealing trends or
patterns
 WHAT IS DATA?

 Data can be defined as “a collection of facts from

which conclusions may be drawn”
 Put another way, data are distinct pieces of factual
information used as a basis for reasoning; a “given”
or fact; a number, a statement, or a picture,
discussion, or calculation
 Data is the raw material – the input – of information
 WHAT IS KNOWLEDGE?

 Knowledge is "a fluid mix of experience, values, contextual

information, and expert insight that provides a framework
for evaluating and incorporating new experiences and
information.“

 Knowledge can further be described as the awareness and

understanding of interconnected details, facts, truths or
information gained through experience or learning, which,
in isolation, are of lesser value.
 In other words, knowledge is about what one knows and
understands
 WHAT IS KNOWLEDGE…cont?

 Knowledge can be categorised as either unstructured or

structured or explicit or tacit.

 What one knows one knows is explicit knowledge.

 Knowledge that is unstructured and understood, but not

clearly expressed is implicit knowledge.

 If the knowledge is organised and easy to share then it is

called structured knowledge.

 To convert implicit knowledge into explicit knowledge, it

must be extracted and formatted
WHY DO PEOPLE NEED INFORMATION?

 Decision-making

 Problem-solving

 Entertainment

 Enlightenment
DATA Vs INFORMATION
 DATA

Data is raw,
unorganized facts that need to be processed.
Data can be something simple and seemingly
random and useless until it is organized.
Data are simply facts or figures — bits of
information, but not information itself. Data usually
refers to raw data, or unprocessed data. It is the basic
form of data, data that hasn’t been analyzed or
processed in any manner. Once the data is analyzed,
it is considered as information.
 INFORMATION

Information is knowledge that has used and

processed certain data and has rendered it useful.
When data is processed, interpreted, organized,
structured or presented so as to make them
meaningful or useful, they are called information.
Eg. The class' average score or the school's average
score is the information

 Examples of Data and Information

The history of temperature readings all over the

world for the past 100 years is data. If this data is
organized and analyzed to find that global
temperature is rising, then that is information.
The number of visitors to a website by country is an
example of data. Finding out that traffic from the
U.S. is increasing while that from Australia is
decreasing is meaningful information.
Comparison between Data and Information:
DATA PROCESSING
 DATA PROCESSING

Data processing is, broadly, "the collection and

manipulation of items of data to produce meaningful
information”.
a subset of information processing.
 DATA PROCESSING FUNCTIONS

Validation – Ensuring that supplied data is "clean, correct

and useful."
Sorting – "arranging items in some sequence and/or in
different sets."
Summarization – reducing detailed data to its main
points.
Aggregation – combining multiple pieces of data.
Analysis – the "collection, organization, analysis,
interpretation and presentation of data.".
Reporting – list detail or summary data or computed
information.
 INFORMATION SYSTEMS

It is  an integrated set of components for collecting,

storing, and processing data and for delivering
information, knowledge, and digital products.
Business firms and other organizations rely on
information systems to carry out and manage their
operations, interact with their customers and
suppliers, and compete in the marketplace.
Information system
Information system –Security systems
 Components of information systems
The main components of information systems :
 Computer hardware and software,
Telecommunications, 
Databases and data warehouses,
Human resources,
Procedures
 Computer hardware

Together with the peripheral equipment, such as

magnetic or solid-state storage disks, input-output
devices, and telecommunications gear, these
constitute the hardware of information systems.
 The cost of hardware has steadily and rapidly
decreased, while processing speed and storage
capacity have increased vastly.
 Computer software

Computer software falls into two broad classes:

 system software and application software.
The principal system software is the  operating
system. (iOs, Windows, linux)
Application software is a program designed to
handle specific tasks for users. (MS office, SPSS).
First programmable computer
 “BUG”

Software glitch.
Proprietary software Vs open-source software
Larger firms use licensed applications,
customizing them to meet their specific needs,
and develop other applications in-house or on an
outsourced basis.
 Companies may also use applications delivered as
software-as-a-service (SaaS) over the Web.
Proprietary software, available from and
supported by its vendors, is being challenged
by open-source software available on the Web for
free use and modification under a license that
protects its future availability.
Examples of proprietary software include
Microsoft Windows, Adobe Flash Player, PS3 OS,
iTunes, Adobe Photoshop, Google Earth, Mac OS X,
Skype, WinRAR, Oracle's version of Java and some
versions of Unix.
 Open source software examples

Apache (web server)

CentOS (Linux distribution from Red Hat's
development efforts)
Fedora (Linux destop system)
JBoss (J2EE server for Enterprise Java
Development)
Slackware (Linux distribution)
Tomcat (Java servlet container)
Ubuntu (a Linux desktop operating system)
Types of Information system

Figure 2-1
 Major types of Information system

Executive Support Systems (ESS) - An

Executive Support System (ESS) is software that
allows users to transform enterprise data into
quickly accessible and executive-level reports, such
as those used by billing, accounting and staffing
departments. An ESS enhances decision making for
executives. ESS is also known as Executive
Information System (EIS).
 Executive Support System (ESS):

Strategic level
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers

Example: 5-year operating plan

 Transaction Processing Systems (TPS):

Basic business systems that serve the operational

level

A computerized system that performs and records

the daily routine transactions necessary to the
conduct of the business
 Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS) serve the

people in the operational level of an organization.  It
collects and stores information about transactions,
and controls some aspects of transactions. A sale of
item in the store is an example of a transaction.
TPs Example

Figure 2-3
Types of TPs System

Figure 2-4
 Knowledge Work Systems (KWS)

Knowledge work systems (KWS) is used by technical

staff as model functions to convert design
specifications into graphical designs. It uses
computer-aided design/manufacture (CAD/CAM).
 Knowledge Work Systems (KWS):

Knowledge level
Inputs: Design specifications
Processing: Modeling
Outputs: Designs, graphics
Users: Technical staff and professionals
Example: Engineering work station
 Management Information Systems (MIS)

Management information system, or MIS, broadly refers to

a computer-based system that provides managers with the
tools to organize, evaluate and efficiently manage
departments within an organization.
In order to provide past, present and prediction
information, a management information system can
include software that helps in decision making, data
resources such as databases, the hardware resources of a
system, decision support systems, people management and
project management applications, and any computerized
processes that enable the department to run efficiently.
 Management Information System (MIS):

Management level
Inputs: High volume data
Processing: Simple models
Outputs: Summary reports
Users: Middle managers

Example: Annual budgeting

 Decision Support System (DSS):

A decision support system (DSS) is a computer

program application that analyzes business data and
presents it so that users can make business decisions
more easily. It is an "informational application" (to
distinguish it from an "operational application" that
collects the data in the course of normal business
operation).
 Decision Support System (DSS):

Management level
Inputs: Low volume data
Processing: Interactive
Outputs: Decision analysis
Users: Professionals, staff

Example: Contract cost analysis

Decision Support System - Example

Figure 2-6
 TPS -Transaction Processing Systems

A Transaction Processing System (TPS) is a type of

information system that collects, stores, modifies
and retrieves the data transactions of an enterprise.
 FEATURES

 Rapid Processing- TPS systems are designed to process

transactions virtually and instantly.

 Reliability- designed to incorporate comprehensive safeguards

and disaster recovery systems

 Standardisation- Transactions must be processed in a uniform

way each time to maximise efficiency.

 Controlled Access- TPS must be restricted to only those

employees who require their use.
TYPES OF TRANSACTION PROCESSING
 BATCH PROCESSING

Batch processing is a resource-saving transaction

type that stores data for processing at pre-defined
times.
Batch processing is useful for enterprises that need
to process large amounts of data using limited
resources.
 REAL TIME PROCESSING

In many circumstances the primary factor is speed.

For example, when a bank customer withdraws a
sum of money from his or her account it is vital that
the transaction be processed and the account balance
updated as soon as possible, allowing both the bank
and customer to keep track of funds.
 MIS Generates –Output

Drill down Reports

Scheduled reports
Key-indicator report
Demand report
Exception report
Drill down Reports:
These are reports that move from summary information to the detailed data
that created it.
Scheduled reports:
Produced periodically, or on a schedule (daily, weekly,
monthly)
Key-indicator report:
It summarizes the previous day’s critical activities. Typically
available at the beginning of each day
Demand report:
Gives certain information at a manager’s request
Exception report:
Automatically produced when a situation is unusual or
requires management action
 Office Automation System(OAS)

It facilitates everyday information processing tasks

in offices and business organizations.
 It provides effective ways to process personal and
organizational business data, to perform calculations
and to create documents.
 OAS Tools

 Word processing
 A spreadsheet
 A presentation tool
 A database
 A schedule
Information Generators
Fibre optic Vs Co-axial cable
 Telecommunications

Telecommunications are used to connect, or

network, computer systems and transmit
information.
 Connections are established via wired or wireless
media.
 Wired technologies include coaxial cable and fibre
optics.
 Wireless technologies, predominantly based on the
transmission of microwaves and radio waves,
support mobile computing.
 video

Sixth sense
Google nexus
 Networks- Telecom.

Local area networks (LANs) join computers at a

particular site, such as an office building or an academic
campus.
 Metropolitan area networks (MANs) cover a limited
densely populated area.
 Wide area networks (WANs) connect widely distributed
data centres.
To connect with business partners over the Internet in a
private and secure manner, extranets are established as
so-called virtual private networks (VPNs) by encrypting
the messages. Video
 Databases and data warehouses

 A database is a collection of interrelated data (records)

organized so that individual records or groups of
records can be retrieved to satisfy various needs.
Examples :employee records and product catalogs.
Data warehouses contain the archived data, collected
over time, that can be mined for information in order
to develop and market new products, serve the existing
customers better, or reach out to potential new
customers.
Cloud storage
 Human resources and procedures

Qualified people are a vital component of any

information system.
 Technical personnel include development and
operations managers, business analysts, systems
analysts and designers, database administrators,
computer programmers, computer security
specialists, and computer operators.
 In addition, all workers in an organization must be
trained to utilize the capabilities of information
systems.