CHAPTER ONE

Introduction to Information Systems

Introduction To Information
Systems
Contents of presentation
 Information systems and the
managerial End user
 Fundamental Information system
concepts
Introduction To Information
Systems…Cont’d
 Information systems and the
managerial End user
 Basic definitions
 Information systems and society
 Information systems and organizations
 What Managerial end users need to know
Information systems and the
managerial end user...Cont’d
I. Basic Definitions
 Information
 Is data that has been processed into a form
that is meaningful to the recipent and is of
real perceived value in current or prospective
decisions.
 This definition stresses the fact that data must
be processed in some way to produce
information.
 It also shows the distinction between data and
information.
Basic Definition…Cont’d
 Data is defined as raw facts or
observations, typically about physical
phenomena or business transactions.
 Information is data that has been put into a
menaningful and useful context for specific
end users. This gives the information value
for specific persons and meets their
particular information needs.
 Basic Definition…Cont’d
 Example

$ 35,000 35 units
$ 12,000 J. Jones sales person : J. Jones
Western Region Data Processing Sales Teritory: Western Region
$ 100,000 100 units Current sales:
12 units 147 units=$147,000

Data Information
Basic Definitions…Cont’d
 Information System
 An information system is a set of
people, procedures, and resources
that collects, transorms, and
disseminates information in an
organization.
 Today's organizations rely on many
types of information systems. They
include:
Basic Definitions…Cont’d
 Simple manual (Paper- and-
pencil) information systems
 informal information systems
(Word- of - mouth)
 Computer-based information
systems that use hardware,
software, and people resources to
transform data resources into
information products for end
users.
Basic Definitions…Cont’d
 Management Information System
 No consensus on the definition of the term
MIS.
 MIS is an integrated, user machine system
for providing information to support
operations, management, and decision
making functions in an organazation. The
system utilizes computer hardware and
software, manual procedures, models for
analysis, planning, control and decision
making, and a database.
Basic Definitions…Cont’d
 End user
 An end user is any one who uses an
information system or the information it
produces.
 This usually applies to most people in an
organization as distinguished from the
smaller number of people who are
information specialists, such as system
analysts or programmers.
Basic Definitions…Cont’d
 Managerial End User
 A managerial end user is a manager,
entrepreneur, or managerial-level
professional who personally uses
information systems.
Information systems and the
managerial end user...Cont’d
II. Information Systems and Society
 Information is a basic resource that individuals
and organizations must have to survive and
succeed in today's society.
 We are living in an information society whose
economy is heavily dependent on the creation,
management, and distribution of information
resources. We no longer live in:
 An agricultural society composed primarily of
farmers or
 Industrial society where majority of the work
force consists factory workers.
Information Systems and
Society…Cont’d
 The workforce today consists mainly of
workers in service occupations or
knowledge workers, that is, people who
spend most of their workday creating,
using, and distributing information.
 The category of knowledge workers
includes:
 executives, managers, and supervisors;
 professionals such as accountants, engineers,
scientists, stockbrokers, and teachers, and
 staff personnel such as secretaries and clerical
office personnel.
Information Systems and Society…
Cont’d
 These people all make their living
using information systems to create,
distribute, manage, and use
information resources, which are then
used to help them manage the
human, financial, material, energy,
and other resources involved in their
work responsibilities.
Information Systems and Society…
Cont’d
 Information, then, is a valuable
commodity to knowledge workers,
their organization, and society. A
major challenge for the information
society is to manage its information
resources to benefit all members of
society.
Information systems and the
managerial end user...Cont’d
III. Information systems and organizations
 Information and information systems are also
valuable organizational resources that must be
properly managed for an organization to
succeed.
 For organizations information systems
represent:
 A major part of the resources of an
organization and its cost of doing business,
thus posing a major resource management
challenge.
Information systems and the
managerial end user...Cont’d
 An important factor affecting operational
efficiency, employee productivity and morale,
and customer service and satisfaction.
 A major source of information and support
needed to promote effective decision making by
managers.
 An important ingredient in developing
competitive products and services that give an
organization a strategic advantage in the
market place.
 A vital, dynamic, and challenging career
opportunity for millions of men and women.
Information systems and the
managerial end user...Cont’d

IV. What managerial end users need to

know
 The following framework outlines what
a managerial end user needs to know
about information systems.
 It emphasizes that you should
concentrate your efforts in five areas of
knowledge:
What managerial end users
need to know…Cont’d
 Foundation concepts
 Need to have knowledge of the generic
components and properties of
information systems,
 which requires an understanding of some
basic concepts in general systems theory
and information processing.
What managerial end users
need to know…Cont’d
 Development
 How should managerial end users or information
specialists develop information systems solutions
to business problems?
 should understand how methodologies such as
the systems approach, the systems development
life cycle, and prototyping can be used to
construct information systems applications that
successfully meet end user and organizational
needs.
What managerial end users
need to know…Cont’d
 Technology
 should have an understanding of major
concepts, developments, and
management issues in information
technology, i.e. Hardware, Software,
Telecommunications and Database
management .
What managerial end users
need to know…Cont’d
 Applications
 They should gain a basic understanding
of information systems concepts and
applications in areas such as end user
computing, office automation,
transaction processing, information
reporting, decision support, executive
support and artificial intelligence.
What managerial end users
need to know…Cont’d
 Management
 This area requires understanding the
major challenges and methods involved
in managing the resources, technologies,
and activities of information systems.
 More specifically, they should understand
concepts such as information resource
management and information systems
planning, implementation, and control.
Introduction To Information
Systems…Cont’d
 Fundamental Information system
concepts
 Meaning of a system
 Other system characteristics
 A business as a system
 Basic system concepts
Fundamental Information
system concepts…Cont’d
Knowledge of systems concepts is vital
to a proper understanding of the
development, technology,
applications, and management of
information systems.
Fundamental Information
system concepts…Cont’d
 What is a system?
 A system is a group of interrelated
components working together toward a
common goal by accepting inputs and
producing outputs in an organized
transformation process.
 Such a system has three basic
interacting components or functions:
input, processing, output.
What is a system?...Cont’d
 Diagrammatically,

Input Processing Output

What is a system?...Cont’d
 The systems concept can be made
even more useful by including two
additional components: feedback
and control.
 Such a system (a system with
feedback and control) is sometimes
called a cybernetic system, i.e. a
self-monitoring, self-regulating
system.
What is a system?...Cont’d
 Feedback is data about the performance of a
system.
 Control is a major system function that
monitors and evaluates feedback to
determine whether the system is moving
toward the achievement of its goal. It then
makes any necessary adjustments to the
input and processing components of the
system to ensure that proper output is
produced.
What is a system?...Cont’d
 The following figure illustrates a
generic concept of a system
incorporating feedback and control
components and exchanging inputs
and outputs with its environment.
What is a system?...Cont’d
Environment
Feedback Feedback
Signals signals
Control

Feedback
Signals

Signals
Control
Signal

Contr
ol
s

signals
Control

Input Processing Output

System Boundary

Other Systems
What is a system?...Cont’d
 Feedback is frequently included as
part of the concept of the control
function because of the essential role
feedback plays in control.
 Positive feedback- A system performing
properly generates positive feedback.
 Negative feedback- A system whose
performance is deteriorating or deviating
from the attainment of its goal.
Fundamental Information
system concepts…Cont’d
 Other system characteristics
 The figure above points out several other
characteristics important to understanding
information systems.
 A system does not exist in a vacuum; rather, it
exists and functions in an environment
containing other systems.
 If a system is one of the components of a larger
system, it is called a subsystem, and the
larger system is its environment.
 Also, a system is separated from its
environment and other systems by its system
boundary.
Other system
characteristics…Cont’d
 The interconnections and interactions
between the subsystems are termed
interfaces. Interfaces occur at the
boundary and take the form of inputs and
outputs.
 The figure also illustrates the concept of an
open system, which is a system that
exchanges information, material, energy
etc. with its environment.
 If a system has the ability to change itself
or its environment in order to survive, it is
known as an adaptive system.
Fundamental Information
system concepts…Cont’d
 A business as a system
 A business firm is an open, adaptive
organizational system operating in a
business environment.
 A business consists of the following
interrelated system components:
A business as a system…
Cont’d
 Input: Economic resources such as people, money,
material, machines, land, facilities, energy, and
information are acquired by a business from its
environment and used in its system activities.
 Processing: Organizational Processes such as
marketing, manufacturing, and finance transform
input into output.
 Output: goods and services, payments to employees
and suppliers, dividends, taxes, and information are
all outputs produced by a business and exchanged
with or transferred to its environment
A business as a system…
Cont’d
 Feedback: A primary role of information systems is
serving as the feedback component of an
organizational system. They provide information to
management concerning the performance of the
organization.
 Control: management is the control component of an
organizational system.
 Managers control the operations of a business so that
its performance meets organizational goals such as
profitability, market share, and social responsibility.
 Feedback about organizational performance is
compared to standards of performance established
by management. Management then makes decisions
to adjust performance to meet organizational goals.
Fundamental Information
system concepts…Cont’d
 Information system concepts
 In section 1, we said that an information system
is a set of people, procedures, and resources
that collects, transforms, and disseminates
information in an organization.
 In this section, we said that an information
system is a system that accepts data resources
as input, and processes them into information as
output.
 How does an information system accomplish
this? What system components and activities
are involved?
Information system concepts…
Cont’d
 An Information system model
 An information system uses:
 the resources of hardware (machines and
media), software (programs and
procedures), and people (specialists and
end users)
 to perform input, processing, output,
storage, and control activities that
convert data resources into information
products.
Information system concepts…
Cont’d
An Information System Model

Software Resources: Programs and procedures

People Resources: End users and IS specalists
Hardware Resources: Machines & Media

Control of system performance

Input of Processing Output of

Data Of data Data
Resources resources Resources

Storage of Data Resources

Data Resources: Data, Model, Knowlege Bases
Information system concepts…
Cont’d
 This model provides a conceptual framework that
emphasizes three major concepts that can be applied
to all types of information systems.
 People, hardware, software, and data are the four
basic resources of information systems.
 People resources include end users and IS specialists.
 Hardware resources include machines and media.
 Software resources include both programs and
procedures.
 Data resources include Data, model, and knowledge
bases.
Information system concepts…
Cont’d
 Data resources are transformed by
information processing activities into a
variety of information products for end
users.
 Information processing consists of input,
processing, output, storage, and control
activities.
Fundamental Information
system concepts…Cont’d
 Information system activities
 The basic information processing activities that
occur in information systems include:
 Input of data resources
 Data about business transactions and other events
must be captured and prepared for processing by
the basic data entry activities of recording and
editing.
 End users 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
assure they have recorded data correctly.
Information system activities
 Processing of data into information
 Data is manipulated by such activities as
calculating, comparing, sorting, classifying, and
summarizing. These activities organize, and
manipulate data, thus converting it 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.
Information system activities
 Output of information products
 Information in various forms is transmitted to end
users and made available to them in the output
activity.
 Common information products are video displays,
paper documents, audio responses that provide us
with messages, forms, reports, listings, etc.
 Storage of data resources
 storage is a basic system component of information
systems
 storage is an IS activity in which data and
information are retained in an organized manner for
later use.
 Stored data is commonly organized into fields,
records, files, and databases.
Information system activities
 Control of system performance
 An information system should produce
feedback about its input, processing,
output, and storage activities.
 This feedback must be monitored and
evaluated to determine if the system is
meeting established performance
standards.
 Then appropriate system activities must
be adjusted so that proper information
products are produced for end users.
Fundamental Information
system concepts…Cont’d
 Information System Resources
 An information system consists four
major resources:
 Hardware Resources
 The concept of hardware resources
includes all physical devices and
materials used in information
processing.
 It includes machines and media
Fundamental Information
system concepts…Cont’d
 Examples
 large mainframe computers,
minicomputers microcomputers
 Telecommunication networks.
 Computer peripherals
Information System
Resources…Cont’d
 Software Resources
 Include all sets of information processing
instructions.
 Programs - operating instructions which direct
and control hardware
 Procedures -information processing
instructions needed by people.
 Examples of software
 System software, such as an operating
system program, which manages the
operations of a computer system.
 Application software, which are programs that
direct processing for a particular use of
computers by end users.
 Procedures - operating instructions for people.
Information System
Resources…Cont’d
 People Resources
 People are required for the operation of all
information system. These resources include:
 Specialists- people who develop and operate
information systems. They include system
analysts, programmers, computer operators,
other managerial, technical, and clerical
personnel.
 End users- can be accountants, sales
persons, engineers, customers, or managers.
Information System
Resources…Cont’d
 Data Resources
 The data resources of information systems are
typically organized into:
 Databases - which holds, processed and
organized data.
 Model bases - which hold conceptual,
mathematical, and logical models that
express business relationships,
computational routines, or analytical
techniques
 Knowledge bases - which hold
knowledge in a variety of forms such as
facts about a specific subject area and
rules of inference about various subjects.
Data Resources…Cont’d
 Data can take many forms:
 Alphanumeric data- composed of numbers and
alphabetical and special characters that describe
business transactions and other events and entities.
 Text data - consisting of sentences and paragraphs
used in written communication.
 Image - graphic shapes and figures
 Video data - data presented for viewing by a variety
of video display devices.
 Audio data - the human voice and other sounds.
 Tactile data - generated by touch - sensitive
materials
 Sensor data - provided by a variety of sensors used
in the control of physical processes.
Data Resources…Cont’d
 Data resources are typically recorded
and stored on several types of data
media.
 Examples:
 paper documents
 magnetic disks
 magnetic tape
 optical disks
 microfilms
 electronic circuit chips