Information Systems

Data, Information, and Knowledge

• The purpose of information systems is to get the right information to the right people at
the right time in the right amount and in the right format
• Data items refer to elementary description of things, events, activities, and transactions
that are recorded, classified, and stored but not organized to convey any specific meaning
• Information refers to data that have been organized so that they have meaning and value
to the recipient
• Knowledge consists of data and/or information that have been organized and processes to
convey understanding, experience, accumulated learning, and expertise as they apply to a
current organization problem.
• Knowledge is defined by Johns (1997) as “a combination of rules, relationships, idea, and
experience.”
• Knowledge also can be said as information applied to rules, experiences, and
relationships, with a result that can be used for decision making
 System Concepts
• A system is a group of interrelated components, with a clearly defined
boundary, working toward the attainment of a common goal by accepting
inputs and producing outputs in an organized transformation process
• Systems have three basic functions
1. Input involves capturing and assembling elements that enter the system to be
processed. For example, raw materials, energy, data, and human effort must be
secured and organized for processing.
2. Processing involves transformation processes that convert input into output.
Examples are a manufacturing process, the human breathing process, or
mathematical calculations.
3. Output involves transferring elements that have been produced by a
transformation process to their ultimate destination. For example, finished
products, human services, and management information must be transmitted to
their human users.
The system concept becomes even more useful by including two
additional elements: feedback and control. A system with feedback and
control functions is sometimes called a cybernetic system, that is, a
self-monitoring, self-regulating system.
4. Feedback is data about the performance of a system.
5. Control is the component that monitors and evaluates feedback and
makes any necessary adjustments to the input and processing
components to ensure that proper output is produced.
• 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 a
subsystem, and the larger system is its environment
• Several systems may share the same environment. Some of these
systems may be connected to one another by means of a shared
boundary, or interface
• An open system, that is, a system that interacts with other systems in
its environment.
• A system that has the ability to change itself or its environment in
order to survive is an adaptive system.
• An information system (IS) can be defined as any organized
combination of interrelated components, with a clearly defined
boundary, that collects, stores, retrieves, transforms/processes, analyzes,
and disseminates information for a specific purpose in an organization
• Information technology (IT) refers to the various hardware, software,
networking, and data management components necessary for the system
to operate
• Information Technology Architecture is a high-level map or plan of
the information assets in an organization. It is both a guide for current
operations and blueprint for future directions.
• Information Technology Infrastructure consists of the physical
facilities, IT components, IT service, and IT personnel that support the
entire organization.
• IT components are the computer hardware, software, and
communication technologies that provide the foundation for all of an
organization’s information systems.

• IT personnel use the IT components to produce IT services, which

include data management, systems development, and security
concerns.

• Platform consists only of its IT components, a part of an IT

infrastructure.
 Computer-based Information Systems
• A computer-based information system (CBIS) is an information
system that uses computer technology (information technology) to
perform some or all of its intended tasks to process and disseminate
information.

• People rely on modern information systems to communicate with each

other using a variety of physical devices (hardware), information
processing instructions and procedures (software), communications
channels (networks), and stored data (data resources).
Components of Information Systems

Information System Model

• Computer hardware technologies. Hardware is a device such as processor,
monitor, keyboard, and printer. Together these devices accept data and
information, process it, and display it.
• Computer software technologies. Software is a program or collection of
programs that enables the hardware to process data
• Data resource management technologies, including database management
system software. A database is a collection of related files or tables
containing data.
• Telecommunications network technologies. A network is a connecting
system (wireline or wireless) that permits different computer to share
resources.
• Procedures are the set of instructions about how to combine the above
components in order to process information and generate the desired output.
• People are those individual who use the hardware and software, interface
with it, or use its output.
 Therefore, the term information system can be defined as any
organized combination of people, hardware, software, communication
networks, data resources, and policies and procedures that collects,
stores, retrieves, transforms/processes, analyzes, and disseminates
information in an organization.
 Information Systems Activities
1. Input involves capturing and assembling elements that enter the system to be processed.
For example, raw materials, energy, data, and human effort must be secured and
organized for processing.
2. Processing involves transformation processes that convert input into output.
3. Output involves transferring elements that have been produced by a transformation
process to their ultimate destination. For example, finished products, human services,
and management information must be transmitted to their human users
4. Storage is a basic system component of information systems. Storage is the information
system activity in which data are retained in an organized manner for later use
5. Control. 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.
Capabilities of Information Systems
• Perform high-speed, high-volume numerical computations.
• Provide fast, accurate communication and collaboration within and
among organizations.
• Store huge amounts of information in small space.
• Allow quick, inexpensive access to vast amounts of information
worldwide.
• Interpret vast amounts of data quickly and efficiently.
• Increase effectiveness and efficiency of people working in groups in
one place or around the world.
• Automate semiautomatic business process and manual tasks.
Role of Information Systems in Organizations

The Fundamental Roles of IS in Business.

There are three vital roles that information systems can perform for a
business enterprise.

• Support of its business processes and operations.

• Support of decision making by its employees and managers.
• Support of its strategies for competitive advantage.
 Types of Information Systems
Several types of information systems can be classified as either operations or
management information systems.
Operating Support Systems
Operations support systems produce a variety of information products
for internal and external use.

1. Transaction processing systems(TPS). Process data resulting from business transactions,

update operational databases, and produce business documents. Examples: sales and
inventory processing and accounting systems.

2. Process control systems. Monitor and control industrial processes. Examples: petroleum
refining, power generation, and steel production systems.

3. Enterprise collaboration systems. Support team, workgroup, and enterprise

communications and collaboration. Examples: e-mail, chat, and videoconferencing
groupware systems.
 Management Support Systems
Information system applications focus on providing information and support for
effective decision making by managers

1. Management information systems. Provide information in the form of pre-specified

reports and displays to support business decision making. Examples: sales analysis,
production performance, and cost trend reporting systems.

2. Decision support systems. Provide interactive ad hoc support for the decision making
processes of managers and other business professionals. Examples: product pricing,
profitability forecasting, and risk analysis systems.

3. Executive information systems. Provide critical information from MIS, DSS, and other
sources tailored to the information needs of executives. Examples: systems for easy access
to analyses of business performance, actions of competitors, and economic developments to
support strategic planning.
Other Classifications of Information Systems
• Expert systems. Knowledge-based systems that provide expert advice and act as expert
consultants to users. ESs attempt to duplicate the work of human experts by applying reasoning
capabilities, knowledge, and expertise within a specific domain. Examples: credit application
advisor, process monitor, and diagnostic maintenance systems.
• Knowledge management systems. Knowledge-based systems that support the creation,
organization, and dissemination of business knowledge within the enterprise. Examples: intranet
access to best business practices, sales proposal strategies, and customer problem resolution
systems.

• Strategic information systems. Support operations or management processes that provide a firm
with strategic products, services, and capabilities for competitive advantage. Examples: online
stock trading, shipment tracking, and e-commerce Web systems (Electronic Commerce Systems).

• Functional business systems or Functional area information systems. Support a variety of

operational and managerial applications of the basic business functions of a company. Examples:
information systems that support applications in accounting, finance, marketing, operations
management, and human resource management.
• Information systems that focus on operational and managerial
applications in support of basic business functions such as accounting
or marketing are known as functional business systems.
 Cross-functional informational systems -
provide a variety of functions.
• Enterprise Resources Planning (ERP) systems are designed to correct a lack
of communication among the functional area of information systems were often
developed as a stand-alone systems and did not communicate effectively (if at
all) with one another. Nearly all ERP systems are TPS, but TPS are not all ERP
systems.
• Business Intelligence Systems (BI) provides computer-based support for
complex, non-routine decisions, primarily for middle managers and knowledge
workers.
• Digital Dashboards support all managers of the organization. Provide rapid
access to timely information in the form of reports. Dashboards that are tailored
to the information needs of executives are called Executive Dashboards.
• Supply Chain Management system. Manage flows of products,
services, and information between and among stages in a supply
chain to maximize supply chain efficiency and effectiveness.
• Customer Relationship Management. Support all aspects of a
customers relationship with the organization to increase customer
loyalty and retention, and thus improve its profitability.
 Information Technology in Health Care
• Information technology (IT) greatly enhances a health care provider’s
efficiency.
• It facilities the handling of enormous amounts of information comprising
clinical, administrative, and financial data.
• With the help of IT, all hospital workflows can be precisely documented,
which, in turn, enables their review and optimization. At the same time, IT
facilitates intelligent delivery of patient care, e.g. through automatic data
evaluation and alerts.
• Modern IT systems are thus a key factor for both patient safety and a
hospital’s competitiveness.
• The use of healthcare IT has been steadily growing over recent years.
• Spending on healthcare IT will continue to rise strongly in the coming years
 The role of the IT department
• Healthcare IT professionals manage a hospital’s complex information
environment. Staff within the IT department includes system
administrators , software engineers , and technicians. The chief
information officer (CIO) is responsible for the hospital’s entire IT
system
• Biomedical Informatics is the scientific field that deals with
biomedical information, data, and knowledge – their storage, retrieval,
and optimal use for problem solving and decision making
• Health Care Information Systems is an arrangement of information
(data), processes, people, and information technology that interact to
collect, process, store, and provide as output the information needed to
support the health care organization.
Why Health Care Lags in IT
• Health care information is complex. The data source in health care may include
text, images, pictures, and other graphics. There is no simple standard operating
procedure the provider can turn to for diagnosing, treating, and managing an
individual patient’s care. Terminologies used to describe health information are
also complex and are not used consistently among clinicians.
• Health information is highly sensitive and personal
• Health care IT is expensive, and currently it is the health care provider or
provider organization that bears the brunt of the cost of acquiring, maintaining,
and supporting these systems. It has been very difficult to make a business case
for the adoption of electronic medical records in small physician practices, where
the bulk of health care is delivered.
• The health care system is not a single system of care but rather a conglomeration
of systems, including organizations in both public and private sectors.