CST1300:

Foundations of
Informatics
 Lecture 2: Introduction to
Information Systems
Lecture objectives:
Define key concepts and terms
Differentiate between data, information and
knowledge
Attributes and qualities of information
Information systems and business functions
The role of business information systems in
organisations
Describe various types of information systems
and their respective functions
 Defining Information Systems
• Information systems can broadly be defined as:
Systems that capture, transmit, store, retrieve, manipulate or
display information used in one or more business processes
• A computer based information system is:
A type of IS that relies on computer hardware, computer
software, telecommunications network technologies and data
resource management technologies
• Can you provide a definition of a business
information system?
• Why are business information systems important
for modern organisations?
 Defining Information Systems
Components of computer-based information systems:-
• People
• Processes
• Procedures
• Organisations
• Software
• Hardware
• Networks
Can you identify any more components of computer-
based information systems?

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 Defining Information Systems
• Information Systems Transform Data into Information
– They add value through selection, organisation and
manipulation of data
• Information Systems Transform Input into Output
– Transforming through various processes
• Input-Process-Output (I-P-O) involves:-
– Capturing and gathering raw data (I)
– Converting or transforming data into outputs (P)
– Generating useful information in the form of
documents, reports and transaction data (O)

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 Definition of Data

Data is often defined as:

1. Raw facts
2. The record of an Event

Examples of data can include:

• A measurement taken on a production line
• A record of a sale
• A record of an order
• A record of a deposit or withdrawal of money
 Data Types

Data Types Represented by

Alphanumeric data Numbers, letters and other

characters
Image data Graphical images or
pictures
Audio data Sound, noise or tones

Video data Moving pictures or images

 Definition of Information

 Interpretation of data (facts that are

organized or arranged in a meaningful
manner)
 Data that has been processed so that they are
meaningful
 Creating Information

The transformation process

Data (applying knowledge by Information
selecting, organising and
manipulating data)
 Examples of Data Processes

Transformation Processes

Classification
data Sorting information
Aggregating
Calculating
Selecting
 Data Information
• A date
• A bank statement
• The number 1355.76
• A balance sheet
• A bus timetable
• A car registration plate
 Quality of Information

  Clarity
Timely
  Detail Form
Current Time
  Presentation
Frequent

 Reliable
 Accurate
 Complete Content
 Relevant
Attributes of Information Quality
• Time dimension – describes the time period that the
information deals with and the frequency at which the
information is received
• Content dimension – describes the scope and
contents of the information
• Form dimension – describes how the information is
presented to the recipient

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Characteristics of valuable information

Accurate Simple
Complete Timely
Economical Verifiable
Flexible Accessible
Reliable Secure
Relevant

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 Categories of Information
in Organisations
3 main categories of information used in
organisations:-
Strategic Information: Assists senior management
to plan the organisation’s long term course of action

Tactical Information: Assists middle management

to supervise and coordinate (control and organise)
day to day business activities
Operational Information: Assists in dealing with
day-to-day production and services
Categories of Information in
Organisations

Strategic Plan long term action

information

Control and organise

Tactical day to day activities
information

Operational Deal with day to day

information production & services
Data  Information  Knowledge
• If Data = raw facts
• And Information = collection of facts organised
in a way that has additional value
• Then, what is Knowledge?
• Knowledge = guidelines and procedures used to
select, organise and manipulate data to make it
suitable for a specific task
• Can you provide your own examples of
knowledge?
• What is the benefit of knowledge over data?

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IT Architecture and IT Infrastructure
IT architecture A high level map or plan of the information
assets in an organisation. States how all aspects
of the IT in an organisation fit together to fulfil
the organisation’s business needs for
information.
IT Infrastructure IT infrastructure is all the hardware, software,
databases, telecommunications, people and
procedures that are configured to collect,
manipulate, store and process data into
information.
Today's managers must know how to arrange and coordinate the
various computer technologies and business system applications
to meet the information needs of each level of the organization,
and the needs of the organization as a whole
 Information Architecture
& IT infrastructure

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 Information Systems and
Business Strategies
• Important to align the IS strategy with
general business strategies and objectives.
• An IS strategy can be developed by adopting
a general framework, which focuses on an
iterative five-stage model. Each stage poses
a single question:

1. Where We Were? (W3) – the past

2. Where We Are? (W2R) – the present
3. Where We Want To Be? (W32B) – the future
4. Going To Get There? ((GT)2) – the plan
5. Where We Went Wrong? (W4) – the review
 Information Systems and
Business Functions
Information Systems are designed to support the following
functions within typical business organisations:-

 Accounting  Human Resources

 Finance  Manufacturing
 Sales  Production
 Marketing

• Can you provide more examples of business functions

supported by information systems?
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 Information Systems and
Business Functions
• Each functional area or department within an
organisation will make use of several application
programs, e.g. HR department that may use one
application program for screening job applications and
another for monitoring employee turnover.
• A departmental information system is a collection of
application programs in a single department. For
example the collection of application programs in the
marketing department is called a Marketing Information
System.
• Can you come up with specific scenarios how busness
information systems can support specific processes in
an organisation?

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 Role of Information Systems in
Business Organisations
3 vital roles that IS can perform for a business organisation:
1. Support its strategies for competitive advantage
2. Support decision making by its employees and managers
3. Support its business processes and operations

An organisation may employ a number of different types of

IS in order to support management to:
– Plan the organisation’s long term course of action
(strategic management)
– Supervise and coordinate, i.e. control and organise the
day to day business activities (tactical management)
– Assist in dealing with the day to day production of goods
and provision of services (operational management)
Different types of Information Systems
commonly found in Organisations.

Executive IS Executives

Expert Systems (ES) Strategic Knowledge

Decision support systems (DSS) Management Workers

DSS
Tactical Management Middle managers
Data Mining and ES
Management IS (MIS) (tactical decisions)

Office Automation Systems Low level managers

MIS (Operational decisions)
Operational Management
Clerical staff

Enterprise Resource Planning System (ERPS)

Transaction Processing Systems (TPS)
Sales Finance Manufacturing HR Accounting
Managerial Decision Making
• Operational level – short-term planning / structured decisions
• Tactical level – mid-term planning / semi-structured decisions
• Strategic level – long-term planning / unstructured decisions

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Managerial Decision Making

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Decision Making Processes

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 Classes of Information Systems
Information
Systems

Support of Operations Management Support of

Business Support Support Managerial
Operations Systems Systems decision making

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems

Processing Control of Team and Pre-specified Interactive Information

Business Industrial Group work Reporting Decision Tailored for
Transactions Processes Collaboration For managers Support Executives

• Operations information systems support business operations.

• Management information systems provide information and
support for decision making by managers.
Types of Information Systems
• Transaction Processing Systems – record business
transactions and exchanges
• Management Information Systems –provide routine
information to managers and decision makers
• Decision Support Systems –support problem-specific decision
making
• Enterprise Resource Planning Systems –integrate all facets of
the business, including: planning, manufacturing, sales, and
finance, via a common database, so that they can become
more coordinated by sharing information with each other.
• Expert Systems –give computers the ability to make
suggestions and act like an expert consultant in a particular
field. Also known as Knowledge-Based Information Systems
• Electronic Commerce Systems – internet-based systems that
enable organisations to conduct transactions, e.g. as
business-to-business (B2B) or business to consumer
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Challenges and Issues in BIS
1. How can organizations determine the business value of information
systems?
2. How can businesses use information systems to become strategically
competitive? Digital economies, digital relationships with customers,
suppliers and employees.
3. How do information systems transform organisations? [flattening,
decentralisation, location independence, collaborative work]
4. How do information systems transform industrial economies . New
products and services [e.g. information and knowledge-based]
5. Globalization : Management, control and competition in global markets.
Global work groups . Global supply chains.
6. How can organizations develop an information technology infrastructure
that can support their goals when technologies are changing so rapidly?
7. How can organizations ensure that their information systems are used in
an ethically and socially responsible manner?

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Roles in Information Systems
• System owners (i.e. primary, secondary, tertiary)
• System users (i.e. internal, external, remote user)
• System designers (i.e. database, networks, integration)
• System developers (i.e. programming, deployment, maintenance)

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