Information Systems

in Business:
Organizations,
Management and
Networked Enterprise

ITU Management Faculty

Management Information Systems
N. YILDIRIM
 Terminology
 Data
 Streams of raw facts
 Distinct pieces of information, usually formatted in a special way
 Elementary description of things, events, activities, and
transactions that are recorded, classified, and stored, but not
organized to convey any specific meeting
 Information
 Data that has been, processed, organized and shaped so that
they have meaning, use and value to the recipient
 A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves
 Knowledge
 Information that has been organized and processed to convey
understanding, experience and expertise as they apply to a
current problem or activity
 An awareness and understanding of a set of information and
how that information can be made useful to support a specific
task
 concepts, experience, and insight that provide a framework for
creating, evaluating, and using information.
 Information Process
PROBLEM
Measurement

Data

Processing

Information

Analysis Knowledge
Decision
Action

First Outcomes

Follow up
Information Process
Population
Census of
Population
Each citizen
Computing
Population

Calculation of
Population Growth High Population
Comparing with Growth
objectives
Pop.Planning

Public Training

Minor Decrease in Pop.

Population Records
Nr. Of new TC Ids
Terminology
 Process
A set of logically related tasks performed to
achieve a defined outcome
 Process
 (n) An executing program. The term is used
loosely as a synonym of task.
 (v) To perform some useful operations on
data.
Information Technology

Definition:
 the hardware and software and data/information
that is used by a business to achieve its
objectives.
 any machine technology that is controlled by or
uses information for operation
Example: a programmable industrial robot
receiving instructions from a computer-based
database
 Input, Processing, Output,

 Input
 The activity of gathering and capturing data
 Whatever goes into the computer
 Processing
 Converting or transforming data into useful outputs
 Output
 Useful information, usually in the form of
documents and/or reports
 Anything that comes out of a computer
Input, Processing, Output,
Information System Is A System
Input, Processing, Output,
Input, Processing, Output,
Input, Processing, Output,
Input

(n) Whatever goes into the computer. Input

can take a variety of forms, from
commands you enter on a keyboard to
data from another computer or device. A
device that feeds data into a computer,
such as a keyboard or mouse, is called
an input device.
(v) The act of entering data into a
computer
Output

(n) Anything that comes out of a computer. Output

can be meaningful information or gibberish, and
it can appear in a variety of forms -- as binary
numbers, as characters, as pictures, and as
printed pages. Output devices include display
screens, loudspeakers, and printers.
(v) To give out. For example, display screens
output images, printers output print, and
loudspeakers output sounds.
Feedback

 Feedback
 Output that is used to make changes to
input or processing activities
 Feed forward
 A proactive approach to feedback
 Use for estimating future sales or inventory
needs
 Information Systems Components:
Data
Data People
Data People

Information
Information
Systems
Systems

Hardware Telecommunications
Hardware Telecommunications

Software
Software

• The raw inputs for entry into information systems

• Organized, processed and stored by an IS to
support user information needs
• Provides basis for qualitative/quantitative analysis
“Data” as an Information
System Component
(1) Distinct pieces of information, usually formatted in a
special way. All software is divided into two general
categories: data and programs. Programs are collections of
instructions for manipulating data.

Data can exist in a variety of forms -- as numbers or text

on pieces of paper, as bits and bytes stored in electronic
memory, or as facts stored in a person's mind.

Data is the plural of datum, a single piece of information.

In practice, however, people use data as both the singular
and plural form of the word.
“Data” as an Information
System Component
(2) The term data is often used to distinguish binary
machine-readable information from textual human-readable
information.

Some applications make a distinction between data files

(files that contain binary data) and text files (files that contain
ASCII data).

(3) In database management systems, data files are the

files that store the database information, whereas other files,
such as index files and data dictionaries, store administrative
information, known as metadata.
“Data” as an Information
System Component
IT applications cannot be done without using some
kind of data which are at the core of management and
marketing operations. However, managing data is difficult
for various reasons.
An effective IS provides users with accurate (free of
errors), timely (available to decision makers when needed)
and relevant, useful information.
Lack of this type of information is caused by “poorly
organised and maintained” data.
 Data management is ESSENTIAL!
 Types of Data

Data Represented by
Alphanumeric data Numbers, letters, and other characters

Image data Graphic images or pictures

Audio data Sound, noise, tones

Video data Moving images or pictures
 Data Quality

Data quality (DQ) is an extremely important issue since quality determines

the data’s usefulness as well as the quality of the decisions based on the
data. “FITNESS FOR USE”

 Intrinsic DQ: Accuracy, objectivity, believability, and reputation.

 Accessibility DQ: Accessibility and access security.

 Contextual DQ: Relevancy, value added, timeliness,

completeness, amount of data.
 Representation DQ: Interpretability, ease of understanding,
concise (lean) representation, consistent representation.
Data quality is the cornerstone of effective business intelligence.
 Data Quality

Perfect should not be the enemy of “sufficient”

 Not to ensure “perfect” data quality

 To ensure the quality of the data in our information systems to be
 accurate enough,
 timely enough,
 consistent enough
 for the organization to survive and make reasonable decisions
Data quality is the cornerstone of effective business intelligence.
 Nature of Data
 The amount of data increases exponentially with time.

 Data are scattered throughout organizations.

 Data are collected by many individuals using several

methods.
 External data needs to be considered in making
organizational decisions.
 Data security, quality, and integrity are critical.

 Selecting data management tools can be a major

problem.
 Data  Information

Data Transformation Information

Processed Shaped
Raw Facts
meaningful data
 Characteristics of
Valuable Information
 Characteristics
 Accurate
 Complete
 Economical
 Flexible
 Reliable
 Relevant
 Simple
 Timely
 Verifiable
 Accessible
 Secure
Article Readings and Case Studies

 Article : Leitheiser, 2001. “Data Quality in Health

Care Data Warehouse Environments” (Pages 1-
4)
 Article: Rhind, G. 2004 “A data quality solution?
I can’t even see a problem”.

Please read and write an essay that includes your

comments on “any” of these articles !
To be discussed in Week 3, opening session…
Information System –
Definition and Purpose
 An information system consists of components that support
decision making and control, and help with analysis,
visualization, and product creation.

 An information system (IS) collects, processes, stores,

analyzes, and disseminates information for a specific
purpose “Application”.

 Or Collects data, processes it into information then converts

information into knowledge for a specific purpose.

 A set of interrelated elements or components that collect

(input), manipulate (process), and disseminate (output) data
and information and provide a feedback mechanism to meet
an objective.
 Information Systems
Procedures

- A combination of technical components

- Built and used by people to collect, create, and
distribute useful data
- Used typically in organizational settings but are evolving
for personal use
 What is an Information System?
 An information system (IS) collects, processes, stores, analyzes, and
disseminates information for a specific purpose.
 Like any other system, an information system includes inputs (data,
instructions) and outputs (reports, calculations). It processes the inputs
by using Information technology and produces outputs that are sent to
users or to other systems via electronic networks and a feedback
mechanism that controls the operation.

Feedback

Input Processing Output

Model of an information system

 Data  Information

Data Transformation Information

Processed
Raw 331 Coca Cola 1lt 1,45 Shaped
521 Lipton Ice Tea 1lt 1,20 Information Sales Region: Atasehir
Store : BIM meaningful
Facts 332 Rodeo Bar 40gr 0,40
185 Vernel 3lt 5,25
System Item No Description Units Sold
331 Coca Cola 1lt 1 data

Raw data from a supermarket checkout counter can be processed and

organized to produce meaningful information, such as the total unit sales
of Coke or the total sales revenue from Coke for a specific store or sales
territory.
 Data  Information
Data Transformation Information

Sales Region: Atasehir

331 Coca Cola 1lt 1,45 Information Store : BIM
Item No Description Units Sold
Processed
Raw 521 Lipton Ice Tea 1lt 1,20 Shaped
332 Rodeo Bar 40gr 0,40 System 331 Coca Cola 1lt 1
meaningful
Facts 185 Vernel 3lt 5,25
data
Raw data from a supermarket checkout counter can be
processed and organized to produce meaningful information,
such as the total unit sales of Coke or the total sales revenue
from Coke for a specific store or sales territory.
T_Product
T_Supplier
Product Id Product Name Supplier_Id Price (TL)
Supplier_Id Supplier Name Contact Person Address
331 Coca Cola 132 1,45
132 Coca Cola Co. A. Yurt Gebze-
Bottle 1 lt
Kocael
T_Sales T_Store
Sale_I Sale_Date/ Product_I Stor Qty Total
Store_Id Store Name Region_Id Address
d hour d e_Id Sale (TL
255 Ataşehir Ist_1
1355 01/10/2012 331 255 1 1,45
19:30 Computed Data
 Information Systems:
Turn Data into Information
Suppliers ENVIRONMENT Customers

ORGANIZATION

Data

Information
FEEDBACK
Stockholders Competitors
• Raw material Classify • Processed material
• Unformatted information Arrange • Formatted information
Calculate
• Generally has no context • Data given context