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Understanding Data and Information Systems

This document provides an overview of key concepts related to organizational information systems. It defines data as facts collected through experience or observation, while information is processed data placed in a meaningful context. An information system is described as a set of people, procedures, and resources that collects, transforms, and disseminates information in an organization. The five major components of an information system are identified as people resources, hardware resources, software resources, data resources, and network resources.

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118 views27 pages

Understanding Data and Information Systems

This document provides an overview of key concepts related to organizational information systems. It defines data as facts collected through experience or observation, while information is processed data placed in a meaningful context. An information system is described as a set of people, procedures, and resources that collects, transforms, and disseminates information in an organization. The five major components of an information system are identified as people resources, hardware resources, software resources, data resources, and network resources.

Uploaded by

9033986881
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Module 1

organization & Information system

Data
Data refers to facts usually collected as a result of experience, observation, or process within a computer system. Data might be numeric, words or images, particularly as measurement of a set of variables.

Information
Information is processed data, which has been placed in a meaningful & useful context for an end user.
DATA STORAGE

DATA

PROCESSING

INFORMATION

EXAMPLE OF PROCESSING OF DATA INTO INFORMATION


TOTAL DAILY

EXPENSES

WRITE IN A DAIRY
STORED DATA

ADD EXPENSES EACH DAY


PROCESSING

EXPENSE TO
BUDGET
INFORMATION

DATA

Example OF expenses made by a Family:

Total Monthly Income

EXPENSES ON MILK
MONTHLY INCOME
Monthly Expenses On Milk (Input Data)

Proportion Of Income spent on Milk (Output Information)

Difference Between Data & Information


DATA INFORMATION

Knowledge derived from study, Facts, Statistic used for reference or experience & statistics. (EX: Milk analysis. (EX: Expenditure Made) Expenses on monthly basis)

Numbers, Characters, Symbols. Communication of intelligence Which can be processed by a derived from processed output of computer. computer.
Information is nay kind of Data must be interpreted by a Knowledge that is exchangeable human or machine, to derive amongst people, about things, facts, meaning. concepts, etc., in some context.

Categorization of Information
1. Classification on Characteristics:
Action Versus No-Action Information: Information which induces
action is called Action Information. Information which only communicates only the status of a situation is called Non-Action Information.

Recurring Versus Non-Recurring Information: Information which is


generated at regular interval is Recurring Information. Ex: Sales Report. The financial analysis or the report on the market research study is NonRecurring Information.

Internal Versus External Information: information generated through


internal sources are known as Internal Information. Information generated through Government Reports, industry survey is termed as External Information. Timing & Accuracy of Action data should be checked due to outdateness of the data.

2. Classification on Application:
Planning Information: Information which are used in planning of an
activity is called Planning Information. EX: Time Standard, Design Standard.

Control Information: Reporting the status of an activity through a


feedback mechanism is called Control Information.

Knowledge Information: A collection of information through the


library reports & the research studies to build up a knowledge base information. Information can also be classified on the basis of usage. When the information is used by everyone in the organization than it called as organization information. When the information has multiple use & application, it called as Database Information. Information is used for operations of a business it is called as Functional or the operational Information

3. Classification by Management Hierarchy / Level of people & their

Information Needs:
Supervisory Level: Activities are highly programmable & repetitive. The use of
computers are also widespread. EX: scheduling, Daily Planning.

Middle-Level: Managers, Plant Head are responsible for administration &


Coordination. It can be align with top mgmt.

Top-Level: Manager are responsible for overall strategy & policy of orgn.
They are also responsible to interact with outside the organization that is the environment.

Many CEO will retrieve information from IS to take strategic decision.


These enables the organization to make a timely responses to changes in the external environment.

Introduction to Information System


Information system is a set of people, procedure and resource that collects, transforms, and disseminates information in an organization. Information is some tangible or intangible entity that reduces the uncertainty about a state or event. Example: Information that the weather will be good tomorrow reduces our uncertainty about whether or not a baseball game will be played. So, Understanding of Information system is important for managers, business professionals in todays internet worked enterprise.

An Information System can be any organized combination of people, hardware, software, communication networks, and data resources that stores & retrieves, transform, and disseminates information in an organization.

Features of Information System


Accurate & Error free information. Meet objectives of the system.

Information must be gathered from reliable & authenticated


sources. Information system are easily accessible.

While providing accessibility, access security must be maintained.


It must provide timely information when it is needed. Information needs to be made available as per defined frequency. Information should be easily interpret. Ease of usage & understanding.

Need for Information System


1. Meeting Global Challenges: Today world is becoming small place:
the competition faced by a business is no longer limited by national boundaries. Companies therefore strive to produce high-quality goods & services to compete in the market. Globalization provides benefits such as increase profit, market share as well as the challenging threats also. It must effectively coordinate & control products, people and procedures around the world. This requires a great deal of timely, accurate and reliable information.

2. Capturing Opportunities in Marketplace: if company wants


to be successful in the market they have to identify & take advantage of opportunities in the marketplace & can continue to do so over the long-run. Information system that allow a company to identify strategic growth opportunities in the marketplace are known as Strategic Information System. These systems have catapulted some companies to the top of their industries far behind. 3. Enhancing worker Productivity: Help of computers & information systems in business has made them essential tools in many tasks, such as managing shop-floor, evaluating the performance of employees. Computers & Information systems can therefore have significant impact on a companys bottom line.

4. Linking Department whoses functions are different:


Traditionally departments or units with different functions are
called as a separate business entities. Like HR, Finance, Mktg. Often the efforts made were not coordinated or integrated that

will lead to inefficiencies & lost opportunities for the company.


But today most of the organization treat these apparently different departments as part of a cohesive units whose members must work together to achieve the overall goal of organization. IS can bring different functioning units together by coordinating their task & functions.

[Link] Corporate Strategy: company uses 3 basic


strategies to compete successfully in the market; They compete in the market by providing lower cost products. They provide high-quality or unique products that allow them to stand apart from their competitors. Focusing or niche mkt to meet the need of special group. Company can also use these strategy in combination. So IS & Technologies play an important role in the implementation of business strategy.

6. Increasing Quality of Goods & Services: TQM is one of the


most popular & most widely used approaches for enhancing quality in an organization. This decisions requires intensive information to achieve its quality goals by providing right information to right people.

Components / Resources of IS

Model shows that IS depends on five major resources or components:. 1. People Resources: People are the essential ingredient for the successful operation of all information systems it includes: End Users: Also called as clients. They are people who use an information system or information it produces. They can be customers, salesperson, clerks. IS Specialists: people who develop & operate information systems. they are system analyst, software developers, system operators or managerial people. 2. Hardware Resources: it includes all physical devices & material used in Information processing. It not only include machines like computers & equipment nut also intangible objects like paper & optical disk.

Computer Software: it consist of CPU containing microprocessors & Peripheral devices. Example: laptop, desktop, mainframe computer. Computer Peripherals, are devices such as keyboard, mouse for input of data. a video screen or printer for output of information, magnetic or optical disk for storage of data.
3. Software Resources: it includes all sets of information processing instructions. System Software, such as an operating system program, which controls & supports the operations of computer system. Application Software, which are programs that direct processing for particular use of computers by end users. Example: sales analysis program, a payroll program. Procedures, which are operating instruction for the people who will use an information system. Example: instruction for filling out a paper form.

[Link] Resources: the concept of data resources has been broadened by managers & information systems professionals. They realized that data constitute valuable organizational resources. So that should be managed effectively that will benefit organization. Data can take many forms, including traditional alphanumeric data. Text data, consisting of sentences & paragraphs used in written communications. Image Data, such as graphic shapes & figures & video images, and audio data, the human voice & other sounds.

[Link] Resources: telecommunication technologies and networks like internet, intranet, and extranets are essential to the successful electronic business. Telecommunications networks consists of computer communications processors, & other interconnected by communications media & controlled by communication software. Communications Media: include twisted-pair wire, coaxial & fiber-optic cable; and microwave, cellular & satellite wireless technologies. Network Infrastructure: emphasizes that many hardware, software, and data technologies are needed to support he operation and use of a communications network. Example: communications processors such as modems & internetwork processors, and communications control software such as network operating systems & internet browser packages.

Role of Information Systems

Support Competitive Advantage


Support Business Decision Making

Support of Business Processes and Operations

[Link] Business Processes & Operation: As a consumer, you


have to deal regularly with the information system that support the business processes & operations at many retail stores where you shop. Example: most retail stores now uses computer-based information systems to help them to record customer purchases, keep track of inventory.

[Link]

it also helps the business professionals in making better and attempt to gain a competitive advantages. Example: Help mktg manager in taking decision on what lines of merchandise need to be added or discontinues, OR on what kind of investment they require, are typically made after an analysis provided by computerized-based information system.

Decision-Making:

[Link] Competitive Advantage: use of IS will helps


organization in gaining competitive advantage innovatively. Example: store mgmt. might make a decision to install touch-

screen kiosks in all of their stores, with links to their E-Commerce


websites for online shopping. it helps in attracting new customers & build customer loyalty.

Capabilities of Information System


1. Provide fast & Accurate Transaction Processing: company
has to record their day-to-day transaction. It generate data. These data must be accurately & quickly maintained. This process is called Transaction Processing & IS which records, store & update, these data are called Transaction Processing System

2. Provide Large Capacity: it has the capabilities of storing huge


amount of data on a network which can be retrieved & shared on the network.

3. Provide Fast Communication: Network enables organizational


employees & Computers almost instantly around the world.

4. Reduce Information: effectively data can be managed &helping


in making strategic decision to business professionals.

5. Span Boundaries: IS span boundaries inside organization as well


as between organization along entire supply chain. Inside organization, Boundary spanning facilitates decision-making across cross-functional areas and communication. Supply Chain, it facilitates shorten cycle times for product delivery, reduce inventory, and increase customer satisfaction.

6. Provide support for Decision-making: DSS helps decision


makers at every level of organization. DSS, EIS helps to make strategic decision.

7. Provide Competitive Weapon: helps in gaining competitive


advantage over the competitors.

Challenges of Information System


IS has brought revolution in business world for getting its maximum benefits. So business has to restructure & redesign there IS architecture.

1. Globalization Challenges: it deals with identification of business &


system requirements to survive in the globalized economy. So to meet the globalized challenge effectively, one has to develop integrated multinational information system that allow them to create cross-cultural accounting &reporting structure.

2. Information Architecture Challenges: it deals with what should


be the architecture design of the IS to achieve overall goal of the organization. Many company could not achieve due to incompatibility of hardware, software & information system.

3. Strategic Business Challenges: it deals with how to get maximum


profit from IS to make an organization competitive & effective.
In India, when most of the new hardware &software it becomes outdated in rest of the world.

So India has to redesign their Information Technologies to compete.

4. Responsibility &Control Challenges: one has to see that IS are


ethical & socially responsible & can the system be controlled or not controlled by the people? One has to give special attention to ensure that is, are accurate, reliable, secure & protect correct information. IS should be such that it protects the right of privacy, job security of the employees and so on.

Decision Making Process: Herbert Simon


Phase1 Intelligence: search for & identify conditions requiring a
decision. IS should scan the internal organization & the external environment & help identify problems & opportunities.

Phase-2 Design: Develop & Evaluate alternative courses of action.


Information system should help generate & evaluate decision alternatives.

Phase-3 Choice: select a course of action & monitor its implementation.


Information system should help emphasize & prioritize decision alternatives & provide feedback on the implemented decision.

Common questions

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Telecommunications networks are vital components of information systems, as they facilitate fast and efficient communication across and beyond organizational boundaries. They consist of various technologies, including twisted-pair wire, coaxial and fiber-optic cables, and satellite wireless technologies, which support seamless data transmission . These networks enable real-time communication and data sharing, improving coordination and collaboration among different departments and with external partners. As a result, telecommunications networks significantly enhance organizational efficiency by reducing communication delays, cutting operational costs, and improving decision-making processes .

Data refers to raw facts or figures collected as a result of experience, observation, or process, usually in a computer system. Information, on the other hand, is processed data that has been placed in a meaningful and useful context for an end user, transforming it into knowledge that can aid decision-making . This distinction is crucial because data, being raw and uninterpreted, doesn't directly contribute to decision-making until it is processed into information, which can then be used to analyze situations, make informed choices, and guide actions .

The key components of an information system include people resources, hardware resources, software resources, data resources, and network resources. People resources involve end users and information system specialists who develop and operate the systems. Hardware resources include physical devices used for information processing, such as computers and peripheral devices. Software resources encompass system software and application programs that manage and execute computing tasks. Data resources are the organized collection of facts and figures essential for operations, and network resources consist of telecommunications technologies facilitating data exchange . These components integrate by supporting data processing, storage, retrieval, and dissemination across the organization, thereby maintaining efficient operations and informed decision-making .

Information systems enhance worker productivity by automating routine tasks, which allows employees to focus on more complex activities that add value to the company. They also provide managers with tools to measure and evaluate employee performance, leading to better resource allocation and workforce management . For supporting corporate strategy, information systems play a crucial role by providing data analytics and insights that help shape strategic goals and objectives. This includes competing through cost leadership, differentiation, or serving niche markets, all of which require coordinated information support to achieve competitive advantage .

Strategic information systems are designed to help companies identify and leverage strategic growth opportunities in the marketplace, thereby catapulting them ahead in their industries. They enable organizations to quickly gather, process, and analyze market data, providing insights into consumer needs and competitive trends that inform strategic planning and decision-making. This capability positions a company to outmaneuver competitors by introducing innovative products and services, optimizing operations, and capturing new market segments, which are pivotal for long-term organizational success .

Different levels of management require different types of information systems due to their varying responsibilities and decision-making needs. At the supervisory level, information systems focus on highly programmable and repetitive activities, with a widespread use of computers for scheduling and daily planning . Middle management deals with administration and coordination, thus requiring systems that align departmental activities and support managerial functions. Top management handles strategy and policy and interacts with external environments, necessitating information systems for strategic decision-making and timely external environmental responses .

Information systems face several challenges in a global environment, such as differing business and system requirements, cultural differences, data security, and technological incompatibilities. To address these, organizations can develop integrated multinational information systems that accommodate cross-cultural differences and support unique business models across regions . Ensuring data security and privacy can be achieved by implementing robust cybersecurity measures and adhering to global standards and regulations. Additionally, employing adaptable and interoperable technologies can mitigate compatibility issues, ensuring seamless operation across diverse technological landscapes. Regular training and awareness programs can help in managing cultural and compliance differences effectively .

According to Herbert Simon's model, information systems support decision-making through three phases: intelligence, design, and choice. In the intelligence phase, information systems scan both internal and external environments, identifying conditions that require decisions and presenting opportunities . During the design phase, they aid in developing and evaluating alternative courses of action by providing simulations, models, and analyses. In the choice phase, information systems prioritize alternatives and offer feedback on the implemented decisions, helping managers assess outcomes and make necessary adjustments to optimize results .

Information systems provide a competitive advantage by enabling companies to innovate and differentiate their offerings effectively. They support business processes that lead to operational efficiencies and customer-focused strategies. Actions such as installing touchscreen kiosks linked to e-commerce platforms can enhance customer service, attract new customers, and build loyalty . Companies can analyze market trends and consumer behaviors to anticipate changes and respond with tailored strategies, thereby maintaining a competitive edge. Information systems also support data-driven decision-making, helping companies to be proactive rather than reactive in the marketplace .

Information systems contribute to innovation and efficiency in supply chain management by facilitating real-time information flow and coordination among various stakeholders. They shorten cycle times for product delivery and reduce inventory by enabling precise demand forecasting, production scheduling, and inventory control . Systems spanning organizational boundaries enhance collaboration and decision-making across the supply chain, improving supplier relationships and customer satisfaction. By leveraging shared data and communication technologies, organizations can streamline operations, reduce costs, and respond swiftly to market changes, resulting in a more agile and resilient supply chain .

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