Introduction to Information

System
 Information System
• The term information system is frequently used to refer
to the interaction between people, processes, data and
technology.
• This interaction can occur within or across organizational
boundaries.
• An information system is not only the technology an
organization uses, but also the way in which the
organizations interact with the technology and the way in
which the technology works with the organization’s
business processes.
• Information systems are distinct from information
technology in that an information system has an
information technology component that interacts with the
processes components.
 Information System
The Information System consists of four
parts which include:
1. Procedures,
2. Software,
3. Hardware,
4. Information or data.
5. Users
 Software
• Software is a set of instructions that
makes the computer perform tasks. In
other words ,software tells the computer
what to do.
• A program is a set of instructions that tell
the computer how to process data to
produce the required results. (The
program refers to any piece of software.)
 Hardware
The physical components associated with a
computer or other system.
– CPU
– Peripheral Devices
 Data and Information
What is data?
Data is unorganised facts, numbers, letters
and symbols represented in a formalised
manner suitable for communication,
interpretation and processing by humans or
computers.

What is information?
Information is data which has been assigned
a commonly understood meaning.
 Procedures
The rules or guidelines for the running of the
information system and its components.
– System manuals
– Program manuals
 IS in Organizations

• The data in databases is used to build

information, and information---and how it is
used---lies at the heart of every
organization.
• Of course, how useful information is
depends on the quality of it, as well as the
information systems used to distribute it.
 Qualities of Good Information
• Data :
Refers to any and all of the facts that are
collected, stored, and processed by an
information system.

• Information :
Data that have been organized and
processed to provide meaning.
 Qualities of Good Information
5. Understandable
Information is understandable if it is presented in a useful and
intelligible format.
6. Verifiable
Information is verifiable if two knowledgeable people acting
independently would each produce the same information.
7. Accessibility
You can get to it when you need it and in a format you can
use.
 Qualities of Good Information
• Correct and verifiable: This means information must be
accurate and checkable.
• Complete yet concise: Complete means information
must include all relevant data. Concise means it includes
only relevant data.
• Cost effective: This means the information is efficiently
obtained and understandable.
• Current: Current means timely yet also time sensitive,
based on historical, present or future information needs.
• Accessible: This means the information is quick and
easily obtained.
 Types of Information System
There are various types of information
systems, for example:
❖Office information systems
❖Transaction processing systems
❖Management information systems
❖Decision support systems
❖Executive support systems
❖Expert systems
 Office Information Systems
• OIS also called office automation systems, combine
various technologies to reduce the manual labor required
in operating an efficient office environment and to
increase productivity.
• Used throughout all levels of an organization, OIS
technology include fax voice mail, email, scheduling
software, word processing, and desktop publishing, and
other.
• Backbone of an IS is a network: LAN
• All office functions like Typing, Filing, Record
Management, Fax, Copying, Telephone calls are
candidates for integration into the network.
 OIS

Electronic Electronic Electronic Image Office

Publishing Communication Collaboration Processing Management
System System System System Systems

Word-processing Email Electronic Scheduling

Electronic Meeting Multimedia Systems
Video conferencing Task Management
Teleconferencing
 Transaction Processing Systems
• A transaction is a recorded event having to do
with routine business activities like Production,
Distribution, Sales, Orders, Material purchased,
Employees hired, Taxes paid etc
• A transaction may be recorded manually or via a
computer system and includes everything
concerning the product or service in which the
organization is engaged.
• TPS is a computer based information system
that keeps track of the transactions needed to
conduct business.
 Management Information Systems

• A MIS is a computer based information

system that uses data recorded by a TPS
as input into programs that produce
routine reports as output.
 Decision Support Systems
• A DSS is a computer based information system
that provides a flexible tool for analysis and
helps managers focus on the future.
• DSS applications are not single information
resources such as a database of a program that
graphically represents sales figures but a
combination of integrated resources working
together.
• DSS often come close to acting as AI agents.
 Executive Support System
• An ESS is an easy to use DSS made
especially for strategic managers; it
specifically supports strategic decision
making.
• It draws on data not only from system
internal to the organization but also from
those outside, such as news services or
market-research databases.
 Expert Systems
• An expert system or knowledge based system,
is a set of interactive computer programs that
helps users solve problems that would otherwise
requirement the assistance of a human expert.
• Created on the basis of knowledge collected on
specific topics from human specialists.
• Imitate the reasoning process of a human being.
• Examples are:
– MYCIN : helps in diagnosing infectious diseases
– PROSPECTOR: Assess geological data to locate
mineral deposits.
 Marketing Information System

• A marketing information system, or an MIS, is

a system for gathering, storing, analysing and
distributing valuable marketing data to help
marketers make better decisions.
 Marketing Information System

• The input of a marketing information system

focuses on collecting relevant internal and
external data to analyse and interpret.
• The output of a marketing information
system relates to distributing the findings to
all essential internal marketing team members
and managers.
 Components of a marketing
information system
• Internal reports
Marketing managers rely on internal reports
related to customer orders, sales, price
levels, cost, inventory levels, receivable and
payables
 Components of a marketing
information system
• This record becomes a vital source of
information for analysis of sales, inventory
levels, profit margins, credit policy to
customers, etc.
 Components of a marketing
information system
• Marketing intelligence system
The marketing intelligence system is a set of
procedures and sources used by the
managers to obtain everyday information
about marketing environment.
 Components of a marketing
information system
• Marketing decision support system:
A growing number of organizations are
using marketing decision support system to
help the managers in taking better decisions.
 Components of a marketing
information system
• Marketing research:
It is useful for studying and solving different
marketing problems.
 Production Information System

• Production Information System is a network

to generate necessary information and
process it to make various decision related to
some production system.
 Production Information System

• It consists of communication channels and

information processing centers collecting
information from its sources of origin, storing,
updating, collecting and processing it and
supplying the processed information to the
various users of the system.
 Accounting Information Systems

• An Accounting information system is a way of

tracking all accounting and business activity
for a company.

• Consist of six primary components

✓People
✓Procedures
✓Instructions
 Accounting Information Systems
Components
✓ Data
✓Software
✓Information technology Infrastructure
✓Internal Control
 Components of Accounting
Information System
1. The people who operate the system and
perform various functions.
2. The procedures both manual and automated,
involved in collecting, processing, and storing
data about the organization’s processes.
3. The data about the organization’s business
processes.
4. The software used to process the organization’s
data.
 Components of Accounting
Information System
➢The information technology infrastructure,
including computers, peripheral devices, and
network communications devices such as
computers, servers, printers, routers etc.
➢Internal control and Security Measurement
which storing AIS data. Internal Controls are
the security measures it contains to protect
sensitive data such as passwords or biometric
identification.