AIS 1

Information System - combined set of modules for gathering,

processing, and storing data and delivering information and
digital products. It focuses on the development of THREE COMPONENTS OF BUSINESS PROCESS
technological innovations. 1. Information Process - portion of IS that is closely
Data - came from the latin word datum which means raw, related to a specified business process, includes the
unorganized, and unprocessed facts. staff, employee, management, and customer.
Information - a refined, structured, and organized data. A 2. Operation Process – a man-made IS consists of
process is required to transform data to information. people, policies, procedures, and equipment whose
 A business organization’s main reason for collecting main objective is to accomplish a certain goal. It
data is to monitor and improve performance. includes those from human resources and those who
System - a collection of parts that interact, interconnect, and are task with product distribution.
work together to accomplish certain objectives. 3. Management Process - to plan, manage, and control
Subsystem - A part of a whole system that has its own area of the overall operations of a business organization. It
immediate focus. includes activities concerning planning and decision
TYPES OF SYSTEMS making such as creating new policies and procedures
Natural Systems - made by nature. on delivering products to customer.
Man-made System - designed, developed, and implemented Information Technology - any technological or computer-
by human beings. based tool.
COMPUTER SYSTEM Information System - is about how you use those tools to
Input - Users are required to input data into a specific solve problems, manage data, and help a business run. It
program or computer system using input devices such as a collects, stores, retrieve, manages, disseminates, analyzes
keyboard, mouse, scanner, and so on. processes data to facilitate business organization’s operational
Process - every computer has a microprocessor. CPU is the functions and support management in making decisions
brain of a computer; it controls all activities and handling CAPABILITIES OF AN INFORMATION SYSTEM
input/output operations. 1. Processes transactions quickly and precisely - such as
Output - result after data processing, usually presented point of sale (POS).
externally using output devices such as printers, monitors and 2. Organizing storage with high capacity and fast access
speakers. – vast, fast and easy access storage.
Storage - help users keep data, information, and instructions 3. Efficiently communicating through a network -
from specific programs. strong communication features to quickly share
Feedback & Control information between computers or users. Networks
TYPES OF STORAGE help employees easily communicate and send text,
1. Primary Storage Device - includes Random-Access audio, video, and documents at the same time.
Memory (RAM) and Read-Only Memory (ROM). It 4. Easing information overload for users - IS should be
is also called internal memories, which can be designed to analyze problems and support decision-
accessed by processor anytime. making.
2. Secondary Storage Device - any alternative storage. 5. Supporting decision- making – a popular IS is the
It allows users to store data, information, files, and Decision Support System (DSS), which helps users at
programs temporarily for future use. all levels, including lows levels make decisions and
INFORMATION SYSTEM share information within a business.
o A man-made system which collects, stores, retrieves, 6. Serving as a competitive weapon against competitors
processes, manages, disseminates and analyzes - IS are now seen as valuable tools that is profit
information. It operates within a specific maker in means competitive advantages, allowing
environment, and it included IPO. travel agencies to integrate their systems with others
Master Data – relative permanent data stored in IS for a and work more efficiently with suppliers.
long time. Core details that the system always needs to 7. Big and small groups to unite the organization -
know and keep up to date, includes customer and allows organizations or parts of them to come
employee master data. together toward achieving a common goal or
TYPES OF UPDATES objective.
1. Information Processing - data processing functions 8. Improving memory, learning, and exploration -
that are commonly related to internal operations practices and knowledge in the past have vast
economic and financial activities. influences on current organizational operations or
2. Data maintenance - functional activities such as activities.
adding, saving, deleting, updating, retrieving, and 9. Process of separating products and services - helps a
editing data from the master data. business figure out how to manage its physical
products and intangible services separately.
AIS 1
10. Automating business processes - labor-saving  Decision Support Systems (DSS) Decision Support
technology for automating processes, reducing costs, Systems (DSS) Senior Managers - a computer-
and speeding up work. based application that helps in solving problem
including issues on raw data, documents, employee
and company profiling. It is responsible for
BASIC COMPONENTS OF COMPUTER-BASED IS delivering information to managers.
1. Hardware - consists of the system’s physical devices o Medical Diagnosis
2. Software - set of computer programs that can control o Business Management
the overall operation of the computer system. o Forest Management
o Software System - a program that controls the overall o Railroad Projects
operations of a computer such as File Managing o Financial Verification
Utilities and Operating Systems Specific uses for Decision Support Systems (DSS) in Business
o Software Application - an end-user program, A.K.A o To manage inventory
productivity program. Specifically designed to o To aid sales optimization and sales projections
answer the needs of its users. o To optimize industry-specific systems
3. Database - a collection of related files and records
 Executive Information Systems (EIS) Executives –
that are stored in a special location for easy access.
a specialized DDS. It provides easy access to
4. Networks - a connection of two or more computers
valuable information necessary to achieve
established for the purpose of sharing various data.
organizational goals. Four components:
o Local Area Network
1. Hardware -
o Metropolitan Area Network 2. Software – controls the hardware
o Wide Area Network 3. Telecommunications – process of
5. Procedures - the rules, policies, and methods that transmitting data from one location to
administer the operation of a computer system. They another and facilitating communication.
are as significant as people using the system. 4. User Interface – when a person deals with
6. People - the most crucial component of IS. They are system, how she accesses it and her
the people who work with an Information System to experience, typically user-friendly.
produce useful outputs. Information System Security - protecting Information and
OTHER COMPONENTS OF CBIS IS’s from malicious software and unauthorized access, use,
1. Telecommunications - the electronic transmission of disclosure, modification, disruption, or destruction.
information within a specific distance. Information Security Management - the process of
2. Internet - largest type of network that allows users to identifying the security controls to keep and defend
share information worldwide. information assets
3. WWW - accessible through the Internet, it consists of
multimedia collections that are stored in a particular
database of CBISs.

OTHER TYPES OF INFORMATION SYSTEM

 Transaction Processing Systems (TPS) Workers-
also known as real-time processing system. It is an IS
for all types of business transactions. It captures,
stores, classifies, maintains, updates, and retrieves
transaction data. The data is placed in warehouse.
o Quality performance
o Reliability
o Consistency.
 Management Information Systems (MIS) Middle
Managers - consists of hardware and software
applications that support all organization business. It
collects raw data to analyze and process and report
these data to assist and serve in decision making.
Functions of MIS
o Data collection and storage
o Data processing
o Data management