INFORMATION

MANAGEMENT
Introduction to Information
Management
History of Java Programming Language
 Information System (IS)

• a structured combination of people, processes,

hardware, software, and data designed to
collect, process, store, and share information.
 Information System (IS)

PEOPLE
• These are the users who interact with the system. They
input, manage, and utilize the information

PROCESSES
• the methods and procedures that dictate how data is
collected, processed, and shared.
 Information System (IS)

HARDWARE
• These are the physical devices used in the system such as
computers, servers, storage devices, and network equipment.

SOFTWARE
• These are the applications and programs that run on the
hardware. Software helps automate processes, manage data,
and provide tools for users to interact with the system.
 Information System (IS)

DATA
• the raw material of an IS

• the actual information that is collected, processed, and

stored.

• Data can be anything from customer details and financial

records to transaction logs and inventory levels.
 INFORMATION CONCEPTS

1. DATA

2. INFORMATION

3. KNOWLEDGE
 INFORMATION CONCEPTS

1. DATA

• Data refers to raw, unorganized facts and figures that are

collected from various sources. It represents the basic input that
can be processed to generate meaningful information.
 INFORMATION CONCEPTS

2. INFORMATION

• Information is data that has been processed, organized, and

structured in a way that adds meaning and context, making it
useful for analysis and decision-making.
 INFORMATION CONCEPTS

3. KNOWLEDGE

• Knowledge is the understanding of how to use information

effectively to support tasks and decisions. It involves the ability to
recognize patterns, draw conclusions, and apply information in
a practical way.
 3 FUNDAMENTAL ROLES OF IS

1. Support of Business Processes and Operations

2. Support of Business Decision Making:

3. Support of Strategies for Competitive Advantage

 3 FUNDAMENTAL ROLES OF IS

1. 1. Support of Business Processes and Operations:

• Information systems help in managing and automating

daily business activities and operations. These systems are
crucial for ensuring smooth and efficient operations in any
business.
 3 FUNDAMENTAL ROLES OF IS

2. Support of Business Decision Making

• Information systems assist business professionals in making

informed decisions by providing detailed, processed data
and analyses.
 3 FUNDAMENTAL ROLES OF IS

3. Support of Strategies for Competitive Advantage

• Information systems can be leveraged strategically to give

a company a competitive edge over its rivals by offering
unique products or services that others do not.
 The Role of e-Business in Business

What is E-Business?

• refers to any business activity conducted online using

the internet and digital technologies.

• The term "e-business" was first used by IBM in 1996.

 The Role of e-Business in Business

What is E-Commerce?

• a specific subset of e-business that involves the

buying and selling of products or services over the
internet.

Ex: Shopee
 The Role of e-Business in Business
1. Reduced Business Costs
• No Physical Presence- cuts down on rent, utilities, and maintenance costs.
• Cost-Effective Marketing- Digital marketing strategies over traditional
• AI and Automation- handling repetitive tasks, saving time and reducing
labor costs.

2. More Efficient Marketing

• Search Engine-Driven- improving a business's visibility on search
engines
• Targeted Marketing- Focusing marketing efforts on specific segments
using data and analytics.
 The Role of e-Business in Business
3. Centralized Data
allow for secure storage of large amounts of data using cloud
hosting

4. Improved Inventory Control

E-businesses can automate inventory management, order
processing, and payment acceptance.
 The Role of e-Business in Business
5. Superior Customer Experience
E-business solutions like Customer Relationship Management (CRM)
software help businesses better manage customer interactions.

6. Higher Revenue
E-business strategies, including data-driven marketing and CRM
software, contribute to business growth.
System Concepts in Information Systems

the general principles and frameworks

that describe how a system operates and
interacts with its components and the
environment
 System Concepts in Information Systems
TECHNOLOGY

refers to the hardware, software, networking, and data

management tools that enable the creation, storage, processing,
and sharing of information.

APPLICATIONS

the specific software solutions and tools designed to perform tasks

or solve problems for users and businesses.

- Business applications- ERP

- Productivity applications- Microsoft Office Suite
 System Concepts in Information Systems
DEVELOPMENT

refers to the process of designing, building, testing, and

implementing technological solutions to meet specific business or
organizational needs.

MANAGEMENT

involves planning, organizing, and overseeing the effective use of

technology to ensure alignment with organizational goals while
maintaining quality, security, and strategic value.
 BASIC SYSTEM FUNCTIONS
INPUT
Collecting resources like data, materials, or human effort to feed
into the system.

PROCESS
Transforming inputs into meaningful outputs

OUTPUT
Delivering processed results to users or destinations.
 Strategic Information System

a type of information system that helps organizations

achieve long-term goals and gain a competitive edge.

designed to support and enhance an organization's

business strategies by leveraging information technology.
Importance of Strategic Information System

support an organization's overarching business

strategy. These systems are not just about
managing data or automating tasks; their main
purpose is to align the use of technology with the
goals of the business
Importance of Strategic Information System

SIS enables the integration of data systems and

their functions within an organization, making it
easier to manage and utilize data to support
business goals.
Importance of Strategic Information System

SIS allows for the classification of different

opportunities for the use of information systems
for different strategies, ensuring that resources
are allocated effectively.
Importance of Strategic Information System

SIS ensures that only useful resources are

allocated to applications, and scarce resources
are used in a sustainable way.
 Characteristics of Information System Strategy

IS strategy considers what information is needed at

strategic, tactical, and operational levels to meet the
organization's objectives.

- industry forecasts
- customer behavior insights,
- financial performance metrics.

Strategic level- (e.g., expanding to new markets)

Tactical level- Medium-term planning (e.g., allocating resources for a specific project).
Operational level- Day-to-day decisions
Characteristics of Information System Strategy

The IS strategy must deliver measurable

benefits, such as increased operational
effectiveness and higher profits.
Characteristics of Information System Strategy

It involves interconnecting the organization’s

activities to collect, process data, and
provide essential information.
Characteristics of Information System Strategy

This strategy supports existing strategies or

helps develop new strategic choices.
Characteristics of Information System Strategy

Focuses on how the organization’s functions,

divisions, and strategic business units can
perform effectively.
Characteristics of Information System Strategy

Meets the specific demands and needs of

the organization.
 Uses of Strategic Information System

Creating hurdles for the entry of a competitor

- Orgs can develop products and services

that are difficult to replicate. These systems
often support specialized business networks,
making it costly for new competitors to enter
the market.
 Uses of Strategic Information System

Improving marketing by generating a database

- Strategic information systems help businesses gain

a competitive edge by organizing and analyzing
customer data. By maintaining strong databases,
firms can track customer purchases, identify
market segments, and refine their sales and
marketing strategies.
 Uses of Strategic Information System

Locking customers and suppliers

- a strategic business approach where companies

use information systems, exclusive services, or
long-term agreements to make it difficult for
customers and suppliers to switch to competitors.

- increases customer loyalty, strengthens supplier

relationships, and creates a competitive advantage.
 Uses of Strategic Information System

Lowering the costs of the products

- a strategic approach where businesses use

technology, automation, efficient supply chain
management, and economies of scale to reduce
production and operational costs.
 Uses of Strategic Information System

Leveraging technology in the value chain

- In this way, the organizations pinpoint the

particular activities in the business, where
competitive market strategies can be applied and
where the strategical information systems can be
more effective
 How would you do it?

- Inbound Logistics

- Operations

- Outbound Logistics

- Marketing and Sales

- Service
Pyramid Diagram of Organizational Levels and

information Requirements

Understanding the various levels of an

organization is essential to understand the
information required by the users who
operate at their respective levels.
 Operational Management Level (Day-to-Day
Transactions)

concerned with performing day to day business

transactions of the organization.

This means that they have defined rules that

guides them while making decisions.

cashiers at a point of sale, bank tellers, nurses in a

hospital, customer care staff
 Transaction Processing System (TPS)

used to record day-to-day business transactions

of the organization. They are used by users at
the operational management level.
 Examples of TPS

Point of Sale Systems – records daily sales

Payroll systems – processing employee salary, loans

management, etc.

Stock Control systems – keeping track of inventory levels

Airline booking systems – flight booking management

 Tactical Management Level (Middle Management)

This level is dominated by middle-level managers,

heads of departments, supervisors, etc.

oversee the activities of the users at the operational

management level.

make semi-structured decisions

 Management Information System (MIS)

used by tactical managers to monitor the organization's

current performance status. The output from a TPS is used
as input to a management information system.

- aggregation, comparison, summarization

Aggregation- the process of collecting and combining
data from different sources to create a summary.

Comparison- contrasting data from different time

periods, locations, or other relevant categories to identify
patterns or changes.

Summarization- involves creating concise reports from

detailed data.
 Examples of MIS

Sales Management Systems – they get input from the POS

system

Budgeting Systems – gives an overview of how much

money is spent within the organization

Human Resource Management System – overall welfare

of the employees, staff turnover, etc.
 Strategic Management Level (Top Management)

the most senior level in an organization

The users at this level make unstructured

decisions.

concerned with the long-term planning of the

organization. They use information from tactical
managers and external data to guide them when
making unstructured decisions.
 Strategic Management Level (Top Management)

WHAT SYSTEM IS USED AT THE STRATEGIC LEVEL?

 Decision Support System (DSS)

used by senior management to make non-routine

decisions. Decision support systems use input from internal
systems (transaction processing systems and
management information systems) and external systems.
Data Collection- Gathers internal & external data

Analysis & Risk Assessment- Evaluate trends, risks, and potential

outcomes.

Scenario Simulation ("What-If" Analysis)- Tests different strategies to

predict results.

Decision Support & Recommendations- Provides insights and best

course of action.

Executive Decision-Making- Helps top management make informed,

long-term decisions.
Data Collection- Gathers internal & external data

Analysis & Risk Assessment- Evaluate trends, risks, and potential

outcomes.

Scenario Simulation ("What-If" Analysis)- Tests different strategies to

predict results.

Decision Support & Recommendations- Provides insights and best

course of action.

Executive Decision-Making- Helps top management make informed,

long-term decisions.
 Examples of DSS

Bank Loan Management Systems

Banks need to assess the risk of lending to individuals or

businesses. A DSS can analyze credit scores, financial
history, and other data to help make this decision.
 ASSIGNMENT

What is an Online Analytical

Processing (OLAP)?

Provide examples