IT for Managers – I

Information System Concepts

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 Understanding Data & Information
What is data ?
 Data refers to facts
 Data can be not only be numeric but also text, image or
voice

What is information ?
 Information refers to data having meaning within a given
context i.e. useful or relevant data
 Information is a concept unique with reference to its
receiver i.e. the same data may convey different information
to different persons
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 Data / Information / Knowledge / Wisdom

Information
Association with
Data
one context
No
Association

Wisdom – Creation of generalized

Knowledge – Association
principles based on existing
with multiple contexts 3
knowledge from different sources
 What is a System?

Generic Defn: A set of inter-related objects to

achieve a common objective

IS Defn: A group of interrelated components working

together toward a common goal by accepting
inputs and accepting outputs in an organized
transformation process

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 General Model of a System

Internal
External
Environment
Environment

Input Output
Process

Feedback
Boundary
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 Basic System Components

 Input
Capturing and assembling elements that enter the system to be
processed. Ex: raw materials, energy, data
 Processing
Involves transformation processes that convert input into output.
Ex. Manufacturing processes, mathematical calculations
 Output
Involves transferring elements that have been produced by a
transformation process to their ultimate destination. Ex: finished
products to their human users

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 Additional Components

 Feedback
Data about the performance of a system. Ex: Data
about sales performance is feedback to a sales manager
 Control
Monitoring and evaluating feedback and control
components to determine whether a system is moving
toward the achievement of its goal. Ex. Reassigning
salespeople after evaluating their performance

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 Other Characteristics

 Environment
Other systems that the system interacts with
 Subsystem
A system that is a component in a larger system
 Interface
Means in which a system is connected to another
 Open system
A system that interacts with other systems in its environment
 Adaptive System
A system that has the ability to change itself or its environment
in order to survive

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Characteristics of a System

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 Diagram of a System

Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products
System Boundary
Other Systems
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 Types of Systems

1. Open or Closed Systems

2. Deterministic or probabilistic Systems
3. Man-made Information Systems

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 Man-made information Systems

 Formal Information Systems

 Informal Information Systems
 Computer based Information Systems

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 CBIS in an Organisational Context
Planning, Controlling & Decision Making Decision Making

MIS DSS

DATA Computer Application Program

TPS OAS

Sales, Receipt 13
Clerical Tasks
The Hierarchical View of CBIS

Top
mgmt DSS

Middle
MIS
Management

First Line Management

TPS

Clerical Personnel OAS

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 What are Information Systems (IS) ?
 Group of elements organized with the purpose of
supporting management and operational decision making
 Integration of human and IT that helps in providing
information for operational and strategic decision making

The term IS is normally used when:

1. The organisation is being considered as a whole with
respect to its information requirements and information
utilization
2. The reference is made to the total apparatus for handling
the information within the organisation in all respects

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Information Systems

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 Components of an IS

 Four major concepts

– People, hardware, software, data and networks are the
five basic resources of information systems
– People resources include end users, IS specialists,
hardware resources consist of machines and media,
software resources include both programs and
procedures, data resources can include data and
knowledge bases, and networks include
communications media and networks

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 Components of an IS

 Four major concepts continued…

– Data resources are transformed by information
processing activities into a variety of
information products for end users
– Information processing consists of input,
processing, output, storage, and control
activities

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Information System Resources

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 Information System Resources

 People Resources
– End Users – the people who use an information
system or the information it produces. Ex:
Accountants, salespeople, customers
– IS Specialists – the people who develop and
operate information systems based on the
requirements of end users. Ex: programmers,
analysts, system operators

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 Information System Resources

 Hardware Resources
– Machines, such as computers and other devices,
and media, such as paper, disks
– Computer Systems such as the personal
computer (desktop), mainframe, or laptop
– Computer peripherals such as keyboard, mouse,
monitor, scanner, printer, disks

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 Information System Resources

 Software Resources
– Programs – sets of operating instructions that
direct and control computer hardware
– Procedures – sets of information processing
instructions that people need

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 Information System Resources

 Software Resources continued

– System Software – such as operating system that
supports the operations of a computer system. Ex.
Windows 98
– Application Software – programs that direct processing
for a particular use of computers by end users. Ex.
Excel
– Procedures – operating instructions for people who will
use an IS. Ex. Instructions for filling out a form.

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 Information System Resources

 Data Resources
– Types of data
 Text data
 Image data
 Audio data
– Data Storage
 Databases – hold processed and organized data
 Knowledge bases – hold knowledge in a variety of forms such
as facts, rules, and case examples of successful business
practices

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 Information System Resources

 Data Resources continued…

– Data Vs. Information
 Data – raw facts or observations, objective

measurements of the characteristics of entities such

as people, places, things and events
 Information – data that has been converted to a

meaningful and useful context for specific end

users.

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 Information System Resources

 Data Resources continued…

– Data is subjected to a value-added process
1. Its form is aggregated, manipulated and organized
2. Its content is analyzed and evaluated
3. It is placed in a proper context for a human user
– Called data processing or information
processing

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 Information System Resources

 Data Resources continued…

Monthly Sales Report

for West Region
an n
100 rles M
Sales Rep: Charles Mann
00 h a oe s Emp No. 79154
12 t C S h Item Qty Sold Price
s M
We 54 T TM Shoes 1200 $100
791

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 Information System Resources

 Network Resources
– Communication media – Twisted pair wire,
coaxial cable, fiber-optic cable and microwave,
cellular, and satellite technologies
– Network support – people and all of the
hardware, software, and data technologies that
directly support the operation and use of a
communication network.

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 Information System Activities

 Input of Data Resources

– Data about business transactions and other
events must be captured and prepared for
processing
– Input typically takes the form of data entry
activities such as recording and editing
– End users typically enter data directly into a
computer system or record it on some physical
media such as a paper form

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 Information System Activities

 Processing of Data into Information

– Data is subjected to processing activities such as
calculating, comparing, sorting, classifying and
summarizing
– This organizes, analyzes, and manipulated data, turning
it into information
– The quality of data stored in an information system
must be maintained by a continual process of correcting
and updating activities

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 Information System Activities

 Output of Information Products

– The goal of information systems is the
production of appropriate information products
for end users
– Examples are messages, reports, forms and
graphic images which may be provided by
video displays, audio responses, paper
products, and multimedia

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 Information System Activities

 Information Quality
– Information that is outdated, inaccurate, or hard to
understand is not meaningful, useful, or valuable to end
users
– Information products should have characteristics,
attributes, and qualities that make the information more
valuable to the end users
– Information has three dimensions of time, form, and
content

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 Information System Activities
 Information Quality continued..

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 Information System Activities

 Storage of Data Resources Name

Field
– Data and information are
retained in an organized Payroll
manner for later use Record
– Stored data is commonly
organized into fields,
Payroll
records, files, and databases File

Personnel
Database
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 Information System Activities

 Control of System Performance

– An IS should produce feedback about its input,
processing, output, and usage activities
– This feedback must be monitored and evaluated to
determine if the system is meeting performance
standards
– Activities must be adjusted so that proper information
products are produced for end users

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 Roles of IS in Business

Support of
Strategic
Advantage

Support of
Business
Decision Making

Support of
Business Processes and Operations
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