INTRODUCTION TO

INFORMATION
SYSTEM
CSC 311
2 UNIT

IKONO, RHODA (PHD)

Department of Computer Science & Engineering

Faculty of Technology
MODULE 2

LECTURE 1
 CONTENT
1. Introduction
2. Objectives
3. Content
• Information System
• Components
• Structure,
• Configuration
• Classification of Information System
• Uses of Information System
• Why Information System
• Computer Literacy
• Information System Literacy
• Types of Information System
• Electronic Commerce
• Transaction Processing System
• Management Information System and Decision Support System
• Special Purpose Business information management of IS
• Information System vs Information Technology
4. Conclusion
5. Assignment
6. References/Further Readings
 INTRODUCTION

• What is Information System?

• Information systems are sets of interrelated elements that
collect (input), manipulate and Store (process), and disseminate
(output) data and information.
• Set of interrelated components that
• Collect/retrieve, process, store, and distribute information to
• Support decision making, coordination, control
• Help managers and workers
• Analyse problems
• Visualize complex subjects
• Create new products
 INFORMATION SYSTEM

• An information system, therefore, can be defined as set

of coordinated network of components which act
together towards producing, distributing and or
processing information. An important factor of computer
based information system is precision, which may not
apply to other types of systems.
 SCHEMATIC
MODEL OF AN
INFORMATION
SYSTEM

THE COMPONENTS OF AN
IS
Feedback is critical to the
successful operation of a
system
The component that
helps organizations
achieve their goals, such
as increasing profits or
improving customer
service
 CLASSIFICATION OF IS

• Information systems can be classified into

• Computer based information system CBIS and non-
computer based systems. Components of CBIS are People,
Hardware, Software, Database, Telecommunication
(Computer networks (Internet, Intranet and Extranet) and
Procedures.
• While the non-computer based are further classified into
• Informal information systems and
• Manual information systems. Example: Developing patterns
and trends on graph paper for stock analysis
 COMPONENTS OF
INFORMATION SYSTEMS
• An information system is essentially made up of five components hardware,
software, database, network and people. These five components integrate to
perform input, process, output, feedback and control.
• Hardware consists of input/output device, processor, operating system and
media devices. Software consists of various programs and procedures.
Database consists of data organized in the required structure. Network consists
of hubs, communication media and network devices. People consist of device
operators, network administrators and system specialist.
• Information processing consists of input; data process, data storage, output and
control. During input stage data instructions are fed to the systems which
during process stage are worked upon by software programs and other queries.
During output stage, data is presented in structured format and reports.
COMPONENTS OF CBIS
 USES OF IS

• The benefits derived from information systems include

• efficient operations,
• effective management and
• competitive advantage.

• The role of information systems has continually expanded and those aspects of the
organization impacted by information system has also grown.
• On the other hand, information systems projects can be large and complex and thus
there is a considerable risk of failure which may result in an inability to support
business operations, management and strategic objectives.
• Information systems, apart from supporting business operations and manage
activities of organization must also support long term goals and objectives such as
survival, sustainability, profitability, expansion, market share, customer satisfaction
and employee satisfaction.
• Information Technology
• Various hardware/software, networking, data management
• components necessary for IS to operate
• PCs, disk drives, hand held PDA, iPods
• Operating Systems - Windows, Linux,
• MS Office desktop productivity suite, programs, …

• Fundamental Roles of IS in Business

• Support of business process and operations
• Support of business decision making
• Support of strategies for competitive advantage
 WHY INFORMATION SYSTEM

• IS play a fundamental and ever expanding role in all business

organizations. Hence, Information system literacy and computer
literacy are prerequisites for numerous job opportunities.
• Information System Literacy
• Knowledge of how data and information are used by individuals, groups
and organizations.
• Computer Literacy
• Knowledge of information technology and the way they function, it
stresses equipment and devices (hardware), programs and instructions
(software), databases and telecommunications

• Information System is divided into three dimensions which are

people, organization and technology
• Organizations
• Integral Part – Vice Versa
• Coordinate work through structured hierarchy and business processes
• Business processes → Logically related tasks and behaviours for accomplishing work
• Fulfilling an order, Developing a new product
• May be informal or include formal rules
• Culture embedded in information systems
• What is Organizational Culture ?

• People
• Requires skilled people → Build, Maintain and Use
• Adequate Training
• Employee attitudes affect ability to use systems productively
• Role of managers
• Perceive business challenges
• Set organizational strategy
• Allocate human and financial resources
• Creative work, new products, services

• Technology
• IT Infrastructure → Foundation or platform that information systems built on
• Computer hardware
• Computer software
• Data management technology
• Networking and telecommunications technology
• Internet and Web, extranets, intranets
• Voice, video communications
 CLASSIFICATION OF
INFORMATION SYSTEM
In any given organization information system can be classified based on the usage of the
information. Therefore, an information system in an organization can be divided into operations
support system and management support system.

Operations support system

• In an organization, data input is done by the end user which is processed to generate
information products i.e. reports, which are utilized by internal and or external users. Such a
system is called operation support system.
• The purpose of the operation support system is to facilitate business transaction, control
production, support internal as well as external communication and update organization central
database. The operation support system is further divided into a transaction-processing system,
processing control system and enterprise collaboration system.
• Transaction Processing System (TPS)
• In manufacturing organization, there are several types of transaction across department.
Typical organizational departments are Sales, Account, Finance, Plant, Engineering, Human
Resource and Marketing. Across which following transaction may occur sales order, sales return,
cash receipts, credit sales; credit slips, material accounting, inventory management,
depreciation accounting, etc.
• These transactions can be categorized into batch transaction processing, single transaction
processing and real time transaction processing.
• Process Control System
• In a manufacturing organization, certain decisions are made by a computer system without any
manual intervention. In this type of system, critical information is fed to the system on a real-
time basis thereby enabling process control. This kind of systems is referred as process control
systems.
• Enterprise Collaboration System
• In recent times, there is more stress on team effort or collaboration across
different functional teams. A system which enables collaborative effort by
improving communication and sharing of data is referred to as an
enterprise collaboration system.
• Management Support System
• Managers require precise information in a specific format to undertake an
organizational decision. A system which facilitates an efficient decision
making process for managers is called management support system.
• Management support systems are essentially categorized as management
information system, decision support system, expert system and
accounting information system.
• Management information system provides information to manager
facilitating the routine decision-making process. Decision support system
provides information to manager facilitating specific issue related solution.
Further Classification
• An information system can be categorized based upon activity into
strategic planning system, tactical information system and operational
information system.
 TYPES OF IS
Informati
on
System

Operations Manageme
Support nt Support
System System

Manageme
Specialized Transaction Process Enterprise Decision Executive Specialized
nt
Processing Processing Control Collaborati Support Information Processing
Information
System System System on Systems System System Systems
Systems

Knowledge Strategic Functional

Expert
Manageme Information Business
System
nt System Systems Systems
 MANAGEMENT SUPPORT SYSTEM
• Management information systems
• Provide information and support for effective decision making by managers
• Two Types:
• Management of IS in organizations
• Specific information systems for mid-level managers
• Types of reports:
• Scheduled report
• Key-indicator report
• Exception report
• Drill-down report
• Ad hoc report
• Examples:
• Sales forecasting
• Financial management and forecasting
• Manufacturing planning and scheduling
• Inventory management and planning
• Advertising and product pricing
• Used to provide routine information to managers and decision makers.
• Example: daily sales analysis reports
• Decision Support Systems (DSS)
• Provide interactive ad hoc support for decision making
• Example: A what-if-analysis to determine where to spend advertising dollars
 MANAGEMENT INFORMATION SYSTEM

• It helps the middle managers with reports, with on-line access to the
organization’s current performance and historical records.
• It primarily serves the functions of planning, controlling, decision-making at
the management level.
• Generally it depends on TPS for data.

• It summarizes and reports on the basic operations of the organization.

• It usually serve managers interested in weekly, monthly, and yearly results,

not day-to-day activities.
• It generally addresses structured questions that are known in advance.

• It is not flexible and have little analytical capability.

 MANAGEMENT INFORMATION SYSTEM…

• Functions of management-level info system?

 Helps middle managers for monitoring, controlling, decision-making, and
administrative activities.
 Generally it provides periodic reports rather than instant information
 However, some systems supports non-routine decision making.

• It should answer the questions:

 Relocation Control System: It reports on the total moving, house-hunting,
and home financing costs for all employees in the organization. It will also
notify if actual costs exceed the budgets.
 What would happen to our return on investment if an organization
schedule were delayed for six months?
 EXECUTIVE INFORMATION SYSTEMS (EISS)

• Executive Information Systems (EISs)

• Provide critical information for executives and
managers
• Used at executive level of the organization
• Highly aggregated form
• Data types
• Soft data – news and non-analytical data
• Hard data – facts and numbers
• Examples:
• Executive-level decision making
• Long-range and strategic planning
• Monitoring internal and external events; easy access to
actions of competitors
• Crisis management
• Staffing and labor relations
 EXECUTIVE INFORMATION
SYSTEMS
• It helps senior managers.
• It addresses unstructured decisions.
• It provides a generalized computing & telecommunications
capability to solve problems.
• It employs the most advanced graphics software.
• It can deliver graphs & (historical data and competitive data)
from internal corporate systems and external databases.
• Senior managers often have little experience with computer-
based information systems, ESS should have easy-to-use graphic
interfaces.
 OPERATION SUPPORT SYSTEMS
• Transaction Processing Systems
• An organized collection of people, procedures, software, databases
and devices used to record completed business transactions.
• Types
• Batch Processing: Accumulate transactions over time and process periodically
• Example: a bank processes all checks received in a batch at night
• Online Processing: Process transactions immediately
• Example: a bank processes an ATM withdrawal immediately

• Transactions: Used at Operational level of the organization

• Goal: to automate repetitive information processing activities
• Record and process data from business transactions
• Increase speed
• Increase accuracy
• Greater efficiency

• Data input
• Manual data entry
• Semi-automated data entry
• Fully automated data entry

• Examples:
• Payroll
• Sales and ordering
• Inventory
• Purchasing, receiving, shipping
• Accounts payable and receivable
• Process Control Systems
• Rule based management software that directs, coordinates and monitors
execution of an interrelated set of tasks arranged to form a business process.
• Monitors and controls physical processes
• Example: in a petroleum refinery use sensors to monitor chemical processes

• Enterprise Collaboration Systems

• Enterprise Resource Planning (ERP) is a set of integrated programs capable of
managing a company’s vital business operations for an entire multisite, global
organization.
• Enhance team and work group communications
• Examples: e-mail, videoconferencing
Special Purpose Business Information
System

• Expert Systems
• Provide expert advice and act as consultant to users
• Example: process monitor, credit application advisor

• Knowledge Management Systems

• Collection of data, rules, procedures and relationships that must be followed to
achieve value or the proper outcome.
• Supports creation, organization of business knowledge
• Example: Internet access to best business practices

• Strategic Information Systems

• Support operations/management processes that provide strategic
product/services for competitive edge
• Example: Online stock trading, shipment tracking
 BUSINESS INFORMATION
SYSTEM
• CBIS plays an important role in todays business and society. The key to
understanding the existing variety of system begins with learning their
fundamentals. The types of business information system used within
organizations can be classified into four basic groups:
• E-commerce
• Data processing or transaction processing systems
• Management information systems and Decision supporting systems
• Special purpose business information system
• Artificial intelligence
• Expert systems and
• Virtual reality systems
 ELECTRONIC AND MOBILE
COMMERCE
• E-commerce: Any business transaction executed electronically
between:
• Companies (B2B)
• Companies and consumers (B2C)
• Consumers and other consumers (C2C)
• Business and the public sector
• Consumers and the public sector

• Mobile commerce (m-commerce): Transactions conducted

anywhere, anytime
• Electronic business (e-business): Uses information systems and
the Internet to perform all business-related tasks and functions
 LEVELS OF MANAGEMENT
• These levels of management correspond
approximately to four different types of
information systems
• Levels of management and types of support
system
 CHARACTERISTICS OF EACH LEVEL OF
MANAGEMENT

• The table below summarises the major differences between the four
levels of organisational support systems based on heir major inputs,
processing characteristics and outputs:
 ROLE OF CRITICAL THINKING
• What is Critical Thinking?
• Sustained suspension of judgment with an awareness of multiple
perspectives and alternatives
• Without critical thinking, easy to jump to conclusions, misjudge a
problem and waste resources
• Best protection against incorrect results

• Four Elements
• Maintaining doubt and Suspending judgment
• Being aware of different perspectives
• Testing alternatives and letting experience guide
• Being aware of organizational and personal limitations

• Connections
• Business Objectives, Problems, Solutions
• When firms cannot achieve business objectives these objectives become
challenges
• Information systems often present solutions, partially or fully, to these
challenges
 INFORMATION SYSTEM AND
BUSINESS CAREERS
• Accounting
• Accountants → Information Systems
• Summarize Transactions
• Create Financial Records
• Organize Data
• Perform Financial Analysis

• Skills
• IT, software used in auditing, accounting functions
• System and network security issues
• Enterprise systems for financial reporting
• Finance
• Financial Management/Services → Information System
• Develop Financial Reports
• Direct Investment Activities
• Implement Cash Management Strategies

• Skills
• IT, software used by financial managers and financial services
firms
• New technologies for financial transactions, trading
• Enterprise systems for financial reporting
• Marketing and Advertising
• Technology driven changes
• Internet Advertising → Fastest growing, 30% annually

• Skills
• Understanding of Internet, marketing database systems
• Impact on marketing activities → brand development,
promotion, sales
• Enterprise systems for product management, sales force
management, customer relationship management
• Operations Management Services/Manufacturing
• Coordinate and Optimize Resources to produce goods and services
• Industrial Production Managers
• Administrative Services Managers
• Operation Analysts

• Skills
• Hardware and software platforms for operations management
• How enterprise systems for production management, supplier
management, sales force management, customer relationship
management are used to achieve efficient operations and meet other
goals
• Management
• Largest single group
• Industrial Production Managers
• Administrative Services Managers
• Operation Analysts

• Skills
• Hardware and software to improve management, enhance leadership and
coordination, improve achievement of overall corporate objectives
• In-depth understanding of how enterprise systems are used to achieve
efficient operations and help make better decisions for improving firm
performance
• Information Systems
• Most dynamic of all business professions, fastest growing
• IT → Key business objectives
• Outsourcing and Offshoring
• Impact
• Managerial IS positions ↑, Lower-level technical jobs ↓

• Skills
• In-depth knowledge of how new and emerging hardware and software to
achieve six business objectives
• An ability to take a leadership role in the design and implementation of
new information systems
• Common Requirements
• How IT helps achieve six business objectives
• Central role of databases
• Information analysis, impact of environment
• Working with specialists and systems designers
• Ethical, social, legal environment and issues
• Use of IT to meet legal requirements
 INFORMATION SYSTEMS VS
INFORMATION TECHNOLOGY

Introduction
• It is often observed that term information system and
information technology are used interchangeably. In a
literal sense, information technology is a subset of
information systems. Information systems consist of
people, processes, machines and information technology.
The great advancement in information systems is due to
development in information technology and introduction
of computers.
 INFORMATION TECHNOLOGY

• Everyday knowingly or unknowingly, everyone is utilizing information technology. It

has grown rapidly and covers many areas of our day to day life like movies, mobile
phones, the internet, etc.
• Information technology can be broadly defined as integration of computer with
telecommunication equipment for storing, retrieving, manipulating and storage of
data. According to Information Technology Association of America, information
technology is defined as “the study, design, development, application,
implementation, support or management of computer-based information systems.”
• Information technology greatly enhances the performance of economy; it provides
edge in solving social issues as well as making information system affordable and
user friendly.
• Information technology has brought big change in our daily life be it education, life at
home, work place, communication and even in function of government.
 COMPARISON OF INFORMATION
SYSTEM AND INFORMATION
TECHNOLOGY
• Information system and information technology are similar in many ways but at the
same time they are different. Following are some aspects about information system as
well as information technology.
• Origin: Information systems have been in existence since pre-mechanical era in form of
books, drawings, etc. However, the origin of information technology is mostly associated
with invention of computers.
• Development: Information systems have undergone great deal of evolution, i.e. from
manual record keeping to the current cloud storage system. Similarly, information
technology is seeing constant changes with evermore faster processor and constantly
shrinking size of storage devices.
• Business Application: Businesses have been using information systems for example in
form of manual books of accounts to modern TALLY. The mode of communication has also
gone under big change, for example, from a letter to email. Information technology has
helped drive efficiency across organization with improved productivity and precision
manufacturing.
 FUTURE OF INFORMATION
SYSTEM AND INFORMATION
TECHNOLOGY
• Information technology has shown exponential growth in the last
decade, leading to more sophisticated information systems. Today’s
information technology has tremendously improved quality of life.
Modern medicine has benefited the most with better information
system using the latest information technology.
• Information systems have been known to mankind in one form or the
other as a resource for decision making. However, with the advent of
information technology information systems have become
sophisticated, and their usage proliferated across all walks of life.
Information technology has helped managed large amount of data
into useful and valuable information.
 INFORMATION OVERLOAD
• We are drowning in a sea of information. We are inundated with
news, views, opinions, facts, and information every time we log in
to the internet or turn on the TV. This constant barrage of
information thrown at us nonstop in a 24/7 cycle makes us weary
and lost in this never-ending repetitive world. Therefore, it is very
important for professionals, students, and anyone who wants to
focus and concentrate to learn the art of separating the wheat from
the chaff and to lead productive lives that are meaningful and
deep.

• For instance, knowing what is happening all over the world

instantaneously and uninterruptedly would produce a
fatigue in our minds and lead to exhaustion that can drain
productivity and lead to loss of focus. One does not need to
know all the news and happenings on Twitter, Facebook, Blogs, and
on TV all the time. Unless one learns the habit of separating what
one wants from what is available, most likely one would end up
with what has been called information overload that denotes the
extraordinary amount of information that we are being bombarded
 CONSEQUENCES OF INFORMATION
OVERLOAD

• Many companies have banned social media sites and even internet
sites in an attempt to make the employees focus on the work. Despite
these measures, many employees still find ways and means to get updated
and to log in to other sites much like addicts who would do anything for a fix.
While we are not against getting facts and information from diverse sources in
a bid to stay ahead of the curve, what we are advocating is the trend of being
constantly on the move by surfing continuously which can have adverse side
effects. It must be remembered that this trend when it goes out of control is
as bad as getting hooked on to psychotropic substances and much like that it
can lead to shorter attention spans, need for instant gratification, and a
general sense of being frazzled.
• The truly productive employees are those who do not multitask nor spend
endless hours watching the big game scores or news and event updates from
around the world. Indeed, one of the reasons investment bankers and
consultants are much sought after is that they have learnt to distinguish
between short term and ephemeral trends and instead, detect longer-term
trends and extrapolations from existing information that is meaningful and
makes business sense.
• Present Shock and Generation Y and their Impact on Society and
Businesses
• The present generation Y has grown up not knowing what it is like to live
without the internet or the TV. This means that their attention to detail is as
short as the cryptic SMS (Short Messaging Service) or the Tweet and therefore,
many occupational and lifestyle experts are worried that this aspect would lead
us to a situation where we lose sight of the longer and deeper narrative and
instead, settle for the fleeting moment that leads us to a “Present Shock”
where the immediacy is more important than the longer term and where the
present overwhelms us leading to a general sense of disorientation. This is not
the way businesses and institutions have been built in earlier decades and this
constantly changing and ever flux-filled times are proving to be a challenge for
marketers, policymakers, and business leaders.
 MANAGING INFORMATION
OVERLOAD

• Apart from this the crux of the issue is that when we are inundated
with information overload, there is a danger that we might lose the
essential information and instead, pick up drivel and nonsense
from the information sources which would lead to situations where
businesses make the wrong decisions based on faulty information
and wrong assumptions. This is the danger that information
overload poses to us and it is better sooner than later that we as
individuals learn to “switch off” when needed and to master the
art of managing too much information and develop the skill of
finding the right data instead of paying attention to meaningless
data.
 CONCLUSION

• In this module we have been able to

• Learn what data Information System is, its; Components,
Classification and Uses.
• Why we study Information System, in the aspect of Computer
Literacy and Information System Literacy
• Also study about the different types of Information System
• Electronic Commerce
• Transaction Processing System
• Management Information System and Decision Support System
• Special Purpose Business information System
 EVALUATION QUESTIONS

• Define the basic concepts of Information System (IS)

• Enumerate the components of an IS and describe several system
characteristics
• Identify the basic types of models and explain how they are used
• Identify the basic types of business information systems and discuss
who uses them, how they are used, and what kinds of benefits they
deliver.
• Express the main requirements for an information system that
advises travelers about a travel scheme (route and time) when they
want to make a holiday trip
 REFERENCES/FURTHER
READINGS
• Book
• Information Systems Essentials, Stephen
Haag and Maeve Cummings. Published by
McGraw-Hill Irwin
• Principles of Information Systems A
Managerial Approach, Ralph M. Stair and
George W. Reynolds. © 2010 Course
Technology, Cengage Learning
THANK YOU