What is a system? A system can be defined as a group of interrelated or interacting elements forming a unified whole. “ A system is defined as a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process ”. SYSTEM CONCEPT
INFORMATION SYSTEM “Information System (IS) - A system that creates, processes, stores, and retrieves information” The IS receives the inputs of the data and the instructions, processes the data according to the given instructions, and gives the output of the processed results. Information system contains information about significant people, places, and things within the organization or in the environment surrounding it. “An information system is an organized combination of people, hardware, software, communication networks, and data resources that collects, transforms and disseminates information in an organization.”-
What Is an Information System? Feedback mechanism - The component that helps organizations achieve their goals, such as increasing profits or improving customer service
Input, Processing, Output, Feedback Input Gathering and capturing raw data Processing Converting or transforming data into useful outputs Output Production of useful information, usually in the form of documents and reports Feedback Output that is used to make changes to input or processing activities
Manual and Computerized Information Systems An information system can be: Manual Example: Developing patterns and trends on graph paper for stock analysis Computerized Example: Using program trading to track the market and trade large blocks of stocks when discrepancies occur
Computer- Based Information Systems
Computer- Based Information Systems Single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information Information technology (IT) Hardware, software, databases, and telecommunications
CBIS components Hardware: Computer equipment used to perform input, processing, and output activities Software: Computer programs that govern the operation of the computer Database: Organized collection of facts and information Telecommunications: Electronic transmission of signals for communications Networks: Connect computers and equipment in a building, around the country, and around the world Internet: World’s largest computer network People: Manage, run, program, and maintain the system Procedures: Strategies, policies, methods, and rules for using a CBIS
Business Information Systems Most common types of information systems used are those designed for: Electronic and mobile commerce Transaction processing Management information Decision support
INFORMATION TECHNOLOGY Information Technology (IT) refers to the resources used by an organization to manage information that needs to carry out its mission. IT consists of: Computer hardware Software Database and Telecommunication.
INFORMATION SYSTEM RESOURCES Information system consists of five major resources: People Hardware Software Data, and Networks
Resources of an Information System 5
Examples of Information System Resources and Products People Resources Specialists- system analysts, software developers, system operators. End Users- anyone else who uses information system. Hardware Resources Machines- computers, video monitors, magnetic disk drivers, printers, optical scanners. Media- floppy disks, magnetic tape, optical disks, plastic cards, paper forms. Software Resources Programs- operating system programs, spreadsheet programs, word processing programs, payroll programs. Procedures- data entry procedures, error correction procedures, paycheck distribution procedures. Data Resources Product descriptions, customer records, employee files, inventory database. Network Resources Communications media, communications processors, network access and control software.
Information System Activities Input : Optical scanning of bar- coded tags on merchandise. Processing : Calculating employee pay, taxes, and other payroll deductions. Output : Producing reports and displays about sales performance. Storage : Maintaining records on customers, employees, and products. Control : Generating audible signals to indicate proper entry of sales data.
The components of an information system Purpose — the reason for having the system People — includes the developers, managers, and users of the system Information Technology — the hardware, software, and network components Procedures (documentation and rules) — how people interact with the system Data — including text, images, sounds, and video 10
DIFFERENCES BETWEEN INFORMATION SYSTEM AND INFORMATION TECHNOLOGY An Information System is a tool that creates, processes, stores, and disseminates information to help managers make decisions. Information Technologies on the other hand, are technologies that support the design and development of information system.