TOPIC 1

INTRODUCTION TO

INFORMATION SYSTEM

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1.0 THE BASIC CONCEPT OF DATA AND INFORMATION

In an organization, ‘Information’ is one of the most valuable and important resources. With the

right information, from the right source, at the right time and place, the organization can make the

best decision to achieve their goals. Information can be defined in so many ways. The term

‘information’ however is often confused with the term ‘data’. In some cases the term

‘information’ and ‘data’ has been used interchangeably.

As an analogy, consider data as pieces of LEGO bricks. In this state, each piece of brick has little

value beyond its inherent value as a single object. However, if some relationship is defined

among pieces of brick, they will gain value. By arranging the pieces of brick in a certain way, an

object of toys begins to emerge. Information is much the same. Rules and relationship can be set

up to organize data into useful, valuable information.

Figure 1: Example of business data and information

1.1 Data

Data is defined as a stream of raw facts that representing events occurring in an organizations

or physical environment which is unorganized and meaningless to the human beings. Data

represents real-world things and has little valued beyond existence. Data can also define as

the representation of facts, concepts, or instructions in a formalized manner suitable for

communication, interpretation, or processing by humans or by automatic means. Data inside

an organization could be:

a. originated from internal operations (e.g. transaction receipt)

b. originated from external entities such as suppliers or customers (e.g. purchase order)

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Figure 2: Examples of data

1.2 Information

Information is a collection of facts organized in such a way that they have additional value

beyond the value of the facts themselves which is meaningful and useful to people.

Information is said to have a value of it self, and commerce often involves the exchange of

information, rather than tangible goods.

Information is also defined as data that has been processed into a form that is meaningful to

the recipient and is of real perceived value in current or prospective decisions (Davis &

Olson, 1985).

Examples: Pay check, Result slip, Invoice, Receipt, etc.

Figure 3: Example of information on a check

Information is an essential element in the operations and management of every

business.

Employees in all positions at all levels of a business need information to do their

jobs.

Nowadays, info. System and technologies have become vital component of a

successful businesses and organizations.

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You probably intend to be a manager, entrepreneur, or business professionals, and it

is important for you to have a basic understanding of Info. Systems.

Info. System is known very useful in providing the information to help employees in

an organization to operate and manage a business.

2.0 THE BASIC CONCEPT OF SYSTEMS

‘System’ generally can be most simply defined as a group of interrelated or interacting elements

forming a unified whole. Examples of system are: digestion system, transportation system, traffic

light system, etc.

However, in the field of information systems, the term ‘system’ is more appropriate defined as a

group of interrelated components working together toward a common goal by accepting inputs

and producing outputs in an organized transformation process.

Figure 4: Information system process

Examples: Inventory System, Transportation System, Respiratory System, Solar System,

Financial System, Air Conditioning System, Judicial System, Respiratory System

Figure 5: Components of a System

Input Output Transformation

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3.0 THE BASIC CONCEPT OF INFORMATION SYSTEMS

Information System is a collection of components that work together to provide information to

help in the operations and management of an organization.

Figure 6: Simple business system

4.1 Characteristics of Information System

There are many types of information systems used in a variety of fields today. Retail shop, banks,

automobile industries, telecommunication companies, schools and universities and so many more

are now using information systems to run and manage their businesses.

There are five characteristics of information system that can be classified into, to differentiate the

capabilities and functions of the system. These characteristics of information system, we can help

us to understand the information system functions better and clearer.

a. Open system

A system does not exist in a vacuum, rather it exist and functions in an environment containing

other systems. A system that is connected or interact with its environment known as system that

is connected or interact with its environment known as ‘open system’. For example, a smoke

alarm system-will trigger the sound when the smoke detected.

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b. Closed system

Closed system is a system with no interaction with its environment. It stands alone and will not be

affected by the changes in its environment. For example, a wall clock.

c. Traditional system

A traditional system is a simple system that primarily concentrated on the efficient storage and

retrieval of static information structure. It can only accept the input and produce output using a

very simple process or no process needed at all. The system usually has a very limited pre-

defined format of input and it also produces a very limited pre-defined format of output.

For example, a standard/basic calculator. User can only press a limited numbers and

mathematical operations, and output will be produced also in terms of numbers.

d. Dynamic system

A dynamic system is information systems that can be embedded into constantly changing process

of environment (adaptive) consist of three basic interacting components or functions. They are:

Input- captures and assembles elements to be processed, for example raw materials,

energy, data and human effort.

Processing- transformation process that convert input into output, for example

manufacturing process, mathematical calculations, comparing and checking process

Output- transferring elements that have been produced by a transformation process to

their ultimate destination, for example final products, human services and reports.

e. Cybernetic system

A cybernetic system is a self-monitoring and self-regulating system with a feedback and control

components. An example of cybernetic system is the thermostat-controlled heating system, where

is automatically monitors and regulates it self to maintain a desired temperature.

In businesses, computer can also be used to monitor and control the manufacturing processes

such as in most of automobile industries. They used assembly robots to assemble automobiles.

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4.0 ROLES OF INFORMATION SYSTEM AND INFORMATION

TECHNOLOGY TO BUSINESS

Vital component of successful businesses. The roles are:

Helps businesses expand and compete

To improve efficiency and effectiveness of business processes

For managerial decision making

For workgroup collaboration

5.0 INFORMATION SYSTEM ENVIRONMENT

Figure 7: Information system environment

A business is an example of an organizational system where economic resources (input) are

transformed by various business processes (processing) into goods and services (output).

Information systems provide information (feedback) on the operations of the system to

management for the direction and maintenance of the system (control) as it exchanges inputs and

outputs with its environment.

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By referring to figure 7 above, the functions of an information system. An information system

contains information about an organization and its surrounding environment. Three basic

activities—input, processing, and output—produce the information organizations need. Feedback

is output returned to appropriate people or activities in the organization to evaluate and refine the

input. Environmental actors such as customers, suppliers, competitors, stockholders, and

regulatory agencies interact with the organization and its information systems.

Feedback is output returned to the various members of the organization to refine or correct input.

From a business perspective, an information system is an organizational and management

solution, based on information technology, to a challenge posed by the environment. Effective

use of information systems requires an understanding of the environment, structure and function,

and politics of organizations, as well as the role of management and management decision

making. Information systems have organizational and management dimensions as well as

technical dimensions.

6.0 INFORMATION SYSTEM RESOURCES

Information system resources can be listed into five categories which are hardware resources,

software resources, people resources, data resources and network resources. During project

planning, we need to determine and allocate suitable resources for each task we listed, for

example during creating project scheduling using project management software. In order to have

these resources, we have to purchase, lease or hire them.

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Figure 8: Example of resource allocation in project scheduling

9.1 Hardware

The components of a computer or peripheral equipment that attached to the

computer and physically can be seen or touched.

Examples: processors, memory, input and output devices, tapes, disks, modems,

cables, etc.

Classified into 2 categories:

i. External components

a. Is referred to the devices which are located outside of the system

unit.

b. Including the input devices, output devices, and storage devices.

ii. Internal components

a. Is referred to the devices which are located inside the system

unit.

b. Including the motherboard, processor, and memory chips.

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9.2 Software

Is a computer program or instructions that cause the computer hardware to

function.

It is a set of instruction that written by the programmers in a specific

programming languages, used to direct the CPU to carry out specific task.

Divided into two categories:

i. System software

a. Refers to the operating system (OS) and all utility programs that

manage the computer resources.

b. It is a program that mainly controls the whole function of a

computer, where it provides an interface for a user to

communicate with the computer.

c. Examples: DOS, Windows, Mac OS, UNIX, Linux, etc.

d. Other functions of OS are:

a. Manage the hardware resources

b. Manage other software

c. Maintain disc file system

d. Support application program

ii. Application software

a. Is a set of instruction or program that direct a computer to

produce information and it is installed permanently in storage

such as a hard disk.

b. Usually it is referred to as application software packages or

simply software packages.

c. Can be classified into:

a. Word processing

b. Spreadsheet

c. Database

d. Presentation graphics

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9.3 Stored data

Must be properly organized in an IS so that it can be processed easily.

Business data in IS are composed of characters – letters, numbers, and special

symbols.

A group of related characters representing some piece of information is called as

field.

A group of related field will form a record.

Consist of:

i. Data file

a. All records that are used together for one purpose.

ii. Database

a. Combination of related groups of data (related data files).

9.4 Personnel/ people

Someone who responsible for acquiring, developing, maintaining or operating

the hardware and software.

Two types:

i. End users – people who use an IS or the information it produces.

ii. IS specialists – people who develop and operate IS

a. Programmers – use programming language to create computer

and communications network software.

b. System analyst – work with users to determine the requirements

an application must meet.

c. System designers – formulate application specifications and

design the features of custom software.

d. Project managers – coordinate the development of a project and

manage the team of programmer/ analyst.

e. Network specialist – design, operate, and manage computer

communications network.

f. Trainers – work with end users, helping them to become

comfortable and skilled in using hardware or software.

g. Computer operators – oversee the operations of computers in

data centers & facilities at which large and midrange computer

systems are located. These systems are shared by many users

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who are interconnected with the system through communications

link. Computer operators also perform support activities such as

starting applications, loading magnetic tape, and anything else

that will ensure the smooth operation of computer facilities.

h. Computer engineers – who design, develop, and oversee the

manufacturing of computer equipment.

i. System engineers – who install and maintain hardware

9.5 Procedures

Is a step by step process or set of instructions for accomplishing specific result

Types of procedures:

i. Operations – describe how a computer system or application is used, how

often it can be used, who is authorized to use it and where the result

processing should go.

ii. Backup and recovery – how and when to make extra copies of

information or software to protect against losses.

iii. Security – designed to safeguard data centers, communications networks,

computers, and other IT components from accidental intrusions or

intentional damage.

iv. Development – explain how IT professionals should describe user needs

and develop applications to meet those needs.

9.6 Network

Communications media – examples are twisted-pair wire, coaxial cable, fiber

optic cable, microwave and satellite.

Network support – includes all of the people, hardware, software, and data

resources that directly support the operation and use of a communications

network.