1.0 introduction to information systems 1.1 meaning of information system an information system is a...

1.0 INTRODUCTION TO INFORMATION SYSTEMS

1.1 Meaning of Information System• An information system is a set of people, procedures

and resources that collect data which it transforms and disseminates.

• It is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long-range activities of users in an organization.

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Meaning of Information System……

• It is a set of procedures that collect (or retrieve), process, store, and disseminate information to support decision making and control.

• Information systems contain information about people, places and things within the organization or environment surrounding them

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1.2 Data, Information, Knowledge and Wisdom in the Information System

Data refers to recorded descriptions of things, events, activities and transactions that is raw facts about events such as their size, color, cost, weight, date and so on. It may or may not convey information to a person.

Information: It is data that has been shaped into a form that is meaningful and useful, significant, urgent and so on to human beings. Data is processed so that it has meaning and value for the recipient.

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Data, Information, Knowledge and Wisdom in the Information System…

• Knowledge: this builds on information that is extracted from data. It encompasses prior understanding, experience and learning, and is either confirmed or modified as people receive new information. It also refers to a body of facts and principles accumulated by man kind in the course of time. It is a complex of several related ideas.

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Wisdom is distilled and integrated knowledge and understanding. Wisdom suggests the possession of deep insight into human problems, together with the capacity for right and prudent judgment. It is assumed that the possessor of wisdom has both knowledge and information.

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DataRaw, unanalyzed facts, figures and events

InformationInformation has meaning for the receiver

KnowledgeFacts and principles accumulated over a given time

Wisdom Knowledge and understanding

Figure 1: The relationships of data, information, knowledge and wisdom

1.3 Importance of Information Systems

Information systems are essential in today’s management due to changes in business environment such as:

i. Emergence and strengthening of the global economy. Information Systems provide the communication and analytical power that firms need for conducting trade and managing businesses on a global scale.

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Importance of IS…..

ii. Transformation of industrial economies and societies into knowledge and information based service economies. Knowledge and information are key ingredients in creating wealth.

• In industrialized countries most people no longer work on farms, or in factories but instead are found in sales, education, healthcare, banks, insurance firms and law firms, they also provide business services like copying, computer programming, or making deliveries

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Importance of IS….• There is a shift whereby manufacturing activities are

moving to low-wage countries where as the primary jobs in industrial economies are tending towards working with, distributing or creating new knowledge and information.

• Examples of knowledge and information based products that employ many people include, Computer game technology, Google, America online, Design and production of new automobiles, Credit card designs, World wide reservations systems,

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Importance of IS…

iii. Transformation of the business enterprises. • There has been a transformation of the then

hierarchical, centralized, structured management of firms into a new flattened, decentralized, flexible arrangement of firms, which rely on instant information to deliver mass-customized products and services uniquely suited to specific markets or customers.

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Importance of IS…..

iv. The emerging digital firm.• This phenomenon emerged since the mid

1990s when firms began using information technology intensively.

• A digital firm is one where nearly all of the organization’s significant business relationships with customers, suppliers and employees are digitally enabled and mediated.

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1.4 TYPES OF INFORMATION SYSTEMS

• There are several ways of classifying information systems. Using the criteria of formality, function and reach, IS can be classified as follows:

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Types of IS….

1.4.1 Classification based on formality criteria:i. Human information systems• These are informal information systems; one

uses sense organs to receive impulses from the environment; the brain interprets these impulses leading to decisions on how to respond.

• People observe events and use this information as they manage their responsibilities.

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Human Information Systems….

• These are informal information systems. Here every one uses sense organs to receive impulses from the environment; the brain interprets these impulses leading to decisions on how to respond. Also people observe events and use this information as they manage their responsibilities.

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Classification based on formality criteria …..

ii. Paper-based information systems• These are still being used by many people and

organizations as they are cheap to implement and easy to understand.

• The genuinely paperless office is rare.• For example, organizations often define their

procedures on paper and staffs are confident with information on paper

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Paper-based information systems…

• Papers are often used when it is important to trace all important transactions and when responsibility needed is high.

• If one goes to organizations like hospitals, it is obvious to find that most patient records are on paper.

• Manual paper-based attendance list kept by a lecturer is another example.

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Classification based on formality criteria …..

iii. Computer-based information systems• These use electronic devices to collect data

and to provide information. • Electronic devices like bar codes and scanners

capture product details in shops, check points, libraries, these data are processed, manipulated, distributed and recorded as output on paper when required.

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1.4.2 Classification based on functional criteria: This classification was designed by Markus (1984).

The following functions were identified:

i. Operational systems• This is also called transactional processing systems. • A transaction processing system (TPS) is an

information system that captures and processes data generated during an organization’s day-to-day transactions.

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Classification based on functional criteria…..

• A transaction is a business activity such as a deposit, payment, order or reservation.

ii. Monitoring systems• These check the performance of an activity at

regular intervals. The factor being monitored can be quality, financial, departmental output or personal performance. Example is the system being used in Netherlands universities.

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• They use student trail system that monitors academic progress of students.

• These systems link to the national institution that provides scholarships.

• This information enables this institution to stop or reduce the scholarship when results are below the required standard.

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iii. Decision Support Systems• People need information for decision making.• Decision support systems help provide

information to support such decisions• A decision support system (DSS) is an

information system designed to help users reach a decision when a decision-making situation arises.

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Classification based on functional criteria.. DSS..

• They help managers to calculate the consequences of different alternatives before they decide what to do

• A decision support system uses data from internal and/or external sources.

• Internal sources of data might include sales, manufacturing, inventory, or financial data from an organization’s database.

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• Data from external sources could include interest rates, population trends, and costs of new housing construction or raw material pricing.

• Users of a DSS, often managers, can manipulate the data used in the DSS to help with decisions.

• Many people use application software packages to perform DSS functions.

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Classification based on functional criteria.. DSS..• A special type of DSS, called an executive

information system (EIS), is designed to support the information needs of executive management.

• Information in an EIS is presented in charts and tables that show trends, ratios, and other managerial statistics.

• Because executives usually focus on strategic issues, EISs rely on external data sources

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• These external data sources can provide current information on interest rates, commodity prices, and other leading economic indicators.

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Classification based on functional criteria

iv. Expert (knowledge) Systems• An expert system is an information system

that captures and stores the knowledge of human experts and then imitates human reasoning and decision-making processes for those who have less expertise.

• Normally a knowledge engineer works with one or more experts in the domain under study.

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Classification based on functional criteria… Expert System..

• The knowledge engineer tries to learn how the experts make decisions.

• Expert systems are composed of two main components: a knowledge base and inference rules.

• A knowledge base is the combined subject knowledge and experiences of the human experts

• The inference rules are a set of logical judgments applied to the knowledge base each time a user describes a situation to the expert system.

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Classification based on functional criteria… Expert System..

• Although expert systems can help decision-making at any level in an organization, non management employees are the primary users who utilize them to help with job-related decisions.

• Expert systems also successfully have resolved such diverse problems as diagnosing illnesses, searching for oil and making soup.

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Classification based on functional criteria

v. Office Information Systems• An office information system is one that uses

hardware, software and networks to enhance work flow and facilitate communications among employees

• Employees perform tasks electronically using computers and other electronic devices, instead of manually

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Classification based on functional criteria.. Office Information System..

• An office information system supports a range of office activities such as creating and distributing graphics and/or documents, sending messages, scheduling, and accounting.

• All levels of users from executive management to non management employees utilize and benefit from the features of an OIS.

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• The software an office information system uses to support these activities include word processing, spreadsheets, databases, presentation graphics, e-mail, web browsers, web page authoring, personal information management, social networks (e.g ning) and groupware.

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• Office information systems use communications technology such as voice mail, facsimile (fax), videoconferencing, and electronic data interchange (EDI) for the electronic exchange of text, graphics, audio, and video.

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vi. Management Information Systems• A management information system (MIS)is

an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress.

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• Because it generates reports on regular basis, MIS sometimes is called Management Reporting System (MRS).

• An MIS is often integrated with transaction processing systems

• For example: to process a sales order, the transaction processing system records the sale, updates the customer’s account balance, and makes a deduction from inventory

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Classification based on functional criteria.. Office Information System..• An MIS generates three basic types of

information: detailed, summary and exception• Detailed information typically confirms

transaction processing activities. • Summary information consolidates data into a

format that an individual can review quickly and easily

• A summary report typically contains totals, tables, or graphs

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• Exception information filters data to report information that is outside of a normal condition

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(vii) Integrated Information Systems• With today’s sophisticated hardware,

software and communications technologies, it often is difficult to classify a system as belonging uniquely to one of the information system types discussed

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1.4.3 Classification based on reach criteria:

This is based on geographic reach which in turn influences the organization. There are:

(i). Individual systems• These include systems like; word-processing

systems, spreadsheet programs and database systems to manage individual’s work.

• Individuals can download data from company-wide systems to use on their tasks

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Classification based on reach criteria…

• The main advantages are that individual can decide what to use the system for and can control the way they work.

• The disadvantage is that the quality of the software varies greatly.

• The data extracted from the corporate database is no longer current and the systems may not link easily with other systems.

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Classification based on reach criteria…(ii). Departmental systems• Apply to separate units or departments that have

a distinct task to perform. • Management often creates these systems as

separate systems, though many are now being integrated into the systems network of the whole company.

• Examples include; universities’ student records system, examination records system, and many others

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-Company-wide systems• These systems integrate departments and

people through out the organization.• For example; in hospitals many units use

centralized patient data to retrieve or update information about patients

• Such systems make it much easier for staff from various departments to treat a patient in a consistent way.

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-Inter-organizational systems• These link organizations electronically by

using networks that transcend company boundaries

• These enable organizations to incorporate buyers, suppliers and partners in the redesign of their key business processes, thereby enhancing productivity, quality, speed and flexibility

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1.5 Approaches to Study of Information and Communication Systems

• There is no single approach to the study of Information and communication systems. Though they are composed of machines, devices and hard physical technology, they require substantial social, organizational and intellectual investments to make them work properly. Generally, the field can be divided into technical and behavioral approaches.

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Approaches to Study of Information and Communication Systems…

• There is no single approach to the study of Information and communication systems.

• Though they are composed of machines, devices and hard physical technology, they require substantial social, organizational and intellectual investments to make them work properly.

• Generally, the approaches can be divided into technical and behavioral approaches.

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Approaches to Study of Information and Communication Systems…

i. Technical Approaches• These emphasize mathematically based models to

study information and communication systems, as well as the physical technology and formal capabilities of these systems.

• The disciplines that contribute to the technical approach are computer science, management science and operations research

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Approaches to Study Information and Communication Systems…

ii. Behavioral Approaches• These emphasize behavior issues that arise in the

development and long term maintenance of information systems.

• The focus of this approach is not on technical solutions, it concentrates on changes in attitudes, management and organization policy and behavior.

• The behavioral disciplines that contribute to this approach include sociology, economics and psychology

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1.6 COMPUTER BASED INFORMATION SYSTEMS

• Computer based information systems transform symbols into digital form, and this development has dramatically extended the historical process of lowering the cost of processing and disseminating information.

• People use electronic systems to record, transform, store and present information.

.

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Computer Based Information Systems..

• INPUT: captures data from within the organization or from its external environment for processing in an information system.

• PROCESSING: the conversion, manipulation and analysis of raw input into a form that is more meaningful to humans.

• OUTPUT: the distribution of processed information to the people who will use it or to the activities for which it will be used.

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Computer Based Information Systems..

• The Information System also requires feedback which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stage.

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1.6.1 Elements of Computer Based Information Systems

Elements of Computer Based Information Systems are categorized into technological and social elements

i. The technological elements• Technological elements of a computer based

information system include:

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Elements of Computer Based Information Systems…

(a) Hardware

This refers to the physical components within a computer system. These consist of:

• Input devices (such as keyboard, mouse, joystick, scanner, touch-screen, camera, microphone, sensor);

• Central processing unit (manipulates data and controls the computer system);

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Elements of Computer Based Information Systems..

• Storage devices (the primary (internal) storage, and secondary storage such as magnetic disks (like floppy disks) or optical disks (CD-ROM, DVD);

• Output devices such as printers, plotters, monitors, voice output and;

• Communication devices (to link the computer with computer networks.

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Elements…

(b) Software• It is a set of instructions written in a specialized

language that controls the operation of the computer.

• There is system software and application software.

• System software is a set of programs that manage the resources of the computer, such as the central processor, communication links and peripheral devices. Examples include Linux, Windows, UNIX, and Ms DOS04/19/23 07:46 PM INF 111 53

• Application software enables users to apply the computer to specific tasks, such as e-mail, word-processing or stock control and many other specialized tasks to name few.

(c) Telecommunications.• This is the communication of information by

electronic means over distance. In the past it meant voice transmission over the telephone.

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Elements..• A telecommunication system is a set of

compatible hardware and software that makes it possible to send and receive information.

• Communication networks are linked group of computers. They can be Local Area Networks (LANs), usually limited to a single building, or a Wide Area Network (WAN) that covers greater distances.

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Elements..

(d) Data

• Technology makes it possible for people in organizations to use data much more than effectively than when they could only analyze it with manual, paper-based system

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Elements..

(ii) The social elements of a computer-based system:

(a) People• These make the Information System to work

effectively. • People include staff and managers who enter

data into the system and those who receive information from it and use the results.

• People who receive information include staff.

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Elements.(b) Procedures

These are the rules or routines that people are expected to use when interacting with the IS.

(c) Organization• The procedures and the actions of people using

the system are immediate parts of the IS who make up the organization.

• The results of an IS depend on the interaction between people, system and context.

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Elements of Computer Based Information Systems..

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Example of the Elements Computer based IS..

A computer-based student record can serve to illustrate each element in the figure above:

• People: Including course administrators will enter data, names and other information about students and their results;

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• Procedures: such as that one person reads from a list of grades while another keys the data into the right field on that student’s record.

• The hardware: consists of the computers and peripherals such as printers, monitors and keyboards;

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• Software: run by hardware to manipulate the data in a particular way and to print out the results for each student. Another procedure sends results to students which they see as information. Staff will use their knowledge to interpret the trends and evaluate the significance of any pattern.

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1.0 introduction to information systems 1.1 meaning of information system an information system is a...

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information systemdata

information systemwisdom

information systems1

information systemknowledge

new information

integrated knowledge

relationships of data

given timewisdom knowledge