TOPIC 1 INTRODUCTION TO INFORMATION SYSTEM

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

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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 itself, 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.

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.

Transformation Input
Figure 4: Information system process

Output

Examples: Inventory System, Transportation System, Respiratory System, Solar System, Financial System, Air Conditioning System, Judicial System, Respiratory System

Figure 5: Components of a System

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 six 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 interacts with its environment is known as open system. For example, a smoke alarm system-will trigger the sound when the smoke detected.

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 predefined 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.

4.0 ROLES OF INFORMATION ORMATION SYSTEM AND INFORMATION TECHNOLOGY TO BUSINESS

Vital component of successful businesses 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 7: Information system environment A business is an example of an organizational system where econ economic omic 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 sy system stem (control) as it exchanges inputs and outputs with its environment.

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 activitiesinput, processing, and outputproduce 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.

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.

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.

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