Unit : One Fundamentals of information systems: systems concepts Types of system, system approach relevance of modern organization Data

ata Vs information. The management of information system: information Resource Management Managing information services planning and implementing information systems & controlling information system. System Concepts System Definition: System can be abstract or physical. An abstract system is an orderly arrangement of interdependent ideas or Constructs. A physical system is a set of elements which operate together to accomplish an objective. A system is a group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organized transformation process. James O Brien

Components or Functions of a System: 1. Input : It involves capturing and assembling elements that enter the system to be processed. Ex. Raw Materials, Energy, Data and human efforts 2. Processing : It involves, transformation process that converts input into output. Ex. Manufacturing process, the human breathing process, data calculations. 3. Output: It involves transferring elements that have been produced by the transformation process to their ultimate destination. Ex. Manufacturing system accepts Raw material as inputs and produces finished goods as output. An information system which accepts data resources as input and process them into information products as output.

Additional Components: 4. Feedback and Control : A system with feed back and control components is called a Cybernetic System, that is a self monitoring and self regulatory system. Feed back is data about performance of a system. Control is a major function that monitors and evaluates feed back to determine whether the system is moving towards the achievement of its goals. Ex. Cybernetic System : Human body maintains temperature according to the climate. Types of systems 1. Conceptual & empirical : Conceptual systems are concerned with theoretical structures, which may or may not have any counterparts in the world. Empirical systems made up of people, materials, machines, energy and other physical things. 2. Natural and Manufactured systems : Natural systems are plenty in nature. The entire ecology of life is natural system. Ex. Solar System, water system. Manufactured systems are formed when people gathered in groups to live and hunt together. Ex. National defence, transportation system. 3. Open and Closed Systems : Open systems exchange informations, materials or energy with the environment incl., undefined inputs. Open systems tend to adapt to changes in their existence. They are self organizing. Ex. Human Body which maintains its temperature within narrow limits. A closed system is defined in physics as a systems which is self contained. It does not exchange material, information, or energy with its environment. Ex. A chemical reaction in a sealed, insulated container. Computer program is a relatively closed system because it accepts only previously defined inputs, processes them and provides previously defined outputs. Precisely, closed system is one that has only controlled and well defined inputs. 4. Adaptive and Non Adaptive Systems : A system that re acts to its environment is such a way to improve its functioning, achievement is called Adaptive system. Ex. Animals & Humans Those do not react or adapt to the environment are called Non Adaptive system

DATA VS INFORMATION DATA : The word data is the plural of the word datum, which means fact. Therefore, data can be considered as the raw material of information. The data may be numerical such as sales report inventory figure etc., or non numerical like customer names, addresses etc., INFORMATION : The result obtained after processing the data is called information . That is the processed data is known as information. INFORMATION SYSTEM RESOURCES Information system model shows that an information system consists of five major resources, people, hardware, software, data and networks. 1. People resources: People are required for developing, implementing and control information system and also to carry out the business operations using Information system. Therefore people resources include End users and IS specialists. a. End users: End users are people who use an information system or the information it produces. They can be Accountants, sales persons, engineers, clerks, customers, or Managers. b. IS specialists: IS specialists are people who develop and operate information systems. They include: * System analyst o Programmers o Computer operators o Other technical personnel In short, system analyst designs information systems based on the information requirements of end users, programmers prepare computer programs based on the specifications of system analysts and computer operators who operate large computer systems. 2. Hardware resources: It includes all physical devices and materials used in information processing. It includes not only machines but also all devices which are used for recording data i.e sheets of paper to magnetic disk.

Ex. Hardware in computer based information systems are * computer systems and computer peripherals ( mouse, key board, printers) 3. Software Resources: It includes both programs and procedures. Programs are set of operating instructions to systems. Procedures are the sets of information processing instructions needed by people. It includes a. system software; OS which controls and supports the operations of a computer systems. b. Application software: There are programs which are developed for particular business function. Ex. Sales analysis program, payroll program, word processing program. c. Procedures: these are operating instructions for the people who will use an information system. Ex. Instructions for using a software package. 4. Data resources: Data is more than the raw- material of information systems. The concept of data resources has been broadened by managers and information sysymes professionals. Data can be alpha numeric data, which describes business transactions and other events. Text data, such as graphic shapes and figures. Audio data, the human voice and other sounds are also important forms of data. 5. Network Resources: Telecommunications networks like the internet, intranets and extranets have become essential to the successful operations of all types of organizations and their computer based information systems. Telecommunication networks consists of computer communication media and controlled by communication software. Network Resources include: a. Communication media: Fiber- optic cable, coaxial cables micro wave systems and communication satellite systems.

b. Network support: It includes people, hardware and data resources that directly support the operations and use of a communications network. Ex. Communication processors such as modems communication control software such as network operating system and internet browser packages. INFORMATION RESOURCE MANAGEMENT Information resource management is an information concept which organizes the management and missions of information systems functions. These functions has five dimensions. strategic management Operational management Resource management Technology management Distributed Management I. Strategic Management: Information system function must manage information technology so that it makes major contributions to the profitability of the company. Information system function must not focus only on the transaction processing and decision support needs. It must become a producer of information products or enabler or business process that can give a firm a comparative advantage over its competitors. Information system focuses on the developing and managing information systems that significantly improve operational efficiency and promoter innovative products and services and builds business alliances and information resources that can enhance the competitiveness of the organisation. Ex. City bank is the one who first introduced ATM in India. II. Operational Management: IRM stresses that the managerial functions and techniques can be used to manage information technology. Functional organisation structure is necessary for operational efficiency. In many organizations, information system function is organized into a separate department and named as information service department. Functions of Information Service Department are 1. System Development 2. Operations 3. Technical

1. Managing Systems Development: It refers to managing activities such as system analysis and design, prototyping, applications programming, product management, quality assurance, and system maintenance for all major business projects. Planning, organizing and controlling the system development is the managerial responsibility. It requires managing the activities of system analyst, programmers and end users working on a variety of information systems development projects. Some companies have development centers where specialists and consultants were employed. Their role is to evaluate new applications development tools and to help information system specialists to use them to improve their applications. 2. Managing Information operations: It is concerned with the use of hardware, software, network, people resources in the business data center of organization. Operational activities are automated using the software packages for computer system performance management. These System Performance Monitor, monitors the processing of computer job, helps in developing a planned schedule of computer operations and produce detailed statistical informations which are invaluable for the planning and control of computing capacity. Such information evaluates computer system utilization, cost and performance. This helps in capacity planning, hardware, software acquiring planning, and also in quality management. Charge back systems: System performance Monitor also supplies information to charge back systems. Charge back system allocate costs to users based on their information services rendered. All costs incurred are recorded, reported, allocated and charged back to end users department depending on their use of system resources. With this arrangement, the information service department becomes service center and their costs are allocated to computer users. Process Control: Performance Monitors System has the special feature of process control. Such package not only monitors but also controls the computer, operations in large data centers. Some companies use built in expert system modules, these performance monitor is better than human operated system. The main goal is lights out data center where computers are unattended especially after business hours. III. Resource Management: All information system resources should be managed for the benefit of organization. It is important to manage all the resources if an organization wants to have strategic information resource used for Information Technology application and also if it wants to develop new innovative products and services that incorporate information technology. This resource management gives importance for the human values.

Human Resource Management: The success or failure of an information system lies with the quality of the people. Recruiting, training and retraining of qualified Information system personnel is a major challenging job for computer using firms. Managing information services function involves management of managerial, technical and clerical personnel. One of the important jobs of information service manager is to recruit qualified personnel and to develop, organize and to direct the capabilities of existing personnel. Employees should be trained to kept them updated of latest technologies. Employees Job performance should be evaluated continuously and extra ordinary performance should be rewarded. Salary and wage levels to be set, and employees should be provided with promotions. VI Technology management : Information Resource management philosophy emphasis that all technologies that process store and deliver data information must be managed as an ilegrated system of an organizational resources. Such technologies include, internet, intranets, and electronic commerce and as well as traditional based information processing systems. These islands of technologies are bridged by IRM and it is a primary responsibility of CIO. He co-ordinate all the IT has the strategic benefit of the organization. V. Distributed management: The responsibility for managing the information technology is distributed to all levels of management. It is not just the responsibility Chief Information Officer. If a person is appointed as a manager for a particular department is automatically has to take the responsibility of managing information technology. Managing End user computing: The no. of people who uses the computer to help them in doing their job is increasing day by day and it is outsourcing the capacity of information service department. As a result, these groups must use PCs, software packages, and the Internet, Intranet and other networks to develop and apply information technology to their work activities. Organisations have created user services or client services, function to support and manage this explosion in end users.

Information system planning Managers should have the clean understanding of their technology and product with that of competitors. They should incorporate the technology in their annual five year plans. It plays a key role in their strategic thinking, their planning, and most important, the way they accomplish their goals. Planning: Thinking about the future and deciding what to do, when to do, how to do. Deciding in advance and it is a continuous process. Planning process: 1. 2. 3. 4. 5. 6. Team building, modeling. Evaluating the resources acquired. Analyzing their business, economic, political environment. Forecasting and evaluating the future developments. Building shared vision and deciding on what goals they want to achieve. Deciding what action to take to achieve their goals.