Download - Information Technology
Mr.Harish.R, Don Bosco Institute of Technology 1
Foundation Of Information
Systems In Business
MODULE-1
Mr.Harish.R, Don Bosco Institute of Technology 2
Learning Objectives:
Understand the concept of a system and how
it relates to information systems.
To Learn to differentiate between data &
information
To understand the trends in IS
To Know the components of an IS & its
resources
To Know the Application of IS in
organizational functions
Mr.Harish.R, Don Bosco Institute of Technology 3
What Is An Information System?
An Information System can be any organized
combination Of:
- People,
- Hardware,
- Software,
- Communications networks,
- Policies.
Mr.Harish.R, Don Bosco Institute of Technology 4
What Is An Information System?
(continued)
People rely on modern information systems
to communicate using a variable:
- Physical devices (hardware).
- Information processing instruction and
procedures (software).
- Communications channels (network).
- Stored data (data resources).
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Examples Of Information Systems:
Smoke signals for communication
Card catalog in a library
The cash register
Definitions
Mr.Harish.R, Don Bosco Institute of Technology 6
Data
Raw facts such as an employee’s name and
number of hours worked in a week, inventory
part numbers or sales orders.
Information
A collection of facts organized in such a way
that they have additional value beyond the
value of the facts themselves.
Definitions
Data
Raw facts such as an employee’s name and number of hours worked
in a week, inventory part numbers or sales orders.
Information
A collection of facts organized in such a way that they have additional
value beyond the value of the facts themselves.
DataInformation
$35,000 12 Units
$12,000 J. Jones
Western Region
$100,000 100 Units
35 Units
Data
Processing
Salesperson: J. Jones
Sales Territory: Western
Region Current Sales:
147 Units = $147,000
Information Systems
An information system(IS) is typically considered to be a set of interrelated elements
or components that collect(input), manipulate(processes), and disseminate (output)
data and information and provide a feedback mechanism to meet an objective.
Open System
Close System
Definitions
An Information System is an organized combination of people, hardware, software,
communication networks and the data resources that collects, transforms and
disseminates information in a organization.
Computer-based Information System
Software
Computer software falls into two classes:
systems software and applications software.
1) Systems Software: Manage the resources of
the computer system and simplifies
programming. An operating system is the
principal system software. It manages all the
resources of a computer system and provides
an interface through which the system's user
can deploy these resources.
Mr.Harish.R, Don Bosco Institute of Technology 10
Contd..
2) Application Software: Are programs that
directly assist end users in doing their work.
They are purchased as ready-to-use
packages. Applications software directly
assists end users in doing their work.
Mr.Harish.R, Don Bosco Institute of Technology 11
Databases
Databases are organized collections of
interrelated data used by applications
software. Databases are managed by
systems software known as database
management systems (DBMS) and shared by
multiple applications.
Mr.Harish.R, Don Bosco Institute of Technology 12
Telecommunications
Telecommunications are the means of
electronic transmission of information over
distances. Today, computer systems are
usually interconnected into
telecommunications networks. Various
network configurations are possible,
depending upon an organization's need.
These include:
1. Local area networks (LAN) 2. Metropolitan
area networks (MAN) 3. Wide area networks
(WAN)Mr.Harish.R, Don Bosco Institute of Technology 13
INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to buildINFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
IS Vs IT
Mr.Harish.R, Don Bosco Institute of Technology 15
Computer Based Information System
& Information Technologies:
1. Computer hardware technologies-Micro
Computers, Midsize servers, input,output
and storage devices.
2. Computer software technologies-Operating
systems, web browsers, software
productivity suites.
3. Telecommunications network technologies-
intranets, extranets, Wi-fi, LAN, WAN.
4. Data resource management technologies-
DBMS Software for development, access.
Mr.Harish.R, Don Bosco Institute of Technology 17
The Major Areas Of Information Systems
Knowledge Needed By Business Professionals
1. Foundation concepts.
concept about the components and roles of
information systems.
2. Information technologies.
hardware, software, networks, data
management, many internet based
technologies.
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The Major Areas Of Information Systems
Knowledge Needed By Business Professionals
(continued)
3. Business applications.
operations, management, competitive advantage of a business.
4. Development processes.
plan, develop, and implement information systems to meet business opportunities.
5. Management challenges.
the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business.
Ex:- Cyber Crime, Hacking, Cyber Theft, Piracy, Viruses & Worms
Mr.Harish.R, Don Bosco Institute of Technology 19
The Fundamental Roles Of
Information System In Business
There are three fundamental reasons:
1. Support of its business processes and
operations.
2. Support of decision making by its employees
and managers.
3. Support of its strategies for competitive
advantage.
Mr.Harish.R, Don Bosco Institute of Technology 20
Trends In Information Systems:
1. Data processing: 1950s – 1960s
- electronic data processing systems
-- transaction processing, record keeping,
and traditional accounting applications.
2. Management reporting: 1960s – 1970s
- management information systems
-- management reports of pre-specified
information to support decision making.
Mr.Harish.R, Don Bosco Institute of Technology 21
Trends In Information Systems
(continued):
3. Decision support: 1970s – 1980s
- decision support systems
4. Strategic and User Support: 1980s – 1990s
- end user computing systems
- executive information systems
- expert systems
- strategic information systems
Mr.Harish.R, Don Bosco Institute of Technology 22
Trends In Information Systems
(continued):
4. Electronic Business and Commerce: 1990s
– 2000s
- internet based e business and
e-commerce systems
Mr.Harish.R, Don Bosco Institute of Technology 23
The Role Of “E Business” In Business
Many business today are using internet
technologies to Web enable business
process and to create innovative e business
application.
Mr.Harish.R, Don Bosco Institute of Technology 24
The Role Of E Business In Business
(continued)
E business:
the use of internet technologies to work and
empower business process, electronic
commerce, and enterprise collaboration
within a company and with its customers,
suppliers, and other business stakeholders.
Mr.Harish.R, Don Bosco Institute of Technology 25
Business Today
Manufacturing and
production
Accounting
and finance
Engineering
and
research
Supply chain management:
procurement, distribution, and
logistics
Customer relationship management:
Marketing, Sales, Customer Service
Company
Boundary
Internet
Internet
Mr.Harish.R, Don Bosco Institute of Technology 26
Business Today (continued)
Company
Boundary
Suppliers and other
business partners
Consumers and business
customers
Extranets
Extranets
Mr.Harish.R, Don Bosco Institute of Technology 27
Business Today (continued)
Intranet:
the internet and internet like networks inside
the enterprise.
Extranet:
the internet and internet like networks
between an enterprise and its trading
partners.
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Business Today (continued)
Electronic commerce:
the buying, selling, marketing, and servicing
of products, services, and information over a
variety of computer networks.
Mr.Harish.R, Don Bosco Institute of Technology 29
The IS (Information System)
Functions:
A major functional area of business equally
as important to business success, as the
function of:
- accounting,
- finance,
- operations management,
- marketing,
- human resource management.
Mr.Harish.R, Don Bosco Institute of Technology 30
The IS (Information System)
Functions (continued):
An important contributor to:
- operational efficiency,
- employee productivity,
- customer service and satisfaction.
A major source of information and support
needed to promote effective decision making
by managers and business professionals.
Mr.Harish.R, Don Bosco Institute of Technology 31
The IS (Information System)
Functions (continued):
A vital ingredient in developing competitive
products and services that give an
organization a strategic advantage in the
global market place.
Mr.Harish.R
32
Foundation Concepts: The
Components Of Information Systems:
Technology:
the computer network are systems of information processing component that use a variety of: hardware,
software,
data management,
and telecommunication network technologies.
Applications:
the electronic business and commerce applications involve interconnected business information systems.
Mr.Harish.R, Don Bosco Institute of Technology 33
Foundation Concepts: The Components Of
Information Systems (continued):
Development:
that developing ways to use information
technology in business includes designing the
basic components of information system.
Management:
the managing information technology
emphasizes the quality, strategic business
value, security.
Mr.Harish.R, Don Bosco Institute of Technology 34
What Is A System?
Systems have three basic functions:
1. Input:
Involves capturing and assembling elements
that enter the system to be processed.
Example: - raw materials,
- energy,
- data.
Mr.Harish.R, Don Bosco Institute of Technology 35
What Is A System? (continued)
Systems have three basic functions (continued):
2. Processing:
involves transformation processes that convert input
into output.
Example: - manufacturing process,
3. Output:
involves transferring elements that have been
produced by a transformation process to their
ultimate destination.
Example: - finished products,
- human services
Mr.Harish.R, Don Bosco Institute of Technology 36
Stakeholders In The Business
Environment
Management
Information System
Economic
Resources: people,
money, material,
machines, land,
facilities, energy,
information
Business Process:
market, develop,
produce, and
deliver, products
and services,
support customers,
other processes
Goods and Services:
products, services,
payments, contributions,
information, other effects
INPUT
PROCESSING
OUTPUT
CONTROL
FEEDBACK
Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community,
Government Agencies, Suppliers
Mr.Harish.R, Don Bosco Institute of Technology 37
Components Of An Information
System
Control System Performance
Input Of Data
Resources
Processing
Data Into
Information
Output Of
Information
Products
Storage Of Data Resources
PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and
procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES
(communications media and network support); DATA RESOURCES (data and knowledge bases);
SYSTEM ACTIVITIES
Mr.Harish.R, Don Bosco Institute of Technology 38
Examples Of Information System
Resources And Products
Information Systems Resources And
Products
People
Resources
Hardware
Resources
Software
Resources
Data
Resources
Network
Resources
Mr.Harish.R, Don Bosco Institute of Technology 39
Information Systems Resources And
Products
People resources:
- specialist (system analysts, software
developers, system operators).
- end users (anyone else who uses
information systems).
Hardware resources:
- machines (computers, video monitor, magnetic disk
drives, printers, optical scanners).
- media (floppy disks, magnetic tape, optical disks,
plastic cards, paper forms).
Mr.Harish.R, Don Bosco Institute of Technology 40
Information Systems Resources And
Products (continued)
Software resources:
- programs (operating system program, spreadsheet
programs, word processing programs).
- procedures (data entry procedures, error correction
procedures).
Data resources:
- product description, customer records, employee
files, inventory databases.
Mr.Harish.R, Don Bosco Institute of Technology 41
Information Systems Resources And
Products (continued)
Network resources:
- communications media, communication
processors, network access and control
software.
Information products:
- management reports and business
documents using text and graphics displays,
audio responses, and paper forms.
Mr.Harish.R, Don Bosco Institute of Technology 42
Business Examples
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
Mr.Harish.R, Don Bosco Institute of Technology 43
LEARNING OUTCOMES
As a business professional, You should be able
to recognize the fundamental components of
information systems You encounter.
You should be able to identify:
** The people, hardware, software, data, and network
resources they use.
** The types of information products they produce.
** The way they perform input, processing, output,
storage, and control activities.