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).

Mr.Harish.R, Don Bosco Institute of Technology 5

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.

DISCUSS

Information is resource or not???

Mr.Harish.R, Don Bosco Institute of Technology 16

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.

Mr.Harish.R, Don Bosco Institute of Technology 18

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.

Mr.Harish.R, Don Bosco Institute of Technology 28

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.

THANK YOU

Mr.Harish.R, Don Bosco Institute of Technology 44