AN INTRODUCTION TO INFORMATION SYSTEMS

Chapter 1

Information System

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. OR

a set of interrelated components working together to collect, retrieve, process,

store, and distribute information for the purpose of facilitating planning, control,

coordination, analysis, and decision making in business organizations

Examples: ATMs; airline reservation systems; course reservation systems

Definitions• Data

• Collection of raw facts and figures is called data.

• Raw facts such as an employee’s name and number of hours worked in a

week, inventory part numbers or sales orders.

• Information

• The processed form of data is called information.

• A collection of facts organized in such a way that they have additional value

beyond the value of the facts themselves.

Definitions

• Knowledge• An awareness or understanding of a set of

information and ways that information can be made useful to support a specific task or reach a decision.

The Process of Transforming Data into Information