Business Information System

UNIT-1 Introduction to Information System

1 UNIT-1 Introduction to Information System Prepared By: G.R 5/4/2024

 Introduction to Data and Information
 In computing, data is information that has been translated into a
form that is efficient for movement or processing
 Data is raw unprocessed facts and figures that have no context or
purposeful meaning.
 Data are raw facts about the organization and its business transactions.
Most data items have little meaning and use by themselves.
 Information is processed data that has meaning and a context System
and Information System.
 Information is data that has been refined and organized by processing
and purposeful intelligence.

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 Data Vs Information
 Data is used as input for the computer system. Information is the
output of data.
 Data is unprocessed facts figures. Information is processed data.
 Data doesn’t depend on Information. Information depends on data.
 Data is not specific. Information is specific.
 Data is a single unit. A group of data which carries news and
meaning is called Information.
 Data doesn’t carry a meaning. Information must carry a logical
meaning.
 Data is the raw material. Information is the product.

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 Data and Information

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 Data Vs Information Cont…

Raw Data

Context

Processing

Information

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 Perspectives on Information Systems

▪ Information system:
-Set of interrelated components Collect, process, store, and distribute
information Support decision making, coordination, and control

▪ Information vs. data

- Data are streams of raw facts.
- Information is data shaped into meaningful form.

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 Information System Cont..

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 Why should we study Information system?
 Information systems are important because they provide a means for
businesses to manage their operations efficiently.
 In addition, information systems can help businesses to make better decisions
by providing accurate and up-to-date information
• 1. The Field Offers You Different Career Options
• 2. Studying Information Systems is Not Just Theoretical
• 3. More Flexibility in Work
• 4. People Who Have Studied Information Systems Have Higher Earnings
• 5. The Field is Constantly Growing
• 6. You Learn on the Job Too
• 7. Information Systems is a Great Channel for Your Creativity
• 8. You Can Start a Career You Really Enjoy
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 What is Information System?
 “An information system is a set of interrelated components that work together to
collect, process, store, and breakdown the information to support decision making.”
“Information system (IS) is the study of complementary networks of hardware and
software that people and organizations use to collect, filter, process, create, and
distribute data.”
 “Information systems are combinations of hardware, software, and
telecommunications networks that people build and use to collect, create, and
distribute useful data, typically in organizational settings.”
 “Information systems are interrelated components working together to collect,
process, store, and disseminate information to support decision making,
coordination, control, analysis, and visualization in an organization.”
 These definitions focus on two distinct aspects of information systems: the
components that comprise an information system and their role in an organization.
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 Characteristics of Information System
• Understandable
• Relevant
• Compete
• Available
• Reliable
• Concise
• Timely
• Cost-effective

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 DIMENSIONS OF INFORMATION SYSTEM

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 DIMENSIONS OF INFORMATION SYSTEM
 Organizational Dimension: Organizations include information systems.
• The standard operating procedure and culture of an organization will be
embedded in an information system. Functional specialties, business
processes, culture, and political interest groups are all part of this.
• This refers to the people, policies, and procedures that govern how an
organization's information system is used and managed.
• This refers to how the information system fits into the organizational structure
and how it supports the organization's goals and objectives.
• A sales management system, for example, is part of the organizational
dimension because it helps to improve sales performance.

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 DIMENSIONS OF INFORMATION SYSTEM Cont..
 Management Dimension: Managers perceive environmental business
challenges.
• Information systems provide managers with the tools and information they
need to allocate, coordinate, and monitor their work, make decisions, create
new products and services, and make long-term strategic decisions.
• The policies, procedures, and rules that govern the use of the information
system are referred to as this.
• The management dimension includes things like passwords, backup
procedures, and data security policies.

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 DIMENSIONS OF INFORMATION SYSTEM Cont..

 Technology Dimension: Management makes use of technology to carry out

their duties. Computer hardware/software, data management technology and
networking/telecom technology are all part of it. It is one of many tools used
by managers to deal with change.
• This includes the hardware, software, data, and network components that
comprise an information system's technical infrastructure.
• A server, a personal computer, and database software, for example, are all
examples of technical dimensions.

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 DIMENSIONS OF INFORMATION SYSTEM Cont..
 Strategic Dimension: This entails aligning information systems with an
organization's overall goals and strategies.
• This includes decision-making processes as well as the impact of information
systems on the competitiveness and success of the organization.
 User dimension: This refers to the information system's end users and how they
interact with it. An e-commerce website, for example, is part of the user
dimension because it allows customers to purchase goods and services.
• Each of these dimensions is interconnected and has an impact on an information
system's overall performance and effectiveness.
• To ensure that an information system meets the needs of the organization and its
users, it should take into account all three dimensions.

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 COMPONENTS OF INFORMATION SYSTEMS

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 Components OF INFORMATION SYSTEMS Cont..
 The components that allow an information system to function effectively and efficiently
are known as its operating elements. They are as follows:
 Hardware: A system's physical components, such as computer equipment, peripheral
devices, and other supporting equipment.
 Software: A set of instructions that instructs the hardware on what to do. System
software (such as the operating system) and application software are both included.
 Data: Information that the system stores and processes. It can include both structured
(like a database) and unstructured data (such as a text document).
 Procedures: The steps and processes that are followed to complete specific tasks such
as data entry, information processing, and report generation.
 People: Those who use the system as well as those who support and maintain it.
 Network: The communication channels that connect the various system components
and allow them to work together.
 Policies and security measures: The guidelines and measures that ensure the system's
information's confidentiality, integrity, and availability.

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 TYPES OF INFORMATION SYSTEMS
 Information systems can be classified into several types based on their
functions, organizational level, and nature of data processed:
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision Support Systems (DSS)
• Executive Information Systems (EIS)
• Expert Systems (ES)
• Artificial Intelligence Systems (AI)
• Enterprise Resource Planning Systems (ERP)
• Supply Chain Management Systems (SCM)
• Customer Relationship Management Systems (CRM) •
• Knowledge Management Systems (KMS)
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 Types of Information Systems

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 TYPES OF INFORMATION SYSTEMS Cont..
 Transaction Processing System (TPS): A transaction processing system is an
information system that processes data resulting from business transactions.
• Their goals are to provide transactions so that records can be updated, and reports can
be generated, i.e., to perform storekeeping functions. The transaction is carried out in
two stages: batch processing and online transaction processing.
• Examples: Bill system, payroll system, Stock control system.
 Management Information System (MIS): A Management Information System is
intended to take relatively raw data available through a Transaction Processing
System and summarize and aggregate it for the manager, usually in the form of a
report.
• Middle management and operational supervisors are likely to use its reports. MIS
generates a wide range of report types.
• A summary report, an on-demand report, an ad-hoc report, and an exception report
are among the reports available.
• Examples: Sales management systems, Human resource management systems.
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 TYPES OF INFORMATION SYSTEMS Cont..
 Decision Support System (DSS): A Decision Support System (DSS) is an
interactive information system that provides information, models, and data
manipulation tools to assist decision-making in semi-structured and unstructured
situations.
• The end user is more involved in creating DSS than an MIS because DSS includes
tools and techniques to assist in gathering relevant information and analyzing options
and alternatives.
• Examples: Financial planning systems, Bank loan management systems
 Experts System: Experts systems include expertise to assist managers in diagnosing
and solving problems.
• These systems are based on artificial intelligence research principles. Experts
Systems is a data-driven information system. It acts as an expert consultant to users
by applying its knowledge of a specific area.
• An expert system's components are a knowledge base and software modules. These
modules perform knowledge inference and provide answers to user questions.
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 TYPES OF INFORMATION SYSTEMS Cont..
 Office Automation System: An office automation system is a type of information
system that automates various administrative processes such as documenting, data
recording, and office transactions.
• The administrative and clerical activities are separated in the office automation
system. Email, voice mail, and word processing are some of the business activities
performed by this type of information system
 Executive Support System: An Executive Support System (ESS) assists top-level
executives in planning and controlling workflow as well as making business
decisions. It is similar to the Management Information System (MIS).
• It provides great telecommunication, better computing capabilities, and effective
display options to executives, among other things.
• It provides information to them in the form of static reports, graphs, and textual
information on demand.
• It helps monitor performance, track competitor strategies, and forecast future trends,
among other things.
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 Impact of IT on Organization
 Information technology (IT) is dramatically changing the business landscape.
Although organization cultures and business strategies shape the use of IT in
organizations, more often the influence is stronger the other way round.
 IT significantly affects strategic options and creates opportunities and issues that
managers need to address in many aspects of their business.
 Some of the key impacts of technology and the implications for management on:
 Business strategy - collapsing time and distance, enabling electronic commerce
 Organization Culture - encouraging the free flow of information
 Organization Structures - making networking and virtual corporations a reality
 Management Processes - providing support for complex decision making processes
 Work - dramatically changing the nature of professional, and now managerial work
 The workplace - allowing work from home and on the move, as in telework
 There is also the outline of an executive presentation, that has been used to increase
awareness of these issues.
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 Importance of Information System to society
 Information systems are considered strategic tools in the hands of decision-
makers, providing data, and supporting the decision-making process.
 In today's competitive environment, businesses need to develop competencies
in information system capabilities to adapt, change, and realign their resources
effectively
 Another way to use information systems for social impact is to facilitate
communication and dialogue among different stakeholders, such as
individuals, groups, organizations, and governments. Communication can help
you build trust, share knowledge, and coordinate efforts.

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 UNIT-1 Introduction to Information System Prepared By:
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