Introduction to Information

System
What is Information?
• Refers to processed and meaningful data.
• Refers to data that has been organized and processed into a form that
is useful or meaningful to the user or the computer itself.
• Every aspect of managment in this age relies heavily of information to
prosper.
• Nothing moves withou information and,
• It is specifically consider that information is power and
• Data is the oil that fuels information as a power that drives progress
• Proper dessimination of information at various levels of managment
change the cirumstances and enviroment of every business and
organiztion.
Characteristics of Information
1. Intrinsic Characteristics
• Accuracy: Information must be free from errors, truthful, and
non-deceptive.
• Objectivity: It should be impartial, free from biases, and based
on facts.
• Believability: Users should trust the information due to its
credibility and factual backing.
• Reputation: The source of the information should be reliable
and well-regarded.
 Characteristics of Information
2. Contextual Characteristics
• Relevance: The information must meet the needs of its users and
reduce uncertainty.
• Value-Added: It should provide insight or benefits, improving
decision-making processes.
• Timeliness: The information must be available when needed,
current, and up-to-date.
• Completeness: It should cover all necessary aspects to fully support
decision-making.
• Amount of Information: The quantity should be sufficient to make
informed decisions without being overwhelming or insufficient.
Characteristics of Information
3. Representational Characteristics
• Interpretability: The information should be easy to understand
and meaningful to users.
• Format: Presented in a clear, structured, and consistent way
for easy interpretation.
• Coherence: It should flow logically and be internally
consistent.
• Compatibility: Should integrate seamlessly with other data or
systems.
Characteristics of Information
4. Accessibility Characteristics
• Accessibility: Information should be easily retrievable by
authorized users.
• Access Security: It must be protected from unauthorized
access to ensure confidentiality and integrity.
Key Essential Features of Information Quality
• Reliability: The information must be verifiable, dependable, and
consistent over time.
• Timeliness: It must reach users promptly for effective decision-making.
• Relevant: It should be valid, current, and reduce uncertainty in decision-
making.
• Accurate: Free from errors and mistakes, ensuring it is true and
trustworthy.
• Sufficient: Adequate in scope and depth to support informed decisions.
• Unambiguous: Clearly expressed and comprehensive to avoid
misinterpretation.
Key Essential Features of Information Quality
• Complete: Address all needs within the current context.
• Unbiased: Free from prejudice or manipulation, maintaining
objectivity and integrity.
• Explicit: Self-explanatory without requiring additional clarification.
• Comparable: Uniform in collection, analysis, and format, enabling
meaningful comparisons.
• Reproducible: Consistently produces the same results when applied
to the same data set using documented methods
What is System?
“A system is an orderly grouping of interdependent
components linked together according to a plan to
achieve a specific goal.”
Examples of System
• Transportation System
• Telephone System
• Accounting System
• Production System
• Computer System
• Business System, etc.
System Concepts
1. Environment and Boundaries
2. Natural and Human-Made Systems
3. Open and Closed Systems
4. Process and Transformation
5. System Models
6. Systems Architecture
7. Subsystems
System Concepts
• Environment and Boundaries
• Boundary Definition: To study a system, boundaries must be
defined to determine what entities belong to the system
and what constitutes the external environment.

• System Models: Representations or models of systems help

simplify their complexity for better understanding and
decision-making.
• Natural and Human-Made Systems
• Natural Systems: Found in nature, these systems do not have
a clear purpose but may exhibit behaviors that observers
interpret as goal-oriented (e.g., ecosystems).

• Human-Made Systems: Designed systems built with specific

objectives, such as a transportation network or computer
system. The components in these systems are intentionally
designed to work together cohesively.
• Open and Closed Systems
• Open Systems: Exchange matter, energy, or information with
their surroundings. Examples include living organisms, the
Earth, and organizational processes.

• Closed Systems: Exchange energy but not matter with their

environment. Examples include a computer or Biosphere 2.

• Isolated Systems: Neither matter nor energy is exchanged

with the surroundings. The universe is a theoretical example.
• Process and Transformation
• An open system can be viewed as a transformation process
(black box) where inputs (e.g., materials, energy) are
consumed, and outputs (e.g., products, results) are produced.

• Broad Input/Output: Inputs and outputs can encompass

various forms like data, energy, material, or services (e.g., a
ship's output is moving passengers).
• System Models
• Systems are represented through multiple views, such as:
• Conceptual View: The general idea or purpose of the
system.
• Behavioral View: How the system operates.
• Structural View: The physical or logical components of the
system.

• A system model is essential for describing and managing these

views cohesively.
• Systems Architecture
• A systems architecture integrates multiple views into one
cohesive model, describing the system comprehensively.

• Used to analyze and manage complex systems with numerous

interrelated elements.
• Subsystems
• Definition: A subsystem is a smaller system that operates as
part of a larger system.

• Characteristics: Subsystems have their own environment and

functionality but are designed to contribute to the goals of the
larger system. For example, an engine is a subsystem of a car.
Components/Elements of a System
• INPUT:
• Input is what data the system receives to produce a certain output.
• Input involvescapturing and assembling elements that enter the system to be
processed.
• OUTPUT:
• What goes out from the system after being processed is known as Output.
• Those elements that exists in the system due to the processing of the inputs.
• PROCESSOR(S):
• The processor is the element of a system that involves the actual
transformation of input into output.
• It is the operational component of a system.
Components/Elements of a System
• CONTROL:
• The control elements guide the system. It is the decision-making subsystem
thatcontrols the pattern of activities governing input, processing, and output.
• FEEDBACK:
• Feedback is the data about the performance of the system. Feedback
measuresoutput against a standard in some form of cybernetic procedure
that includes communication and control.
• BOUNDARY:
• The boundaries are nothing but the limit of the system. Setting up boundaries
helps for better concentration of the actives carried in the system.
Components/Elements of a System
• INTERFACES:
• The interconnections and the interactions between the sub-systems is known
as the Interfaces.
• They may be inputs and outputs of the systems.

• ENVIRONMENT:
• The things outside the boundary of the system are known as environment.
• Change in the environment affects the working of the system.
What is Information System?
• An integrated set of component for collecting, storing and processing
data and for providing information, knowlege, and digital products.
• Business forms and other organization rely on inforamtion systems to carry
out and manage their operations, interact with the their customers and
suppliers, and compete in the marketplace.
• IS are used to run inter organization supply chains and electronic
markets.
• Comporation use information system:
• to process financial account,
• to manage thier human resiyrces and,
• to reach their potential customers with online promotions.
What is Information System?
• Many major companies are built entirely around information system
• ex eBay, Amazon, Alibaba and Google
• Government deploy information systems to provide services cost-
effectively to citizens.
• Digital Goods - such as electornic books, video products and software
and online services (such as gaming and social networking)
An information system can be defined as a set of interrelated components that collect (or retrieve),
process, store and distribute information to support decision making, coordination and control in an
organization.
Types of Information System

The following diagram

shows the three major levels
of users in an organization
and the type of information
system that they use.
Types of Information System
Transaction Processing System (TPS)
• Transaction processing systems are used to record day to day
business transactions of the organization.

• They are used by users at the operational management level.

Examples of transaction processing systems include;
• Point of Sale Systems – records daily sales
• Payroll systems – processing employees’ salary, loans management, etc.
• Stock Control systems – keeping track of inventory levels
• Airline booking systems – flights booking management
Types of Information System
Management information systems (MIS)
• Management information systems (MIS) serve the management level of the
organization.
• MIS are used by tactical managers to monitor the organization's current
performance status. Tactical managers are responsible for the semi-structured
decision. The output from a transaction processing system is used as input to a
management information system.
Examples of management information systems include;
• Sales management systems – they get input from the point of sale system
• Budgeting systems – gives an overview of how much money is spent within
the organization for the short and long terms.
• Human resource management system – overall welfare of the employees,
staff turnover, etc.
Types of Information System
Decision-support systems (DSS)
• (DSS) also serve the management level of the organization.
• Used by senior management to make non-routine decisions.
• Use input from internal systems (transaction processing systems and
management information systems) and external systems.
• The main objective of decision support systems is to provide solutions to
problems that are unique and change frequently.
• Examples of decision support systems include;
• Financial planning systems – it enables managers to evaluate alternative ways of
achieving goals.
• Bank loan management systems – it is used to verify the credit of the loan applicant
and predict the likelihood of the loan being recovered.
Types of Information System
• Database System
• Information Retrieval System
• Question-Answering System
• etc
Information Systems (IS)
Information Systems (IS)
Conceptual Framework for Information Systems (IS), structured around
five interconnected components:
1. Management Challenges – Highlighting the obstacles faced by
management in effectively implementing and utilizing information
systems.
2. Information Technologies – Encompassing the hardware, software,
and tools that enable the functionality of information systems.
3. Foundation Concepts – The underlying principles and theories that
define and guide the design of information systems.
Information Systems (IS)
4. Development Processes – The methodologies and steps involved in
creating and maintaining information systems.
5. Business Applications – Practical applications of information
systems that solve problems or improve processes in business
contexts.
Fundamenta components of IS
• Hardware
• Communication networks
• Software
• Data resouces
• People
• Policies and procedures that stores, retrieves, transforms,
and desseminates information in an organization
Fundamenta components of IS
Here's an organized explanation of each element:
• Hardware
• Physical devices and equipment that form the backbone of an information
system.
• Examples include servers, computers, storage devices, input/output devices,
and networking equipment.
• Communication Networks
• The systems and infrastructure that enable data transmission and
connectivity.
• Examples include the internet, intranets, wireless networks, and protocols like
TCP/IP.
Fundamenta components of IS
• Software
• The programs and applications that process data and enable users to perform
tasks.
• Types of software include system software (e.g., operating systems),
application software (e.g., enterprise tools), and middleware.
• Data Resources
• The raw facts and processed information that an organization collects, stores,
and manages.
• Includes databases, data warehouses, and big data repositories.
Fundamenta components of IS
• People
• The users and professionals who interact with the information system.
• Includes IT staff (developers, administrators), managers, and end-users.
• Policies and Procedures
• The guidelines and rules governing the operation and use of the system.
• Ensures standardization, security, and compliance in the handling of data and
processes.
Fundamenta components of IS
Stores, Retrieves, Transforms, and Disseminates
Information
• The core purpose of an IS is to manage information
effectively by storing it, retrieving it when needed,
transforming it into meaningful insights, and
disseminating it across the organization for informed
decision-making.
Application of Information System
Understanding Information System
• We should be able to recognized the fundamental components of the
IS we encounter in the real world. This means that you should be able
to identify:
The people, hardware, software, data, and metwork
resources they used.
The types of information products they produces.
The way they perform input, process, output, storage
and control activities.
IS and Society
• Nowadays, we live in information age and the focus
on information and technology has profoundly
affected the nature of society and the world of work.
• More information is accessible to all people in our
society.
• Businesses are seeking employees who are proficient
in information retrieval, analysis and communication,
in conjuring with highly developed technological skills.
• As information systems enabled more diverse human activities, they
exert a profound influence over society.
• These systems quickenedd the pace of daiy activities enabled people
to develop and maintain new and often more-rewarding
relationships, affected the structure and mix of organization, changed
the type of products bougth, and influence the nature of work.
• Information and knowledge became vital economic resources.
• Intensive industry innovation and academic research continually
develop new opportunities while aiming to contain the threats
Information System and Organization
• The rapid evolution of computer technology is expanding. nology is
expanding esire to obtain computer assistance in solving more outer
assistance inmore complex problems: problems which were considered
solely in the domain of man's intuitive and judgmental processes,
particularly in organizations, a few years ago.
• Information systems are becoming of ever greater interest in progressive
and dynamic organizations.
• The need to obtain access conveniently, quickly and economically makes it
imperative to devise procedures for the creation, management and
utilization of databases in organizations.
• Management information and information systems, in particular those
related to effective decision-making processes in a organization.
IS and Organization
• Information systems can give you a competitive advantage and provide the
data you need to make faster, smarter business decisions. Depending on
your needs, you can opt for transaction processing systems, knowledge
management systems, decision support systems and more.
• When choosing one, consider your budget, industry and business size. Look
for an information system that aligns with your goals and can streamline
your day-to-day operations.
• Business intelligence (BI) systems, for instance, can turn data into valuable
insights.
• IS allows for faster, more accurate reporting, better business decisions and
more efficient resource allocation.
 Constraint of IS
• Belief that a computerized MIS can solve all problems.
• Developed without streamlining the TPS.
• It is conceived as data processing and not as information system.
• MIS does not give perfect information to all users.
• Lack of administrative discipline in following standardized systems and
procedures, wrong coding can result in incomplete and incorrect
information.
• MIS does not provide information needed by managers but that what the
function calls for.
• MIS does not meet critical and key factors such as response to query on
database etc.
Limitation of IS
• IS cannot replace managerial judgment in Decision Making.
• The quality of output in IS is directly proportional to quality of input.
• IS cannot provide tailor made/customized information package.
• IS does not have enough flexibility to update itself quickly
• IS only consider quantitative data.
• IS is less useful in making non programmed decisions
• IS is less effective in organization where information is not being shared
with other.
• IS is less effective due to constant change in top management,
organizational structure and operational staff.