Information Systems

AICT002-4-1-Information Systems (version1)

Introduction to Information
Systems (IS)
 Topic & Structure of The Lesson
• What is computer?
• What is information system?
• Elements of an information system
• Characteristics of valuable information
• Types of information systems
• Objectives of information systems
• Examples of information systems
• The Scope of New IS
• The Future in IS

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 Learning Outcomes

At the end of this topic, YOU should be able to:

• Define information systems

• Identify elements of an information system

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 Key Terms You Must Be Able To
Use
• If you have mastered this topic, you should be able to use the following
terms correctly in your assignments and exams:

• Computer
• Information system
• Data
• Information
• Hardware
• Software
• Accurate
• Verifiable

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 What is Computer?

• What is a computer ?
 An electronic device, operating under the control of
instructions stored in its own memory;
 Accepts data (Input)
 Raw facts, figures and symbols
 Processes data into information (Process)
 Data that is organized, meaningful and useful for decision
making
 Produces results (Output)
 Stores the results (Storage) for future use

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 What is Computer?
• The power of computers
Computers
process data Computers do
with amazing not make
speed, they are mistake. Degree
capable of Speed Accuracy of accuracy is
responding to critical in many
requests faster computer
than humans applications
which improves
efficiency
Storage &
retrieval

Computers can store vast quantities

of data and locate a specific item
quickly.
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 Information systems
• What is an Information System ?
• For an Information System to provide accurate,
timely and useful information, each element must
be present and all of the elements must work
together.
• The Information System consists of five main
elements which include:
o Data and Information
o Hardware
o Software
o People
o Procedures
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 The Elements of an Information System

HARDWARE

PROCEDURES

DATA / INFO
SOFTWARE

PEOPLE
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 The Elements of an Information system
• Data
o Data (singular) are raw facts
o Data has no inherent meaning
o Data cannot be used for making decision
o Examples:
Sales records
Personnel records
Itemized lists

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 The Elements of an Information system

• Information
 Processed data that conveys meaning and useful to
people
 It is used for making decision
 Examples :
 Employee payroll report
 Student grade sheet
 Telephone bill statement

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 The Elements of an Information system

How data
become
information
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 The Elements of an Information system

• Hardware
 It is defined as: any electric, electronic and mechanical
components contained in a computer
 Examples :
 Monitor
 Keyboard
 Printers
 Thumb drive
 Hard disk
 Tape
 Scanner

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 The Elements of an Information system
• Software
 It is defined as: series of instructions that tells a computer
what to do and how to do it
 Examples :
 Application software
Software (Program)
 Word processing Consists of a series of instructions that tells the computer
 Spreadsheet whatSystem software
to do and how to do it
Programs Operating
that control or maintain
System (OS)the operations
 System software of the computer and its devices
is a set of programs that coordinates all
activities among computer hardware
 Windows device
Utility Programs
 IOS allow the user to perform maintenance-
type tasks usually related to managing
a computer, its devices or its program
application software
Programs designed to make users more
productive

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 The Elements of an Information system
• People
o A user is a person who communicates with a
computer or uses the information that it
generates.
o Direct and indirect user.
o Examples:
Direct: Skilled users, trained users, system
developers, database administrators, system
administrators, etc.
Indirect users: non IT literate users, etc.

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 The Elements of an Information system
• Procedure
 It is defined as: an instruction or set of instructions a user
follows to accomplish an activity
 Example :
 User manual How all major components of an IS must work together

 Data entry

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Characteristics of Valuable Information

• Accurate
• Timely
• Relevant (Meaningful)
• Just sufficient
• Cost effective (Worth Its Cost )
• Verifiable
• Organized

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Characteristics of Valuable Information

• Accurate
o Error free
o Crucial – inaccurate information can lead to
incorrect decisions
o IS becomes a waste of time and money as users
develop work-around to avoid inaccurate data
o Accurate information cannot be conceived from
inaccurate data

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Characteristics of Valuable Information
• Timely
o Has an age suited to its use – updated
information
o Available in time for its intended use
o Example: a monthly sales report that arrives six
weeks late is most likely useless
o In IS development, timeliness is part of the
requirements that need to be specified
o Example: IS that determine how frequent
customers had clicked on the advertisements

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Characteristics of Valuable Information
• Relevant (Meaningful)

o Relevant both to the context and subject of the

developed IS
o Relevant to the user who receives or uses it
o Unnecessary information must be eliminated
o Example:
Information required: short-term interest rates for
possible line of credit
Relevant information: 1 to 3 year mortgage interest rates
Irrelevant information: 15-year mortgage interest rate

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Characteristics of Valuable Information
• Just Sufficient
o Just enough for the purpose for which it is
generated
o Users are undated with data as one of the critical
decisions in each day is “what data to ignore”
o Higher level in management, more data will be
given, and due to limited time, the more data will
need to be ignored
o Example: there is no need to include marital status
and hobby in employees monthly payroll report

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Characteristics of Valuable Information
• Cost-effective
o Data is not free – costs of operating and maintaining
the system, cost of users time and salary to read,
enter/key in and process the data within the IS
implementation
o The cost to produce the information should be less
than the actual cost of the information

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Characteristics of Valuable Information

• Verifiable
o User can confirm and verify the information
found in the IS
o Information can be proven as correct or
incorrect

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Characteristics of Valuable Information

• Organized
o Information is arranged to suit the needs and
requirements of the users
o Examples: information being arranged in table
form

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 Objectives of Information systems

 Improve productivity
 Monitor organisational performance
 Planning and decision making
 Competitive advantage

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 Types of Information Systems
Based on management level in the
organization:
• Transaction Processing Systems
• Management Information System
• Decision Support Systems
• Knowledge Management Systems
• Database Management Systems
• Office Information Systems

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 Examples of Information Systems

• Supply Tracking System

• Point of Sales System
• Inventory System
• Human Resource Information System
• Billing System

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 The Scope of New IS
• The need of:
o new hardware
o license software
o The creation of new data and database
o new procedures for both users and system
administrators
• Impact of the new technology on people
o Which jobs will change? To hire more people?
o Training?
o How it may affect morale?
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 The Future in IS
• Hardware and software costs will decline
• Artificial intelligence and related technologies will
improve and expand
• Computer literacy and networking technology will
improve
• Personal computers will improve in power and
quality
• Internet growth will continue

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 The Future in IS
• Computer criminals will become more
sophisticated
o Protecting personal information will become more
difficult
• Some of the trends that should continue into the
future include:
o Ubiquitous computing and the Internet of Things (IoT)
o 3D printing, pervasive analytics, context aware
computing, smart machines and devices, and cloud
computing
o Software defined applications and infrastructures
o Importance of computer and network security
o Increased applications of augmented and virtual reality
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 Quick Review Question

• What is information system?

• What is the difference between data and
information
• Identify objectives of IS
• Provide more examples of IS that you can find
from internet

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 Summary of Main Teaching Points

 Computer – Input, Process, Output & Storage

 Five (5) IS elements include: Data and
Information, Hardware, Software, People,
Procedures.

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 Question and answer session

Q&A

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 What we will cover next

• 02 Chapter 2 Information Systems Development

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