Know the features and functions of information systems

Objectives
● Understand how organisations use business information
● Understand the issues related to the use of information
● Know the features and functions of information systems
● Be able to use IT tools to produce management
information

Introduction
“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 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”

Personal Finance MIS
- Received Salary ?
- Monthly expenses ?
- Interest rate on fixed deposits ?
- How can you electricity bills ?
- Get movie ticket ?
- Transfer money ?

Organisational MIS
- How many employees ?
- Which products have sold poorly this quarter ?
- What are our profit margins on our products ?
- What is the lowest price at which we can sell a product ?
- What are our operating expenses for this branch ?

Information Systems
- Patient Management Systems
- Airline reservation and ticketing systems
- Store payment and checkout systems
- Factory inventory management systems
- Financial Planning System
- Human resource systems
- Bill payment systems
- College student information systems

Features of
Information System
● Technology
● Networking Communication
● People
● Process

Technology
● Hardware
● Software
● Data

Hardware
- Part of information system which can be touch
- Physical components of the technology
- Computers, IO devices, Mobile phones, Storage device
- Hardware used depends on size of organisation(cloud, local)

Software
- Set of instructions that tells the hardware what to do
- Types of software
- Operating system : Operates hardware eg Android, Linux, Mac , Windows
- Application Software: Performs useful works - Camera App, Microsoft excel etc
- May vary according to organization structure

Data
- Text on word processor
- Video or MP3 on media player
- Demographic information (name, address, phone, age etc)
- Role of informations system is to transform data into information to
support decision making inside organization

Data Types
- Qualitative : Descriptive data eg Color of car
- Quantitative : numeric value, result of measurement, count

Data, Information and knowledge
- Raw data is not useful
- Data with context is information
- “32, 35, 49, 60” is raw data
- “32, 35, 49, 60” is number of student in computer, electrical, electronics
and civil departments of 2017 batch : information
- Number of students in Civil has increased by 40%
- Increase number of seats in Civil department

Database
- Tools for data aggregation and analysis
- Relational and Non-Relational database
- Mysql, No-Sql
- Big data
- Data

Data Mining
● Data mining is the process of analyzing data to find previously unknown
trends, patterns, and associations in order to make decisions
● Eg. Amazon product suggestion i-e people also buy this
● Eg. Predicting customer pregnancy and promote diapers, cotton wool and
so on.
● Eg. Finding pattern whether user likely to discontinue service providers if
so provide discounts and incentives to attract customers.

Network Communication
- Information system can operate without internet
- Has become essentials
- Can share information to external system
- Made up of hardware and software
- Should be secure (VPN, Firewall, Dedicated Network)
- Cloud computing

People
- Persons involved on information systems
- Front-line help-desk workers
- Systems analysts
- Software Engineers
- Executive Members
- Managers
- Operators

Process
- Series of steps undertaken to achieve a desired outcome or goal.
- Information systems are being widely used in organizational processes
- Process should be documented
- it is essential to do this, because it allows them to ensure control over how
activities are undertaken in their organization
- McDonald’s has the same process for building a Big Mac in all of its
restaurants.
- Simple process can be documented on simple list

Process
- Person Process for particular day
1. Reading news paper
2. Go to gyms
3. Preparing foods
4. Reading emails etc

Process
- User creation process on ebay
a. Go to ebay.com.
b. Click on “register.”
c. Enter your contact information in the “Tell us about you” box.
d. Choose your user ID and password.
e. Agree to User Agreement and Privacy Policy by clicking on “Submit.”

Process
- Process while article adding on wikipedia
a. Search Wikipedia to determine if the term already exists.
b. If the term is found, then an article is already written, so you must think of another term.
Go to 1.
c. If the term is not found, then look to see if there is a related term.
d. If there is a related term, then create a redirect.
e. If there is not a related term, then create a new article
- Process is more complex cannot represent on list

Easier to
represent on
flow diagram.

Managing Business Process Document
- Document management systems is required to manage business process
document.
- Document management systems should store and tracks documents.
- Document management systems should have following functions
- Versions and timestamps
- Approvals and Workflow
- Communications

Functions of Information System

Functions of information Systems
● Input
● Processing
● Output
● Storage
● Feedback

Input
● Input refers to entering the data into the system.
● Data can be entered by a variety of methods, for example:
○ a keyboard to manually type in the data
○ a mouse to select from a list of options
○ scanning a barcode

Input
1. Number of students present in class
2. Number of steps of walked user in android phone or data read by speedometer
3. Number of shoes produced today
4. User current location in android app
5. Number of photo taken per day
6. data collected by a temperature sensor being automatically input into a central heating system
7. Student grades from a piece of homework being entered into a teacher's electronic markbook
8. Lottery ticket numbers being 'fed' into an OMR which then enters them into the National Lottery
system

Processing
- Processing is the stage where the input data is manipulated in order to produce meaningful
information.
- Processing may involve some sort of sorting, searching, calculations, graphing
- Examples
- Searching sales data to find which products in a supermarket have sold most
- Sorting list of products by alphabetical order
- Finding employee from particular location
- Calculating the amount of expenses per month of a company
- Extracting product details and price, after scanning barcode in a supermarket
- Complex mathematical model for stock control system

Output
- Output is the stage where the information obtained via processing is presented to user in a
suitable format.
- Graphical Output : Information that is presented as charts, diagrams, graphs or pictures.
Graphical output is often best for seeing the big picture, understanding trends and presenting
the information to management.
- Textual Output – Information that is presented as characters, numbers or text. Textual output is
best where it is important to analyze the detail and know exact values.

Output
- a weather forecast shown as an user-friendly
graphic rather than a basic table.

Output
● a printout of student examination results displayed in order from highest to
lowest
● a digital display at the petrol pump showing how much fuel has been
delivered and the cost of that fuel
● an alarm from a fire alarm system which has detected smoke in the room

Storage
- Information often needs to be stored on the system for use at a later date.
- Storage should be more precise and effective so that we can infer
information in later use case
- Should maintain regular backup
- Should be fault tolerance

Control & Feedback
- Feedback is where the output from the system is feedback into the system
in order to influence the input.
- A control or feedback loop is what happens in the organisation as a result
of the output from an information system.
- It should have some effect, direct or not, on future inputs to the
information system.

Control & Feedback
- When you try to withdraw too large amount atm shows the information to
withdraw less amount
- When employee attendance is irregular then system will advised to
schedule a meeting to know the reason in company
- An example would be information of sales. Management could then
change the price to maximise profits and review the data feed.

Example - School Registration System
- Input - Attendance of Student
- Processing - data will be processed and will insert record in attendence
record for each pupil
- Storage - Data is stored for later use
- Output - Printed list of absent students
- Feedback - Principal will call parents to know reason of absence and
update it to the system.

Closed System
- Closed system doesn’t allow for free flow or transfer of data between the
organization and other companies and at times between departments
within the organization
- Systems that doesn’t interact with other systems
- Re-search and Development department in organization doesn’t interact
with other systems such as human resource information system.
- R&D is an endeavor to protect the organization’s secrets and prevent
leakage of the company’s information.

Open System
- System that allows for free exchange and flow of the information and data
between departments and the external environment. For
- For instance, the marketing and Human Resources departments require
external information and therefore must allow for free and flexible flow of
data to achieve their departmental goals.

Assignment
- Demonstrate input, processing, storage, output and
feedback of any 2 information system that you have
used?
- Provide the any 2 example of open and closed
information system?

Transformation of
Data into
Information

Data vs Information
- Data is a collection of raw facts that have not yet been processed Eg:
times, weights, measurements, sales, mp3, video, apps
- Information : data that has been manipulated so that some meaning can
be derived from it. Eg TV listing, bus timetable, billboard top charts, top 10,
most downloaded apps

Data examples
- Yes, Yes, No, Yes, No,Yes
- 42, 63, 45, 98,76 etc
- 111192, 111234
- None of the above data sets have any meaning until they are given a
CONTEXT and PROCESSED into a useable form

Data into information
- To turn data into information it must be processed
- Data needs to be presented in its most useful format
- Data must be processed in a context in order to give it meaning

Examples
- In the next three examples will explain how the data could be processed to
provide meaning
- What information will be derived from the data

Answers
- Example 1 : We could add up the yes and no responses and calculate the percentage of
customers who would buy product X at price Y. The information could be presented as a chart
to make it easier to understand.
- Example 2 : Adding Jayne’s scores would give us a mark out of 600 that could then be
converted to an A level grade. Alternatively we could convert the individual module results into
grades.
- Example 3 : By subtracting the second value from the first we can work out how many units
of gas the consumer has used. This can then be multiplied by the price per unit to determine the
customer’s gas bill

Know the features and functions of information systems

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