Introduction to Information Systems

Study Notes

An Information System consists of: people, procedures, software, databases and devices.

Data is raw facts whereas information is processed data.
Knowledge is the ability to use information effectively.
Data, information and knowledge are all essential to achieving organisational goals.

Organizations use information systems for: accounting/finance, customer service, human resources, manufacturing, research & development and sales/marketing.
Information systems are used in a variety of industries such as: agriculture, finance, healthcare, mining, professional services, retail.

Transaction Processing Systems (TPS)
- Used to complete business transactions, such as payments to employees and suppliers and sales to customers.
- Examples include a Point-of-Sale (POS) system that records sales transactions, updates inventory levels, and processes payments.
Management Information Systems (MIS)
- Provide routine information to managers and decision makers.
- Examples include sales dashboards that provide visualized data on sales performance, customer demographics, and product trends.
Enterprise Resource Planning (ERP) Systems
- Integrates programs/modules to manage vital operations for the entire organization: human resource management, customer relationship management (CRM), financial management, warehouse management etc.
Knowledge Management Systems (KMSs)
- Stores and retrieves knowledge, improving collaboration.
- Examples include: customer support knowledge bases, product development best practice sharing and document management systems.

E-commerce is the exchange of money for goods and services over electronic networks.
Forms of E-Commerce:
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- Government-to-Citizen (G2C)
- Government-to-Business (G2B)
- Government-to-Government (G2G)
Organizations use both buy-side (purchasing) and sell-side (selling) e-commerce.
Successful e-commerce solutions are scalable, able to meet unexpected user traffic.
Key decisions for e-commerce companies include choosing between hosting their own website or using a third-party web service provider.

The value of information is directly linked to its effectiveness in helping decision makers achieve organizational goals.
Information systems are composed of fundamental components: people, procedures, software, databases, and devices - all of which must be carefully assembled and integrated to work together.
Organizations employ a variety of information systems to improve business processes and make data driven decisions.

Data is raw and unprocessed facts.
Information is structured and organized data with context and meaning, allowing for insights into trends and patterns.
Knowledge is derived from integrating and analyzing various information sources to provide deeper understanding and predictive capabilities.

Valuable information enhances efficiency and effectiveness in performing tasks.
Inaccurate data can negatively impact customer satisfaction and lead to financial losses.
Accurate and complete information is crucial for reliable decision-making.

Accuracy: Information should be free from errors and reliable.
Completeness: Information should be complete and include all relevant details.
Timeliness: Information should be current and relevant to the present situation.
Relevance: Information should be applicable to the specific task or decision at hand.
Consistency: Information should be consistent with other sources and previous data.
Accessibility: Information should be easily accessible to authorized users.
Usability: Information should be presented in a clear, concise, and understandable format.

An information system (IS) is a collection of components designed to collect, process, store, and disseminate data and information.
IS provides feedback mechanisms for monitoring and controlling its operations to ensure it meets objectives.
A computer-based information system (CBIS) utilizes hardware, software, databases, networks, people, and procedures.

Procedures outline the steps to achieve specific tasks, such as entering orders or paying invoices.
Procedures are essential for operating, maintaining, and securing the system.
Examples include user authentication procedures for secure logins.