Introduction to Information Systems

Information Systems Definition

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

Data vs Information and Knowledge

• 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.

Information Systems Use Cases

• 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.

Types of Information Systems

• 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.

Electronic Commerce (E-Commerce)

• 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.

Summary

• 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, Information, and Knowledge

• 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.

The Value and Quality of Information

• 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.

Characteristics of Quality Information

• 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.

What is an Information System?

• 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.

People

• IS personnel manage, operate, program, and maintain the system.
• Effective systems can increase job satisfaction and worker productivity.

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.