Information Systems Chapter 6 - Textbook PDF

Chapter 6 INFORMATION SYSTEMS What is Information System? What is Data? What is Information? What is Knowledge? What is Wisdom? ✓ Note:- Remember chapter One What is Information System? A system is a group of components that work together for common goals. Let’s take a look at so...

Chapter 6 INFORMATION SYSTEMS What is Information System? What is Data? What is Information? What is Knowledge? What is Wisdom? ✓ Note:- Remember chapter One What is Information System? A system is a group of components that work together for common goals. Let’s take a look at some of the more popular definitions, first from Wikipedia and then from a couple of textbooks: ◦ “An Information system (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.” ◦ “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.” What is Information System? “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.” Information system and IT oBefore we proceed, we need to define information technology (IT) and information systems (IS). oInformation technology refers to any computer-based tool that people use to work with information and to support the information and information-processing needs of an organization. oAn information system collects, processes, stores, analyzes, and disseminates information for a specific purpose. oThe purpose of information systems has been defined as getting the right information to the right people, at the right time, in the right amount, and in the right format. Component of information system ✓Information system has five components: hardware, software, data, people, and process. 1. Hardware Hardware is the part of an information system you can touch. It is the physical devices and equipment used to collect, process, and store data (e.g., computers, servers, networking devices, keyboards, and storage devices).  Component of information system 2. Software Software is a set of instructions that tells the hardware what to do. Software is not tangible – it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. The applications and programs that run on the hardware to process data and generate meaningful information. This includes both system software (like operating systems) and application software (like word processors). Component of information system 3. Data You can think of data as a collection of facts and figures. For example, your street address, the city you live in, and your phone number are all pieces of data. Like software, data is also intangible. By themselves, pieces of data are not really very useful. But aggregated, indexed, and organized together into a database, data can become a powerful tool for businesses. These decisions can then be analyzed as to their effectiveness and the organization can be improved. Component of information system 4. People When thinking about information systems, it is easy to get focused on the technology components and forget that we must look beyond these tools to fully understand how they integrate into an organization. A focus on the people involved in information systems is the next step. From the front-line help-desk workers, to systems analysts, to programmers, all the way up to the chief information officer (CIO), the people involved with information systems are an essential element that must not be overlooked. Component of information system 5. Process/procedure A process is a series of steps undertaken to achieve a desired outcome or goal. The procedures and policies that govern the use and management of the information system. This includes how data is collected, processed, stored, and distributed. Types of information system ◦ Transaction processing system(TPS) ◦ Management Information system(MIS) ◦ Enterprise resource planning (ERP) ◦ Decision support system ◦ Expert System  Types of information system 1. Transaction Processing System(TPS) - A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency. Product event → financial event → distribution of accounting information 2. Management Information System(MIS) - A system is made up of inputs, processing, output and feedback or control. Thus MIS means a system for processing data in order to give proper information to the management for performing its functions. MIS Provide reports and summaries of transaction data to help managers make informed decisions. data capturing → data storage → data processing → data and information distribution → predicting/ forecasting → planning → control  Types of information system 3. Enterprise Resource Planning (ERP) - refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. Used for high productivity, accurate budgeting, improve customer services 4. Expert System - It is a computer program that uses artificial intelligence (AI) technologies to simulate the judgment and behavior of a human or an organization that has expert knowledge and experience in a particular field. A system that gives a computer the ability to make suggestions and function like an expert in a particular field. Types of information system 5. Decision support system - is a computer program application used to improve a company's decision-making capabilities. It analyzes large amounts of data and presents an organization with the best possible options available. End of THE CHAPTER ?