2 Unit-2 Written Report Introduction to Information Systems PDF

Introduction to Information Systems IT Application Tools in Business 1st Semester, AY 2024 - 2025 Submitted by: Gomez, Francis Nitura, Edrish Veses, Lanz BSBA - FM/HRM To be...

Introduction to Information Systems IT Application Tools in Business 1st Semester, AY 2024 - 2025 Submitted by: Gomez, Francis Nitura, Edrish Veses, Lanz BSBA - FM/HRM To be submitted to: Mr. Rozenar Del Monico School of Business, Accountancy, and Management San Beda College - Alabang August 12, 2024  TABLE OF CONTENTS i. Basic Concepts of Information Systems 1 A. Data vs Information B. Collection of Data C. System and Subsystems D. Types of Systems E. Computer System Components I. Introduction to Information Systems 3 A. Importance of IS in Business B. Master Data C. Information Process Components D. Difference Between IT and IS II. Information Systems and Their Capabilities 5 A. Capabilities of an IS III. Computer-based Information System 6 A. Components of CBIS B. Four-level Pyramid Model of CBIS C. Other Types of IS IV. Developing Information Systems 8 A. System Development Life Cycle B. Phases of SDLC V. Information System Security 9 A. Information Security Management B. Security Measures C. Importance of Information System Security D. Principles of Information System Security E. Who needs Information System Security? VI. Extra Information!!! 11 Basic Concepts of Information Systems An information system (IS) is a cohesive set of components utilized by individuals and organizations to enhance processes and streamline operations, ensuring greater efficiency. These systems are dynamic, and constantly evolving to meet the changing needs of users and businesses. Data vs. Information Data: Refers to raw, unstructured facts that can include numbers, alphabets, dates, measurements, or statements. Examples include student attendance records, meal prices, and exam scores. Information: Represents processed and organized data that is meaningful and supports decision-making. Examples include financial statements and average exam scores. Collection of Data The data collection process must be guided by a clear purpose, ensuring completeness, relevance, reliability, and timeliness. Collected data should be easily convertible into meaningful information and should be analyzable using appropriate technological tools. What to consider when collecting data - Indicators must be clearly defined to measure effective performance - Collected data must be complete, relevant, reliable, and accurate - Collected data must be gathered on time - Data must be convertible into information that is needed - Data must be entered into the computer system - Information must be analyzable using appropriate technological tools and allow for proper interpretation System and Subsystems A system is a structured collection of interconnected components that work together to achieve specific objectives. Within a system, subsystems focus on Page 1 particular functions or areas, such as financial management or human resources within a business department. Types of Systems 1. Natural Systems: Systems created by nature, such as weather systems. 2. Man-made Systems: Systems designed and developed by humans, including transportation, computer, and education systems. Computer System Components 1. Input: The entry of data into a system via devices like keyboards, mouse, and scanners. In every input, there is an expected output Data could be text, graphics, audio, or even videos 2. Process: The Central Processing Unit (CPU) processes the input data. 3. Output: The result of data processing, displayed on monitors, printed on paper, or emitted through speakers. 4. Storage: Data storage for future use, utilizing primary storage (RAM, ROM) or secondary storage devices (cloud, hard drives, USB drives). Primary storage device also called internal memory located inside the CPU, which can easily be accessed by the processor anytime Secondary storage device also known as alternative storage, which allows the user to store data, information, files, and programs temporarily for future use 5. Control: To correct problems that occur during the process and make sure that the system fulfill its purpose Page 2 Introducing Information Systems An information system (IS) is a man-made system designed to collect, store, process, manage, disseminate, and analyze information. IS is integral to business operations and decision-making, supporting various organizational functions such as accounting, finance, marketing, human resources, operations, and supply chain management. Importance of IS in Business Maintaining and Managing Records: Ensures that records are accurate, current, and easily accessible. Processing Data: Converts raw data into valuable outputs for analysis and decision-making. Supporting Decision-Making: Provides data-driven insights for informed decision-making and strategic planning. Master Data Relatively permanent data that are stored in the IS for a long time, such as complete customer information, complete details of an employee, and subject master data. There are two types of updates that can be made in the master data 1. Information Processing (IP): Data processing functions that are commonly related to internal operations and economic and financial activities 2. Data Maintenance: System’s functional activities such as adding, saving, deleting, updating, retrieving, and editing data from the master data Information Process Components 1. Information Process: Involves collaboration among staff, employees, management, and customers to achieve organizational objectives. Maintaining customer data and receiving a customer’s complete order from an e-commerce website Page 3  2. Operation Process: Encompasses the people, policies, procedures, and equipment that work together to achieve specific business goals. Attaching shipment details and including the tracking information about a product 3. Management Process: Focuses on planning, managing, and controlling business operations to ensure efficiency and effectiveness. Creating new policies and procedures on delivering products to customers Difference Between Information Technology and Information Systems Information Technology (IT) refers to the technological tools and infrastructure that support business needs, enabling data sharing, storage, and analysis. Information Systems (IS) encompasses the broader concept of collecting, storing, processing, managing, and analyzing information to support business functions. Page 4 Capabilities of an Information System 1. Processing Transactions: Efficiently handles business transactions, such as point of sale systems in retail. 2. Managing Storage: Offers large-capacity storage solutions with fast and easy access. 3. Communication: Enhances communication efficiency within an organizational network. 4. Easing Information Overload: Designed to analyze problems and support decision-making to reduce information overload 5. Supporting Decision-Making: Aids in making informed decisions across all levels of an organization. 6. Competitive Advantage: Acts as a strategic tool that businesses can leverage to gain a competitive edge in the market. 7. Unity: Allows organizations or part of them to come together toward achieving a common goal or objective 8. Organization Memory and Learning: Practices and knowledge in the past have vast influences on current organizational operations or activities 9. Automated Business Processes: Business Processes are executed using IS with minimum human assistance and to reduce costs and expedite work Page 5 Computer-Based Information Systems (CBIS) Computer-Based Information Systems (CBIS) utilize computer and telecommunications technology to perform essential tasks, consisting of several key components, including hardware, software, databases, networks, procedures, and people. Components of CBIS 1. Hardware: Physical devices such as CPUs, printers, and network devices. 2. Software: Programs that control and operate the system's functions. System Software: Program that controls the overall operations of a computer Application Software: Specifically designed to answer the needs of its users, making it simple and easy to use 3. Database: Organized collections of related data, structured for easy access and management. 4. Networks: Connections that facilitate data sharing between computers within a system. 5. Procedures: The established rules and policies that govern the system's operation. 6. People: The users who interact with and manage the information system. 7. Telecommunications: The electronic transmission of information across networks. 8. Internet: Largest type of network that allows users to share information worldwide 9. World Wide Web: Accessible through the Internet, consisting of multimedia collections that are stored in a particular database of a CBIS Other Types of IS 1. Transaction Processing Systems (TPS): Handle daily business transactions. Captures, stores, classifies, maintains, updates, and retrieves transaction data for record keeping and inputting data to other types of CBIS Characteristics include quality performance, reliability, and consistency 2. Management Information Systems (MIS): Provide information for managing an organization. Page 6  Collects raw data from different computer systems, analyzes, and processes them, and reports them to assist and serve in decision-making 3. Decision Support Systems (DSS): Aid in making more complex decisions. Responsible for delivering information to managers who make assessments about specific scenarios that are not well-managed 4. Executive Information Systems (EIS): Offer top executives easy access to internal and external information. Allows employees to deliver appropriate and accurate information, as well as ideas, both to the company’s higher and lower management levels. Four-Level Pyramid Model of CBIS A four-level pyramid model of different types of Information Systems based on the different levels of hierarchy in an organization. The first level represents transaction processing systems for workers. The second level represents management information systems for middle managers. The third level represents decision support systems for senior managers. The fourth level represents executive information systems for executives. The pyramid model classifies information based on the tasks and responsibilities that are found in a hierarchical organization. Page 7 Developing Information Systems Developing an information system involves a structured approach to building and maintaining systems that align with an organization's needs. System Development Life Cycle (SDLC) One of the methodologies used in software development. It emphasizes that the system can be developed in a series of phases Phases of SDLC This development process is typically guided by the System Development Life Cycle (SDLC), which includes several key phases: 1. Planning: Identifying business problems, opportunities, and determining the feasibility of proposed solutions. Determining a business problem and verifying if there are problems and opportunities that might exist 2. Analysis: Detailed examination of functional and non-functional requirements. Identifying and taking into accounts the risk that are related 3. Design: Translating system requirements into a detailed system architecture. Aims to transform the system requirements that have been identified during the previous stages into a more detailed system 4. Development: Converting design specifications into a functional system. 5. Testing: Ensuring the system meets all specified requirements and is free of defects. Requires a series of tests depending on the scope and involvedness of the requirements, including the 6 main quality characteristics (functionality, reliability, usability, efficiency, maintainability, and portability) 6. Implementation: Deploying the system into a live environment for operational use. Ensures that the system is fully developed and free from system errors 7. Maintenance: Ongoing support and updates to ensure the system continues to meet business needs. Modifications are made to enhance the system’s performance, solutions to the problems errors encountered are derived, security enhancements are performed, and user requirements are addressed Page 8 Information System Security The security of an information system is critical to protect it from various threats, including hacking, viruses, and unauthorized access. Effective security management involves the identification and implementation of controls designed to safeguard information assets. Information Security Management It is the process of identifying the security controls to keep and defend information assets. It is critical for an IS because it is vulnerable to threats such as hacking, viruses, malware, and unauthorized access. Security Measures To ensure the security and integrity of an information system, IS administrators must employ a range of tools and techniques, including: Access Control: Restricting access to sensitive information to authorized users only. Firewalls: Protecting networks from unauthorized access by filtering incoming and outgoing traffic. Antivirus Software: Detecting and removing malicious software that could compromise system security. Data Encryption: Protecting data in transit and at rest by converting it into a secure, unreadable format. Importance of Information System Security Information security becomes more and more important as we today have a lot of information that is valuable for us. 1. It protects your assets 2. It protects the organization’s ability to function. 3. It enables the safe operation of applications implemented on the organization’s IT systems. 4. It protects the data the organization collects and uses. 5. It safeguards the technology the organization uses. Page 9 Principles of Information System Security The basic tenets of information security are confidentiality, integrity and availability. Every element of the information security program must be designed to implement one or more of these principles. Together they are called the CIA Triad 1. Confidentiality: This principle ensures that sensitive information is kept private and accessible only to those who are authorized to see it. 2. Integrity: Integrity ensures that data remains accurate and reliable, protecting it from unauthorized changes, whether accidental or deliberate. 3. Availability: Availability ensures that systems and data are accessible when needed, allowing users and organizations to rely on them at any given time. Who Needs Information System Security? Government and Critical Infrastructure: Cybersecurity is vital for governments and organizations that impact national and global safety. Attacks on critical infrastructure can cause severe disruptions or physical harm, making cybersecurity essential to national security. Companies and Compliance: Many organizations must follow government or industry regulations that include cybersecurity measures. These standards ensure the protection of consumer data and sensitive information, such as government and military data, from cyber threats. Municipalities and County Councils: Municipalities and county councils handle highly sensitive information that must be protected from unauthorized access. A ransomware attack can compromise citizens' privacy and security. To prevent this, municipalities must consistently follow structured information security practices. Business to Business (B2B): Small to medium-sized businesses are increasingly subject to third-party risk assessments by larger clients. These assessments ensure that vendors meet specific cybersecurity standards, as larger companies work to protect themselves from potential threats that could originate from smaller partners. Page 10 Extra Information Difference Between a System Software and an Application Software System Software is like the foundation of a house. It helps run the computer and manage its resources, like the operating system (e.g., Windows or macOS). Application Software is like the furniture in the house. It allows you to perform specific tasks, like writing a document or browsing the internet (e.g., Microsoft Word or Google Chrome). Difference Between a Decision Support System and a Management Information System Decision Support System (DSS) is like a GPS for a business. It helps managers make decisions by analyzing data and suggesting options, especially when facing complex situations. Management Information System (MIS) is like a report card. It provides regular reports and summaries to help managers keep track of the organization's performance and day-to-day activities. Value of IS to Business Organizations Information Systems (IS) are like the nervous system of a business. They collect, process, and distribute information, helping the organization make better decisions, operate efficiently, and stay competitive in the market. Page 11 References 4 Level pyramid model diagram - Information systems types | 5 Level pyramid model diagram - Information systems types | Pyramid Diagram | Management Information System. (n.d.). https://www.conceptdraw.com. https://www.conceptdraw.com/examples/management-information-system Adpafit. (2012). *Introduction to Information Technology Lecture 1*. Retrieved from https://www.slideshare.net/adpafit/introduction-to-information-technology-le cture-1 Irwin, L. (2022, December 23). 6 Reasons Why Information Security is Important - Vigilant Software - Compliance Software Blog. Vigilant Software - Compliance Software Blog. https://www.vigilantsoftware.co.uk/blog/the-importance-of-information-secu rity Maata, R. L. R., & Caoili-Tayuan, R. (2021). *IT Application Tools in Business*. C&E Publishing, Inc. Martinez, C. (2015). *IS (Information System or Information Services)*. Retrieved from https://www.techtarget.com/whatis/definition/IS-information-system-or-infor mation-services ​Petra. (2024, January 3). Why is Information Security so Important? - Advenica. Advenica. https://advenica.com/learning-center/know-how/why-is-information-security- so-important/ Shoemaker, A. (2023, December 20). What is Information Security | Policy, Principles & Threats | Imperva. Learning Center. https://www.imperva.com/learn/data-security/information-security-infosec/ 12