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UNIT-1
INFORMATION
SYSTEM CONCEPTS
Complied by: Dr. Vanita Joshi
Unit-1 Information System Concepts
 Content
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 Understanding Data & Information

 What is Information System (IS)

 Types of IS

 Business as System

 Business Process

 Attributes of Information Quality

 Internet, Intranet, Extranet,

Worldwide Web
Unit-1 Information System Concepts
 What is Data?
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 Data is a stream of raw facts representing

things or events that have happened.
 In ICT, we usually say that data is made
up from four basic types:
 Numbers
 Text
 Images
 Sound
Unit-1 Information System Concepts
 What is Information?

Data + Meaning = Information

• A Good Quality information should be:
Accurate, up-to-date, Relevant,
Complete, On-time, Appropriate,
Intelligible

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 What is a System?
 A System is a group of interrelated
components, with a clearly defined
boundary, working together towards a
common goal by accepting inputs and
producing output in organized
Feedback
transformation process.

Input Processing Output

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 Data and Information
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Raw data from a supermarket checkout counter can be

processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or
the total sales Unit-1
revenue from System
Information dish detergent
Concepts for a specific
store or sales territory.
 Information System
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 A set of interrelated elements or

components that collect (input), manipulate
(process), and disseminate (output) data and
information and provide a feedback
mechanism to meet an objective
 For many companies, IS (Information
Systems or Information Services) is the
name of the department responsible for
computers, networking and data
management. Other companies refer to the
department as IT (Information Technology)
and MIS (Management Information Services).
Unit-1 Information System Concepts
 Information System
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Organized combination of
1. Hardware
2. Software
3. Communications Networks
4. Data
5. People

Unit-1 Information System Concepts

 Computer Hardware
Technologies
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 Examples
 Dell PowerEdge 2600 File Server
 Apple iMac
 Sony LCD Flat Panel Monitor
 iPod
 ID Automation USB Barcode Scanner
 RFID Chip

Unit-1 Information System Concepts

 Computer Software
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Technology
 Examples
 Windows XP
 Graphics Card Driver Software
 PowerPoint
 mySAP Customer Relationship Management
 Peachtree Accounting
 iTunes Software

Unit-1 Information System Concepts

 Telecommunications Network
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Technologies
 Examples
 Ethernet
 Netgear Wireless Router
 Cable Modem
 Cell Phone
 WiFi, WiMax card
 Bluetooth device

Unit-1 Information System Concepts

 Data Resource Management
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Technologies
 Examples
 IBM DB2 8.2
 Microsoft SQL Server 2000
 Oracle Database 10g
 MySQL
 Data Mining Software

Unit-1 Information System Concepts

 People Technology 
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People are the 5th component of an

Information System
 Everyone forgets the importance of

people in an information system.

 Example: End User, Data Entry Person,

Manager, Programmer, DB
Administrator, Cashier, Secretary,
Professor.

Unit-1 Information System Concepts

 Why Information System?
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Globalization

 Management and control in a global

marketplace
 Competition in world markets

 Global workgroups

 Global delivery systems

Unit-1 Information System Concepts

 Why Information System?
(Contd..)
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Emergence of the Digital Firm:

 Digitally enabled relationships with

customers, suppliers, and employees
 Core business processes accomplished

using digital networks

 Digital management of key corporate

assets

Unit-1 Information System Concepts

 Role of Information System in Business
Today
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The Interdependence Between

Organizations and Information Technology

There is a growing interdependence between a firm’s information systems and its business
capabilities. Changes in strategy, rules, and business processes increasingly require
changes in hardware, software, databases, and telecommunications. Often, what the
organization would likeUnit-1
to do depends on what
Information its systems
System will permit it to do.
Concepts
Information Systems Serve 3
Roles

 IS can support 3 different levels in

business

Unit-1 Information System

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Concepts
Expanding Role of IS

 Information Systems are being used in

more areas, especial at the strategic level.
 At the same time, Information Systems are
expanding participation of End Users.
 Biggest advantages of IS:
Information can flow up
the pyramid faster and
more effectively.

Unit-1 Information System

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Concepts
 Types of Information
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Systems

Unit-1 Information System Concepts

 Transaction Processing System (TPS)
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 Supports Operations
 Updates Operational Databases
 Examples:
 ATM Machine System – Banking Transactions
 Cash Register System – Point of Sale
Transactions
 Accounting System – Checking Account
Transactions
 Even Pay-per-view or On Demand is a TPS

Unit-1 Information System Concepts

 Applications of TPS
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Unit-1 Information System Concepts

 A Symbolic Presentation of Payroll TPS
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Unit-1 Information System Concepts

 Process Control Systems
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(PCS)
 Supports Operations
 Monitor and Control
Industrial/Manufacturing Process
 Examples:
 Petroleum Refining
 Power Generation
 Automobile Manufacturing

Unit-1 Information System Concepts

 Enterprise Collaboration Systems
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(ECS)
 Supports Operations (Surprised?)
 Teamwork, communication, and
collaboration
 Examples:
 E-mail
 Chat
 Video Conferencing
 Calendaring
 Journaling
 Workflow
 File Sharing (Kazaa, Morpheus, Limework,
Napster)Unit-1 Information System Concepts
 Management Information System
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(MIS)
 Supports Management
 Analysis & Reporting
 Charts, Graphs, Summary Tools
 Examples:
 SCT Banner – Managing College Information
 Spreadsheet (Excel) – One of the first and most
basic
 Oracle's Corporate Performance Management

Unit-1 Information System Concepts

 TPS Data from MIS
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Applications

Unit-1 Information System Concepts

 Decision Support System
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(DSS)
 Support Management
 What-if Analysis, Decision Modeling,
Scenario Building, Highly interactive, ad
hoc supports for decision making.
 Examples
 Enterprise Decision Manager 2.0  Fair
Isaac Corporation
 Win 32 AIMMS 3.6
 Most DSS’s are custom developed for
specific companies; very few out-of-the-
box products.
Unit-1 Information System Concepts
 Decision Support System
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Unit-1 Information System Concepts

 Executive Information Systems
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(EIS/ ESS)
 Supports high-level strategic management
 Provides critical info from other systems
(MIS and DSS).
 Portal Concept: one place with links to
all information
 EIS’s integrate external information
such as economic developments and news
about related markets and competitors.
Helps strategic decision making, not
necessarily tactical.
 Tactical – doing things the right way
right Unit-1 Information System Concepts
 Executive Support/ Information System
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Unit-1 Information System Concepts

 Information
Flow
Executives

Enterprise Collaboration System

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Executive Information System

System
Information Managers
Flow DSS

MIS
Information
TPS
Exchange/
Communicati
on PCS

Operational Systems and Staff

Unit-1 Information System Concepts
 Information
Flow
Executives

Enterprise Collaboration System

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Management Executive Information System

Managers DSS

MIS
Operations
TPS

PCS

Operational Systems and Staff

Unit-1 Information System Concepts
 Information System from Functional
Perspective
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 SALES & MARKETING SYSTEMS

 MANUFACTURING & PRODUCTION
SYSTEMS
 FINANCE & ACCOUNTING SYSTEMS
 HUMAN RESOURCES SYSTEMS

Unit-1 Information System Concepts

 Sales and Marketing Information System
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Major functions of systems:

 Sales management, market
research, promotion, pricing, new
products

Major application systems:

 Sales order info system, market
research system, pricing system
Unit-1 Information System Concepts
 Sales and Marketing Information System
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Unit-1 Information System Concepts

 Manufacturing and Production Information
System
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Major functions of systems:

 Scheduling, purchasing, shipping,
receiving, engineering, operations

Major application systems:

 Materials resource planning systems,
purchase order control systems,
engineering systems, quality control
systems
Unit-1 Information System Concepts
 Manufacturing and Production Information
System
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Unit-1 Information System Concepts

 Finance and Accounting Information
System
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Major functions of systems:

 Budgeting, general ledger, billing,
cost accounting

Major application systems:

 General ledger, accounts receivable,
accounts payable, budgeting, funds
management systems
Unit-1 Information System Concepts
 Finance and Accounting Information
System
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Unit-1 Information System Concepts

 Human Resource Information System
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Major functions of systems:

 Personnel
records, benefits,
compensation, labor relations, training

Major application systems:

 Payroll,
employee records, benefit
systems, career path systems,
personnel training systems

Unit-1 Information System Concepts

 Human Resource Information System
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Unit-1 Information System Concepts

 Business Process and Information System
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 Manner in which work is organized,

coordinated, and focused to produce
a valuable product or service
 Concrete work flows of material,

information, and knowledge—sets of

activities
 Unique ways to coordinate work,
information, and knowledge
 Ways in which management chooses
to coordinate work
Unit-1 Information System Concepts
 Cross Functional Business
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Process

Example : Order Fulfillment Process

Unit-1 Information System Concepts
 Customer Relationship Management (CRM)
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Unit-1 Information System Concepts

 Supply Chain Management
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Unit-1 Information System Concepts

47 Internet, Intranet, Extranet & WWW

Unit-1 Information System Concepts

 Internet
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 The internet
 A network of networks.
 The internet transmits data from one
computer (called a host) to another.
 Internet networks
 Linked networks that work much the
same way -- they pass data around
in packets, each of which carries the
addresses of its sender and receiver.
Unit-1 Information System Concepts
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 Intranets and Extranets
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 Intranet
 An internal corporate network built using
Internet and World Wide Web standards and
products that allows employees of an
organization to gain access to corporate
information.
 Extranet
 A network based on Web technologies that
links selected resources of the intranet of a
company with its customers, suppliers, or
other business partners.
Unit-1 Information System Concepts
 Internet, Intranet and Extranet
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Unit-1 Information System Concepts

 Internet, Intranet and Extranet
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Unit-1 Information System Concepts

 World Wide Web
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 World Wide Web

A collection of tens of thousands of independently-
owned computers that work together as one in an
Internet service.
 WWW Terminology
 Home Page
 Hypermedia
 Hypertext Markup Language(HTML)
 Web Browser
 Web Page
 Applet

Unit-1 Information System Concepts

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Unit-1 Information System Concepts