UNIT I

INTRODUCTION
Topics:
Data, Information, Information System, evolution, types based on functions and hierarchy, Enterprise and
functional information systems.
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Data refers to facts, figures, or information used for analysis, reasoning, or decision-making. It can come in many
forms, such as numbers, text, images, and sounds, and it can be stored and processed by computers. Data is often
collected through various methods and can be raw (unprocessed) or processed to provide meaningful insights.
Here are some key points about data:

1. Types of Data:
o Quantitative Data: Numerical data that can be measured and quantified. Examples include height,
weight, temperature, and sales figures.
o Qualitative Data: Descriptive data that characterizes but doesn't measure attributes or properties.
Examples include names, colors, and opinions.
2. Sources of Data:
o Primary Data: Data collected firsthand for a specific purpose, such as through surveys,
experiments, or observations.
o Secondary Data: Data that has been previously collected and is available for use, such as reports,
studies, and databases.
3. Forms of Data:
o Structured Data: Highly organized and easily searchable data, often stored in databases or
spreadsheets. Examples include tables with rows and columns.
o Unstructured Data: Data that lacks a specific structure, making it more challenging to analyze.
Examples include text documents, emails, and social media posts.
o Semi-Structured Data: Data that doesn't fit neatly into structured formats but has some
organizational properties, such as JSON or XML files.
4. Big Data: Refers to large volumes of data that are too complex to be handled by traditional data-processing
software. Big data often requires advanced tools and techniques for storage, processing, and analysis.
5. Data Lifecycle:
o Collection: Gathering data from various sources.
o Storage: Saving data in databases, data warehouses, or cloud storage.
o Processing: Transforming raw data into a usable format.
o Analysis: Interpreting data to extract meaningful insights.
o Visualization: Presenting data in graphical or pictorial form.
o Sharing: Distributing data and insights to stakeholders.
6. Data Privacy and Security: Protecting data from unauthorized access and ensuring privacy, especially
with sensitive or personal information.

Data is fundamental in various fields, including science, business, healthcare, and technology, where it drives
decision-making, innovation, and understanding.
Information

Information is processed, organized, or structured data that provides meaning and context, making it useful for
decision-making, understanding, and communication. Unlike raw data, information has been interpreted and
presented in a way that adds value to the observer. Here are key points about information:

1. Transformation from Data to Information:

o Data: Raw, unprocessed facts and figures (e.g., a list of numbers, names, or dates).
o Information: Data that has been processed and interpreted to provide meaning (e.g., a report
summarizing sales performance over a month).
2. Characteristics of Information:
o Accuracy: Correct and precise information.
o Relevance: Information that is pertinent to the current context or decision-making process.
o Timeliness: Up-to-date information that is available when needed.
o Completeness: Information that contains all necessary details.
o Consistency: Information that is uniform and free from contradictions.
3. Forms of Information:
o Text: Written or printed words and characters.
o Numbers: Quantitative values that represent information.
o Images: Visual representations such as photographs, diagrams, and charts.
o Audio/Video: Sound recordings and video footage that convey information.
4. Sources of Information:
o Internal Sources: Information generated within an organization, such as reports, memos, and
databases.
o External Sources: Information obtained from outside an organization, such as news articles,
market research, and public records.
5. Information Systems:
o Manual Systems: Traditional methods of processing and storing information, such as paper records
and filing systems.
o Computer-Based Systems: Digital systems that use software and hardware to manage and process
information, such as databases, spreadsheets, and information management systems.
6. Uses of Information:
o Decision-Making: Providing the basis for making informed choices and solving problems.
o Communication: Sharing knowledge and insights with others.
o Learning: Enhancing understanding and gaining new knowledge.
o Control: Monitoring and regulating processes and activities.

In summary, information is essential for understanding and interpreting the world, making informed decisions, and
communicating effectively. It is the bridge between raw data and knowledge.
Information System

Definition:

It defines an information system as any organized combination of people, hardware, software, and policies that
stores, retrieves, transforms, and disseminates information in an organization.

Information systems support business operations, decision making, and competitive strategies.

An Information System (IS) is a coordinated set of components and resources designed to collect, process, store,
and disseminate information. It plays a crucial role in supporting operations, management, and decision-making
within an organization. Information systems integrate hardware, software, data, procedures, and people to
transform raw data into meaningful information. Here are the key elements and functions of an information
system:

1. Components of an Information System:

o Hardware: Physical devices and equipment used in an IS, such as computers, servers, networking
equipment, and storage devices.
o Software: Programs and applications that process data and perform specific tasks. This includes
system software (e.g., operating systems) and application software (e.g., database management
systems, enterprise resource planning software).
o Data: Raw facts and figures that are processed into information. Data can be structured (organized
in databases) or unstructured (such as emails and documents).
o Procedures: Instructions and rules that govern the design, development, and use of the IS. These
include protocols for data entry, processing, and output.
o People: Individuals who interact with the IS, including IT professionals (e.g., system analysts,
developers) and end-users (e.g., employees, customers).
2. Functions of an Information System:
o Input: Capturing and collecting raw data from internal and external sources.
o Processing: Converting raw data into a meaningful form through calculations, comparisons, and
other data transformation methods.
o Output: Delivering processed information to users in a comprehensible format, such as reports,
charts, or dashboards.
o Storage: Keeping data and information for future use. This involves databases and other storage
solutions.
o Control: Ensuring the proper functioning of the IS through security measures, data validation, and
error handling.
3. Types of Information Systems:
o Transaction Processing Systems (TPS): Handle daily routine transactions such as sales order
processing, payroll, and inventory management.
o Management Information Systems (MIS): Provide regular reports and summaries of transaction
data to help middle managers monitor and control business operations.
o Decision Support Systems (DSS): Assist with problem-solving and decision-making by analyzing
complex data. Often used for what-if analysis and forecasting.
o Executive Information Systems (EIS): Provide top executives with easy access to internal and
external information relevant to strategic decision-making.
o Customer Relationship Management (CRM) Systems: Manage interactions with customers and
help improve customer satisfaction and loyalty.
o Enterprise Resource Planning (ERP) Systems: Integrate various business processes across
different functional areas (e.g., finance, HR, supply chain) into a unified system.

4. Benefits of Information Systems:

o Improved Efficiency: Automating routine tasks and processes to save time and reduce errors.
o Enhanced Decision-Making: Providing timely and accurate information to support strategic,
tactical, and operational decisions.
o Better Communication: Facilitating communication and collaboration within and between
organizations.
o Increased Competitiveness: Enabling organizations to respond quickly to market changes and
customer needs.
o Data Management: Helping in the organization, storage, and retrieval of large amounts of data.
Information systems are vital in today's digital age, enabling businesses, governments, and individuals to operate
more effectively and efficiently.

Characteristics/ attributes of information

Types of information:
 Strategic Information − Strategic information is concerned with long term policy decisions that defines the
objectives of a business and checks how well these objectives are met. For example, acquiring a new plant, a
new product, diversification of business etc, comes under strategic information.
 Tactical Information − Tactical information is concerned with the information needed for exercising control
over business resources, like budgeting, quality control, service level, inventory level, productivity level etc.

 Planning Information − These are the information needed for establishing standard norms and
specifications in an organization. This information is used in strategic, tactical, and operation
planning of any activity. Examples of such information are time standards, design standards.
 Control Information − This information is needed for establishing control over all business
activities through feedback mechanism. This information is used for controlling attainment,
nature and utilization of important processes in a system. When such information reflects a
deviation from the established standards, the system should induce a decision or an action
leading to control.
 Knowledge Information − Knowledge is defined as "information about information".
Knowledge information is acquired through experience and learning, and collected from
archival data and research studies.
 Organizational Information − Organizational information deals with an organization's
environment, culture in the light of its objectives. Karl Weick's Organizational Information
Theory emphasizes that an organization reduces its equivocality or uncertainty by collecting,
managing and using these information prudently. This information is used by everybody in the
organization; examples of such information are employee and payroll information.
 Functional/Operational Information − This is operation specific information. For example,
daily schedules in a manufacturing plant that refers to the detailed assignment of jobs to
 machines or machines to operators. In a service oriented business, it would be the duty roster of
various personnel. This information is mostly internal to the organization.
 Database Information − Database information construes large quantities of information that
has multiple usage and application. Such information is stored, retrieved and managed to create
databases. For example, material specification or supplier information is stored for multiple
users.
Operational Information − Operational information is concerned with plant/business level
information and is used to ensure proper conduction of specific operational tasks as
planned/intended. Various operator specific, machine specific and shift specific jobs for quality
control checks comes under this category.
Types of information systems
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 Roles of information systems in business today:

The key roles of information systems in business today are:

1. Information Storage and Analysis: Information systems allow businesses to store, organize, and
analyze large amounts of data from various sources, both internal and external. This enables
companies to gain insights, identify trends, and make more informed decisions.
2. Assist with Decision-Making: Information systems provide managers and decision-makers with
timely, accurate, and relevant data to evaluate information, analyze market trends, and formulate
strategic plans for the organization's long-term success.
3. Streamline Business Processes: Information systems can automate and integrate various business
functions, such as manufacturing, inventory management, and customer relationship management.
This improves efficiency, reduces errors, and allows employees to focus on more strategic tasks.
4. Achieve Competitive Advantage: The strategic use of information technology and information
systems can help businesses develop new products and services, enhance existing offerings, and
streamline operations, ultimately leading to a competitive advantage in the market.
5. Facilitate Communication and Collaboration: Business collaboration systems, such as video
conferencing, instant messaging, and document sharing, enable employees to communicate, share
information, and work together effectively, even in remote or distributed environments.
6. Enhance Customer and Supplier Relationships: Information systems can help businesses build
stronger relationships with customers and suppliers by providing personalized services, improving
responsiveness, and facilitating seamless information exchange.
In summary, information systems play a crucial role in helping businesses achieve operational
excellence, foster innovation, improve decision-making, and gain a competitive edge in the market.

functions or activities of an information system

The key functions or activities of an information system are:

Input

The input function involves capturing and assembling data from within the organization or from
external sources. This data is then entered into the information system for processing.

Storage

The storage function involves saving the processed data in a database or data warehouse so that it can
be accessed and used when needed. Regular backups and summaries are important to avoid data loss.

Processing

The processing function transforms raw data into meaningful information through calculations,
comparisons, and other data transformations. This can involve making assumptions about missing
data to generate useful insights.

Output

The output function involves distributing the processed information to users in a useful format, such
as reports, charts, graphs, or text. Output can be in graphical or textual form depending on the needs
of the user.

Feedback/Control

The feedback and control function monitors the output to ensure it meets the objectives. It provides a
feedback loop to adjust the input or processing if necessary to improve the quality of the information
produced.

Collaboration

Information systems facilitate collaboration among teams and departments by providing a central
repository of data and enabling communication and information sharing, even across different
locations.
Decision Support

By providing timely, accurate and relevant information, information systems support decision-making
at all levels of the organization, from operational to strategic

Capabilities of information systems:

 provide fast and accurate transaction processing

 provide large capacity and fast access storage
 Provide fast communication( machine to machine, human to human)
 Reduced information overload
 Provide support for decision making
 Span boundaries
 Provide a competitive weapon

ENTERPRISE:

Enterprise is a group of people with a common goal, that has certain resourses at its disposal to
achieve their goal.

A system that is formed by the enterprise is called enterprise system.

ES-enterprise system is an ideology of planning and managing the resourses of an entire organization
efficient, productive and profitable manner, and is manifested in the form of configurable information
system package.

Characteristics of enterprise:

 These are large scale or enterprise wide systems

 Integrated systems with central database
 They are packages systems with all necessary functionalities
 They support and coordinate work
 They shape the enterprise
 They support reporting and decision making
 The use of these systems requires training on a frequent basis.

Role of enterprise:

 Identification
 Selection
 Integration
 Choosing right people
 Learning software package
 Additional responsibilities
Types of enterprise systems

1) Enterprise resource planning (ERP):

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.
2) Enterprise planning system(EPS):

3) customer relationship management(CRM):