UNIT-1: Information System Concepts

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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
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
What is Information?
Data + Meaning = Information

• A Good Quality information should be:
Accurate, up-to-date, Relevant,
Complete, On-time, Appropriate,
Intelligible
4 Unit-1 Information System Concepts

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

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).
Information System
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Organized combination of
1. Hardware
2. Software
3. Communications Networks
4. Data
5. People

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

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

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

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

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.

Why Information System?
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Globalization
 Management and control in a global

marketplace
 Competition in world markets
 Global workgroups
 Global delivery systems

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

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

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

Applications of TPS
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A Symbolic Presentation of Payroll TPS
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Process Control Systems
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(PCS)
 Supports Operations
 Monitor and Control
Industrial/Manufacturing Process
 Examples:
 Petroleum Refining
 Power Generation
 Automobile Manufacturing

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

TPS Data from MIS
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Applications

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.
Decision Support System
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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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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

Information
Flow
Executives
Enterprise Collaboration System

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Management Executive Information System
Managers DSS
MIS
Operations
TPS
PCS
Operational Systems and Staff

Information System from Functional
Perspective
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 SALES & MARKETING SYSTEMS

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

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
Sales and Marketing Information System
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Manufacturing and Production Information
System
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 Scheduling, purchasing, shipping,
receiving, engineering, operations

 Materials resource planning systems,
purchase order control systems,
engineering systems, quality control
systems
Manufacturing and Production Information
System
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Finance and Accounting Information
System
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 Budgeting, general ledger, billing,
cost accounting

 General ledger, accounts receivable,
accounts payable, budgeting, funds
management systems
Finance and Accounting Information
System
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Human Resource Information System
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 Personnel
records, benefits,
compensation, labor relations, training

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

Human Resource Information System
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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
Cross Functional Business
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Process
Example : Order Fulfillment Process

Customer Relationship Management (CRM)
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Supply Chain Management
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47 Internet, Intranet, Extranet & WWW

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.
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.
Internet, Intranet and Extranet
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Internet, Intranet and Extranet
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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

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1

 Understanding Data & Information

 Attributes of Information Quality

 Internet, Intranet, Extranet,

 Data is a stream of raw facts representing

Data + Meaning = Information

4 Unit-1 Information System Concepts

Input Processing Output

5 Unit-1 Information System Concepts

Raw data from a supermarket checkout counter can be

 A set of interrelated elements or

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

People are the 5th component of an

people in an information system.

Unit-1 Information System Concepts

 Management and control in a global

 Global delivery systems

Unit-1 Information System Concepts

Emergence of the Digital Firm:

 Digitally enabled relationships with

using digital networks

Unit-1 Information System Concepts

The Interdependence Between

 IS can support 3 different levels in

Unit-1 Information System

 Information Systems are being used in

Unit-1 Information System

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Unit-1 Information System Concepts

Enterprise Collaboration System

Executive Information System

Operational Systems and Staff

Enterprise Collaboration System

Management Executive Information System

Operational Systems and Staff

 SALES & MARKETING SYSTEMS

Unit-1 Information System Concepts

Major functions of systems:

Major application systems:

Unit-1 Information System Concepts

Major functions of systems:

Major application systems:

Unit-1 Information System Concepts

Major functions of systems:

Major application systems:

Unit-1 Information System Concepts

Major functions of systems:

Major application systems:

Unit-1 Information System Concepts

Unit-1 Information System Concepts

 Manner in which work is organized,