INFORMATION SYSTEMS IN PERSPECTIVE

Data, information, information systems, data base

Importance of Information System

Use of Information Systems (IS) in every profession:
Sales representatives to promote product. Managers in decision making Corporate lawyers drawing of legal documents. Accountants Teachers/professors/trainors Engineeers/architects/scientists Other professions.

Information concepts
Data
Consists of raw facts.

Information
Processed data Relevant Most important resource of an organization.

Information Systems
Information system is a set of interrelated elements or components that collect (input), manipulate (process), store and disseminate (output) information and provide reaction (feedback mechanism) to meet an objective.

Components of IS
Input
The activity of of gathering and capturing raw data.

Processing
Converting or transforming data into useful output.

Output
Involves producing the useful information. Documents or reports.

Feedback
Information from the system that is used to make changes to input or processing activities.

Compter Based Information System (CBIS)

A single set of hardware, software, databases, telecommunications, people and procedures that are configured to collect, manipulate, store and process data into information. Examples:
Payroll system Ordering system Inventory system

Characteristics of Valuable Information

Accessible
Information should be easily accessible by authorized users so they can obtain the right format and at the right time to meet their needs.

Accurate
Error free.

Complete
Contain all the important facts.

Characteristics of Valuable Information

Economical
Economical to produce.

flexible
Information can be used for a variety of purposes.

relevant.
Important to decision makers.

Reliable
Information can be depended on.

Characteristics of Valuable Information

Secure
Secure from unauthorized users.

Simple
Not overly complex.

Timely
Information is delivered when it is needed.

Verifiable
Information can be checked to make sure it is correct.

Database
A database is a collection of facts and information, typically consisting of two or more related data files. Examples:
Facts and information of customers, employees, inventory, purchases, etc....

Traditional Approach vs.Database Approach

Traditional approach to data management
An approach to data management whereby separate data files are created and stored for each application program. Examples:
Invoicing files used by invoicing department. Payroll files used by paryoll department.

Traditional Approach vs.Database Approach

Database approach
An approach to data management where multiple application programs share a pool of related data. A database offers the ability to share data and information resources.

Database Management Systems (DBMS)

A DBMS is required to use the database approach. A database management system (DBMS) consists of a group of programs that can be used as an interface between a database and the user or the database and application programs.. Acts as a buffer between the application programs and the database itself.

Advantages of a Database Approach

Improved strategic use of corporate data.
Accurate, complete, up-to-date data can be available to decision makers when, where and in the form they need it.

Reduced data redundancy

Data is organized and store in only one location.

Improved data integrity

Changes in data can be done only once because there is only one copy of database.

Easier modification and updating

There is only one location of the data.

Data and program independence

Advantages of a Database Approach

Better access to data and information Standardization of data access
All application programs use the same overall procedures to retrieve data.

Better overall protection of the data

Security codes and passwords

Shared data and information resources

Hardware, software and personnel can be spread overy many applications and users.

Disadvantages of a Database Approach

More complexity
DBMS s can be difficult to set up and operate. More decisions must be made correctly for the DBMS to work effectively Users have to learn the procedures

More difficult to recover from a failure

Can shut down the entire database

More expensive
Includes cost of the database and specialize personnel.

Enterprise Resource Planning (ERP)

A system of integrated programs that manages the vital business operations for an entire multisite, global organization. An ERP can replace many applications with one unified set of programs, making the system easier to use and more effective.

SAP AG
A german software company, is one of the leading suppliers of ERP softwares. The company employs more than 34,000 people in more than 50 countries.