Meaning, Components and Role

of Information Systems

Data Versus Information

Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100

What is a system?
A group of interrelated or interacting elements
forming a unified whole, OR
A group of interrelated components working
together toward a common goal by accepting
inputs and producing outputs in an organized
transformation process (dynamic system).
Five basic interacting components:
Input
Output
Control

- Processing (transformation process)

- Feedback

Information Technologies

Computer hardware technologies

Computer software technologies
Telecommunications network technologies
Data resource management technologies

Using Information in Finding

Problems

Amount of inventory safety stock

Personnel selection
New product pricing
Expenditure control

Need for Database

Data needs to be managed in order to be
available for processing and have appropriate
quality.
Easy updating of the data.
Easy sharing of the data.

Data Processing
Processes transactions and produces reports.
Represents the automation of fundamental,
routine processing to support operations.

Information Systems
Information System (IS). Collects, processes,
stores, analyzes and disseminates information
for a specific purpose.
Computer-based Information System (CBIS).
An information system that uses computer
technology to perform some or all of its
intended tasks.

Definition of an Information
System
An information system can be any organized combination of
people, hardware, software, communication networks, and
data resources that collects, transforms, and disseminates
information in an organization.
People have relied on information systems to communicate
with each other using a variety of physical devices (hardware),
information processing instructions and procedures
(software), communication channels (networks), and stored
data (data resources) since the dawn of civilization.

IS Vs IT
INFORMATION
TECHNOLOGY

Inventory
System

Hardware
Software
Databases
Networks
Other related
components

Payroll
System

are used to build

INFORMATION
SYSTEMS
Marketing
System

Customer
Service
System

Information Systems
Framework

Information Systems
Framework
An IS Framework for Business Professionals The IS knowledge that a business manager or
professional needs to know include the following:

Foundation Concepts: fundamental behavior, technical, business, and managerial concepts like
system components and functions, or competitive strategies;

Information Technologies: concepts, developments, or management issues regarding hardware,

software, data management, networks, and other technologies;

Business Applications: major uses of IT for business processes, operations, decision making, and
strategic/competitive advantage;

Development Processes: how end users and IS specialists develop and implement business/IT
solutions to problems and opportunities arising in business; and

Management Challenges: how to effectively and ethically manage the IS function and IT resources
to achieve top performance and business value in support of the business strategies of the
enterprise.

Components of Information
System

People Resources
Hardware Resources
Software Resources
Data Resources
Network Resources
Information Products

People Resources
Specialists: system analysts, software
developers, systems operators
End Users: anyone else who uses information
systems

Hardware Resources
Machines: computers, video monitors,
magnetic disk drives, printers, optical scanners
Media: floppy disk, magnetic tape, optical
disks, plastic cards, paper forms

Software Resources
Programs: operating system programs,
spreadsheet programs, word processing
programs, payroll programs
Procedures: data entry procedures, error
correction procedures, paycheck distribution
procedures

Data Resources
Product Descriptions, customer records,
employee files, inventory databases

Network Resources
Communications media, communications
processors, network access and control
software

Information Products
Management reports and business documents
using text and graphics displays, audio
responses, and paper forms

Major Roles of IS
Support
Competitive
Advantage
Support
Business
Decision Making

Support of
Business Processes and Operations

Major Roles of IS
Three major roles of the business applications of information
systems include:
Support Business Processes involves dealing with information
systems that support the business processes and operations in a
business.
Support Decision Making help decision makers to make better
decisions and attempt to gain a competitive advantage.
Support Competitive Advantage help decision makers to gain a
strategic advantage over competitors requires innovative use of
information technology.