Introduction to Information Systems

ISM - 121
Lecture 3

Chapter 1

Principals of Information System (IS)

By

Dr. Nawsher Khan

Associate Professor
nawsher@kku.edu.sa

King Khalid University

Abh, Saudi Arabia

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Information System
 A set of interrelated components that collect,
manipulate, and disseminate data and information,
and provide feedback to meet an objective

Examples: ATMs, airline reservation systems,

course reservation systems
Data vs Information
 Data: Raw Facts

 Information: Collection of facts organized in such

a way that they have value beyond the facts
themselves
The Characteristics of Valuable Information
The Characteristics of Valuable Information
System
A set of elements or components that interact to
accomplish goals

 Input
 Processing mechanism
 Feedback
 Output
 System boundary
System Performance and Standards
 Efficiency: Output/Input
 Effectiveness: Extent to which system attains its goals
 Performance standard: specific objective of a system
System Variables and Parameters

 System variable - item controlled by decision-maker

 System parameter - value that cannot be controlled

Modeling a System

 A model is an abstraction that is used to represent

reality
 4 major types of models
 A narrative model is based on words
 Logical, not physical

 A physical model is tangible

 A schematic model is a graphic representation
 Graphs and charts

 A mathematical model is an arithmetic representation

Components of an Information System
Components of a CBIS
Business Information Systems

 Electronic Commerce
 Transaction Processing Systems
 Management Information Systems
 Decision Support Systems
E-Commerce

 Business-to-business
 Business-to-consumer
 Business-to-Government
 Government-to-Consumer
Transaction Processing Systems
A transaction processing system (TPS) is an organized
collection of people, procedures, software, databases, and
devices used to record completed business transactions.

 Process business exchanges

 Maintain records about the exchanges
 Handle routine, yet critical, tasks
 Perform simple calculations
Enterprise Resource Planning (ERP)
 Integrated programs that can manage a company’s
entire set of business operations

 Often coordinate planning, inventory control,

production, and ordering
Management Information Systems (MIS)

 Routine information for routine decisions

 Operational efficiency
 Use transaction data as main input
 Databases integrate MIS in different functional
areas
Decision Support Systems (DSS)

 DSS- A decision support system is an organized

collection of people, procedures, software,
databases, and devices used to support problem-
specific decision making.

 Interactive support for non-routine decisions or problems

 End-users are more involved in creating a DSS than an
MIS
Special-Purpose Business Information Systems

 Artificial Intelligence (AI) Systems

 Virtual Reality Systems
 Expert Systems
 Other Special-Purpose Business Information
Systems
 Systems
Development
Summary

 Data - raw facts

 Information - data transformed into a meaningful form
 System - set of elements that interact to accomplish a goal
 Systems development - creating or modifying existing
business systems
 End

Any Question ?

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