INTRODUCTION TO

INFORMATION SYSTEM

Mara Shaira A. Siega, CPA, MBA

Instructor
What is Information
System?
 Information System
• A specific type of system
• It is a combination of hardware, software, infrastrcture and
trained personnel organized to facilitate planning, control,
coordination, and decision making in an organization.
• It is an integrated set of components for collecting, storing, and
processing data and for providing information, knowledge, and
digital products.
 Information System
• Concerned with the efficient and effective planning and control
functions of the management.
• OBJECTIVES:
Levels Direct/Immediate Indirect/Longer term

System Reliable and bug-free system Easily-maintainable system

Improving the productivity of the
User Satisfying user's needs
managers
Improving the effectiveness of
Organizational General operational benefits
business operations

Strategic Improving customer service Enabling cooperative partnership

 Major Components of I.S.
• Hardware - consist of input/output device, processor, and
operating system and media device
• Software - consist of various programs and procedures
• System Software - the operating system. It manages the hardware, data and
rogram files and other system resources and provides means for the user to
control the computer.
• Application Software - a program designed to handle specific task for users
 Major Components of I.S. (cont.)
• Telecommunications - used to connect, or network, computer
systems and portable and wearable devices and to transmit
information.
• Databases - collection of interrelated data organized so that
individual records or groups or records can be retrieved.
• Data Warehouses - contain archival data, collected over time
that can be mined for information
 Data vs Information
• Data - raw materials from which information is derived

• Information - results from the thoughtful analysis,

manipulation, and presentation of data in a form that will
enhance the decision-making process
 Major Components of I.S. (cont.)
• Human Resources and Procedures - qualified people are a
vital of any information system
– Procedures - policies and methods to be followed in using, operating,
and maintaining an information system
 Types of Information System

Executive
Executives I.S.

Decision Support
Senior Managers Systems

Management
Middle Managers Information Systems

Workers Transaction Processing Systems

 Transaction Processing Systems
• Operational-level systems
• Data is usually obtained through the automated or semi-
automated tracking of low-level activities and basic
transactions
• FUNCTIONS:
Inputs Processing Outputs
Validation
Sorting Lists
Transactions Listing Detail Reports
Events Merging Action Reports
Updating Summary Reports
Calculation
 Transaction Processing Systems
• EXAMPLES:
• Payroll Systems
• Order Processing Systems
• Reservaton Systems
• Stock Control Systems
• Systems for payments and fund transfers
• ROLES:
• Produce informatin for other systems
• Cross boundaries (internal and external)
• Used by operational personnel + supervisory level
• Efficiency oriented
 Management Information Systems
• Management-level systems
• Used by middle managers to help ensure the smooth running of
the organization in the short to medium term
• FUNCTIONS:

Inputs Processing Outputs

Internal Transactions Sorting Detail Reports
Internal Files Merging Action Reports
Structured Data Summarizing Summary Reports
 Management Information Systems
• EXAMPLES:
• Sales management systems
• Inventory control systems
• Budgeting systems
• Management Reporting Systems
• Personnel (HRM) Systems
• ROLES:
• Based on internal information flows
• Support relatively structured decisions
• Inflexible and have little analytical capacity
• Used by lower and middle managerial levels
• Deals with the past and present rather than the future
• Efficiency oriented
 Decision Support Systems
• Knowledge-based system
• Used by senior managers to analyze existing structured
information and allow managers to project the potentiak effects
of their decisions into the future.
• Usually interactive and are used to solve ill structured problems
• Can be refered as business intelligence systems
 Decision Support Systems
• Help managers with non-routine decisions that are unique,
rapidly changing, and not easily specified in advances
• DSS are more analytical than MIS
• FUNCTIONS:

Inputs Processing Outputs

Modeling
Internal Transactions Summary Reports
Simulation
Internal Files Forecasts
Analysis
External Information Graphs / Plots
Summarizing
 Decision Support Systems
• EXAMPLES:
• Group Decision Support Systems (GDSS)
• Logistics Systems
• Financial Planning Systems
• Spreadsheet Models
• ROLES:
• Support ill-structured or semi-structured decisions
• Have analytical and/or modeling capacity
• Used by more senior managerial levels
• Are concerned with predicting the future
• Are effectiveness oriented
 Executive Information Systems
• Strategic-level information systems
• Hep executives analyze the environment in which the
organization operates and to plan appropriate courses of actions
• Information is this systems is often weakly structured and
comes from both internal and external sources
• Designed to be operated without the need for intermediaries
and easily tailored to te preferences of the individual using
them
 Executive Information Systems
• FUNCTIONS:
Inputs Processing Outputs

External Data Simulation Summary Reports

Internal Files Summarizing Forecasts
Pre-defined models “Drilling Down” Graphs / Plots

• ROLES:
• Concerned with ease of use and predicting the future
• Are effectiveness oriented and highly flexible
• Support unstructured decisions
• Use internal ans external data sources
• Used only at the most senior management levels
 Importance of Information Systems
• Enhanced competitive positions
• Increased productivity
• Improved quality of products or services leading to higher customer
satisfaction
• Improved decision-making ability
• Ability to respond faster to demands of the marketplace
• Enhanced ability to communicate and collaborate within the firm and
with customers and suppliers
• Enhance goodwill of employees
 Information System vs Information
Technology
• Information technology - defined as the study, design,
implementation, support or management of computer-based
information system
Information System Information Technology
Existence since pre-medical era in form
Origin Associated with invention of computers
of books, drawings, etc.
Seeing constant changes with faster
Development Undergone great deal of evolution processors and constantly shrinking size
of storage devices
Drive effieiency across orgnizations
Business Change from manual to automated
with improved productivity and
Application applications
precision manufacturing
 MIS vs AIS
Management I.S.
- an invaluable asset for any
organization to perform properly
and it has important information
that is utilized in the process of
evaluation of previous decisions
and in the making of relevant and
sensible plans for the future
success of operations
Accounting I.S
- a division or subset of MIS ans is all
about maintaining the entire acconting,
sales and purchase records, financial
statement, and other transactions
- helpful in organizing the account
system in the organization
“Success in management requires learning
as fast as the world is changing”