Kick-off

 Personal introduction
– Name
– Academic background
– Organization [if applicable]
 MBA in FINANCE

Information Systems for Business

ACFN 2112

Chapter-1
Fundamental of Information Systems
Data, Information, and Systems
• Data vs. Information

– Data
• A “given,” or fact; a number, a statement, or a picture
• Represents something in the real world
• The raw materials in the production of information

– Information
• Data that have meaning within a context
• Data in relationships
• Data after manipulation
 Cont…

• Generating Information
– Computer-based ISs take data as raw material, process
it, and produce information as output.

Figure 1.1 Input-process-output

 Cont…

What Is a System?

– System: A set of components that work together to achieve a common

goal. Examples
• Transaction Processing Systems.
• Customer Relationship Management Systems.
• Business Intelligence Systems.
• Knowledge Management Systems

– Subsystem: One part of a system where the products of more than one
system are combined to reach an ultimate goal

– Closed system: Stand-alone system that has no contact with other

systems. Rare

– Open system: System that interfaces with other systems. An

open system interacts with its environment through giving and
receiving 

MIS 5
• Information system (IS):
– A set of interrelated components that collect, manipulate,
and disseminate data and information and provide
feedback to meet an objective.
• Businesses:
– Can use information systems to increase revenues and
reduce costs

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 Business information system

• Business information system is a group of interrelated

components that work collectively to carryout input,
processing, output, storage and control actions in order to
convert data into information products that can be used
to support forecasting, planning, control, coordination,
decision making and operational activities in an
organization
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• Information and Managers

– Systems thinking
• Creates a framework for problem solving and decision making.
• Keeps managers focused on overall goals and operations of
business.
Data, Information, and Systems

Figure 1.5 Qualities of humans and computers that contribute to synergy

 Fundamentals of information systems

Why information systems are important ?

• That’s the same asking why anyone should study
accounting, finance, operations management, or any
other major business function.
• Information systems and technologies have become a
vital of successful business and organizations.

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 Information system resources:
An information system consists of five major resources:
People, hardware, software, data, and networks.

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 Cont..

1. People resources: people are required for the operations of

all information systems. These people resources include end users
and IS specialists.
• End users ( also called users or clients) are people who use an
information system or the information it produces. Most of us
are information system end users.
• IS specialists are people who develop and operate information
systems. They include system analysts , software developers,
system operators and other IS personnel.
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Cont..

2. Hardware Resources: includes all physical devices and materials used

in information processing.
• For example: computers systems , which consists of central processing
units containing micro processors and a variety of interconnected
peripheral devices. Examples laptops, microcomputers, midrange
computer systems and , large main frame computer systems.
• Computer peripherals: which are devices such as key board or electronic
mouse for input and commands, a video screen or printer for output of
information.

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Cont..

3. Software resources: The concept of software resources includes all

sets of information processing instructions.
• The following are examples of software resources:

• System software: such as an operating system program, which controls

and supports the operations of a computer system.
• Application software: which are programs that direct processing for a
particular use of computers by end users. Examples are a sales analysis
program, payroll, and a word processing programs.

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Cont..

• Procedures: which are operating instructions for the people

who will use an information system.
4. Data resources: Data resources of information systems are
typically organized, stored, and accessed by a variety of data
resources.
• Data can take many forms, alphanumerical data, composed
of numbers, text data, image data, and audio data.

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cont

5. Network resources: Telecommunication technologies and networks like

the Internet, intranet, and extranet have become essential to the successful
electronic business and commerce operations of all type of organizations
and their computer based information systems.
• Network resources include:
• Communications media: examples, include twisted- pair wire, and fiber –
optic cable and satellite wireless technologies.
• But what is Internet, intranet, and extranet?

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 What are Information System activities?

• Information system (IS) is a set of interrelated elements

that recognize input, processing, output, storage, and
control activities.
– Collect (input)
– Manipulate (process)
– Store
– Disseminate (output) data and information
– Provide a corrective reaction (feedback mechanism) to
meet an objective

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Information System Activities (continued)

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 Input, Processing, Output, Feedback
• Input:
– Activity of gathering and capturing raw data
• Processing:
– Converting data into useful outputs
• Output:
– Production of useful information, usually in the form of
documents and reports
• Feedback:
– Information from the system that is used to make changes to
input or processing activities

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 The role of information systems
There are three fundamental reasons for all
business applications of information technology.
1.Support of its business processes and operations.

2.Support of decision making by its employees.

3.Support for strategies for competitive advantage.

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• Business firms invest heavily in information systems to
achieve six strategic business objectives:

 1. Operational excellence
 2. New products, services, and business models
 3. Customer and supplier intimacy
 4. Improved decision making
 5. Competitive advantage
 6. Survival Globalization opportunities

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 Business Information Systems trend

Fundamentals of Information
22
Systems, Sixth Edition
 Trends in information Systems

• Transaction processing system: Until the 1960s , the role of

most information systems was simple: transaction
processing, record-keeping, accounting, and other
electronic data processing applications.

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MEANING AND DEFINITIONS OF MIS
• MIS is defined as "a comprehensive and
coordinated set of information systems which
are rationally integrated and which transform
data into information in a variety of ways to
enhance productivity ….. on the basis of
established quality criteria
 DEFINITIONS…..
• "MIS is a combination of human and
computer-based resources that result in
collection, storage, retrieval, communication
and use of data for the purpose of efficient
management of operations and for business
planning".
 DEFINITIONS…..
• MIS is" an integrated user-machine system for
providing information to support the
– operations, management and decision-making
functions of an organization.
• The system utilizes computer hardware and
software, manual procedures, models for
analysis, planning, control and decision-
making, and a database".
 DEFINITIONS…..
• "MIS is a system to convert data from internal
and external sources into information and to
communicate that information in an
appropriate form to managers at all levels in
all functions to enable them to make timely
and effective decisions for planning, directing
and controlling the activities for which they
are responsible".
 DEFINITIONS…..
• MIS is “a collection of subsystems and related
programmed parts or modules that are
interconnected in a manner which fulfils the
information requirements necessary to plan,
organize, direct and control business activities.
• It is a system for producing and delivering
timely information that will support
management in accomplishing its specific
tasks in an enterprise."
• Though there are a number of definitions, all
of them converge on one single point, i.e., the
MIS is a system to support the decision
making function in the organization.
• In today's world MIS is a computerized
business processing system generating
information for the people in the organization
to meet the information needs for decision
making to achieve the corporate objective of
the organization.
The three sub-components of MIS
• Management is the art of getting things done
through and with the people in formally
organized groups.
• Information is data that is processed and
presented in a form which assists decision
maker.
• A system is a group of interrelated components
working together toward a common goal by
accepting inputs and producing outputs in an
organized transformation process
 What Is an Information System?
• It is a set of interrelated components that
collect (or retrieve), process, store, and
distribute information to support decision
making and control in an organization.
• In addition, it may also help managers and
workers analyze problems, visualize complex
subjects, and create new products.
• Information systems also require feedback,
which is output that is returned to appropriate
members of the organization to help them
evaluate or correct the input stage.
• Environmental factors such as customers,
suppliers, competitors, stockholders, and
regulatory agencies interact with the
organization and its information systems.
Pause

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