INTRODUCTION TO

INFORMATION
SYSTEM
Information systems

INFORMATION SYSTEMS ARE COMBINATIONS OF

HARDWARE, SOFTWARE, AND TELECOMMUNICATIONS
NETWORKS THAT PEOPLE BUILD AND USE TO
COLLECT, CREATE, AND DISTRIBUTE USEFUL DATA,
TYPICALLY IN ORGANIZATIONAL SETTINGS.
Information systems

Hardware refers to physical computer equipment, such as the

computer monitor, central processing unit, or keyboard.
Software refers to a program or set of programs that tell the
computer to perform certain tasks.
Telecommunications networks refer to a group of two or more
computer systems linked together with communications equipment
Application of Information systems
People in organizations use information systems to process sales
transactions, manage loan applications, or help financial analysts decide
where, when, and how to invest.
Product managers also use them to help decide where, when, and how
to market their products and related services, and production managers
use them to help decide when and how to manufacture products.
Information systems also enable us to get cash from ATMs,
communicate by live video with people in other parts of the world, and
buy concert or airline tickets
Data VS Information
Data and information, terms are often used interchangeably.
Data is raw material—recorded, unformatted information, such as
words and numbers.
Data can come in the form of text, observations, figures, images,
numbers, graphs, or symbols. For example, data might include
individual prices, weights, addresses, ages, names, temperatures,
dates, or distances.
Data VS Information
Data has no meaning in and of itself. For example, if we asked you
what 4658 meant or stood for, you could not tell. However, if we
presented the same data and told you it was located in a certain
database, in Johns file, in a field labeled “ATMPIN”, you might rightly
surmise that the number was actually the ATM pincode of John
 Data VS Information
Information,is defined as a representation of reality.
Information is defined as knowledge gained through study, communication,
research, or instruction. Essentially, information is the result of analyzing and
interpreting pieces of data.
For example, a set of data could include temperature readings in a location over
several years. Without any additional context, those temperatures have no
meaning. However, when you analyze and organize that information, you could
determine seasonal temperature patterns.
Only when the data is organized and compiled in a useful way can it provide
information that is beneficial to others.   
Examples of Data vs Information

1. At a restaurant, a single customer’s bill amount is data. However,

when the restaurant owners collect and interpret multiple bills over
a range of time, they can produce valuable information, such as what
menu items are most popular and whether the prices are sufficient
to cover overhead(expense of day to day ), and wages.
Examples of Data vs Information

2.The number of likes on a social media post is a single element of

data. When that’s combined with other social media engagement
statistics, like followers, comments, and shares, a company can intuit
which social media platforms perform the best and which platforms
they should focus on to more effectively engage their audience.
The Key Differences Between Data vs
Information
Data is a collection of facts, while information puts those facts into
context.
While data is raw and unorganized, information is organized.
Data, on its own, is meaningless. When it’s analyzed and interpreted, it
becomes meaningful information. 
Data does not depend on information; however, information depends
on data.
Data isn’t sufficient for decision-making, but you can make decisions
based on information.
An organization is made up of closed
systems and open systems. 
 OPEN SYSTEM
Open systems are system which communicates with its environment .In effect,
all organizations are open systems.

In an open environment, the various components of an organization will

communicate and share information with each other and possibly with others
outside of the organization. This could include sharing information, ideas, and
even resources. In an open system, an organization will take inputs from within
and from outside the organization, and its actions will produce outputs that
impact the internal environment and the environment outside of the
organization. An open environment is more flexible than a closed environment.
CLOSED SYSTEM
Closed systems are the system that do not interact with the external
environment. 
In a closed system, there is very little sharing between the various
components of the organization and certainly little to no interaction
with the environment outside of the organization. Each component
performs its functions without communicating its activities to the
other components of the organization. Sometimes, the need for a
closed environment exists if the organization is working on
developing a new product, idea, or concept.
CLOSED SYSTEM
For example, the research and development departments would
adopt a closed system to endeavor the protection of the
organization’s secrets and prevent leakage of the company’s
information, especially to competitors.
Classification of Information System

Operations support system: In an organization, data input is done by

the end user which is processed to generate information products
i.e. reports, which are utilized by internal and or external users. Such
a system is called operation support system.
The purpose of the operation support system is to facilitate business
transaction, control production, support internal as well as external
communication and update organization central database
Classification of Information System

The operation support system is further divided into

 transaction-processing system
processing control system
 enterprise collaboration system.
Transaction Processing System (TPS):
Transaction Processing System are information system that processes
data resulting from the occurrences of business transactions
Their objectives are to provide transaction in order to update records
and generate reports
The transaction is performed in two ways: Batching
processing and Online transaction processing.

 Example: Bill system, payroll system

Enterprise Collaboration
System(ECS)
In recent times, there is more stress on team effort or collaboration
across different functional teams. A system which enables
collaborative effort by improving communication and sharing of data
is referred to as an enterprise collaboration system.
Management Support System

Managers require precise information in a specific format to

undertake an organizational decision. A system which facilitates an
efficient decision making process for managers is called management
support system.

Management support systems are essentially categorized as

management information system, decision support system, expert
system and accounting information system.
Management Information System(MIS)
Management Information System is designed to take relatively raw
data available through a Transaction Processing System and convert
them into a summarized and aggregated form for the manager,
usually in a report format.
Many different types of report are produced in MIS.
Some of the reports are a summary report, ad-hoc(particular
question) reports and an exception(difference between actual
performance and expected performance.) report.
Decision support system (DSS)
A decision support system (DSS) is an information system used to
improve a company's decision-making capabilities. It analyzes large
amounts of data and presents an organization with the best possible
options available.
DSS serve the management, operations and planning levels of an
organization and help people make decisions about problems that
may be rapidly changing and not easily specified in advance
Experts System(ES):
Experts systems include expertise in order to aid managers in
diagnosing problems or in problem-solving. These systems are based
on the principles of artificial intelligence research.
Experts Systems is a knowledge-based information system. It uses its
knowledge about a specify are to act as an expert consultant to
users.
Accounting information system(AIS).
An accounting information system (AIS) is an information system that
a business uses to collect, store, manage, process, retrieve, and
report its financial data so it can be used by accountants,
consultants, business analysts, managers, chief financial officers
(CFOs),and tax agencies.

An AIS helps the different departments within a company work

together.
An effective AIS uses hardware and software to effectively store and
retrieve data.
Information quality attributes
Quality of information refers to its fitness for use or its reliability.
Different attributes that influence the quality of information are
1) Timeliness
Timeliness means that information must reach the recipients within
the prescribed time frame. Timely information can ensure correct
executive action at an early stage. The characteristic of timeliness, to
be effective, should also include current information.
 Information quality attributes
2) Accuracy
Accuracy is another key-attribute of management information. It means that
information is free from mistakes and errors, is clear and accurately reflects the
meaning of data on which it is based. It conveys an accurate picture to the
recipient, who may require a presentation in graphical form rather than tabular
form.
3) Relevance 
Relevance is yet another key attribute of management information. Information is
said to be relevant if it answers specifically for the recipient what, why, where, who
and why? In other words, the MIS should serve reports to managers, which are
useful, and the information helps them make decisions.
Information quality attributes
4) Adequacy
Adequacy means information must be sufficient in quantity. MIS
must provide reports containing information, which is required in
deciding processes of decision-making
5) Completeness
The information, which is provided to a manager, must be complete
and should meet all his needs. Incomplete information may result in
wrong decisions and thus may prove costly to the organization.