LECTURE 2

INFORMATION SYSTEMS COMPONENTS

SYSTEM CONCEPTS
System concepts underlie all business processes. A system is defined as a set of interrelated components, with clearly

defined boundaries, working together to achieve a common set of objectives. Systems have inputs, processing

mechanisms, outputs.

The three basic functions of a system are input, processing and output.

INPUT Involves capturing and assembling elements that enter the system to be processed.
For example, raw materials, energy, data, and human effort must be secured and organized for processing.

PROCESSING Involves transformation processes that convert input into output.

Processing involves transformation processes that convert input into output.

Output involves transferring elements that have been produced by a transformation

process to their
ultimate destination.

Feedback is data about the performance of a system. For instance, data about sales
performance are feedback to a sales manager.

Control involves monitoring and evaluating feedback to determine whether a system is

moving towards the achievement of its goal.
INFORMATION SYSTEMS
Information systems are systems just like any other system they accept input (as data
resources) and processes them into output (as information products).

An Information System (IS) can be any organized combination of people, hardware, software,
communications networks, data resources, and policies and procedures that accepts,
transforms, stores, retrieves, and disseminates information in an organization. For an
information system to accomplish this, it depends on the resources of people, hardware,
software, data and networks.
 Components and Resources of an Information System
People Resources (Personnel)
People otherwise known as the human resource are the essential ingredient for the successful
operation of all information systems.

Two types of people resource can be identified: end users and IS specialists.

✓ End users (also called users or clients) are people who use an information system or the
output it generates or produces. They form the majority of an organization’s human resource and they
include; salespersons, engineers, clerks, accountants, managers as well as customers.

✓ Specialists they are the developers and operators of information systems and they include
systems analysts, software developers, system operators, and other managerial, technical,
and clerical employees in an organization.
Hardware Resources
The hardware resources include all physical devices and materials used in information capture,
processing, output and storage.

Software Resources
This is the component that is required to control the hardware resources.
They are set of instructions that tell the computer what to do.

Data Resources
Managers and information systems professionals have extended the concept of data resources to
more than just the raw materials of an information systems but a resource that is considered
valuable to the organization.
Network and Telecommunication Resources
Telecommunications are the means by which information is transmitted electronically over long
distances. Nowadays, computer systems are generally connected by telecommunications networks.
Organizations use computers and other networking devices connected together, enabling their users to
communicate and share data, tasks and equipment.
Procedures
Procedures are the policies and methods that must be followed when using, operating
and maintaining an information system.

Procedures must be used, for example, who is authorized to do so and who has access
to the reports it produces.
Functions of an Information Systems
Companies or organizations develop information systems to help them perform the tasks
they are specifically designed to do. For instance, a hospital will have a medical records
system, police departments will hold criminal records, all companies will have a payroll
system, supermarkets will use inventory systems, offices will have office automation
systems, etc. Irrespective of the type of information system, the same basic information
system functions occur.
Input of Data
This function consists of capturing both external and internal data and sending it through the
communication system to the entities within the information system that are concerned.
For instance, data about business transactions and other events must be captured and prepared for
processing.
This input naturally takes the form of data entry activities such as recording and editing.

Processing of Data into Information

The purpose of information processing is to transform the stored data into useful information that
will be meaningful to the person who requires it. Hence, it is a key function of all information
systems.
Output of Information Products
The goal of the output function of an information system is to ensure the production of appropriate
information products for employees and other users.

Information products include messages, reports, forms, and graphic images and they may be
provided by video displays, audio responses,
paper products, etc.
Storage of Data Resources
This is the information system function in which data are retained in an organized
manner for later use. Stored data are commonly organized into a variety of data
elements and databases.

Dissemination of information
Not only must the information system provide the information each user requires, but
it must also disseminate information to other people within the company.

Control of System Performance

Being a system, an information system should produce feedback about its input,
processing, output, and storage activities. This feedback is then monitored and
evaluated to determine if the system is meeting established performance standards.