1

UNIT-1
INFORMATION SYSTEM
CONCEPTS
Complied by: Dr. Vanita Joshi
Unit-1 Information System Concepts
 Content
2

 Understanding Data & Information

 What is Information System (IS)

 Types of IS

 Business as System

 Business Process

 Attributes of Information Quality

 Internet, Intranet, Extranet, Worldwide Web

Unit-1 Information System Concepts

 What is Data?
3

 Data is a stream of raw facts representing things or

events that have happened.
 In ICT, we usually say that data is made up from four
basic types:
• Numbers
• Text
• Images
• Sound

Unit-1 Information System Concepts

 What is Information?

Data + Meaning = Information

• A Good Quality information should be:
Accurate, up-to-date, Relevant, Complete, On-
time, Appropriate, Intelligible

4 Unit-1 Information System Concepts

 What is a System?
 A System is a group of interrelated components, with
a clearly defined boundary, working together towards
a common goal by accepting inputs and producing
output in organized transformation process.
Feedback

Input Processing Output

5 Unit-1 Information System Concepts

 Data and Information
7

Raw data from a supermarket checkout counter can be processed and organized to
produce meaningful information, such as the total unit sales of dish detergent or
the total sales revenue from dish detergent for a specific store or sales territory.
Unit-1 Information System Concepts
 Information System
8

A set of interrelated elements or components that

collect (input), manipulate (process), and disseminate
(output) data and information and provide a
feedback mechanism to meet an objective
 For many companies, IS (Information Systems or
Information Services) is the name of the department
responsible for computers, networking and data
management. Other companies refer to the
department as IT (Information Technology) and MIS
(Management Information Services).

Unit-1 Information System Concepts

 Information System
9

Organized combination of
1. Hardware
2. Software
3. Communications Networks
4. Data
5. People

Unit-1 Information System Concepts

 Computer Hardware Technologies
10

 Examples
 Dell PowerEdge 2600 File Server
 Apple iMac

 Sony LCD Flat Panel Monitor

 iPod

 ID Automation USB Barcode Scanner

 RFID Chip

Unit-1 Information System Concepts

 Computer Software Technology
11

 Examples
 Windows XP
 Graphics Card Driver Software

 PowerPoint

 mySAP Customer Relationship Management

 Peachtree Accounting

 iTunes Software

Unit-1 Information System Concepts

 Telecommunications Network Technologies
12

 Examples
 Ethernet

 Netgear Wireless Router

 Cable Modem

 Cell Phone

 WiFi, WiMax card

 Bluetooth device

Unit-1 Information System Concepts

 Data Resource Management Technologies
13

 Examples
 IBM DB2 8.2
 Microsoft SQL Server 2000

 Oracle Database 10g

 MySQL

 Data Mining Software

Unit-1 Information System Concepts

 People Technology 
14

People are the 5th component of an Information

System
 Everyone forgets the importance of people in an
information system.
 Example: End User, Data Entry Person, Manager,

Programmer, DB Administrator, Cashier, Secretary,

Professor.

Unit-1 Information System Concepts

 Why Information System?
15

Globalization

• Management and control in a global marketplace

• Competition in world markets
• Global workgroups
• Global delivery systems

Unit-1 Information System Concepts

 Why Information System? (Contd..)
16

Emergence of the Digital Firm:

• Digitally enabled relationships with customers,

suppliers, and employees
• Core business processes accomplished using digital
networks
• Digital management of key corporate assets

Unit-1 Information System Concepts

 Role of Information System in Business Today
17

The Interdependence Between Organizations and

Information Technology

There is a growing interdependence between a firm’s information systems and its business capabilities. Changes in
strategy, rules, and business processes increasingly require changes in hardware, software, databases, and
telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Unit-1 Information System Concepts
Information Systems Serve 3 Roles

 IS can support 3 different levels in business

18 Unit-1 Information System Concepts

Expanding Role of IS

 Information Systems are being used in more areas,

especial at the strategic level.
 At the same time, Information Systems are expanding
participation of End Users.
 Biggest advantages of IS:
Information can flow up
the pyramid faster and
more effectively.

19 Unit-1 Information System Concepts

 Types of Information Systems
20

Unit-1 Information System Concepts

 Transaction Processing System (TPS)
21

 Supports Operations
 Updates Operational Databases
 Examples:
 ATM Machine System – Banking Transactions
 Cash Register System – Point of Sale Transactions

 Accounting System – Checking Account Transactions

 Even Pay-per-view or On Demand is a TPS

Unit-1 Information System Concepts

 Applications of TPS
22

Unit-1 Information System Concepts

 A Symbolic Presentation of Payroll TPS
23

Unit-1 Information System Concepts

 Process Control Systems (PCS)
24

 Supports Operations
 Monitor and Control Industrial/Manufacturing
Process
 Examples:
 PetroleumRefining
 Power Generation

 Automobile Manufacturing

Unit-1 Information System Concepts

 Enterprise Collaboration Systems (ECS)
25

 Supports Operations (Surprised?)

 Teamwork, communication, and collaboration
 Examples:
 E-mail
 Chat
 Video Conferencing
 Calendaring
 Journaling
 Workflow
 File Sharing (Kazaa, Morpheus, Limework, Napster)

Unit-1 Information System Concepts

 Management Information System (MIS)
26

 Supports Management
 Analysis & Reporting
 Charts, Graphs, Summary Tools
 Examples:
 SCT Banner – Managing College Information
 Spreadsheet (Excel) – One of the first and most basic

 Oracle's Corporate Performance Management

Unit-1 Information System Concepts

 TPS Data from MIS Applications
27

Unit-1 Information System Concepts

 Decision Support System (DSS)
28

 Support Management
 What-if Analysis, Decision Modeling, Scenario
Building, Highly interactive, ad hoc supports for
decision making.
 Examples
 Enterprise Decision Manager 2.0 Fair Isaac
Corporation
 Win 32 AIMMS 3.6
 Most DSS’s are custom developed for specific
companies; very few out-of-the-box products.
Unit-1 Information System Concepts
 Decision Support System
29

Unit-1 Information System Concepts

 Executive Information Systems (EIS/ ESS)
30

 Supports high-level strategic management

 Provides critical info from other systems (MIS and
DSS).
 Portal Concept: one place with links to all information
 EIS’s integrate external information such as economic
developments and news about related markets and
competitors. Helps strategic decision making, not
necessarily tactical.
 Tactical – doing things the right way right
 Strategic – doing the right things

Unit-1 Information System Concepts

 Executive Support/ Information System
31

Unit-1 Information System Concepts

 Information Flow Executives

Enterprise Collaboration System

32

Executive Information System

System
Information
Managers DSS
Flow

MIS
Information
TPS
Exchange/
Communication
PCS

Operational Systems and Staff

Unit-1 Information System Concepts
 Information Flow Executives

Enterprise Collaboration System

33

Management Executive Information System

Managers DSS

MIS
Operations
TPS

PCS

Operational Systems and Staff

Unit-1 Information System Concepts
 Information System from Functional
34
Perspective

 SALES & MARKETING SYSTEMS

 MANUFACTURING & PRODUCTION SYSTEMS

 FINANCE & ACCOUNTING SYSTEMS

 HUMAN RESOURCES SYSTEMS

Unit-1 Information System Concepts

 Sales and Marketing Information System
35

Major functions of systems:

 Sales management, market research, promotion,
pricing, new products

Major application systems:

 Sales order info system, market research system,
pricing system

Unit-1 Information System Concepts

 Sales and Marketing Information System
36

Unit-1 Information System Concepts

 Manufacturing and Production
37
Information System
Major functions of systems:
 Scheduling, purchasing, shipping, receiving,
engineering, operations

Major application systems:

 Materials resource planning systems, purchase
order control systems, engineering systems,
quality control systems

Unit-1 Information System Concepts

 Manufacturing and Production
38
Information System

Unit-1 Information System Concepts

 Finance and Accounting Information
39
System
Major functions of systems:
 Budgeting, general ledger, billing, cost
accounting

Major application systems:

 General ledger, accounts receivable, accounts
payable, budgeting, funds management systems

Unit-1 Information System Concepts

 Finance and Accounting Information
40
System

Unit-1 Information System Concepts

 Human Resource Information System
41

Major functions of systems:

 Personnel records, benefits, compensation,
labor relations, training

Major application systems:

 Payroll, employee records, benefit systems,
career path systems, personnel training systems

Unit-1 Information System Concepts

 Human Resource Information System
42

Unit-1 Information System Concepts

 Business Process and Information
43
System
 Manner in which work is organized,
coordinated, and focused to produce a
valuable product or service
 Concrete work flows of material, information,
and knowledge—sets of activities
 Unique ways to coordinate work, information,
and knowledge
 Ways in which management chooses to
coordinate work
Unit-1 Information System Concepts
 Cross Functional Business Process
44

Example : Order Fulfillment Process

Unit-1 Information System Concepts
 Customer Relationship Management (CRM)
45

Unit-1 Information System Concepts

 Supply Chain Management
46

Unit-1 Information System Concepts

47 Internet, Intranet, Extranet & WWW

Unit-1 Information System Concepts

 Internet
48

 The internet
A network of networks.
 The internet transmits data from one
computer (called a host) to another.
 Internet networks
 Linkednetworks that work much the same
way -- they pass data around in packets,
each of which carries the addresses of its
sender and receiver.
Unit-1 Information System Concepts
49 Unit-1 Information System Concepts
 Intranets and Extranets
50

 Intranet
 Aninternal corporate network built using Internet
and World Wide Web standards and products
that allows employees of an organization to gain
access to corporate information.
 Extranet
A network based on Web technologies that links
selected resources of the intranet of a company
with its customers, suppliers, or other business
partners.
Unit-1 Information System Concepts
 Internet, Intranet and Extranet
51

Unit-1 Information System Concepts

 Internet, Intranet and Extranet
52

Unit-1 Information System Concepts

 World Wide Web
53

 World Wide Web

A collection of tens of thousands of independently-owned
computers that work together as one in an Internet service.
 WWW Terminology
 Home Page
 Hypermedia
 Hypertext Markup Language(HTML)
 Web Browser
 Web Page
 Applet

Unit-1 Information System Concepts

54

Unit-1 Information System Concepts