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Information Systems

Prepared By:
Gopal Patel
What is a System ?
It is a collection of interrelated components that
work together to perform a specific task.
e.g. :
Human Body
Business Organization
A Computer

Sub Systems ?
In a System the different components are connected
with each other and they are interdependent. Each
component is a Sub System of the original
system and carries out part of the systems tasks.

e.g. :

Parts like digestive system in the human body

The marketing branch of a business organization

Elements of a System
Input Output
Processing
Basically there are three major components in every
system, namely input, processing and output.
The System is separated from the external environment
from the system boundary.
The system receives inputs from a its environment and
returns outputs to the environment by processing the
inputs.

Input
Output
Sub systems should communicate with each other in order
to process an output to a particular input.
One subsystems output will be an input to another.
A good system will be made up of highly independent
subsystems with minimal flows between them.


DATA vs. INFORMATION
Data Raw facts in isolation. Data describe the business. These are
isolated facts convey meaning but generally are not useful by
themselves.
Information is data that has been manipulated to be useful to someone.
In other words, information must have value, or it is still data. Information
tells people something they dont already know or confirms something
that is suspect.
Important facts
Most people use the terms data and information interchangeably.
But data and information are not the same thing.
One persons information may be another persons data.
Information System
An arrangement of people, data, processes, interfaces,
networks and technology that are integrated for the
purpose of supporting and improving the day to day
operations in a business, as well as fulfilling the problem
solving and decision making information needs of
business managers.

Two Main Types of Information Systems
Manual Information Systems
Computer Based Information Systems
Manual Information Systems
File storage devices, manual procedures and papers
are examples of components of a manual information
system.
Computer bases Information System
Involves six interdependent components:
Hardware (machines)
Software (instructions & programs)
People (programmers, managers and users)
Procedures (rules)
Data & Information
Pros & Cons of a Manual Information System
Pros
Flexible
Judgments & Decisions can be taken easily by
humans

Cons
Humans are unreliable
Slow in performing arithmetical operations
Subjected to fatigue and boredom
IT and IS
What is Information Technology?
Any form of technology used by people to handle
information.
Information Technology: the foundation upon
which IS are built.
What are Information Systems?
Integrated components processing, storing and
disseminating information in an organisation.
Interdisciplinary study of systems that provide
information to users in organisations.
INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
IS Vs IT
Experiences of IT and IS
Examples of IT
Hardware (PC, UNIX server)
Software (e-mail, Internet, Windows, Word)
Consumer devices (mobiles, train times)
Examples of IS
File systems, databases, e-mail servers / clients
e-commerce
SAP, student records
Levels of Management
Upper or Top or Strategic Management
Middle or Tactical Management

Lower or Operational level
Management
Three levels of management

Strategic
Tactical
Operational
Levels of Management cont..
Each level of management can be distinguished by the
types of

Decisions made
Time frame considered in the decisions
Types of report information needed to make decisions


Lower or Operational level Management

They make structured decisions (Operational decisions).
Structured decision Its a predictable decision that can
be made following a well defined set of routine
procedures.

Most decisions at this level require easily defined
information that relates to the current status and activities
within the basic business functions.

Information is gained from detailed reports which contain
information about routine activities.

Detailed tasks defined by middle management are carried
out by people at operational level.


Middle or Tactical Management

Acquire and arrange the resources (Computers, people etc) to meet
the goals of an organization.

Define the detailed tasks to be carried out at the operational level
.
Information needed involves review, summarization and analysis of
data to help plan and control operations and implement policy that
has been formulated by upper management.

Information is usually given to middle managers as summarized
reports.

Deals with semi structured decisions. (Tactical decisions)
Semi structured decisions that must be made without a base of clearly
defined informational procedures. In most cases a semi structured
decision is complex, requiring detailed analysis and extensive
computations.
Upper or Top or Strategic Management

Decides on the broad objectives of an organization.
Make unstructured decisions. (Strategic decision).
Unstructured decisions are the most complex type of
decisions and are rarely based on predetermined
routine procedures. They involve subjective
judgments of the decision maker.
Types of Information Systems
Transaction processing systems (TPS)
Management Information Systems (MIS)
Decision support Systems (DSS)
Executive Information Systems (EIS)
Expert Systems (ES)

Transaction Processing Systems (TPS)
These systems capture and process data about business
transactions.
Some times called as data processing systems
Mostly used at operational level
Usually creates detailed reports of daily transactions or
future transactions
Reports generated are useful only to lower level managers
One functional area of a business consists of an TPS
Management Information Systems (MIS)
Provides middle level management with reports that
summarize and categorize information derived from
company databases. (In pre determined format)
Supplements Transaction processing Systems
Able to produce detailed information, summary
information, exception information
Information produced is based on accepted management
or mathematical/statistical models
Decision Support Systems (DSS)
Provides its users with decision oriented information
whenever a decision-making situation arises
Analyses information already captured by TPS and MIS in
order to support unstructured decision making at top
management level
Facts
DSS does not make decisions, it helps some one to make
a decision by providing information
TPS or MIS does not analyze information they produce
Executive Information System (EIS)
Is a DSS which is especially meant for top level
management and specifically support unstructured
decision making
Also called Executive Support Systems (ESS)
Draws data not only from the organization, able to draw
information from outside sources such as news services
and marketing research databases.

Expert Systems (ES)
Captures knowledge expertise of a problem solver or
decision maker and then simulates thinking of that
expertise for those who have less expertise.
Includes logic and reasoning within there respective
fields
Facts
Emerged from the filed of artificial intelligence
(Creating computer systems that simulate
human reasoning and sensation)

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