CISM-65-Lec-1 (1)

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1MANAGEMENT INFORMATION SYSTEM (M. I.S.)

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LECTURE 1: Information Systems and Information Technology

What is an Information System (IS)?

Information system - set of interrelated components that collect, process, store, and distribute information to

decision making, coordination, and control in an organization.

Data - streams of raw faces representing events occurring in organization or the physical environmentbefore they have been organized and arranged into a form that people can understand and use.

Information - systems contain information about significant people, places, and things within theorganization or in the environment surrounding it.

Three activities in an information system produce the information that organizations need to make decisions,control operations, analyze problems, and createnew products or services. These activities are:

1. Input is the capture or collection of raw datafrom within the organization or from its

external environment for processing in aninformation system.2. Processing is the conversion, manipulation,

and analysis of raw input into a form that ismore meaningful to humans.

3. Output is the distribution of processedinformation to the people who will use it or tothe activities for which it will be used.Information systems also require feedback,which is output that is returned to theappropriate members of the organization tohelp them evaluate or correct input.

System

- a group of organized independent components that interact with and complement one another toachieve one or more predefined goals.

Characteristics of a system:

• Unitary whole – a system is the sum of i ts part glued into one distinct entity.

• Composed of parts – a system is made up of functionality oriented parts or components.

• Bounded – boundaries separate system from its environment.

• System parts – the parts are related and have definite interactions.

• Hierarchical – each system is lightly to be part of another larger system, just as it is likely to bedivided into subsystems.

• Goal oriented – the components all work toward a particular purpose of function.

System concepts:1. Dynamic system – a mathematical formulation of any fixed “rule” which describes the time

dependence of a point’s position in its ambient space.Example: Input-Process-Output

2. Cybernetic system – a system with feedback and control.

Feedback – is data about the performance of a system.

Figure 1.1 Functions of an information system. An informationsystem contains information about an organization and itssurrounding environment.

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Example: data about sales performance is feedback to a sales manager

Control – involves monitoring and evaluating feedback to determine whether a system is movingtoward the achievement of its goal.Example: sales manager exercises control when he or she reassigns sales persons to new salesterritories

Major capabilities of information systems:

• perform high-speed, high-volume, numerical computations

• provide fast, accurate, and inexpensive communication within and between organizations

• store huge amounts of information in an easy-to-access yet small space

• allow quick and inexpensive access to vast amount of information worldwide

• increase the effectiveness and efficiency of people working in groups in one place or in severallocations

• vividly present information that challenges the human mind

• automate semiautomatic business processes and manually done tasks

• speed typing and editing

• accomplishes all the above much less expensively than when done manually

What is a Computer-Based Information System (CBIS)?

- is information systems that rely on computer hardware and software for processing and disseminatinginformation.

Formal system is system resting on accepted and fixed definitions of data and procedures, operatingwith predefined rules.

Four major resources of information system:1. People Resources

- required for the operation of all information system.-

are those individuals who work with the system or use its output.

Examples:

End-user (users or clients) - anyone who uses on information system or the information it produces- analyst or professional computer programmers- managerial end-user- able to use word processing and e-mail- knowledge in spreadsheet packages

IS specialist- are those people who develop and operate information system- system analyst, programmers, computer operators- system analyst design information based on information requirement of end-users- programmers prepare computer programmers based on specification of system

analyst- computer operators operate and compute

2. Hardware Resources - Includes all physical devices and materials used in information processing- computers, calculators and all data media- set of devices such as processor, monitor, keyboard and a printer that accepts data and

information, processes them, and displays them

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- tangible objects on which data is recorded from paper to magnetic disks

Computer systems- are devices such as keyboard, electronic mouse for import of data and commands;

video screen or printer for output of information; magnetic or optical disks for storageof data resources.

Telecommunication networks- consist of computer, communications processors - fiber optics, UTP cable, hub, wireless communication, repeaters, switches

3. Software Resources - includes all sets of information processing instructions- is a set of programs that enable the hardware to process data

Programs- sets of instruction which direct and control computer hardware

Procedure

- set of information processing instructions needed by people

Examples:

System Sof tware (OS)- which controls and supports the operations of computer system

Appl ication software

- consists of programs that direct processing for a particular use of computersby end-users

Procedures

- are operating instructions for the people who will use an information system -

are the set of instructions about how to combine the above components inorder to process information and generate the desired output Example: filling out a paper form of using a software package

4. Data Resources - that must be managed effectively to benefit all end-users in an organization

Different forms of data:

• Alphanumeric data – numbers and alphabet and other characters that describe businesstransactions.

• Text data – consisting of sentences and paragraphs used in written communication

• Image data – graphic shapes and figures

•

Audio data – human voice and other sounds• Databases

- which hold processed and organized data- is a collection of related files, tables, relations, and so on, that stores data and the

associations among them

• Knowledge bases – which hold knowledge in a variety of forms such as facts and rules ofinference about various subjects

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A Business Perspective on Information Systems

Computer literacy - focus on knowledge about information technology, focusing on understanding of howcomputer based technology work.

• Organization. Information systems are an integral part of organizations. The key elements of anorganization are its: (1) people, (2) structure, (3) operating procedures, (4) politics, and (5) culture.

The major business functions, consist of specialized task performed in a business organization,including: (1) manufacturing and production, (2) sales and marketing, (3) finance, (4) accounting, and(5) human resources.

Standard Operating Procedures (SOPs) are formal rules for accomplishing task that have beendeveloped to cope with expected situations.Organizations require many difference kinds of skills and people. In addition to manager:

o Knowledge workers are people, such as engineers or architects, who design products orservice and create knowledge for the organization.

o Data workers are people, such as secretaries or bookkeepers, who process theorganization’s paperwork.

o Production or service workers are people who actually produce the products or services ofthe organization.

• Management. Information technology con play a powerful roles in redirecting and redesigning theorganization. It is important to note that managerial roles and decisions vary at different levels of theorganization.

o Senior managers are people occupying the topmost hierarchy in an organization who areresponsible for making long rang decisions.

o Middle managers are people in the middle of the organizational hierarchy who areresponsible for carrying out the plans and goals of senior management.

o Operational managers are people who monitor the day-to-day activities of the organization.

• Technology. Information technology is one of many tools managers use to cope with change.

o Computer hardware is physical equipment used for input, processing, and output activities inan information system.

o Computer software consists of detailed, preprogrammed instruction that control andcoordinate the work of computer hardware components in an information system.

o Storage technology includes both physical media and software governing the storage andorganization of data for use in an information system.

o Communications technology consist both physical device and software that link variouscomputer hardware components and transfer data from one physical location to another.

o Network is the link of two or more computers to share data or resources, such as a printer.

All of these technologies represent resource that can be share throughout the organization andconstitute the firm’s information technology (IT) infrastructure

Contemporary Approaches to Information System

Information systems are socio-technical systems. Though they are composed of machines, devices, and “hard’

physical technology, they require substantial social, organizational, and intellectual investments to make them

work property.

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1. Technical Approach - emphasizes

mathematically based models to study

information systems, as well as the physical

technology and formal capabilities of these

systems.

2. Behavioral Approach. An important part of theinformation systems field is concerned with

behavioral issues that arise in the development

and long-term maintenance of information

systems. Issues such as strategic business

integration, design, implementation, utilization,

and management cannot be explored usually

with the model used in the technical approach.

The Difference between Computers and Information Systems

Computers provide effective ways of processing data, and they are a necessary part of an information system(IS). An IS, however, involves much more than just computers. The successful application of an IS requires anunderstanding of the business and its environmental that is supported by the IS.

What is Information Technology?

Computer Technology- refers to the technological side of an information system- it includes the hardware, databases, software, networks, and other devices- it can be viewed as a subsystem of an information system

IT

- also used interchangeably with information system- it may be used in a broad way to describe a collection of several information systems, users, and

management for an entire organization

Figure 1.3 Contemporary approaches to informationsystems. The study of information systems deals withissues and insights contributed from technological andbehavioral disciplines.

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CISM-65-Lec-1 (1)