Information Systems

What are information systems used for in the Digital Age?

• used by people and business organizations for the improvement at processes and operations to make things simpler and easier.

• a combined set of modules for gathering, processing and storing of data and for delivering information and digital products

Etymology of the word Data

from the Latin word datum

Data refers to

raw, unorganized, unprocessed facts

Data can be in the form of

number, alphabets, date, measurement, and even statement

Examples of Data

Students' class attendance, Car's accident record, Price of a McDonalds' meal, Student's examination scores, Postcode of a customer used by a call center agent

Information

refined, structured, and organized data

process

required to transform data into information

Examples of information

Financial statement, Average exam scores in a class

clear purpose and plan

The collection of data should always have a ______ for their use.

What is the main reason that business organizations collect data?

monitor and improve performance

Things to consider

(1) iIndicators must be clearly defined to measure effective performance

(2) Collected data must be complete, relevant, reliable and accurate

(3) Collected data must be gathered on time

(4) Data must be convertible into information that is needed

(5) Data must be entered into the computer system

(6) Information must be analyzable using appropriate technological tools and allow for proper interpretation

system

a collection of parts that interact, interconnect, and work together to accomplish certain objectives

subsystem

a part of a whole system that has its own area of immediate focus

natural systems

made by nature (ex: weather systems such as typhoons, floods, and other forces of nature)

man made systems

designed, developed, and implemented by human beings (ex: transportation systems, computer systems, and healthcare and education systems)

computer system

a system that takes inputs and processes them to create outputs.

What does a computer system consist of?

Program, Input, Process, Output, Storage, Feedback, and Control

Input → Process → Output

Input (ingredients that are put into the system)

Process (what happens to make the system work)

Output (what the system creates)

in every _____, there is an expected _____

input, output

Examples of input devices

keyboard, mouse, scanner, etc.

What does every computer have?

microprocessor

Central Processing Unit (CPU)

considered the brain of a computer and the one responsible for controlling all activities and handling input/output (I/O) operations within a computer system

What happens to data inputted into the system?

it is processed by the CPU

output

the result after data processing

usually presented externally from the computer system

The output can be presented using this

output device

Storage Devices

help users keep data, information, and instructions from specific programs

Types of Storage Devices

Primary Storage Device

Secondary Storage Device

Primary storage devices

• also called internal memories located inside the CPU, which can easily be accessed by the processor anytime

• Random-access-memory (RAM) and read-only-memory (ROM)

Secondary storage devices

• known as any alternative storage

• allows users to store data, information, files, and programs temporarily for future use

information system

Man-made system that collects, stores, retrieves, processes, manages, disseminates, and analyzes information needed to facilitate a business organization's operational functions and support its management in making decisions.

Why is an information system essential for business firms?

It is essential for business firms as it manages and organizes their operations

Master Data

Relatively permanent data that are stored

in the information system for a long time.

Examples of master data

customer, employee, subject

Types of updates that can be made in the Master Data of an IS

information processing (IP) 

data maintenance (DP)

information processing

refers to data processing functions that

are commonly related to internal

operations (ex. manufacturing) and

economic and financial activities.

data maintenance

refers to a system's functional activities

such as adding, saving, deleting,

updating, retrieving, and editing data from

the master data

What is the information system more concerned about?

organization's business processes

Three (3) logical components of a

business process within the scope of an

IS

Information Process

Operations Process

Management Process

information process

Refers to the portion of an IS closely

related to a specified business process

Examples of information users

staff, employees, management and customers.

operation process

Refers to a man-made IS that consists

of people, policies, procedures and

equipment whose main objective is to

accomplish a certain goal of a particular

business organization

People involved in operation process

Human Resources, Management, and those who are tasked with product distribution

management process

Refers to a man-made IS that consists

of people, policies, procedures, and

equipment whose main objective is to

plan, manage, and control the overall

operations of a business organization.

What do management processes include?

• include activities concerning planning and decision-making

• creating new policies and procedures on delivering products to customers is an example of this process

IT vs IS

IT refers to any technological or computer-based tool primarily used for supporting the needs of business organizations

IS collects, stores, retrieves, processes, manages. disseminates, and analyzes information needed to facilitate business organizations’ operational functions and support management in making decisions

Capabilities of an Information System

• Processing transactions quickly and precisely

• Managing large-capability storage and fast and easy access storage

• Efficiently communicating through a network

• Easing information overload for users

• Supporting decision making

• Serving as a competitive weapon against competitors

• Uniting an organization through the coordination of its big and small groups

• Strengthening organizational memory and learning and exploring new things

• Determining the process of separating products and services

• Automating business processes

Basic Components of a Computer-based Information System

• Hardware

• Software

• Database

• Network

• Procedures

• People

Hardware

consists of the system's physical devices

Examples of Hardware

Printer

Keyboard and Mouse

Microcomputers, Workstations, Serves

Storage Devices (RAM, ROM, HDD)

Network Devices (Switches, Hub, Routers)

Other devices (ATM, ID readers/systems)

Software

set of computer programs that control the overall operations of a computer system

Types of Computer Software

• System Software

• Application Software

System Software

a program that controls the overall operations of a computer (ex: operating systems, file management utilities)

Application Software

• refers to an end user program, also known as a productivity program

• specifically designed to answer its user's needs

(ex: MS Office apps, game apps, email apps, internet browsing)

Database

a collection of related files and records that are stored in a special location for easy access (ex: MS Access, Oracle, MySQL, Microsoft SQL Server)

Networks

the connection of two or more computers established for the purpose of sharing various data

Examples of Networks

Local Area Network (LAN), Metropolitan Area Network (MAN), Wide Area Network (WAN), Personal Area Network (PAN)

Procedures

• rules, policies, and methods that administer the operation of a computer system

• states the appropriate software to use with the hardware and clarify the role of the components in the CBIS

People

most crucial component of an IS

they work with an IS to produce useful output

Other Computer Based IS

Telecommunications

Internet

World Wide Web

Telecommunications

the electronic transmission of information within a specific distance

Internet

largest type of network that allows users to share info worldwide

World Wide Web

accessible through the internet, consists of multimedia collections that are stored in a particular database of a CBIS

Other types of IS

Transaction Processing Systems

Management Information Systems

Decision Support Systems

Executive Information Systems

Systems Development

consists of the procedures in building and upholding an information system (IS). It includes the five main components of IS such as hardware, software, data, procedures, and people, which have been already discussed in the previous chapter. It has a combination of one's technical expertise with knowledge and management skill in business.

System Development Life Cycle (SDLC)

• one of the methodologies used in software development

• emphasizes that the system can be developed in a series of phases. It simply means that each phase must be completed first before other phase commences

Phases of the System Development Life Cycle

• Planning

• Analysis

• Design

• Development

• Testing

• Implementation

• Maintenance

Information System Security

protecting information and ISS from malicious software and unauthorized access, use, disclosure modification, disruption, or destruction

Information Security Management

the process of identifying the security controls to keep and defend information assets