Information Systems Notes
A system is an organized collection of components working towards a common purpose, facilitating information flow.
System Interacting Components and Function
Input: Captures elements entering the system for processing (e.g., raw materials, data).
Process: Transforms input into output (e.g., manufacturing, calculations).
Output: Transfers processed elements to their destination (e.g., manufactured product).
Data and Information
Data: Raw, isolated facts and figures collected from various sources.
Information: Processed, organized, and validated data that is meaningful for decision-making.
Information System
Information System (IS): Interrelated components (hardware, software, people, processes) collecting, processing, storing, and distributing information for planning, control, and decision-making.
Information System Components
Hardware: Physical devices.
Software: Instructions for hardware.
Data: Information manipulated by software.
People: Individuals involved in the system.
Process: Steps to achieve a goal.
Functional Unit of Business Organization
Production: Produces goods and services (inbound logistics, production, outbound logistics).
Sales / Marketing: Finds and sells products or services (identifying, developing, maintaining markets).
Finance / Accounting: Manages financial assets and records.
Human Resources: Attracts and maintains a workforce.
Information System in Business
Business functions operate at strategic, tactical, and operational levels.
Types of Information System
Transaction Processing Systems (TPS): Records daily transactions at the operational level.
Management Information Systems (MIS): Supports middle management with reports and summaries.
Executive Information Systems (EIS): Helps senior management make strategic decisions with advanced graphics.
IS Approach to Problem Solving
Define and Analyze Problem
Design Problem
Investigate and Select Best Option
Understand Solution
Implement Solution
Evaluate Results