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System Concepts

Fundamental Information System Concepts

• That Computer networks are systems of information processing

components.
• That Business uses of Computer networks are really interconnected

business information systems.

• That developing ways to use computer networks in business includes

designing the basic components of information systems.

• That managing information technology emphasizes the quality, business
value, and security of an organization’s information systems.

Definition of system :
System is a group of interrelated components working together toward a common
goal by accepting input and producing outputs in an organized transformation
process. System has three basic interacting components or Functions:
1. Input
2. Processing
3. Output
1. Input Involves capturing and assembling elements that enter the system to be

processed. For ex. Raw materials, energy, data, and human effort must be
secured and organized for processing.
2. Processing involves transformation processes that convert into output. Ex:

manufacturing process, the human breathing process or mathematical

calculations.
3. Output involves transferring elements that have been produced by a

transformation process to their ultimate destination. E.g. finished products,

human services, and management information must be transmitted to their
human users.

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The system concept becomes even more useful by including two addition
components: feedback and control. A system with feedback and control
components is sometimes called a Cyber ne tic sy ste m that is self monitoring
and self regulating system.

Feedback: is data about the performance of a system. Ex. Data about sales

performance is feedback to a sales manager.

Control: involves monitoring and evaluating feedback to determine whether a

system is moving toward the achievement of its goal. The control function then
makes necessary adjustments to a system’s input and processing components to
ensure that it produces proper output.
A business is an organizational system where economic resources of (input) are
transformed by various organization processes (processing) into goods and services
(output). Information Systems provide information (feedback) on the operations
of the system to management for the direction and maintenance of the system
(control), as it exchanges inputs and outputs with its environment.

Components of Information System

Information system Model that expresses a fundamental conceptual framework for
major components and activities of information systems.
Information System depends on the resources of
1. People (End user and IS specialists)
2. Hardware (Machine and Media)
3. Software (Program and procedures)
4. Data (Data and knowledge base)
5. Network (communication media and Network support) to perform input,

processing, output, storage and control activities that convert data resources
into information products.

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Information system model highlights the relationships among the components and
activities of information systems. It provides a framework that emphasizes four
major concepts that can applied to all types of information systems.
There are the five basic resources of information system.
• People resources include end users and are specialists

• Specialist: - System analysis, programmer, computer operators.

• End user: - any one else who uses information system.
• hardware resources consist of machine and media,
• Machines: Computers, Video monitors, magnetic disk drive, printers, output
scanners.
• Media: Floppy disk, magnetic tape, optical disks, paper forms, plastic card.
• Software resources include both programs and procedures,

• Programs: operating system, spreadsheet programs, word processing programs,

payroll program.
• Procedures: data entry procedures, error correction procedures, paycheck
distribution procedures.
• Data resources can include data and knowledge base, Data resources are
transformed by information processing activities into a variety of information
products for end users.
• Procedure descriptions, customer records, employee files, inventory database.
• Network resources include communications media and networks.
• Information processing consists of input, processing, output, storage, and control
activities.
• Communications media, communications processors, network access and control
software.
• Information Products:-

• Management reports, and Business documents using text and graphics displays,
Audio responses and paper forms.

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Information System Activities

1. Input: - Optical scanning of bar-code tags on merchandise.

2. Processing: - Calculating employee pay, taxes and other payroll deductions.
3. Output: - Producing reports and display about sales performance.
4. Storage: - Maintaining records on customers, employees, and products.
5. Control: - Generating audible single to indicate proper entry of sales data.

Ove rview of Inf orm ati on Sy st em s

Information system plays three information roles in the business success of an
enterprise.
• Support of its business processes and operations.
• Support of decision making by its managers.
• Support of its strategies for competitive advantage.

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