Unit 2 An Introduction to

Information Systems in
Organization
Data vs Information vs Knowledge
Data vs Information vs Knowledge
Data - raw facts; no context

Types of Data



Data vs Information vs Knowledge
Information
-collection of facts organized in such a way that they
have value beyond the facts themselves
-processed data
-value-added to data
o summarized
o organized
o analyzed



Data vs Information vs Knowledge
Knowledge
-awareness and understanding of a set of
information and the ways that info can be made
useful to support a specific task or decision

Knowledge Workers (KWs) people who create, use,
and disseminate knowledge and are usually
professionals in science, engineering, and other areas.

The Process of Transforming Data into
Information
Data
The
transformation
process
Information
Applying knowledge by selecting,
organizing and manipulating data
Data vs Information
Data

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Information
Data Information Knowledge
Summarizing the data
Averaging the data
Selecting part of the data
Graphing the data
Adding context
Adding value
Data
Information
Data Information Knowledge
How is the info tied to outcomes?
Are there any patterns in the info?
What info is relevant to the problem?
How does this info effect the system?
What is the best way to use the info?
How can we add more value to the info?

Information
Knowledge
The Characteristics of
Valuable Information
If an organizations information is not accurate or
complete, people can make poor decisions, costing
thousands or even millions of pesos.
The Characteristics of
Valuable Information

The Characteristics of
Valuable Information

The Characteristics of
Valuable Information

INFORMATION SYSTEM (IS)
Information System (IS)
Information System (IS) is a set of interrelated elements
that:
- collects (input)
- manipulates (process)
- stores
- disseminates (output) data and information
- provides a corrective reaction (feedback mechanism) to
meet an objective

Ex. ATMs, airline reservation systems, course reservation
systems

Components of IS

Elements of IS
1. People
- qualified personnel to develop and maintain the system
- trainable users of the system or the operators

2. Computer equipment/hardware used by the people to input,
process, output activities
Input devices: keyboard, mouse, automatic scanning devices
Processing devices: computer chips that contains the CPU
and main memory
Output devices: printer and computer screens or monitor

3. Software set of instructions that instructs the equipment what to
do
Elements of IS
3. Data or information encoded and manipulated

4. Procedures/ guidelines includes methods and rules
used for the effective and optimal operation of the
system

5. Telecommunication the media composed of the
hardware and software that facilitate the transmission of
electronic data within the system

Manual and Computerized
Information Systems
An information system can be manual or computerized

Example:
Investment analysts manually draw charts and trend
lines to assist them in making investment decisions
Computerized information systems follow stock indexes
and markets and suggest when large blocks of stocks
should be purchased or sold
Computer-Based
Information Systems
Single set of hardware, software, databases,
telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process
data into information
Computer-Based
Information Systems

Computer-Based
Information Systems
Hardware:
Consists of computer equipment used to perform
input, processing, and output activities
The objects that you can actually touch, like disks, disk
drives, display screens, keyboards, printers, boards, and
chips.
Computer-Based
Information Systems
Software:
Consists of the computer programs that govern the
operation of the computer

Software is often divided into two categories.
o Systems software includes the operating system and all
the utilities that enable the computer to function.
o Applications software consists of programs designed to
make users more productive and/ or assist them with
personal tasks.
Computer-Based
Information Systems
Telecommunications, networks, and the Internet
the electronic transmission of signals for
communications
enables organizations to link computer systems into
effective networks

Networks
connect computers and equipment to enable
electronic communication
BUSINESS INFORMATION
SYSTEMS
Office Automation System

An Office Automation System aids office workers
in their daily information processing tasks. Personal and
organizational data are processed, calculations performed,
and documents created, stored and printed for
management reference purposes.
Business Information Systems
Office Automation Systems
Business Information Systems
Communication Systems

A Communication System aids organizations
in their communication needs among different
subgroups and levels of the organization. This
includes IM Chat, videoconferencing, email etc.
Business Information Systems
Electronic and Mobile Commerce
E-commerce - any business transaction executed
electronically; can enhance a companys stock prices
and market value

Example for placing a purchase order

Mobile commerce (m-commerce) - the use of mobile,
wireless devices to place orders and conduct business
Business Information Systems
Transaction Processing Systems
Transaction
any business-related exchange, such as
payments to employees and sales to customers

Transaction processing system (TPS) organized
collection of people, procedures, software, databases,
and devices used to record completed business
transactions
Business Information Systems
Management Information System (MIS)
Management information system (MIS):
Organized collection of people, procedures,
software, databases, and devices that provides
routine information to managers and decision
makers
Class of software that provides managers with
tools for organizing and evaluating their
department and generate periodic reports
Business Information Systems
Management Information System (MIS)
CBIS was later known as Management Information
System (MIS) provides managers with information that can
be used in the problem-solving process.
MIS generate accurate, timely, and organized
information. Unlike TPS this do not help managers
perform their management function on a daily basis
rather serve as a knowledge base. This enables them to
make decisions, solve problems, and supervise activities.
Example of this is the daily sales analysis report.
Business Information Systems
Management
Information System (MIS)
Business Information Systems
Decision Support System
It is a general term for any computer application
that enhances a person or groups ability to make
decisions. It does not only provide information
relevant to operations but they also have data
manipulation tools in models that stimulate
scenarios in the workplace. These models
present different alternatives to solve a problem
from which managers could choose the best.
Decision Support System
DSS are a form of weak AI in the sense that
they are not designed to operate autonomously,
but merely provide assistance to medical staff in
tasks that involve the manipulation of data and
knowledge.
Such assistance may be to an inexperienced
doctor regarding diagnosis, or helping even an
experienced physician in a situation too complex
for them to handle alone.


Specialized Business Information
Systems:
Knowledge Management, Artificial
Intelligence, Expert Systems, and Virtual
Reality
Knowledge Management Systems (KMSs)
Organized collection of people, procedures,
software, databases, and devices to create,
store, share, and use the organizations
knowledge and experience
E.g. help employees use critical knowledge to
help customers
Business Information Systems
Artificial intelligence (AI)
Computer system takes on characteristics of human
intelligence

Games playing: programming computers to play games
such as chess and checkers

Business Information Systems
Expert systems
Programming computers to make decisions in real-life
situations (for example, some expert systems help
doctors diagnose diseases based on symptoms)
give computer ability to make suggestions and function
like an expert in a particular field

Robotics : programming computers to see and hear and
react to other sensory stimuli


Business Information Systems
Virtual Reality and Multimedia
Virtual reality
Simulation of a real or imagined environment that can be
experienced visually in three dimensions
E.g. a healthcare company is experimenting with a virtual
reality game designed to help treat cancer

Multimedia
Can include photos and images, the manipulation of
sound, and special 3D effects
Business Information Systems
Systems Investigation and
Analysis
Goal of systems investigation:
To gain clear understanding of the problem to be
solved or opportunity to be addressed
Systems analysis:
Defines the problems and opportunities of the
existing system
Systems Design, Implementation, and
Maintenance and Review
Systems design:
Determines how new system will work to meet
business needs defined during systems analysis
Systems implementation:
Acquiring various system components defined in
design step, assembling them, and putting the new
system into operation
Systems maintenance and review:
Checks and modifies the system so that it continues
to meet changing business needs
Organization and Information
System
Organization
formal collection of people and other
resources established to accomplish a set
of goals
A system
constantly uses money, people, materials,
machines and other equipment, data,
information, and decisions

Culture
set of major understandings and assumptions shared by a
group
includes the organization values, visions, norms, working
language, systems, symbols, beliefs and habits.
Organizational culture
major understandings and assumptions; Influences
information systems
is the behavior of humans who are part of an
organization and the meanings that the people
attach to their actions.
Organizational change
- how organizations plan for, implement, and handle
change

Information Systems in the
Organizations
Four Management Functions
1. Planning
2. Organizing
3. Directing
4. Controlling

1. Planning
involves formulation of objectives that
guide all members of the organization toward the
goals to be achieved, the methods to achieve
these goals and the probable outcomes and
challenges to encounter.
Organizational plans could be short term or
long term.

2. Organizing
identifying resources and coordinating
these to achieve goals that may include review of
the current organizational setup, creation of
subgroups or departments, if needed.
Time allotted to organizing would depend on
previously established plans and strategies.
3. Directing
refers to communicating instructions necessary
to perform specific tasks to be done. For directing
to be effective, the organization officers should
consider motivating subordinates to work.
Directing also means a regular meeting
between officers and working staff members to
discuss timetable, priorities, and eliminate error.
4. Controlling
-entails performance evaluation to identify matters
that need to be corrected or changed that affect
productivity and efficiency on workgroups.
Daily, monthly, and annual reports include
information needed by the managers in making necessary
modifications in the management process.
Four Management Functions
Plan
Objectives
Strategies
Methodologies
Organize
Manpower
Money
Materials
Direct
Supervise
Motivate
Communicate
Control
Evaluate
Revise
Update
How Information Systems
affect Organizations
reduces operating costs
changes organizational structure
increase information and knowledge workers
increase self- guided workers (information access:
automated, timeliness, and accuracy)
shortens decision making process

Careers in Information System
System Analysts
-involve the analysis of business needs. Job may
involve designing or updating existing IS. The system
analyst can also be a project leader, technician,
businessperson or mediator.

Project Manager/Leader
-involves working on systems project. Job involves
creating programs according to specifications of the
system analysis and designer.

Programmer
-involves creating particular programs or creating
subroutines or specific parts of the system program. They
must work harmoniously with the project manager.

Data Administrator
responsible for the database of an organization;
overall planning and design of corporate databases;
establishes security measures to ensure authorized access
and proper use; establishing failure-recovery and backup and
data integrity

Telecommunications Manager
-responsible for the acquisition, implementation,
management, maintenance, and troubleshooting of computer
networks throughout the organization.
A data communications manager must carefully assess
the future communications needs of the organization, plan
local and wide area network topologies and virtual private
networks; recommend specific communication hardware and
software; supervise technicians and support personnel and
hire qualified consultants, and provide ad-hoc solutions to
connectivity problems.

Webmaster
-responsible for creating and maintaining the
organizations web site and its intranet pages, webmasters
are also assigned to help individual departments create their
own web pages since many organizations use the web for e-
commerce are involved in creative decision making that
determine how to represent the organization on the web.

Chief Information Officer
-responsible for all the aspects of an organizations
information system; oversees all IS research and
development including new technologies that can be applied
to emerging business needs

Independent Consultants
-these are the independent experts on a certain
Information System field who offer their services to companies
who lack the qualified personnel for specific tasks. Their work
varies according to their capabilities, level of expertise, and
the period when the project will be finished.