FOUNDATION OF INFORMATION

SYSTEM

Presented By:

Siwani Shrestha
Sarita Thapa
Sushant Shrestha
Sudip Dhakal
Shila Panthi
Ujjwal Adhikari
Supriya Basel

INFORMATION:

Information is the processed data to have meaningful

output.

It is organized, manipulated and aggregated.

It Is valuable because it can affect behavioral decision or

an outcome.

It is also known as the content of message.

It is managed in a proper way so that it can be used by

the end user.

INFORMATION SYSTEM (IS)

An information system is a set of electronic
components that collect, analyze and
disseminate data and information to meet an
objective. Information system contain information
about significant people, places, and things
within the organization or in the environment
surrounding.

CHARACTERISTICS OF
INFORMATION SYSTEM
Understandable
Relevant
Completeness
Available
Reliable
Concise
Timely
Cost-effective

INFORMATION (NEEDS) OF
INFORMATION SYSTEM IN BUSINESS
Information technology in any field requires
computer technology. The importance of a
good Information technology should never
be underestimated within a business. How
data is stored and transferred internally and
understood within all departments is
essential to business. Information system is
important for business because of the
following characteristics:

 Speed
Efficiency
Multi-Tasking
Low

Cost (Cost
Effective)

Entrepreneurs

Process

Improvement
Quality

Assurance

Communications
Comparative

intelligence
Decisions

FUNDAMENTAL RESOURCES OF

INFORMATION SYSTEM
The main components of information are people,
hardware, software, data and network. Information
products produced by an information system can take a
variety of forms including paper reports, visual, displays,
multimedia documents, electronic messages, graphic
images, and audio responses.
The basic IS model shows that an information system
consists of five major resources;
I.
Human Resources
II.
Hardware Resources
III.
Software Resources
IV. Data Resources
V.
Network Resources

HUMAN RESOURCES
It is a software solution for small to mid-sized business to help
automate and manage their HR, payroll, management and
accounting activities. People are required for the operation of
all information systems. These people resources include; end
users and are specialists.
End users (simply users or clients): Most end users in business
are knowledge workers that are people who spend most of
their time communicating and collaborating in terms of
workgroups and creating, using, and distributing information.

IS specialist: People who develop and operate information

system. IS specialist include: System Analyst, Software
Developers, System Operators and other managerial,
technical, and clerical IS personnel.
In addition, information required for knowledge development,
equal treatment, staff management, and career growth is
provided

HARDWARE RESOURCES

Those resources which include all physical devices and

materials used in information processing. In other words,
hardware resources include all the computers and
computer peripherals. Such as;
Machine ( These are physical devices computers ,
peripherals, telecommunication devices etc)
Media ( This includes all tangible objects on which datum
are recorded like paper, magnetic disks etc)
Computer systems ( These consists of CPU and a variety
of interconnected peripheral devices)
Computer Peripherals (These are devices such as a
keyboard or electronic mouse for input of data and
commands, and magnetic or optical disks for storage of
data resources)

SOFTWARE RESOURCES

A computer cannot do anything else on its own unless it

is instructed to do a job desired by user. Hence, these are
the resources which include all the sets of information
processing instructions. Such as;
Programs ( This is a set of instruction that cause a
computer to perform a particular task)
Procedure ( This is a set of instruction used by people to
complete task)
System software ( This is an OS programs, that controls
and supports the operation of computer system)
Application software ( These are the programs that direct
processing for a particular use of computers by end
users)

DATA RESOURCES

Data is the basic thing. It is the collection of raw data

systematically provides some meaningful things. Thus,
data resources must be managed effectively to benefit
all end users in an organization. The data resources of
information systems are typically organized into;
Database ( collection of logically related record or files)
Knowledge bases ( These holds knowledge in a variety
of forms such as facts and rules of inference about
various subjects)
Data versus information (The term data and information
are often used interchangeably.
Data-Data are objective measurements of the attributes
of entities, such as people, places, things, and events.
Information-It is a processed data placed in a
meaningful and useful context for an end user.

NETWORK RESOURCES

Telecommunication networks like internet, intranets, and

extranets have become essential to the successful
electronic business and commerce operations of all types
of organizations and their computer-based information
systems. The concept of network resources emphasizes
that communication networks are fundamental resource
component of all information systems. Thus, Network
resources include;
Communication media (these include twisted pair, coaxial
cable, fiber optical cable, microwave, cellular, and satellite
wireless systems)
Network support ( This includes people, hardware,
software, data resources that directly support the
operation and use of a communication network)

TYPES OF INFORMATION SYSTEM

Basically information system is categorized in two different

types, They are: Operation support system and Management
support system. It is further classified into Transaction
Processing System(TPS), Management Information System
(MIS), Decision Support System (DSS), Executive Information
System (EIS).

Transaction Processing System (TPS)

1.
2.
3.
4.

Transaction Processing System are operational-level systems

at the bottom of the pyramid. They are usually operated directly
by shop floor workers or front line staff, which provide the key
data required to support the management of operations. This
data is usually obtained through automated or semi-automated
tracking of low-level activities and basic transactions.
The role of TPS:
Produce information for other systems.
Cross boundaries (Internal and External)
Used by operational personnel + supervisory levels
Efficiency oriented.
Some examples of TPS includes, (Payroll systems, Order
processing systems, Reservation systems, Stock control
systems & Systems for payments and funds transfers.)

Management Information System (MIS)

1.
2.
3.
4.
5.
6.

Management Information Systems are management-level

systems that are used by middle managers to help ensure
the smooth running of the organization in the short to
medium term. The highly structured information provided by
these systems allows managers to evaluate an
organizations performance by comparing current with
previous outputs.
The role of MIS:
Based on internal information flows.
Support relatively structured decisions.
Inflexible and have little analytical capacity.
Used by lower and middle managerial levels.
Deals with the past and present rather than the future.
Efficiency oriented.

MIS differs from TPS in that MIS deals with summarized

and compressed data from the TPS and sometimes
analysis of that summarized data.

MIS is vital in any organization for two reasons:

It emphasizes the management orientation of IT in
business (not merely the processing of data).
It emphasizes that a systems framework should be used
for Information systems applications.

1.

2.

Some examples of MIS includes, (Sales management

systems, Inventory control systems, Budgeting systems,
Management Reporting Systems (MRS) & Personnel
(HRM) systems.

Decision Support System (DSS)

A decision support system (DSS) is a computer-based

information system that supports business or
organizational decision-making activities.
A set of related computer programs and the data required
to assist with analysis and decision-making within an
organization.
DSSs serve the management, operations, and planning
levels of an organization (usually mid and higher
management) and help people make decisions about
problems that may be rapidly changing.
Decision support systems can be either fully
computerized, human-powered or a combination of both.

Executive Information System (EIS)

An executive information system (EIS), also known as an

executive support system (ESS), is a type of management
information system that facilitates and supports senior
executive information and decision-making needs.
It provides easy access to internal and external information
relevant to organizational goals. It is commonly considered
a specialized form of decision support system (DSS).
EIS emphasizes graphical displays and easy-to-use user
interfaces.
In general, EIS are enterprise-wide DSS that help top-level
executives analyze, compare, and highlight trends in
important variables so that they can monitor performance
and identify opportunities and problems.

Traditionally, executive information systems

were mainframe computer-based programs.
The purpose was to package a companys data and to
provide sales performance or market research statistics
for decision makers, such as, marketing directors, chief
executive officer, who were not necessarily well
acquainted with computers. Typically, an EIS provides only
data that supported executive level decisions, not all
company data.
Today, the application of EIS is not only in typical
corporate hierarchies, but also at lower corporate levels.
As some client service companies adopt the latest
enterprise information systems, employees can use their
personal computers to get access to the companys data
and identify information relevant to their decision making.

SYSTEM DEVELOPMENT LIFE

CYCLE (SDLC)

To plan and manage the system development process

structured analysis uses a technique- Software
Development Life Cycle (SDLC).

SDLC describes activities and functions that systems

developers typically perform, regardless of how those
activities and functions fit into a particular methodology.

Phases of the System Development Life Cycle:

ANALYSIS

DESIGN

IMPLEMENTATION

PLANNING

SUPPORT

Phase 1: Planning

Systems request to IT department about problems and

expected changes in system.
Management that develops strategic, tactical and
operational plans include IT requirements will generate
systems request.
System request come from top manager, planning team,
department head or the IT department as well.
Planning may be for replacing the existing system and
using the new system.
This involves problem finding and preliminary
investigation or feasibility study.
In this phase study of change is done that it works well
while using new system or updating existing system.

Phase 2: Systems Analysis

a)
b)
c)

Purpose is to understand business requirements and

built logical model of the system.
It continue the investigation that begin from planning
stage by using interviews, surveys, observation,
sampling techniques.
End product for system analysis is system requirement
document- which describes management, user
requirements, alternative plans and costs etc.
Major activities involved are:
Definition of overall system.
Separating system into smaller and manageable parts.
Understanding nature, functions and interrelations of
various system.

Following feasibility must be addressed:

Technical feasibility- whether the proposed system
can be implemented with the available hardware,
software and technical resources.
Economic feasibility- Analysis of development,
maintenance, operation and other tangible cost.
Operational feasibility- Analysis of the operational
activities and man power to operate the system.
(skilled semi skilled persons).

Phase 3: System Design & Development

It is the blue print of the new system that will satisfy

all requirements which were documented initially.
In this case identification of necessary outputs,
inputs, interfaces and processes.
Parallel dual system of manual and computer based
is used to guarantee about systems reliability,
accuracy, maintainability and security.
System designer is responsible for considering
alternative technology to carry out and develop
system as described by analyst.
Analysis of performance of different pieces of
hardware and software security capabilities of the
system.

Phase 4: System Implementation

Implementing the system is to deliver the completely
functioning and documented information system.
The system is ready to use and includes systems files,
training users and performing the actual transition of new
system.
Analysis of cost benefit and proper operations of the
system.
It includes the process of testing as:
1. Unit testing: Testing of each program separately in the
system.
2. System testing: Testing the functioning of the system as
a whole in order to determine it discrete modules will
function together as planned.
3. Acceptance Testing: Final certification that system is
ready to be used in production setting.

Phase 5: Support
IT staff maintains and enhances the system.
Maintenance, correcting errors and adapting changes.
Focus is to maximize return on IT investment and well
designed system will be reliable, maintenance,
scalable.
IT system is always work in progress, business
requirements change rapidly so system need to be
changed and updated.

ADVANTAGES & DISADVANTAGES OF

SDLC
Advantages:
Formal review is created at the end of each phase allowing
maximum management control.
This approach creates considerable system documentation.
This documentation ensures that system requirements can
be traced back to stated business requirements.
Disadvantages:
As SDLC is structured approach so this is not applicable as
time has changed fast so as requirements.
SDLC assumes that system requirements can be stopped
during system analysis rather all processes can be carried in
parallel way.
SDLC work better in stable environment but field of
technology changes in all aspects- Operating system, user
interface, software languages, programming language etc.

Thank
You