WHAT IS AN

INFORMATION
SYSTEM

An information system is a set of interrelated

components that collect, process, store and
distribute information to support decision
making, co-ordination and control in an
organisation
Characteristics of Information
 Source can be internal as well as external
 Scope of information
 Accuracy of collected data
 Should make a difference
 Timely availability of information is
invaluable
 Relevance to situation and decision making
 Consistent pattern of data


Continued…….
Characteristics of Information
Continued…….
 Reliable source of data
 Impartiability of information
 Pertinence to the user
 Time frame concerned
 Frequency of need and updation
 Reduced uncertainty
 Classification of
information
 Action information which induces action
 Non action information denoting the
status
 Recurring information
 Non recurring or adboc information
 Internal information
 External information



 WHAT IS A SYSTEM
A system is a group of interrelated
components working together towards a
common goal by accepting inputs and
producing outputs in an organised
transformation process
 Types of systems
 Adaptive system
 Sub systems and super systems
 Physical system and conceptual system
 Deterministic system
 Probabilistic system
 Closed and open systems
 Purposive and open purposive system.

 CBIS

A computer based information system is an

effective system which helps to accomplish
the goals of the people and the organisation
 Components of CBIS
 People
 Procedures
 Programs
 Data
 Hardware
Technical operation of CBIS
 Input-is a hardware device that supplies data
to the CBIS such as the keyboard,mouse


 Process-Its done by the CPU under software

instructions


 Output-devices like a printer,disc or monitor



 Storage-is the information systems activity in

which data and information are retained in
a systematic manner.
Business data processing
 Large number of day to day transactions
are to be to be processed and
accurately recorded eg: Order
processing system


 Extensive and complex information are

needed by the top level,middle level
and lower level managers

 Data processing cycle
 The cycle which is followed is data is
collected,its input to a computer where its
processsed to produce the output.


 When output forms an input of a different

process is called as cyclic process


 The cyclic process will also allow the

processed data for other operations such
as storage and validation

 Data processing cycle
cont--
 There is a specialised department to support
data processing in big organisations


 This department should take acre of the

writing and maintaining the software or
programs


 This dept should also get in to control and

operations of the computers and analysis
of the organisations information
requirements.

 Business perspective of
Information systems
 Its an organisational and management
solution based on Information technology


 It has to face challenges from the

environment


 Its far more than input, output and o/s

operating in vacuum



 Business perspective
contd--
 Inofrmation systems provides major
organizational solution to challenges and
problems created in the business
environment


 The manager or decision maker should be an

information systems literate and must
understand the organisation,management
and Information technology dimensions of
systems and their power to provide
solutions

 Approaches to Information
systems
Technical approach


 Mathematical normative model

 Physical technology and formal capability
 Contributing disciplines are computer science,
management science and OR
 Computer science deals with computability
and methods of storage and access
 Mangement science emphasises on
development models for mangement and
decsion making
 Operations research focuses on optimizing
selected parameters of organisatons like
transportation, inventory control etc.
 Behavioral approach
 Behavioral problems such as system
utilization, implementation and creative
designs etc cannot be explained by technical
approach
 Sociologists focus on the impact of information
systems on groups,organizations and society
 Polictical science investigates polictical
impacts and uses of Information systems
 Psychology is concerned with individual
responses to information systems and
cognitive models of human reasoning.

 Kinds of systems
 Operational level systems-support managers
by keeping track of elementary activities
like sales,payroll etc


 Knowledge systems- support knowledge and

data workers in an organisation.eg:Work
stations, office systems


 Management systems-are designed to

monitoring,controlling,decision making and
administrative activities
Kinds of systems contd--

 Strategic level systems help the senior

management in tackling strategic issues
and long term trends both in the firm and
external


 Functional systems help in achieving major

organizational functions like
sales,manufacturing,finance accounting
and HR.
 Major types of Information
systems
Transaction processing system


 Supports day to day operations by maintaining

detailed records
 It’s a computer based info system that

performs and records the routine

transactions
 Examples are salesorderentry,hotelreservation

systems& airline reservation system

 At the operational level,tasks,resources,sales

and marketing,manufacturing,accounting
and finance, human resources and other
types of TPS are unique to the organisation

 Batch processing systems
 Transactions are grouped together for a certain
amount of time and processed as a batch
periodically
 Its the process of gathering source documents
orginated by transactions such as sales
orders and invoices in to groups called
batches
 Recording transaction data on aninputmedium
 Sorting transaction file as in records
sequentially in a master file
 Processing transactions and creating a master
file and variety of reports,invoices and
paychecks
 Online transaction processing
systems
 Process data immediately after they are
generated and provides immediate output to
the user
 Data is fed directly in to the computer system
and are being stored in direct access devices
 Files and databases are up to date since they
are updated whenever the data is orginated
 Immediate updating of files and immediate
responses to user inquiries eg: An online
reservation system

 Knowledge work and office
automation systems
 Knowledge workers are people who hold a
formal degree and professionals


 They create new information and knowledge



 Knowledge work systems such as scientific or

engineering design work stations promote
creation of new knowledge and ensure that
this knowledge and technical expertise are
properly intergrated to business
 Data workers and office
automation systems
 Data workers are engaged in processing rather
than creating information
 They use manipulate or disseminate data
 OAS are info systems designed to increase the
productivity of the data workers by
supporting coordination and communication
 OAS systems handles and manages documents
through word processing, desk top
publishing,digital filing and communication
through email,voice mail and video
conferencing
 DTP and conferencing
methods
 Dtp produces professional publishing quality
documents by combining output from word
processing software with design elements,
graphics and lay out features


 Conferencing methods are audio,video and

computer


 Video conferencing combines sound and

picture,computer conferencing is restricted
and FAX transmits graphics as well as text
to a long distance
 MIS
 MIS serve the management level of the
organisation providing reports and in some
cases online access of the companys
current performance


 Its more oriented to internal events



 It serves the functions of planning,controlling

and decision making at the management
level

 Charecteristics of MIS
 Support structured and semi structured
decisions at the operational and
management levels


 Generally reporting and control oriented



 Rely on corporate data and data flows



 Have little analytical capability



 Requires lengthy analysis and design process


 Charecteristics contd--
 Already inflexible


 Information requirements are known and

stable


 It has an internal rather than external

orientation


 Aid in decision making using past,present

data.
 Decision support systems
 Any system that supports a decision is a
decision support system
 DSS use internal info from TPS and MIS and
often bring info from external forces
 DSS have more analytical power than other
systems
 DSS are designed so that the user can work
with them directly
 The systems are interactive ,the user can
change assumptions and use new data
 The effectiveness is more on the efficiency of
decisions than the process
 Charecteristics of DSS
 DSS use sophisticated analysis and modelling
tools
 DSS provide support for decisions and
problems whose solutions cannot be
specified in advance
 DSS offer users flexibility,adaptability and
quick response
 It operates with little or no assistance from
programmers
 It allows users to initiate and control input and
output

 Executive support systems
 These category of information are used by the
senior management to make decisions
 ESS serve strategic level of the organization
 They address unstructured decisions and
create a generalized computing and
communications environment
 ESS are designed to incorporate data about
external events such as new tax laws and
competitors
 They filter,compress and track critical data
 ESS employs advanced graphics to get graphs
and data for a senior executive.