Introduction to Business Information Systems

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Introduction to Business Information Systems

• Data and Information

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What is Data?

• Data is recorded raw facts and figures
• Transactions that are recorded, stored and
  classified but NOT organised to convey any
  particular meaning

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Examples of Data

• Hours worked by each employee last week
• Grades achieved by each student in Computer
  Applications in Summer 05 examinations
• No of umbrellas sold on 1 Sept this year by
  Pennys
• These are FACTS or DATA

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What is Information?

• Data that is processed in some way to reveal
  answers eg
• What affect is overtime having on the company
  wage bill?
• What is the average student mark in the class?
• How many umbrellas do we need to order?

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Information as a Resource

• Can reduce the uncertainty in business
  decision-making
• Can help identify problems in the operating of a
  business

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Information Levels in Business

• The levels of information flow are similar to the
  management levels
• Strategic
• Tactical
• Operational

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Strategic information

• Relates to long-term planning policies
• Population studies, foreign investments,
  government economic policies
• Concerned with the mission, objectives and
  overall goals of the business

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Tactical information

• Medium-term planning
• Data arising from current activities
• Sales analysis and forecasts, cash flow
  projections etc
• Reaching and achieving the current goals and
  objectives

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Operational information

• Based on the hourly, daily transactions of a
  business
• Keeping a record of every activity (transaction)
  that occurs in the business
• Overdue orders
• Sales and purchases
• Monies received or paid out

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Characteristics of Information

• Regardless of the level in business at which
  information is used it is only valuable if it is
  available when needed, in the right format, is
  accurate and up-to-date

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Qualities of Good Information

• Timely
• Available when needed
• Relevance/Scope
• Relevant to decision to be taken not too broad
  or narrow
• Accurate
• Must be error free
• Current
• Up-to-date

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Qualities cont/

• Economical
• Must not cost more than it is worth to collect
• Complete
• Need as full a picture of the situation as
  possible
• Format
• Presented to user in a way he/she can understand
  it

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Qualities cont/

• Reliable
• Same tests should give same results regardless of
  who conducts them, where or when
• Verifiable
• Possibility of confirming facts and figures

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Knowledge

• Information that has been organised and processed
  to convey understanding, experiences and
  accumulated learning
• It reflects past experiences and expertise

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Information Systems (IS)

• A Management Information System (MIS) is a system
  designed by an organization to collect and report
  information in a business, which allows managers
  to plan, monitor, and evaluate the operations and
  the performance of the business

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Computer Based Information Systems (CBIS

• A CBIS is a system that involves, people,
  computers, communications technology, programs
  and procedures to collect, analyse and deliver
  information to those who require it