Basic Information System Concepts

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Basic Information System Concepts

• Explain what an information system is and
  describe the functions of an information system.
• Identify the components of an information system.
• Explain the difference between data and
  information.
• List several types of information systems and
  give an example of each type.

The Objectives of this part
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Explain who information system users are and
describe how users use information systems.

• Explain what ethics are and why it is important
  to use information systems ethically.
• Describe how users are connected to information
  technology locally, nationally, and
  internationally.
• Describe several benefits of information systems

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Introduction

• information is an essential element in the
  operations and management of every
  business today.
• Employees in all positions and at all levels of a
  business need information to do their jobs.

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Example, consider the employeesof a
supermarket.

• A checkout clerk in the supermarket needs
  information about prices for certain products,
  such as produce, to help check out customers.
• The supervisor in the supermarkets warehouse
  needs information about how much stock is
  available on the shelves and in the warehouse to
  decide when to reorder.

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• An advertising manager for the supermarket needs
  information about which products are selling well
  and which are selling poorly to help develop
  advertising programs and promotions.
• The supermarkets general manager needs
  information about revenues and expenses to
  evaluate the profitability of the store.
• All employees of the supermarket need information
  related to the business to help them do their
  jobs.

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What Is an Information System?

• An information system is not one thing, but a
  group of things that work together.
• These things are called the components of the
  system, and they include equipment such as

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The definition

• An information system (IS) is a collection of
  components that work together to provide
  information to help in the operations and
  management of an organization.
• An information system may include computers, but
  it does not have to people use manual
  information systems all the time.

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Examples of Information Systems
An Inventory Control System.
Inventory is the stock of goods that a business
has on hand in a store.
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• The inventory control system provides information
  for the daily operations.
• For example, a salesperson can check the system
  to see if item of a particular style are
  available in stock.
• The system also provides information to help in
  the management of the store.
• For example, periodically the system reports on
  the quantity on hand of each style of shoe. This
  information helps the stores manager decide
  whether to increase inventory by ordering more
  shoes (if stock is low) or to reduce inventory,
  perhaps by having a sale (if stock is high).
• Thus, the inventory control system helps in both
  the operations and management of the store

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An Order Entry System

• Customers, place orders that include
• the customers name,
• the descriptions of the items ordered,
• and the quantity of each item ordered
• This information is entered into an order entry
  system, which keeps track of the orders from all
  customers.
• The order entry system provides information to
  warehouse employees about orders to be filled.

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• If there is adequate stock in the warehouse, the
  item immediately will be shipped to the
  customers.
• If the items are not available, the seller
  checks with the manufacturers of the items to
  determine when they will be delivered.
• Eventually, when seller receives the items from
  the manufacturers, it ships them to the customer.

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A Production Scheduling System.

• Production scheduling involves determining what
  items the manufacturer should produce at what
  times.
• One factor that affects the production schedule
  is the demand for different items, which can vary
  over time (depending on the season).
• Another factor is the production facilitys
  capacity to manufacture. Only a certain number of
  items can be produced in a period of time.

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• The operator enters information about the
  expected demand for different types of items into
  its production scheduling system.
• This information includes
• what types of items to produce,
• what quantities to produce,
• and when the items will be needed

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• The system uses this information, along with
  production capacity information, to prepare
  schedules for the production of different items
  at different times.
• The production schedules tell the production
  facility what to do.

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Information System Functions

• An information system accepts facts from outside
  the system, stores and processes the facts, and
  produces the results of processing for use
  outside the system.
• These activities are performed by four functions
  of an information system
• input function,
• storage function,
• processing function,
• output function.
• The facts that go into the system are input data.

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The Functions of Information System
INPUT FUNCTION
PROCESSING FUNCTION
OUTPUT FUNCTION
INPUT DATA
INFORMATION (OUTPUT DATS)
STORAGE FUNCTION
STORED DATA
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The Functions of an inventory control System
INPUT FUNCTION Accept input data from outside
the system
PROCESSING FUNCTION Adjust inventory quantities
for changes in inventory
OUTPUT FUNCTION Produce information for the user
INPUT DATA Data about Changes in inventory
INFORMATION (OUTPUT DATS) Quantity on hand
for Items in inventory
STORAGE FUNCTION Keep track of inventory
quantities
STORED DATA Inventory quantities
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Information System Components

• The four functions of an information system are
  performed by the systems components. These
  components are

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Hardware

• The first component of an information system is
  hardware, which consists of
• computers,
• communications equipment (wire or fiber-optic
  cables)
• other devices used in a system (digital cameras,
  microphones)

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Software

• Software is another component of an information
  system. Software consists of instructions that
  tell hardware what to do.
• Computers and computer-controlled hardware, such
  as communications equipment, cannot function
  without software
• Many types of software are needed in information
  systems
• Some software tells computers to solve specific
  business problems, such as computing payroll,
• whereas other software manages the computer
  system to make it usable.

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Software an in inventory control system example

• In inventory control system, software is needed
  for several functions
• Some software instructs a computer to accept
  input data about items that have been added to
  and removed from stock.
• Other software tells a computer to make changes
  in the stored data about the quantity on hand so
  that this data is up to date.
• Still other software tells a computer how to
  produce output with information about which items
  are low in stock and which are high.
• Finally, additional software provides
  instructions to control communication between
  computers in the system.

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Stored Data

• The third component of an information system is
  the data that is retained in the hardware and
  processed by the software.
• This consists of all the data that is kept in
  computers in the system and that is used by the
  software of the system.
• The stored data consists of this data, along with
  the description of each item
• how much each item costs the business to purchase
  or manufacture,
• how much the business sells each item for, and
• the quantity of each item that the business has
  on hand.

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Personnel

• An information system does not operate by itself
  people are needed to make it run
• People have to supply input data to the system,
• receive output information from the system,
• operate the hardware in the system,
• and run the software that is part of the system.
  
• These people, or personnel, are the fourth
  essential component of an information system.
• The inventory control system Some of the
  personnel are users of the system. These include
  salespeople, clerical personnel, and the stores
  manager.
• Other personnel operate the hardware and software
  in the system.

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Procedures

• The final component of an information system
  consists of procedures, which are instructions
  that tell people how to use and operate the
  system.
• Just as hardware cannot function without
  software, people do not know what to do unless
  they have procedures to follow.
• Some procedures describe how to enter input data
  and what output information to expect from the
  system.
• Other procedures describe how to operate the
  hardware and software.

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Data Versus Information

• Data is a representation of a fact, a number, a
  word, an image, a picture, or a sound.
• For example, the number 50 is data it might
  represent the fact that 50 MBA Students.
• Data is entered into the system, stored in the
  system, and processed by the system.
• Information, on the other hand, is data that is
  meaningful or useful to someone.
• For example, the statement There are 150 MBA
  Students have been admitted in SUST this year is
  information.
• Information comes out of the system, so it is
  sometimes called output data.
• Information is used to help operate and manage
  the organization.

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Data for one person may be information for another

• For example, if an employees job is to decide
  when to buy more shoes for inventory, he or she
  needs information about the current stock of
  goods.
• But that employee does not need data about which
  shoes were sold today.
• On the other hand, an employee whose job is to
  restock store shelves from supplies in a
  warehouse would need information about the items
  sold today.
• Thus, whether something is information or data
  depends on how it is used.