Professional Documents
Culture Documents
Introduction
to Information
Systems
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1.
2.
3.
4.
5.
X INTRODUCTION
Do you know that systems analysis and design is a step-by-step process for
developing high-quality information systems? The major goal of systems analysis
and design is to improve organisational systems. Often this process involves
developing or acquiring application software and training employees to use it.
Application software, also called a system, is designed to support a specific
organisational function or process, such as inventory management, payroll or
market analysis.
The goal of application software is to turn data into information. For example,
software developed for the inventory department at a bookstore may keep track
of the number of books in stock of the latest bestseller. Software for the payroll
department may keep track of the changing pay rates of employees. A variety of
off-the-shelf application software can be purchased, including WordPerfect,
Excel and PowerPoint.
TOPIC 1
1.1
ACTIVITY 1.1
In your opinion, what is the impact of information technology on the
operation of an educational institution like OUM?
TOPIC 1
1.1.1
(a)
Business Profile
A business profile is an overview of a companys mission, functions,
organisation, products, services, customers, suppliers, competitors,
constraints and future direction. Although much of this information is
readily available, a systems analyst usually needs to do additional research
and fact-finding. A business profile is the starting point for the modelling
process.
(b)
Business Models
A business process is a specific set of transactions, events and results that
can be described and documented. It is basically a way of doing business. A
business process model graphically displays one or more business
processes, such as handling an airline reservation, filling a product order or
updating a customer account. Figure 1.2 illustrates an example of a
business process which is for student registration.
TOPIC 1
The business process in Figure 1.2 has a beginning and an end, three subprocesses and a result. When a company tries to simplify operations or tries to
decrease operational cost or increase value to customers, the company is said to
be involved in business process re-engineering (BPR).
SELF-CHECK 1.1
Explain the meaning of:
(a)
Business profile;
(b)
(c)
Business process.
ACTIVITY 1.2
List the business process activities involved when you apply to study at
OUM (state the process, sub-process and result).
TOPIC 1
1.2
Every system requires a form of data input. For example, an ATM machine
accepts data when you enter the PIN number. A washing machine accepts data
when you select the start button; it processes the input and produces the
respective output.
In an information system, input data consists of facts and figures, which form the
systems raw material. Information is data that has been usefully processed.
However, an information system does not only contain data and information.
There are also other elements in the system that are related and support one
another. The presence of these related elements makes information more useful
whereby it can be made available, processed, distributed, manipulated, saved
and so on. This combination gives rise to a system, which is orderly and as such
it is called an information system.
The activity of converting data into information is called a process. An
information system contains five main components hardware, software, data,
process and human as shown in Figure 1.3.
TOPIC 1
1.2.1
Hardware
Information system hardware refers to all types of hardware and the media used
for input, processing, managing, distributing and saving information that is used
in an organisation. Examples of hardware are the computers, networks,
communication equipment, scanners, digital drives and so on.
Basic hardware of a computer consists of four main elements as shown in Figure
1.4.
TOPIC 1
Table 1.1 describes in greater detail the functions and examples of computer
hardware.
Table 1.1: Functions of Basic Hardware of a Computer
Type of
Hardware
Functions
Examples
Input
Processing
Output
Storage
Computers can be turned into useful tools if you know how to exploit them. To
enable computers to function more effectively and to diversify their functions,
you need the communication network to connect several computers together.
The network provides the hardware support to enable communication to be
established among each other. The communication network includes modems,
hubs, cables and other devices.
1.2.2
Software
System software which controls the computer and contains the operating
system and device drivers. It communicates with the hardware. It can also
modify data into a new form, prevent viruses and make copies.
(b)
Application software which contains programs that can help users and
enable companies to perform business functions. Users can increase
productivity with application software such as spreadsheets, word
processing, ordering systems and accounts receivable.
1.2.3
TOPIC 1
Data
The raw data that has not yet been provided can be processed to become more
useful information. What does information mean?
Information is an organised, meaningful and useful interpretation of data
such as a companys performance or a student's academic performance.
Information systems change data into information, which is useful and capable of
giving a certain meaning to its users.
Let us look at Figure 1.5 which shows an example of data and information
representation.
Based on the example in Figure 1.6, we can understand that records inside every
attribute under the DATA item do not have any specific meaning. Every data or
record here is a raw fact. After going through processes such as addition,
ordering, combining, manipulating and so on, many kinds of information can be
produced. The information generated is not limited to a certain form. It can be
interpreted in many ways according to the needs and wills of customers.
TOPIC 1
1.2.4
Process
What can you say to describe process? Process or procedure explains the
activities carried out by users, managers and staff. Process is important for
supporting a certain business model and is available as written documents or as
reference materials online. Processes are the building blocks of an information
system because they represent actual day-to-day business operations. So what
can we say to simplify the meaning of process?
Process is a guide consisting of orderly steps, which need to be followed and
implemented in order to get a certain decision on a certain matter.
1.2.5
Human or People
Do you know that people who have an interest in an information system are
called stakeholders? Stakeholders include the management group responsible for
the system, the users (sometimes called end users) inside and outside the
company who will interact with the system and (IT) staff members, such as
systems analysts, programmers and network administrators who develop and
support the system.
Each stakeholder group has a vital interest in the information system, but most
experienced IT professionals agree that the success or failure of a system usually
depends on whether it meets the needs of its users. For that reason, it is essential
to understand user requirements and expectations throughout the development
process.
10 X
TOPIC 1
SELF-CHECK 1.2
1.
2.
1.3
Software
Network
System
Users
Purchaser
Company
Humanware
Process
Data
Information
Normally there are several approaches to solve a certain problem. The same goes
for information system; there are several types of information systems which are
developed to overcome specific problems, besides trying to fulfil the user's
requests in general. In a large organisation, solving business problems such as
the management of staff salaries, processing of business data and others is
normally done with the use of large computers with internal and external
networks.
Every type of information system has a role to play. If you look at the functions
and the scope of usage, information systems can be divided into six main
categories as listed in Figure 1.6.
To understand these six main categories of information systems, Table 1.2 gives
further explanation for each of them.
TOPIC 1
11
Explanation
x Better known as TPS and is one of the first systems to be automated.
x Can access and record information about all transactions related to
the organisation.
x Transactions occur whenever there exist activities involving sales
order processing, accounts receivable, accounts payable, inventory
and ordering as well as payroll.
x These transactions involve credit and debit in the companys ledger
account.
x The output from this transaction is the account statement, which is
used to generate financial reports.
x TPS now uses the latest technology which applies the e-commerce
concept. This is a new challenge in the field of transaction processing
which is beginning to shift to the online transaction processing
system.
Management
Information
System
x This system will take the information that has been extracted from
TPS and generate reports which are required by the management for
planning and controlling a company's business.
x This system is capable of fulfilling the needs of management in
acquiring the information that:
Executive
Information
System
(a)
(b)
12 X
TOPIC 1
Office
Information
System
Expert System
TOPIC 1
13
SELF-CHECK 1.3
List the six main categories of an information system.
ACTIVITY 1.3
For each of the following problems, suggest an appropriate information
system category:
Problem
1.4
14 X
TOPIC 1
1.4.1
Top Managers
Top managers develop long-range plans, called strategic plans, which define the
companys overall mission and goals. To plot a future course, top managers ask
questions such as how much should the company invest in information
technology?, how much will Internet sales grow in the next five years? or
should the company build new factories or contract out the production
functions?
Strategic planning affects the companys future survival and growth, including
long-term IT plans. Top managers focus on the overall business enterprise and
use IT to set the companys course and direction. To develop a strategic plan, top
managers also need information from outside the company, such as economic
forecasts, technology trends, competitive threats and governmental issues.
TOPIC 1
1.4.2
15
Just below the top management level, most companies have a layer of middle
managers and knowledge workers. Middle managers provide direction,
necessary resources and performance feedback to supervisors and team leaders.
Since they are focusing on a somewhat shorter time frame, middle managers
need more detailed information than top managers, but somewhat less than
supervisors who oversee day-to-day operations. For example, a middle manager
might review a weekly sales summary for a three-state area, whereas a local sales
team leader would need a daily report on customer sales at a single location.
In addition to middle managers, every company has people called knowledge
workers. Knowledge workers include professional staff members such as
systems analysts, programmers, accountants, researchers, trainers and human
resource specialists. Knowledge workers also use business support systems,
knowledge management systems and user productivity systems. Knowledge
workers provide support for the organisations basic functions. Just as a military
unit requires logistical support, a successful company needs knowledge workers
to carry out its mission.
1.4.3
Supervisors, often called team leaders, oversee operational employees and carry
out day-to-day functions. They coordinate operational tasks and people, make
necessary decisions, and ensure that the right tools, materials and training are
available. Like other managers, supervisors and team leaders need decision
support information, knowledge management systems and user productivity
systems to carry out their responsibilities.
1.4.4
Operational Employees
Lastly, let us look at the fourth level which is operational employees. Operational
employees include users who rely on transaction processing systems to enter and
receive data they need to perform their jobs. In many companies, operational
users also need information to handle tasks and make decisions that were
assigned previously to supervisors. This trend, called empowerment, gives
employees more responsibility and accountability. Many companies find that
empowerment improves employee motivation and increases customer
satisfaction.
16 X
TOPIC 1
Systems analysis and design is a step-by-step process for developing highquality information systems. The major goal of systems analysis and design is
to improve organisational systems.
Hardware
Organisational levels
Software