Information Systems in Business Lecture : 02 UOITC UOITC Business Information Technology Department Dr. Alla Talal Yassin

A set of interrelated components, with a clearly defined boundary, working together, to achieve a common set of objectives A set of Components that work together to achieve a common Goal A system concept become even more useful by including feedback and control components Components of a System Components of a System : A system’s four components consist of : input, processing, output, and feedback. Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed System Closed System: Stand-alone system that has no contact with other systems Open System Open System: System that interfaces with other systems What is a System?

Individuals - Entertainment and Enlightenment Businesses - Decision making, Problem Solving and Control 3 Why Do People Need Information?

Data Data A “given,” fact; a number, a statement, or a picture A “given,” fact; a number, a statement, or a picture The raw materials in the production of information The raw materials in the production of information Raw facts, such as an employee’s name and number of hours worked in a week, inventory parts etc. that are recorded,collected and stored. Raw facts, such as an employee’s name and number of hours worked in a week, inventory parts etc. that are recorded,collected and stored. Data are streams of raw facts. Data are streams of raw facts. Information Information Data that have meaning within a context, data after process Data that have meaning within a context, data after process Data that have been organized so that they have meaning and value to the recipient Data that have been organized so that they have meaning and value to the recipient This requires a basic knowledge of the processing to be done This requires a basic knowledge of the processing to be done Information is data shaped into meaningful form Information is data shaped into meaningful form 4 Data vs. Information

Turning data into information is a process, or a set of logically related tasks performed to achieve a defined outcome. Process : A set of logically related tasks performed to achieve a defined outcome. Knowledge : The awareness and understanding of a set of information and ways that information can be made useful to support a specific task or reach a decision.

Knowledge workers (KWs) Knowledge workers (KWs) are people who create, use, and disseminate knowledge, and are usually professionals in science, engineering, business, and other areas. A knowledge management system (KMS) A knowledge management system (KMS) is an organized collection of people, procedures, software, databases, and devices used to create, store, and use the organization’s knowledge and experience.

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Data and Information

Data versus Information WestCharles Mann 79154TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No Item Qty Sold Price TM Shoes 1200 $100

Attributes of Information Quality

Accurate – Error free Timely-When needed Economical-Cost vs. value Reliable- depends on the source Relevant-depends on applications. Characteristics of Valuable Information

Data Processing = Information Example: Customer Survey Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. When processed, the surveys may provide useful information. Generating Information Computer-based ISs take data as raw material, process it, and produce information as output. (Definition of Computer) 14 Input-process-output

15 Several subsystems make up this corporate accounting system.

technology infrastructure All the hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. hardware Computer equipment used to perform input, processing, and output activities. software The computer programs that govern the operation of the computer.

17 Qualities of humans and computers that contribute to synergy

telecommunications The electronic transmission of signals for communications, which enables organizations to carry out their processes and tasks through effective computer networks. intranet An internal network based on Web technologies that allows people within an organization to exchange information and work on projects. extranet A network based on Web technologies that allows selected outsiders, such as business partners and customers, to access authorized resources of a company’s intranet.

Types of Information Systems Transaction processing System (TPS) Knowledge Management System (KMS) Learning Management Systems (LMS) Database Management System (DBMS) Office Information Systems (OIS) Management Information System ( MIS) 19

Basic Components (For computer-based IS) An IS using computer technology to carry out some or all of its planned tasks. Hardware- these are the devices like the monitor, processor, printer and keyboard, all of which work together to accept, process, show data and information. Software- are the programs that allow the hardware to process the data. Databases- are the gathering of associated files or tables containing related data. Networks- are a connecting system that allows diverse computers to distribute resources. Procedures- are the commands for combining the components above to process information and produce the preferred output. 20

New Economy vs. Old Economy