1.0 INTRODUCTION TO INFORMATION SYSTEMS 1.1 Meaning of Information System An information system is a set of people, procedures and resources that collect data which it transforms and disseminates. It is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long- range activities of users in an organization. 10/3/2015 7:05:19 PMINF 111

Meaning of Information System…… It is a set of procedures that collect (or retrieve), process, store, and disseminate information to support decision making and control. Information systems contain information about people, places and things within the organization or environment surrounding them 10/3/2015 7:05:19 PM2INF 111

1.2 Data, Information, Knowledge and Wisdom in the Information System  Data refers to recorded descriptions of things, events, activities and transactions that is raw facts about events such as their size, color, cost, weight, date and so on. It may or may not convey information to a person.  Information: It is data that has been shaped into a form that is meaningful and useful, significant, urgent and so on to human beings. Data is processed so that it has meaning and value for the recipient. 10/3/2015 7:05:19 PMINF 1113

Data, Information, Knowledge and Wisdom in the Information System… Knowledge: this builds on information that is extracted from data. It encompasses prior understanding, experience and learning, and is either confirmed or modified as people receive new information. It also refers to a body of facts and principles accumulated by man kind in the course of time. It is a complex of several related ideas. 10/3/2015 7:05:19 PMINF 1114

Data, Information, Knowledge and Wisdom in the Information System…  Wisdom is distilled and integrated knowledge and understanding. Wisdom suggests the possession of deep insight into human problems, together with the capacity for right and prudent judgment. It is assumed that the possessor of wisdom has both knowledge and information. 10/3/2015 7:05:19 PMINF 1115

Data, Information, Knowledge and Wisdom in the Information System… 10/3/2015 7:05:19 PMINF 1116 Data Raw, unanalyzed facts, figures and events Information Information has meaning for the receiver Knowledge Facts and principles accumulated over a given time Wisdom Knowledge and understanding Figure 1: The relationships of data, information, knowledge and wisdom

1.3 Importance of Information Systems Information systems are essential in today’s management due to changes in business environment such as: i. Emergence and strengthening of the global economy. Information Systems provide the communication and analytical power that firms need for conducting trade and managing businesses on a global scale. 10/3/2015 7:05:19 PMINF 1117

Importance of IS….. ii. Transformation of industrial economies and societies into knowledge and information based service economies. Knowledge and information are key ingredients in creating wealth. In industrialized countries most people no longer work on farms, or in factories but instead are found in sales, education, healthcare, banks, insurance firms and law firms, they also provide business services like copying, computer programming, or making deliveries 10/3/2015 7:05:19 PMINF 1118

Importance of IS…. There is a shift whereby manufacturing activities are moving to low-wage countries where as the primary jobs in industrial economies are tending towards working with, distributing or creating new knowledge and information. Examples of knowledge and information based products that employ many people include, Computer game technology, Google, America online, Design and production of new automobiles, Credit card designs, World wide reservations systems, 10/3/2015 7:05:19 PMINF 1119

Importance of IS… iii. Transformation of the business enterprises. There has been a transformation of the then hierarchical, centralized, structured management of firms into a new flattened, decentralized, flexible arrangement of firms, which rely on instant information to deliver mass-customized products and services uniquely suited to specific markets or customers. 10/3/2015 7:05:19 PMINF 11110

Importance of IS….. iv. The emerging digital firm. This phenomenon emerged since the mid 1990s when firms began using information technology intensively. A digital firm is one where nearly all of the organization’s significant business relationships with customers, suppliers and employees are digitally enabled and mediated. 10/3/2015 7:05:19 PMINF 11111

1.4 TYPES OF INFORMATION SYSTEMS There are several ways of classifying information systems. Using the criteria of formality, function and reach, IS can be classified as follows: 10/3/2015 7:05:19 PMINF 11112

Types of IS… Classification based on formality criteria: i. Human information systems These are informal information systems; one uses sense organs to receive impulses from the environment; the brain interprets these impulses leading to decisions on how to respond. People observe events and use this information as they manage their responsibilities. 10/3/2015 7:05:19 PMINF 11113

Human Information Systems…. These are informal information systems. Here every one uses sense organs to receive impulses from the environment; the brain interprets these impulses leading to decisions on how to respond. Also people observe events and use this information as they manage their responsibilities. 10/3/2015 7:05:19 PMINF 11114

Classification based on formality criteria ….. ii. Paper-based information systems These are still being used by many people and organizations as they are cheap to implement and easy to understand. The genuinely paperless office is rare. For example, organizations often define their procedures on paper and staffs are confident with information on paper 10/3/2015 7:05:19 PMINF 11115

Paper-based information systems… Papers are often used when it is important to trace all important transactions and when responsibility needed is high. If one goes to organizations like hospitals, it is obvious to find that most patient records are on paper. Manual paper-based attendance list kept by a lecturer is another example. 10/3/2015 7:05:19 PMINF 11116

Classification based on formality criteria ….. iii. Computer-based information systems These use electronic devices to collect data and to provide information. Electronic devices like bar codes and scanners capture product details in shops, check points, libraries, these data are processed, manipulated, distributed and recorded as output on paper when required. 10/3/2015 7:05:19 PMINF 11117

1.4.2 Classification based on functional criteria: This classification was designed by Markus (1984). The following functions were identified: i. Operational systems This is also called transactional processing systems. A transaction processing system (TPS) is an information system that captures and processes data generated during an organization’s day-to- day transactions. 10/3/2015 7:05:19 PMINF 11118

Classification based on functional criteria….. A transaction is a business activity such as a deposit, payment, order or reservation. ii. Monitoring systems These check the performance of an activity at regular intervals. The factor being monitored can be quality, financial, departmental output or personal performance. Example is the system being used in Netherlands universities. 10/3/2015 7:05:19 PMINF 11119

Classification based on functional criteria….. They use student trail system that monitors academic progress of students. These systems link to the national institution that provides scholarships. This information enables this institution to stop or reduce the scholarship when results are below the required standard. 10/3/2015 7:05:19 PMINF 11120

Classification based on functional criteria….. iii. Decision Support Systems People need information for decision making. Decision support systems help provide information to support such decisions A decision support system (DSS) is an information system designed to help users reach a decision when a decision-making situation arises. 10/3/2015 7:05:19 PMINF 11121

Classification based on functional criteria.. DSS.. They help managers to calculate the consequences of different alternatives before they decide what to do A decision support system uses data from internal and/or external sources. Internal sources of data might include sales, manufacturing, inventory, or financial data from an organization’s database. 10/3/2015 7:05:19 PMINF 11122

Classification based on functional criteria.. DSS.. Data from external sources could include interest rates, population trends, and costs of new housing construction or raw material pricing. Users of a DSS, often managers, can manipulate the data used in the DSS to help with decisions. Many people use application software packages to perform DSS functions. 10/3/2015 7:05:19 PMINF 11123

Classification based on functional criteria.. DSS.. A special type of DSS, called an executive information system (EIS), is designed to support the information needs of executive management. Information in an EIS is presented in charts and tables that show trends, ratios, and other managerial statistics. Because executives usually focus on strategic issues, EISs rely on external data sources 10/3/2015 7:05:19 PMINF 11124

Classification based on functional criteria.. DSS.. These external data sources can provide current information on interest rates, commodity prices, and other leading economic indicators. 10/3/2015 7:05:19 PMINF 11125

Classification based on functional criteria iv. Expert (knowledge) Systems An expert system is an information system that captures and stores the knowledge of human experts and then imitates human reasoning and decision-making processes for those who have less expertise. Normally a knowledge engineer works with one or more experts in the domain under study. 10/3/2015 7:05:19 PMINF 11126

Classification based on functional criteria… Expert System.. The knowledge engineer tries to learn how the experts make decisions. Expert systems are composed of two main components: a knowledge base and inference rules. A knowledge base is the combined subject knowledge and experiences of the human experts The inference rules are a set of logical judgments applied to the knowledge base each time a user describes a situation to the expert system. 10/3/2015 7:05:19 PMINF 11127

Classification based on functional criteria… Expert System.. Although expert systems can help decision- making at any level in an organization, non management employees are the primary users who utilize them to help with job-related decisions. Expert systems also successfully have resolved such diverse problems as diagnosing illnesses, searching for oil and making soup. 10/3/2015 7:05:19 PMINF 11128

Classification based on functional criteria v. Office Information Systems An office information system is one that uses hardware, software and networks to enhance work flow and facilitate communications among employees Employees perform tasks electronically using computers and other electronic devices, instead of manually 10/3/2015 7:05:19 PMINF 11129

Classification based on functional criteria.. Office Information System.. An office information system supports a range of office activities such as creating and distributing graphics and/or documents, sending messages, scheduling, and accounting. All levels of users from executive management to non management employees utilize and benefit from the features of an OIS. 10/3/2015 7:05:19 PMINF 11130

Classification based on functional criteria.. Office Information System.. The software an office information system uses to support these activities include word processing, spreadsheets, databases, presentation graphics, , web browsers, web page authoring, personal information management, social networks (e.g ning) and groupware. 10/3/2015 7:05:19 PMINF 11131

Classification based on functional criteria.. Office Information System.. Office information systems use communications technology such as voice mail, facsimile (fax), videoconferencing, and electronic data interchange (EDI) for the electronic exchange of text, graphics, audio, and video. 10/3/2015 7:05:19 PMINF 11132

Classification based on functional criteria.. Office Information System.. vi. Management Information Systems A management information system (MIS)is an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress. 10/3/2015 7:05:19 PMINF 11133

Classification based on functional criteria.. Office Information System.. Because it generates reports on regular basis, MIS sometimes is called Management Reporting System (MRS). An MIS is often integrated with transaction processing systems For example: to process a sales order, the transaction processing system records the sale, updates the customer’s account balance, and makes a deduction from inventory 10/3/2015 7:05:19 PMINF 11134

Classification based on functional criteria.. Office Information System.. An MIS generates three basic types of information: detailed, summary and exception Detailed information typically confirms transaction processing activities. Summary information consolidates data into a format that an individual can review quickly and easily A summary report typically contains totals, tables, or graphs 10/3/2015 7:05:19 PMINF 11135

Classification based on functional criteria.. Office Information System.. Exception information filters data to report information that is outside of a normal condition 10/3/2015 7:05:19 PMINF 11136

Classification based on functional criteria.. Office Information System.. (vii) Integrated Information Systems With today’s sophisticated hardware, software and communications technologies, it often is difficult to classify a system as belonging uniquely to one of the information system types discussed 10/3/2015 7:05:19 PMINF 11137

1.4.3 Classification based on reach criteria: This is based on geographic reach which in turn influences the organization. There are: (i). Individual systems These include systems like; word-processing systems, spreadsheet programs and database systems to manage individual’s work. Individuals can download data from company- wide systems to use on their tasks 10/3/2015 7:05:19 PMINF 11138

Classification based on reach criteria… The main advantages are that individual can decide what to use the system for and can control the way they work. The disadvantage is that the quality of the software varies greatly. The data extracted from the corporate database is no longer current and the systems may not link easily with other systems. 10/3/2015 7:05:19 PMINF 11139

Classification based on reach criteria… (ii). Departmental systems Apply to separate units or departments that have a distinct task to perform. Management often creates these systems as separate systems, though many are now being integrated into the systems network of the whole company. Examples include; universities’ student records system, examination records system, and many others 10/3/2015 7:05:19 PMINF 11140

Classification based on reach criteria… -Company-wide systems These systems integrate departments and people through out the organization. For example; in hospitals many units use centralized patient data to retrieve or update information about patients Such systems make it much easier for staff from various departments to treat a patient in a consistent way. 10/3/2015 7:05:19 PMINF 11141

Classification based on reach criteria… -Inter-organizational systems These link organizations electronically by using networks that transcend company boundaries These enable organizations to incorporate buyers, suppliers and partners in the redesign of their key business processes, thereby enhancing productivity, quality, speed and flexibility 10/3/2015 7:05:19 PMINF 11142

1.5 Approaches to Study of Information and Communication Systems There is no single approach to the study of Information and communication systems. Though they are composed of machines, devices and hard physical technology, they require substantial social, organizational and intellectual investments to make them work properly. Generally, the field can be divided into technical and behavioral approaches. 10/3/2015 7:05:19 PMINF 11143

Approaches to Study of Information and Communication Systems… There is no single approach to the study of Information and communication systems. Though they are composed of machines, devices and hard physical technology, they require substantial social, organizational and intellectual investments to make them work properly. Generally, the approaches can be divided into technical and behavioral approaches. 10/3/2015 7:05:19 PMINF 11144

Approaches to Study of Information and Communication Systems… i. Technical Approaches These emphasize mathematically based models to study information and communication systems, as well as the physical technology and formal capabilities of these systems. The disciplines that contribute to the technical approach are computer science, management science and operations research 10/3/2015 7:05:19 PMINF 11145

Approaches to Study Information and Communication Systems… ii. Behavioral Approaches These emphasize behavior issues that arise in the development and long term maintenance of information systems. The focus of this approach is not on technical solutions, it concentrates on changes in attitudes, management and organization policy and behavior. The behavioral disciplines that contribute to this approach include sociology, economics and psychology 10/3/2015 7:05:19 PMINF 11146

1.6 COMPUTER BASED INFORMATION SYSTEMS Computer based information systems transform symbols into digital form, and this development has dramatically extended the historical process of lowering the cost of processing and disseminating information. People use electronic systems to record, transform, store and present information.. 10/3/2015 7:05:19 PMINF 11147

Computer Based Information Systems.. INPUT: captures data from within the organization or from its external environment for processing in an information system. PROCESSING: the conversion, manipulation and analysis of raw input into a form that is more meaningful to humans. OUTPUT: the distribution of processed information to the people who will use it or to the activities for which it will be used. 10/3/2015 7:05:19 PMINF 11148

Computer Based Information Systems.. The Information System also requires feedback which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stage. 10/3/2015 7:05:19 PMINF 11149

1.6.1 Elements of Computer Based Information Systems Elements of Computer Based Information Systems are categorized into technological and social elements i. The technological elements Technological elements of a computer based information system include: 10/3/2015 7:05:19 PMINF 11150

Elements of Computer Based Information Systems… (a) Hardware This refers to the physical components within a computer system. These consist of: Input devices (such as keyboard, mouse, joystick, scanner, touch-screen, camera, microphone, sensor); Central processing unit (manipulates data and controls the computer system); 10/3/2015 7:05:19 PMINF 11151

Elements of Computer Based Information Systems.. Storage devices (the primary (internal) storage, and secondary storage such as magnetic disks (like floppy disks) or optical disks (CD-ROM, DVD); Output devices such as printers, plotters, monitors, voice output and; Communication devices (to link the computer with computer networks. 10/3/2015 7:05:19 PMINF 11152

Elements… (b) Software It is a set of instructions written in a specialized language that controls the operation of the computer. There is system software and application software. System software is a set of programs that manage the resources of the computer, such as the central processor, communication links and peripheral devices. Examples include Linux, Windows, UNIX, and Ms DOS 10/3/2015 7:05:19 PMINF 11153

Application software enables users to apply the computer to specific tasks, such as , word-processing or stock control and many other specialized tasks to name few. (c) Telecommunications. This is the communication of information by electronic means over distance. In the past it meant voice transmission over the telephone. 10/3/2015 7:05:19 PMINF 11154

Elements.. A telecommunication system is a set of compatible hardware and software that makes it possible to send and receive information. Communication networks are linked group of computers. They can be Local Area Networks (LANs), usually limited to a single building, or a Wide Area Network (WAN) that covers greater distances. 10/3/2015 7:05:19 PMINF 11155

Elements.. (d) Data Technology makes it possible for people in organizations to use data much more than effectively than when they could only analyze it with manual, paper-based system 10/3/2015 7:05:19 PMINF 11156

Elements.. (ii) The social elements of a computer-based system: (a) People These make the Information System to work effectively. People include staff and managers who enter data into the system and those who receive information from it and use the results. People who receive information include staff. 10/3/2015 7:05:19 PMINF 11157

Elements. (b) Procedures These are the rules or routines that people are expected to use when interacting with the IS. (c) Organization The procedures and the actions of people using the system are immediate parts of the IS who make up the organization. The results of an IS depend on the interaction between people, system and context. 10/3/2015 7:05:19 PMINF 11158

Elements of Computer Based Information Systems.. 10/3/2015 7:05:19 PMINF 11159

Example of the Elements Computer based IS.. A computer-based student record can serve to illustrate each element in the figure above: People: Including course administrators will enter data, names and other information about students and their results; 10/3/2015 7:05:19 PMINF 11160

Example of the Elements Computer based IS.. Procedures: such as that one person reads from a list of grades while another keys the data into the right field on that student’s record. The hardware: consists of the computers and peripherals such as printers, monitors and keyboards; 10/3/2015 7:05:19 PMINF 11161

Example of the Elements Computer based IS.. Software: run by hardware to manipulate the data in a particular way and to print out the results for each student. Another procedure sends results to students which they see as information. Staff will use their knowledge to interpret the trends and evaluate the significance of any pattern. 10/3/2015 7:05:19 PMINF 11162