Lecture on Foundations of
Information Systems
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System
o A system is an interrelated set of business procedures used
within one business unit working together for a purpose
o A system has nine characteristics
o A system exists within an environment
o A boundary separates a system from its environment
Input
Processing
Storage
System
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Output
Characteristics of a System
o Components
o Interrelated Components
o Boundary
o Purpose
o Environment
o Interfaces
o Input
o Output
o Constraints
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Information Concepts
Data:
Streams of raw facts representing events occurring in
organizations or the physical environment before they
have been organized and arranged into a form that
people can understand and use.
Information:
Clusters of facts meaningful and useful to human
beings in the processes such as making decisions
Knowledge
Data and/or information organized and processed to
convey understanding, experience, accumulated
learning and expertise as they apply to a current
problem or activity.
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Information Concepts Cont…
Characteristics of Information
o Timely - has it arrived in time to affect a
decision-making process?
o Relevant - does it pertain to the problem at
hand?
o Concise - is it to the point?
o Accurate - Is it “correct enough” to be used?
o Complete - is it thorough and not lacking any
components?
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What is an Information System?
An information system (IS) is typically considered to be a
set of interrelated elements or components that collect
(input), manipulate (processes), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective.
An organized combination of…
o People
o Hardware and software
o Communication networks
o Data resources
o Policies and procedures
This system…
Stores, retrieves, transforms, and disseminates
information in an organization.
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Components of an IS
7
End Users and IS
Specialists
Programs and
Procedures
Control of System Performance
Input of
Data
Resources
Data and
Knowledge
Bases
Communications Media
and Network Support
Processing
of Data’
into info
Output
of Info
Products
Storage of Data Resources
Network Resources
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Machines
and media
Information System Resources
® People Resources
Specialists
End users
® Hardware Resources
Machines
Media
® Software Resources
Programs
Procedures
® Data Resources
Product descriptions, customer records, employee files,
inventory databases
® Network Resources
Communications media, communications processors, network
access and control software
® Information Resources
Management reports and business documents using text and
graphics displays, audio
responses, and paper forms
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Information Technologies
® Information Systems
All the components and resources necessary to deliver
information and functions to the organization
Could be paper based
® Information Technologies
Hardware, software, networking, data management
® Our focus will be on computer-based information systems (CBIS)
The purpose of the computer based information system is to
provide managers (and various categories of employees) with
appropriate kind, of information to help them make decisions.
It is used to collect and analyze data from all departments and
is designed to provide an organization’s management with up
to date information anytime.
® Formal System
System resting on accepted and fixed definitions of data and
procedures, operating with predefined rules.
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CBIS consists of following applications

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Management Information Systems.
Decision Support Systems.
The Virtual Office.
Knowledge Based Systems.
The fundamental work of CBIS is to manage information in
an efficient way such that it can be utilized by the
managers effectively to solve problems.
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IS Vs IT
Payroll
System
INFORMATION
TECHNOLOGY
Hardware
Software
Inventory
System
are used to build
INFORMATIO
N SYSTEMS
Databases
Marketing
System
Networks
Other related
components
Customer
Service
System
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Activities in an Information System
INPUT
PROCESS
FEEDBACK
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OUTPUT
Activities in an Information System
® Input:
The capturing or collection of raw 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 from which it will be
used.
® Feedback:
Output that is returned to the appropriate members of the
organization to help them evaluate or correct input
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Why Information System?
® Globalization:

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Management and control in a global marketplace
Competition in world market
Global Work groups
Global delivery systems
® Transformation of Industrial Economics


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Knowledge and information based economics
New products and services
Knowledge: a central productive and strategic assets
Time based competition
Shorter product life
Turbulent or disordered environment
Limited employment knowledge base
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Why Information System?
® Transformation of the Enterprise
 Flattening
 Decentralization
 Flexibility
 Location independence
 Low transaction and coordination costs
 Empowerment
 Collaborative work teamwork
® Emergence of the Digital Firm
 Digitally enabled relationship with customers, suppliers and
employment
 Core business processes accomplished via digital networks
 Digital management
 Rapid sensing and responding
to environment changes
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Functions of an Information System
The IS function is…
o A major functional area of business
o An important contributor to operational efficiency,
employee productivity, morale, customer service and
satisfaction
o A major source of information and support for
decision making
o A vital ingredient in developing competitive products
and services in the global marketplace
o A dynamic and challenging career opportunity
o A key component of today’s networked business
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What Should Business Professionals Know?
Business professionals should be able to look at an
information system and identify…
oThe people, hardware, software, data, and network
resources they use.
oThe type of information products they produce.
oThe way they perform input, processing, output,
storage, and control activities.
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Information Systems Framework
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Information Systems Framework
® Foundation Concepts
Fundamental concepts about the components and roles of
information systems.
® Information Technologies
Major concepts, developments, and management issues in
information technology.
® Business Applications
The major uses of information systems for operations,
management, and competitive advantage.
® Development Processes
How business professionals and information specialists plan,
develop, and implement information systems.
® Management Challenges
The challenge of managing ethically and effectively.
Emphasizes the quality, strategic business value, and security
of an organization’s information systems.
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Fundamental Roles of IS in Business
Information systems relate to the following
business objectives:
Achieving operational excellence
Developing new products and services
Attaining customer intimacy and service
Improving decision making
Promoting competitive advantage
Ensuring survival
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Business Information Systems is:
o The study of office suites, object oriented
programming, data base management, and
multimedia decision.
o Understanding and mobilizing technology in
business.
o Applying analytical techniques to business
problems.
o Understanding business concepts, terminology
and culture.
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Systems Development Life Cycles
Systems Investigation
Problems and opportunities are
identified
Systems Analysis
Existing systems and work
processes are studied
Systems Design
Defines how the information system
will do what it must do to solve the
problem.
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Systems Development Life Cycles (Cont..)
Systems Implementation
System components are assembled and
the new or modified system is placed
into operation.
Systems Maintenance and Review
Ensures the system operates and is
modified to keep up with business
changes.
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Measuring IT Success
®Efficiency
Minimize cost, time, and use of information
resources
®Effectiveness
Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase customer and business value
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