ST

BCA 1 YEAR
UNIT 1
Basics of Information
System
1. What is a System?

A system is a set of interrelated components working

together to achieve a common goal.
It takes inputs, processes them, and produces outputs.
Basic System Model:

Input → Process → Output → Feedback

(optional)
 2. Characteristics of a System
•Components – Individual parts (e.g., hardware, software,
people).
•Interdependence – Components work together, not in
isolation.
•Boundaries – Defines what is inside or outside the system.
•Environment – The surrounding factors that affect the system.
•Purpose – The system is designed to achieve specific goals.
•Feedback Mechanism – Adjusts the system for improvement.
The difference between information and data lies in their meaning and
usefulness:

Data:
•Definition: Raw, unprocessed facts and figures without context.
•Example: A list of numbers like 82, 74, 91, 65 or entries like John, 25, Blue.
•Characteristics:
•Unorganized
•Has no meaning on its own
•Can be qualitative or quantitative
 Information:
•Definition: Processed, organized, or
structured data that is meaningful and useful.
•Example: "The average test score of the class
is 78%."
•Characteristics:
• Interpreted and contextualized
• Helps in decision-making
• Adds meaning to data
 Features and Qualities of Information:
•Accuracy
•Information should be correct and free from errors.
•Example: Incorrect financial reports can lead to poor business decisions.
•Relevance
•Information must be related to the purpose or decision at hand.
•Example: Sales data from last year may not be relevant for today's market trends.
•Timeliness
•Information should be available when needed.
•Example: Real-time traffic updates are only useful if received on time.
•Completeness: It should contain all necessary details.
•Example: An incomplete medical report may lead to wrong treatment.
•Clarity
•It should be easy to understand, well-structured, and unambiguous.
•Example: Using clear language and visual aids helps in better comprehension.
•Consistency
•Information should be consistent across different sources or systems.
•Example: If two reports show different figures for the same data, it causes confusion.
1.Validity
1. Information should be from a reliable and credible source.
2. Example: Official statistics from government websites are
more valid than rumors.
2.Accessibility
1. It should be easily accessible to authorized users.
2. Example: Cloud-based reports can be accessed from
anywhere by the right users.
3.Cost-effectiveness
1. The value of the information should justify the cost of obtaining
it.
2. Example: Spending thousands to get data worth a few dollars
is inefficient.
4.Security
•Sensitive information should be protected from unauthorized access or
misuse.
•Example: Personal customer data must be encrypted and securely
stored.
Here are the main types of information, based on different classifications:

1. Based on Nature:
Type Description Example
Descriptive, non-numerical Customer feedback, interview
Qualitative
information responses
Numerical data that can be
Quantitative Sales figures, population data
measured or counted

2. Based on Source:

Type Description Example

Original, firsthand information Surveys, experiments,
Primary
collected directly interviews
Interpreted or analyzed data
Secondary Textbooks, reports, articles
from other sources
3. Based on Purpose:

Type Description Example

Used for long-term
Market trends, business
Strategic planning and
forecasts
decision-making
Used for medium-term
Budget reports,
Tactical plans and departmental
performance metrics
decisions
Used for day-to-day Work schedules,
Operational
activities inventory levels
4. Based on Format:

Type Description Example

Textual Written words or documents Emails, reports

Numerical Numbers, statistics Sales data, graphs
Visual Images, charts, or diagrams Infographics, blueprints
Audio/Video Spoken or visual recordings Podcasts, training videos
5. Based on Flow:

Type Description Example

Internal Circulated within an organization Memos, internal emails

External Shared with outside parties Press releases, advertisements

 Steps in the Process of Generating Information:

1. Data Collection
•Description: Gathering raw facts and figures from various sources.
•Sources: Surveys, sensors, databases, observations, interviews.
•Example: Collecting sales numbers from retail stores.

2. Data Input
•Description: Entering the collected data into a system for processing.
•Methods: Manual entry, scanning, sensors, importing files.
•Example: Typing survey results into a spreadsheet.
 3. Data Processing
•Description: Organizing, sorting, analyzing, and computing
data to make it useful.
•Tools: Software like Excel, databases, analytics platforms.
•Example: Calculating average sales per month.

4. Information Output
•Description: Presenting processed data in a meaningful
form.
•Formats: Reports, charts, dashboards, tables.
•Example: A sales report showing trends over 6 months.
 5. Storage
•Description: Saving information for future use.
•Mediums: Databases, cloud storage, hard drives.
•Example: Archiving yearly performance reports.

6. Feedback and Use

•Description: Using the information to make decisions or take
action, then gathering feedback to improve the process.
•Example: Adjusting marketing strategy based on customer
analysis.
 1.Value of Information
The value of information refers to how useful and beneficial it is in
helping make decisions, solve problems, or improve efficiency.
🔹 Key Points:
•Improves decision-making
→ Accurate information helps avoid mistakes.
•Reduces uncertainty
→ The more relevant the information, the clearer the choices.
•Saves time and resources
→ Speeds up processes and increases productivity.
•Provides competitive advantage
→ Knowing market trends or customer behavior gives businesses an edge.
•Supports innovation
→ Informs new ideas and strategies.

Example:
Market research showing rising demand for electric cars helps a company
decide to develop a new EV model—creating a strategic advantage.
 2. Cost of Information
The cost of information is the effort, time, and
money required to gather, process, store, and use it.
🔹 Types of Costs:

Type Description Example

Collection Cost Cost of gathering data Survey tools, sensors
Turning data into useful
Processing Cost Software, analysts
information
Keeping the information
Storage Cost Cloud storage, data centers
accessible and secure
Getting the right info at the right
Access Cost Subscription databases
time
Security Cost Protecting sensitive information Encryption, cybersecurity tools
 When we say information is a corporate resource, we mean:
It is a valuable asset that helps businesses plan, operate, compete, and grow.
Just like companies manage their financial resources and human resources, they
also need to manage information resources carefully.
Why Information Is a Vital Resource:
1. Supports Decision-Making
•Helps leaders make smart, evidence-based decisions.
•Example: Data analytics informs pricing, hiring, or marketing strategy.
2. Improves Efficiency
•Streamlined access to accurate information reduces errors and saves time.
•Example: ERP systems integrate data across departments.
3. Drives Innovation
•Market and customer insights lead to new products or services.
•Example: Netflix uses viewing data to create original content.
4. Enables Competitive Advantage
•Real-time and proprietary information sets companies apart.
•Example: Amazon’s use of customer behavior data enhances shopping
experiences.
5. Enhances Customer Service
•Information helps tailor services to customer needs.
•Example: CRM (Customer Relationship Management) systems store customer
interaction data.
 Example:
Market research showing rising demand for electric cars
helps a company decide to develop a new EV
model—creating a strategic advantage.

2. Cost of Information
The cost of information is the effort, time, and
money required to gather, process, store, and use it.
🔹 Types of Costs:

Type Description Example

Collection Cost Cost of gathering data Survey tools, sensors
Turning data into useful
Processing Cost Software, analysts
information
Keeping the information
Storage Cost Cloud storage, data centers
accessible and secure
Getting the right info at the right
Access Cost Subscription databases
time
Security Cost Protecting sensitive information Encryption, cybersecurity tools
 Managing Information as a Resource:
To treat information as a corporate resource,
companies must:

Action Description
Gather high-quality data from various
Collect
sources.
Use secure, organized systems (e.g.,
Store
databases, cloud).
Protect Ensure privacy and cybersecurity.
Make sure the right people access
Distribute
the right info at the right time.
Apply the information to real business
Use
challenges.
 Information Needs at Various Levels of Management
Different levels of management in an organization have
different information needs, depending on their roles
and responsibilities. These levels are typically divided into:
1.Top-Level Management
2.Middle-Level Management
3.Lower-Level (Operational) Management
 1.Top-Level Management
(e.g., CEO, CFO, Board of Directors)
Purpose:
•Long-term planning
•Strategic decision-making
•Setting goals and company direction
Information Needed:

Type Description Example

Long-term, Market trends,
Strategic Information
future-oriented economic forecasts
Annual performance
Summarized Reports High-level overviews
reports
Industry, competition, Competitor analysis,
External Information
regulations policy changes
 2. Middle-Level Management
(e.g., Department Heads, Regional Managers)
Purpose:
•Implementing strategies from top management
•Coordinating departments
•Resource allocation
Information Needed:

Type Description Example

Medium-term planning and Quarterly sales reports,
Tactical Information
control budget plans
Performance and productivity Staff performance,
Departmental Data
tracking departmental output
Inventory reports, resource
Internal Reports Operational summaries
usage
 3. Lower-Level (Operational) Management
(e.g., Supervisors,Team Leaders, Floor Managers)
Purpose:
•Day-to-day operations
•Supervising tasks
•Managing workforce on the ground
Information Needed:

Type Description Example

Operational Immediate, Daily schedules,
Information action-based data machine logs
Work orders, quality
Detailed Instructions Task-specific info
checklists
Instant access to Attendance logs,
Real-time Data
current activity delivery updates
 Summary Table:

Type of
Level Focus Time Frame
Information
Top Vision,
Strategic Long-term
Management planning
Middle Coordination,
Tactical Mid-term
Management control
Lower Execution, Short-term /
Operational
Management supervision daily
 Factors Influencing Information Needs
The type and amount of information a person or organization
requires depends on several key factors. These factors
determine what information is needed, how much, when,
and in what format.
1. Level of Management
•Top-level managers need strategic, summarized, long-term info.
•Lower-level managers need detailed, operational, real-time info.
🧠 Higher the position, broader and more forward-looking the
information needed.

2.Type of Decision to Be Made

•Complex decisions need more accurate and in-depth information.
•Routine decisions may only need basic or standard info.
🧠 The more critical the decision, the more extensive the information
required.
 3. Nature of the Task
•Technical or analytical tasks require specific, often
quantitative data.
•Creative or planning tasks might need qualitative or
trend-based information.
4. Size and Structure of the Organization
•Large organizations need more formal, structured information
systems.
•Small businesses may rely on informal or direct communication.

5.Time Available for Decision-Making

•Urgent decisions require quick, real-time data.
•Long-term decisions allow time for deep research and analysis.
 6. Availability of Information Technology
•Access to modern IT systems (e.g., databases, analytics tools) increases
the quantity and quality of information available.
🧠 Better tech = faster, broader, and more accurate information access.

7. External Environment
•Changes in market trends, laws, economy, or competition can increase
the need for updated external information.

8. Legal and Regulatory Requirements

•Some decisions require specific information for compliance, audits, or
legal reasons.
9. Personal Preferences and Experience
•Different managers prefer different formats (charts vs. text) or detail
levels, based on their style or background.
 9. Personal Preferences and Experience
•Different managers prefer different formats
(charts vs. text) or detail levels, based on their
style or background.

10. Cost of Obtaining Information

•If information is expensive or time-consuming
to obtain, it may affect how much is gathered or
used.
THANK YOU