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BCA – INSY5111
Information Systems 1A
Lecture 2
Lecturer: Brendan van der Merwe Email times: 8am – 5pm,
Email: [email protected] Monday to Friday
Objectives
- Register
Theme 1: Computers and Information Systems
• LO1: Discuss common applications of computers and information systems
• LO2: Explain the differences between computer literacy and information literacy Recap
• LO3: Discuss the differences between data and information
Theme 2: Information Systems
• LO4: Define transaction processing systems;
• LO5: Define management information systems; Lecture 2
• LO6: Describe the four major components of an information system
• ICE TASK 1 to complete (Due: 28/02/2025)
Register
Link to Ppt
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- Module Outline
- Module Outline
- PAS Doc
Please note: I cannot accept late submission/resubmissions without the permission of the
Student Hub.
Please come to campus as soon as possible so that a CRO can assist you to apply for a
resubmission concession via the IIE Student Hub.
Learning Unit 1
An Overview of Information Systems
Module Outline - Pacer
Learning Unit 1: Theme Breakdown
Prescribed
INSY5111 Theme 1: Computers and Information Systems
Material (PM)
LO1: Discuss common applications of computers and PM1: LU1
information systems;
LO2: Explain the differences between computer literacy
and information literacy;
LO3: Discuss the differences between data and
information;
Theme 2: Information Systems PM1: LU1
LO4: Define transaction processing systems;
LO5: Define management information systems;
LO6: Describe the four major components of an
information system;
LO7: Explain the importance and applications of
information systems in functional areas of an
organisation;
LO8: Discuss how information technologies are used to
gain a competitive advantage.
Recap Question:
What is the difference between a computer system and information system?
A computer system refers to the hardware and software components that work together to
perform computing tasks. It includes physical devices like the CPU, memory, storage,
input/output devices, and the operating system.
An information system, on the other hand, is a broader concept that includes not only
computer systems but also people, processes, and data that work together to collect,
process, store, and distribute information. It is designed to support decision-making and
business operations.
A computer system is a part of an information system, but an information system involves
much more, including human and organizational aspects.
The Components of an Information System
Information systems have four major components (Bidgoli, 2021):
The input to the system
Information systems should collect data from internal and
external sources (Bidgoli, 2022)
Data can be collected in different forms (Bidgoli, 2022).
Data has a time orientation (Bidgoli, 2022). Historical, Current, Future
data.
Data that is collected should be stored in an organised
and integrated series of files. Collectively, this set of
organised and integrated files is known as a database
(Bidgoli, 2022).
Often a Database Management System (DBMS) will be
used to create a database. In addition, a DBMS will be
used to capture and process information.
Popular DBMSs include Microsoft Office Access and Oracle
(Bidgoli, 2022).
Demonstrates the purpose of the information system as
this is the component that will generate the information
that will enable management to make sound business
decisions (Bidgoli, 2022).
Information represents the output produced by the
information system after processing has been concluded
(Bidgoli, 2022).
Data on its own does not support decision-making,
whereas information supports decision-making (Bidgoli,
2022).
For information to be useful and valuable, it needs to possess
the following characteristics (Stair and Reynolds, 2012, cited in
The IIE, 2019):
Accessible Information should be easily accessible by authorised users
so that it can meet their needs.
Accurate Accurate information is error-free. In some cases, inaccurate
information is generated because inaccurate data is fed into
the transformation process.
Complete Complete information contains all the important facts.
Economical Information should be relatively economical to produce.
Decision-makers must always balance the value of
information with the cost of producing it.
Reliable Reliable information is information that can be depended
on.
Secure Information should be secure from access by unauthorised
users.
Simple Information should be simple and not overly complex.
Timely Timely information is delivered when it is needed. Knowing
last week’s weather conditions will not help when trying to
decide what to wear today.
Verifiable Information should be verifiable. This means you can check
it to make sure it is correct, perhaps by checking the source
of the information.
Computer Literacy vs Information Literacy
What is the difference between a Computer Literacy and Information
Literacy?
Computer literacy means being skilled in using productivity software
like word processors, spreadsheets, and presentation tools.
WHEREAS
Information literacy is about understanding the role of information in
business intelligence. Business intelligence (BI) is not just data, it is a
powerful tool that provides historical, current, and predictive insights
into business operations.
To do before the next lecture:
• Read Pages 6 – 13 in your Module Manual
• Answer the following questions:
1. Explain the difference between data and information.
2. Identify two ways in which an organisation can make use of an information system.
3. Identify two ways in which individuals outside an organisation can benefit from the
information systems used by organisations.
4. Using an example, explain the difference between computer literacy and
information literacy.
Referencing your Module Manual:
Reference List
The IIE. 2025. Business Information Systems [INSY5111 Module Manual].
The Independent Institute of Education: Unpublished.
Intext reference
(The IIE, 2025)
For example: To access the internet, a computer or compatible computing
device with internet connectivity is required (The IIE, 2025).
Questions 1-4 (Answers):
1. Explain the difference between data and information.
Data consists of raw facts, while information is processed data.
Information supports decision-making, whereas data alone does
not directly facilitate it (The IIE, 2025).
Questions 1-4 (Answers):
2. Identify two ways in which an organisation can make use of an
rmation system.
(Students' answers may differ)
• Generate inventory reports so that the organisation can
determine whether to order more inventory or not.
• Generate a report which will indicate which customers owe the
company money.
Questions 1-4 (Answers):
3. Identify two ways in which individuals outside an organisation
can benefit from the information systems used by
nisations.
(Students' answers may differ)
• A customer might have an enquiry as to the availability of a
particular item and if the enquiry is an online query, the same
system used by the company to manage their stock levels can be
used to provide an answer to the customer as to the availability
of an item.
• The system could send emails to customers notifying them of
outstanding balances.
Questions 1-4 (Answers):
4. Using an example, explain the difference between computer
literacy and information literacy.
(Students' answers may differ)
A new person starting at a new job, might know how to switch on a computer
and perform basic operations using the computer but not yet know how to use
the systems of an organisation. The fact that the person knows how to use a
computer, would imply a degree of computer literacy. The person might not
know yet how to use the organisation's productivity software which would place
his skill level low.
The moment the new person knows how to operate and use the productivity
software of the organisation, he/she can be considered computer literate. When
the new person also understands the role of the information and how to use the
business intelligence obtained from the information, he also possesses the skill
of information literacy.
Module Outline - Pacer
Learning Unit 1: Theme Breakdown
Prescribed
INSY5111 Theme 1: Computers and Information Systems
Material (PM)
LO1: Discuss common applications of computers and PM1: LU1
information systems;
LO2: Explain the differences between computer literacy
and information literacy;
LO3: Discuss the differences between data and
information;
Theme 2: Information Systems PM1: LU1
LO4: Define transaction processing systems;
LO5: Define management information systems;
LO6: Describe the four major components of an
information system;
LO7: Explain the importance and applications of
information systems in functional areas of an
organisation;
LO8: Discuss how information technologies are used to
gain a competitive advantage.
Types of Information Systems
There are several types of information systems.
In this lecture, we will be exploring two types of information systems.
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
Transaction processing systems (TPS)
This is an information system that handles routine and structured tasks.
For example, think of all the everyday transactions that businesses have to deal with,
like processing orders, managing inventory, doing payroll.
TPS automates all those tasks, making sure everything runs smoothly and efficiently.
Imagine a really efficient robot worker
that automatically takes care of tasks
such as payroll, inventory control and
record keeping. What is the benefit of
this?
Cost reduction, businesses can save
money by automating those routine
tasks.
- Transaction processing systems (TPS)
For example, take a grocery store, for instance.
Imagine having to manually track every single item that comes in and goes out.
And that's where a TPS can be so valuable, it can automatically update inventory
levels as items are sold, generate purchase orders when stock runs low, and track
expiration dates to reduce waste.
The grocery store equivalent of an air
traffic controller, just making sure
everything is running smoothly.
TPS can also help businesses improve
customer service. For example, self
checkout kiosks that are powered by
TPS.
They help speed up the checkout process and give customers more
control over their shopping experience. Creates a win-win situation,
more efficient for the store and more convenient for the customer.
- Transaction processing systems (TPS)
When it comes to TPS, there are two main types of processing, batch processing
and On-line/real-time transaction processing (OLTP).
Batch processing is like doing laundry.
You collect a bunch of dirty clothes
over time and then do it all at once.
Batch processing involves collecting a
group of transactions over a period of
time and then processing them all
together later on.
- Transaction processing systems (TPS)
When it comes to TPS, there are two main types of processing, batch processing
and On-line/real-time transaction processing (OLTP).
With real time processing, the
transaction is processed immediately.
Therefore, real time processing
transactions are handled as they
happen. For example, using a credit
card at a store.
Example, visualise a large supermarket, where stock quantities fluctuate with
each sale. Using OLTP at the point-of-sale ensures that each sale triggers an
immediate update to stock quantities, maintaining accurate and up-to-date
inventory records.
- Transaction processing systems (TPS)
In summary, batch processing is used for tasks that can be
executed in groups at scheduled intervals, making it ideal for large
volumes of data that do not require immediate action.
In contrast, real-time processing handles tasks instantly as they
occur, ensuring immediate responses, which is essential for time-
sensitive applications like financial transactions, live monitoring
systems, and interactive user experiences.
- Transaction processing systems (TPS)
Imagine 2 businesses. One relies on manual processes like paper-
based systems. The other has invested in a sophisticated TPS that
automates a lot of its operations.
Which one do you think is going to be more efficient?
The business with the TPS. This efficiency can lead to several
benefits, for example, lower costs, faster turn around times and
improved customer service.
Management information systems (MIS)
While TPS is great at handling day-to-day transactions, it doesn't
really give you the big picture. It doesn't tell you what all that data
means.
This is where an MIS is useful. MIS takes raw data and turns it into
meaningful information.
For example, taking many puzzle
pieces and putting them together to
see the whole picture.
- Management information systems (MIS)
Imagine you're running a chain of clothing stores.
Your TPS is tracking all the sales, the inventory. MIS that tells you
which items are selling well, which ones are not, and where you
might need to adjust your inventory levels. It helps you make
those strategic decisions about what to stock and where to stock.
it.
MIS can be utilised for various purposes, including analysing
customer trends, monitoring marketing campaigns, and
forecasting future sales.
- Management information systems (MIS)
Domino's Pizza effectively uses MIS to enhance its operations
by leveraging data from its online ordering system.
This system collects information on customer orders, locations,
and preferences, enabling the company to make data-driven
decisions.
For example, they use this data to optimise delivery routes by
tracking drivers and orders in real time, ensuring faster and
fresher deliveries.
Additionally, they analyse
customer preferences to identify
popular toppings in different
regions, which helps them
develop new menu items
tailored to customer demand.
Please complete the following questions:
• Look at Pages 10 – 15 in your Module Manual
• Answer the following questions:
1. Explain the difference between data and information.
2. Identify two ways in which an organisation can make use of an information system.
3. Identify two ways in which individuals outside an organisation can benefit from the
information systems used by organisations.
4. Using an example, explain the difference between computer literacy and
information literacy.
5. Define the relationship between transaction processing systems and management
information systems.
6. Explain, by referring to the components of an information system, why a Point-Of-
Sale system used at a restaurant can be considered an information system.
ICE TASK 1
ICE TASK 1 Due: 28/02/2025
To submit on ARC (The ICE Task is on ARC – see below)
CASE STUDY: Document Manager™ – Avara Foods
- ICE TASK 1
