Definition of Information System (IS)

An information system (IS) is an organized combination of people, hardware, software,

communications networks, data resources, and policies that stores, retrieves, transforms, and
disseminates information within an organization. Examples include card catalogs, cash
registers, and accounting ledgers.
Summary of Examples of Information Systems
1. Smoke Signals: Used historically for long-distance communication by transmitting
patterns of smoke, conveying valuable information.
2. Library Card Catalogs: Organizes data about books, enabling users to locate titles by
various criteria such as author, subject, or title.
3. Personal Organization Tools: Items like book bags, day planners, notebooks, and file
folders form an information system that organizes and processes inputs (e.g., handouts
and lectures) into outputs like completed homework or good grades.
4. Fast-Food Cash Registers: Part of an information system that tracks sales, inventory,
and cash levels, aiding in global sales analysis.
5. Paper-Based Accounting Ledgers: Traditional information systems used for centuries
by businesses to record transactions and maintain account balances.
Key Areas of Information System Knowledge
1. Foundation Concepts: Fundamental principles regarding the roles and components of
IS. (E.g., systems theory, competitive strategy concepts)
2. Information Technologies: Concepts related to hardware, software, networks, and data
management.
3. Business Applications: How IS supports operations, management, and competitive
advantage in businesses.
4. Development Processes: Planning and implementing IS to meet business needs.
5. Management Challenges: Issues related to managing IS effectively and ethically at
organizational and global levels.
Roles of Information Systems in Business
1. Support Business Processes and Operations: Helps in tasks like inventory tracking,
payroll processing, and sales monitoring.
2. Support Decision-Making: Provides insights and analysis for managerial decisions,
such as introducing new products or reducing costs.
3. Support Strategies for Competitive Advantage: Strategic applications like online
shopping kiosks or e-commerce websites to attract customers and retain loyalty.
Evolution of Information Systems
1. Data Processing 1950s-1960s: Focused on transaction processing and record-keeping.
 2. Management Reporting 1970s: Development of management information systems
(MIS) for predefined reports.
3. Decisions Suppot1980s:
o Introduction of decision support systems (DSS) for ad hoc problem-solving.

o Emergence of expert systems and end-user computing.

4. Strategic and End-Users Support 1990s: Strategic Information Systems (SIS) and
Enterprise Resource Planning (ERP) systems to integrate business functions.
5. Present: Internet-based systems and business intelligence (BI) for enhanced decision-
making.

Role of e-Business and e-Commerce

1. e-Business: Conducting processes (internal, customer, and management-focused) over
computer networks. (E.g., Intranets, extranets, and virtual teams).
2. e-Commerce: Buying and selling products and services online (E.g., Online sales
platforms, CRM systems, and inventory databases)
Types of Information Systems
1. Operation Support Systems:Includes transaction processing systems (e.g., POS
systems), process control systems, and enterprise collaboration systems.
Summary of Operations Support Systems
Transaction Processing Systems (TPS):
o Record and process business transaction data.

o Two processing methods:

 Batch Processing: Data is accumulated and processed periodically.

 Real-Time Processing: Data is processed immediately after a
transaction occurs (e.g., POS systems in retail).
Process Control Systems: Monitor and control physical processes in real time using
electronic sensors (e.g., petroleum refinery systems adjusting chemical processes).
Enterprise Collaboration Systems:
o Enhance communication and productivity in teams or workgroups.

o Examples include email and videoconferencing for coordinating team activities.

These systems are critical for supporting business operations, automating tasks,
and improving collaboration and decision-making processes.
2. Management Support Systems:
 o MIS: Provides predefined reports for decision-making.

o DSS: Supports unique decision-making styles with what-if analysis tools.

o EIS: Tailored for top executives with easy-to-use displays.

3. Other IS Types:
o Expert Systems (ES): Provide expert advice.

o Knowledge Management Systems (KMS): Organize and share knowledge.

o Strategic Information Systems (SIS): Integrate IT to gain competitive advantage.

Summary of Success, Failures, and Development of IT Solutions

1. Success and Failures of IT: Success in IT is not just about efficiency (minimizing costs,
time, or resource use) but also about its effectiveness in:
 Supporting business strategies.
 Enabling business processes.
 Enhancing organizational structures and culture.
 Increasing customer and business value.
Mismanagement or misuse of IT can lead to both technological and business
failures.
2. Developing IS Solutions: Creating effective IS solutions to business problems is a key
challenge for professionals.
Business Professionals' Role: Proposing or improving IT uses in the
organization.
Managers' Role: Overseeing the IS development process and coordinating with
specialists and end-users.
System Development Process: Activities include analyzing business
requirements, evaluating feasibility, acquiring and learning software, and
maintaining systems to ensure long-term value.
Challenges and Ethics in IT
1. Managerial Challenges:
o Aligning IS with business strategies.

o Measuring success by business impact, not just cost or efficiency.

2. Ethics in IT:
o Responsible use of IT.

o Avoiding improper or harmful applications of technology.

System Concepts in IS
1. Definition of a System: A set of interrelated components with inputs, processing, and
outputs to achieve objectives.
2. Components of a Cybernetic System:
o Feedback: Data about system performance.

o Control: Monitoring and adjusting inputs/processes to meet goals.

3. Examples: Thermostat-controlled heating systems, businesses using data entry

displays for sales tracking.

Components of an Information System

Technology: Computer networks are made up of hardware, software, data
management, and telecommunications systems that process information.
Applications: E-business and e-commerce rely on interconnected systems to support
online business activities.
Development: Developing IT solutions involves designing and building the components
of business information systems.
Management: Managing IT focuses on ensuring system quality, aligning with business
goals, and securing information systems.
What is a System?
A system is a set of interrelated components working together with a clear boundary to achieve
common objectives. It transforms inputs into outputs through organized processes. A system
has three main functions:
1. Input: Gathering and organizing resources like raw materials, data, or human effort.
2. Processing: Transforming inputs into outputs, such as through manufacturing or
calculations.
3. Output: Delivering the processed results, like finished products or information, to their
intended users.
Example: A manufacturing system turns raw materials (input) into finished goods (output). An
information system processes data into information, while a business organization transforms
human and economic resources into goods and services.
Cybernetic System
A cybernetic system includes feedback and control, making it a self-monitoring, self-
regulating system:
1. Feedback: Data about the system’s performance (e.g., sales performance, aircraft
parameters).
 2. Control: Monitoring feedback and adjusting system inputs and processes to ensure it
meets goals (e.g., a sales manager reallocating territories or a pilot adjusting flight
settings based on feedback).
1. People Resources:
o End Users: Those who use the IS (e.g., employees, customers).

o IS Specialists: Developers, analysts, and operators who design and maintain IS.

2. Hardware Resources:
o Machines (e.g., computers, servers).

o Media (e.g., disks, papers).

3. Software Resources: Programs and instructions that guide IS operations.

Application software, which are programs that direct processing for a particular
use of computers by end users. Examples are sales analysis, payroll, and word
processing programs.
Procedures, which are operating instructions for the people who will use an
information system. Examples are instructions for filling out a paper form or using
a software package.
4. Data Resources: Raw data and knowledge bases used by IS.
5. Network Resources: Communication channels like the Internet and intranets.
6. Communications Media: Technologies for transmitting data, including twisted-pair wire,
coaxial cables, fiber optics, microwave, cellular, and satellite wireless technologies.
7. Network Infrastructure: Hardware, software, and data technologies needed to support
network operations, such as modems, internetwork processors, and network operating
systems.
Managerial Challenges and Success in IS
1. Success depends on how IS aligns with business strategies and creates value.
2. Mismanagement can lead to failures, wasting resources and opportunities.
3. Managers must balance efficiency, innovation, and ethical practices.
MODULE 2:
1. A Brief History of Computer Hardware
 Early computing devices began with the abacus, followed by mechanical
calculators like the Pascaline and the Leibniz machine.
 Key advancements included Joseph Jacquard's punched card-controlled loom
and Charles Babbage's conceptual Analytical Engine.
 Herman Hollerith adapted punched cards for census data, leading to the
development of the first electronic computers, like ENIAC in 1946.
 Progression through computer generations:
 First Generation (1946): Vacuum tubes.
Second Generation (Late 1950s): Transistors.
Third Generation (Mid-1960s): Integrated circuits.
Fourth Generation (1971): Microprocessors and miniaturization.
Fifth Generation (1980s): Advanced parallel processing.

2. Types of Computer Systems

 Categories: Mainframe, midrange, and microcomputer systems.
 Microcomputers became significant for business and personal use.
 Development led to devices like network computers (NCs) and information
appliances (e.g., PDAs).
3. Computer System Concept
 Computers function as systems comprising input, processing, output, storage,
and control.
 Key components include input devices, CPUs, output devices, and various
storage technologies.
 Processing speed advancements are highlighted, measured in cycles per second
(MHz and GHz), and explained through Moore's Law, indicating exponential
growth in transistor count.
4. Computer Peripherals: Input, Output, and Storage Technologies Input Technologies:
Evolved from basic keyboards to advanced optical scanning and voice recognition.
Output Technologies: Ranged from video displays to printed output and advanced voice
response systems. Storage Technologies: Spanned from magnetic disks and tapes to
optical disks (CD-ROM, DVD) and emerging technologies like RFID. 5. Computer
Storage Fundamentals Data storage employs binary representation (bits and bytes).
Storage devices include semiconductor memory (RAM and ROM), magnetic disks, RAID
systems, magnetic tape, and optical disks. New storage advancements include flash
drives and RFID technologies, which also raise privacy concerns.