Data Information System

A set of components working

Raw facts or figures Processed data with meaning
together
Unorganized and Organized and useful for Designed to collect, process,
meaningless alone decision-making and manage
Example: School grading
Example: 50, 60, 45 Example: "Average score is 52"
system
Uses both data and
Needs to be processed Is the result of processing data
information
Cannot help in decisions Supports operations and
Helps in making decisions
directly decision-making
Example: Names, numbers, Example: "Sales increased by Example: Inventory
dates 10% in March" management system

Components of an Information System (IS)

1. Hardware
The physical devices used in an information system like computers, printers, and servers.
Example: A desktop computer used to enter student marks.
2. Software
The programs and applications that process data and run the system.
Example: Microsoft Excel or school management software.
3. Data
Raw facts and figures that are processed to create useful information.
Example: Names, marks, and attendance records of students.
4. People
The users who interact with the system and operate it, including IT staff, managers, and end-
users.
Example: A teacher entering marks or an admin generating student reports.
5. Processes (Procedures)
The set of instructions or rules followed to use the system properly and consistently.
Example: Steps to record student attendance and generate a report card.
TPS (Transaction Processing System) and MIS (Management Information
System)

TPS– Transaction Processing System

TPS is used to record and process daily business transactions like sales, payments, orders,
etc. It handles large amounts of data and ensures everything is accurate and up to date. It is
mostly used by staff at the operational level.
Example: When you buy something at a supermarket, the billing system records your
purchase, updates the inventory, and prints your bill. This is a TPS in action.

MIS – Management Information System

MIS is used to collect data from TPS, organize it, and provide useful reports for managers
to make decisions. It helps in planning, monitoring, and controlling business operations.
Example: A sales manager uses MIS to see monthly sales reports from all branches to decide
which products are performing well and where to improve.

Ethical & Social Issues in IT

Ethical Issues in IT

 Privacy Concerns: Organizations collect large amounts of personal data. Misusing or

sharing this data without permission can invade people’s privacy. For example,
social media platforms may track user activity without clear consent.
 Data Security: With the rise of cyberattacks, companies face the challenge of
protecting sensitive information. Weak security practices can lead to data breaches,
exposing confidential information.
 Digital Piracy and Copyright Infringement: Unauthorized downloading, copying,
or sharing of software, music, or movies violates intellectual property rights.
 Employee Monitoring: Companies may track employees’ online activities, raising
concerns about workplace privacy.
 AI and Bias: Algorithms used in hiring, lending, or law enforcement may
unintentionally include biases, leading to unfair treatment.

Social Issues in IT

 Digital Divide: Not everyone has equal access to technology, creating a gap between
people with and without tech resources. This can limit educational and job
opportunities.
 Job Displacement: Automation and AI may replace human jobs, leading to
unemployment and economic challenges.
 Addiction and Mental Health: Overuse of social media, gaming, or the internet can
cause addiction and mental health problems like anxiety and depression.
  Cyberbullying and Harassment: Social platforms can be misused for bullying,
harassment, or spreading false information, affecting individuals’ well-being.
 Loss of Social Interaction: Increased use of technology can reduce face-to-face
communication, impacting social skills and relationships.

Information System (IS) security threat

i) Human Errors or Failures

These are unintentional mistakes made by people, such as clicking the wrong button or
entering wrong data. Even a small mistake can lead to big issues.
Example: An employee accidentally deletes important customer records from the database.
ii) Manipulation of Data/System.
This involves intentionally changing or misusing data or systems for personal benefit or to
harm the organization.
Example: An employee changes sales records to get a higher commission.
iii) Theft of Data/Systems
This threat involves stealing important data or computer equipment, either physically or
digitally.
Example: A hacker steals customer credit card information from an online store.
iv) Destruction from Virus
Viruses, malware, or ransomware can damage or destroy data and systems, often entering
through emails or unsafe downloads.
Example: A virus infects company computers, corrupting important files and causing system
crashes.
v) Technical Failure/Errors of Systems
Sometimes, system crashes, bugs, or power failures can cause data loss or stop operations.
Example: A server crash leads to the online banking system being down for hours.
vi) Natural Disasters (Flood, Fire, Earthquake)
Events like floods, fires, or earthquakes can damage hardware, disrupt services, or
permanently destroy data if not backed up.
Example: A fire in the office destroys computers and the entire local database.

Sure! Here's a simple explanation of the Marketing Information System (MkIS) and its
input and output subsystems, explained point by point with examples:
What is Marketing Information System (MkIS)?

A Marketing Information System is a system that helps businesses collect, store, analyze,
and share marketing-related data to make better decisions. It combines information from
various sources to help with product planning, sales, promotions, distribution, and more.

Input Subsystems – Where data comes from:

1. Accounting Data Entry
Involves records of sales, payments, invoices, and delivery notes.
Example: A company tracks how many products were sold, how much money was received,
and which orders have been delivered.
2. Market Research Data
Includes surveys and reports about market trends and customer needs.
Example: An industrial survey shows that demand for electric bikes is increasing.
3. Market Intelligence Data
Information collected about competitors, like their prices, ads, and product features.
Example: A business finds out that a competitor launched a new product at a lower price.

Output Subsystems – How the data is used:

1. Product Subsystem
Tracks sales value, customer details, and inventory levels.
Example: Shows how many smartphones were sold last month and how much stock is left.
2. Place Subsystem
Shows data by zone, area, or market segment to target locations better.
Example: Reports say sales are highest in South India, so more stock is sent there.
3. Promotion Subsystem
Deals with dealer performance, commissions, and promotional campaigns.
Example: Tracks how much commission is paid to each dealer and which ads brought in
more customers.
4. Product Mix Subsystem
Manages the variety of products offered, grouped by product and product family.
Example: Helps the company see which product line (e.g., laptops vs. tablets) is performing
best.
5. Distribution Subsystem
Keeps track of distributors and dealers, and how products move to the market.
Example: Shows which distributor is most efficient in delivering goods on time.

Sure! Here's a simple explanation of a Financial Information System (FIS) with examples:

What is a Financial Information System (FIS)?

A Financial Information System is a type of information system that helps an organization

manage and track its financial activities like income, expenses, budgeting, and financial
reporting. It collects, stores, and analyzes financial data to help in making business decisions.

What Does It Do?

 Tracks cash flow, income, and expenses

 Helps in budget planning
 Prepares financial reports (like profit & loss statements)
 Supports tax calculation and audits
 Monitors payments, receivables, and billing

Example:

A company uses a financial information system to:

 Record all sales and expenses

 Automatically calculate monthly profits
 Generate a balance sheet at the end of the year
 Track which customers haven’t paid yet (accounts receivable)
 Forecast future budgets based on current spending trends

Key Components:

1. General Ledger – Records all financial transactions

2. Accounts Payable – Tracks money the company owes
3. Accounts Receivable – Tracks money owed to the company
4. Payroll System – Manages employee salaries and taxes
5. Budgeting Module – Helps plan and control spending
What is Production/Manufacturing Information System?

A Production or Manufacturing Information System helps a company manage the process

of making products, from designing to producing and delivering them. It supports better
decision-making in the manufacturing process.

Key Decisions in the Manufacturing System:

1. Product Design
Explanation: Deciding what the product will look like and how it will function.
Example: Designing a new mobile phone model with a better camera and larger battery.
2. Plant Location and Layout
Explanation: Choosing where to build the factory and how machines and equipment will be
arranged inside.
Example: A car company sets up a factory near a port for easy shipping, and arranges
machines in a way to speed up production.
3. Production Planning and Control
Explanation: Planning when and how much to produce, and controlling the process to avoid
delays or shortages.
Example: A bakery plans to produce 1,000 cakes per day based on orders and ensures raw
materials are always stocked.
4. Quality Controls
Explanation: Checking that the products meet quality standards and are not faulty.
Example: A toy company tests each batch to make sure there are no broken or unsafe parts.
5. Product Development
Explanation: Improving or creating new products to meet customer needs.
Example: A company adds a water-resistant feature to its existing smartwatch based on
customer feedback.
What is System Development Life Cycle (SDLC)?

The System Development Life Cycle is the step-by-step process used to develop and
manage information systems. It helps ensure the system works well and meets user needs.

Main Activities in SDLC

i) Understanding the Problem

 Explanation: Find out what the users need and what problem the current system has.
 Example: A school wants a new system because their old student record system is
slow and keeps losing data.

ii) Deciding a Plan for a Solution

 Explanation: Think and plan how the new system should work, including features
and how users will use it.
 Example: The plan includes creating a system where teachers can enter marks and
attendance easily.

iii) Coding the Planned Solution

 Explanation: Programmers write the code to create the system based on the plan.
 Example: A developer writes code to build the student mark entry and report card
feature.

iv) Testing the Coded Program

 Explanation: The system is tested to check if everything works properly and to fix
any errors (bugs).
 Example: Before using it in school, the system is tested with sample data to make
sure marks are saved correctly.

v) Installing the System

 Explanation: The final system is installed and made ready for actual use. Users are
trained if needed.
 Example: The new student record system is installed in all school computers, and
teachers start using it.

Sure! Here's a simple explanation of each step in the Waterfall Model based on the image
you’ve shared:
Waterfall Model –

1️⃣ Requirement Analysis

 What happens: All the requirements (needs) of the system are collected from the
client or users.
 Example: A client wants an online food ordering app. You note all features like menu
display, order tracking, payments, etc.

2️⃣ System Design

 What happens: Based on the requirements, the system is designed — both how it
looks (UI) and how it works (backend, databases).
 Example: Plan how the app’s screens will look, how orders are stored, and how
payments will be processed.

3️⃣ Implementation (Coding)

 What happens: Developers write code to build the software according to the design.
 Example: Programmers write code to create login pages, display food items, add
payment options, etc.

4️⃣ Testing

 What happens: Test the system to check if everything works as expected and fix any
bugs.
 Example: Check if the user can place an order, make payments, and receive
confirmation properly

5️⃣ Deployment

 What happens: The finished system is delivered and installed for use.
 Example: The food ordering app is launched on the Play Store or App Store for users
to download and use.

6️⃣ Maintenance

 What happens: After launch, any issues are fixed and updates are made based on
feedback or changes.
 Example: Add a new feature like “track your delivery” or fix a payment bug users are
facing.
Advantages of Waterfall Model

1. Easy to Understand
o Step-by-step, like a staircase.
o Example: Finish design before starting coding.
2. Well-Organized Process
o Each stage has clear goals and deadlines.
3. Good for Small Projects
o Works well when requirements are clear from the start.
4. Easy to Manage
o Because everything is planned early, tracking progress is simple.

Disadvantages of Waterfall Model

1. No Going Back
o Once a step is done, it’s hard to go back and change it.
o Example: Can’t easily change a feature during coding if missed in the design
phase.
2. Late Testing
o Testing happens only after coding is done, so bugs are found late.
3. Not Flexible
o Doesn’t handle changes well once the project is in progress.
4. Risky for Big Projects
o If the project is long or complex, problems may not show up until very late.

Spiral Model – Explained Simply

The Spiral Model is used for big or risky projects. It works in repeated cycles (spirals)
where each cycle includes planning, designing, building, and testing — while also focusing
on risk analysis at every step.

1️⃣ Identification (Planning Stage)

 What happens: Collect requirements and decide what needs to be done in this cycle.
 Example: For a banking app, identify that this cycle will build the login and signup
features.

2️⃣ Design

 What happens: Create system architecture and screen design for the selected
features.
 Example: Design how the login page will look and how it connects to the user
database.
3️⃣ Construct or Build

 What happens: Develop and code the design created in the previous step.
 Example: Developers write code for login and signup functionality.

4️⃣ Evaluation and Risk Analysis

 What happens: Test the system, get feedback, and identify possible risks or
improvements.
 Example: Check for bugs in the login system, and find that password reset is missing
— plan it for the next cycle.

Advantages of Spiral Model (Simple)

1. Good for Large & Risky Projects

o Best when the project is complex or has unknown risks.
o Example: A new app with many uncertain features.
2. Flexibility to Change
o You can change features or plans in each cycle.
o Example: Add new login options based on feedback.
3. Early Risk Detection
o Risks are checked in every cycle, so problems are caught early.
4. User Feedback Included
o Users can give feedback after each cycle.
o Example: Client sees the progress and suggests changes early

Disadvantages of Spiral Model

1. Expensive
o Can cost more due to repeated cycles and testing.
2. Takes More Time
o More planning and reviewing in every cycle = longer development.
3. Complex to Manage
o Needs skilled people to handle planning, designing, and risk analysis.
4. Not for Small Projects
o Too heavy for simple or short projects.

CIA Triad = Confidentiality, Integrity, Availability

1️⃣ Confidentiality
Meaning: Keeping information private and safe from unauthorized access.
Example: Your online banking password is encrypted, so only you can log in.
2️⃣ Integrity
Meaning: Making sure data is accurate and not changed without permission.
Example: When you send money online, the amount shouldn’t change while transferring.

3️⃣ Availability
Meaning: Making sure systems and data are always accessible when needed.
Example: An ATM should be online 24/7 so users can withdraw cash anytime.

Porter's Five Forces Model

1️⃣ The Bargaining Power of Customers (Buyers)

 Meaning: How much power customers have to demand lower prices or better
services.
 Example: In the mobile phone market, customers have many options (Samsung,
Apple, Xiaomi), so they can choose cheaper or better phones.

2️⃣ The Bargaining Power of Suppliers

 Meaning: How much power suppliers have to increase prices or reduce quality.
 Example: If only one company supplies a rare raw material for chips, they can charge
more — the supplier has high power.

3️⃣ The Threat of New Entrants

 Meaning: How easy it is for a new company to enter the market and compete.
 Example: Starting an online clothing store is easy, so new brands can keep entering,
increasing competition.

4️⃣ The Threat of Substitute Products or Services

 Meaning: How easily customers can switch to another product that does the same
job.
 Example: Tea and coffee are substitutes — if coffee gets expensive, people may
switch to tea.

5️⃣ The Rivalry Among Existing Competitors

 Meaning: How intense the competition is between companies already in the market.
 Example: Pepsi and Coca-Cola compete strongly in price, ads, and offers — this is
high rivalry.
What is a Digital Firm?

A Digital Firm is a company where all major business processes are done using digital
technology. This includes sales, customer service, communication, marketing, and operations
— everything runs through computers, apps, or the internet.

Characteristics of a Digital Firm:

1. Digital Communication
o Uses emails, chat, or video calls for fast communication.
o Example: Employees use Zoom or Teams instead of face-to-face meetings.
2. Online Operations
o Business can run 24/7 using the internet.
o Example: An e-commerce store sells products all day without a physical shop.
3. Automation
o Repeats tasks like billing, payroll, or order processing are done automatically.
o Example: An online store auto-sends bills and delivery updates to customers.
4. Data-Driven Decisions
o Uses real-time data and analytics to make better decisions.
o Example: A food delivery app shows which items sell most in which area.
5. Integration Across Departments
o All departments (sales, HR, finance) are connected through software.
o Example: When a sale happens, inventory and accounts update automatically.

Benefits of Digital Firms:

1. Faster and More Efficient

o Work gets done quickly, with less effort.
2. Better Customer Experience
o Customers can get support or place orders anytime, anywhere.
3. Cost Saving
o Less paperwork, fewer staff needed for manual tasks.
4. Scalable
o Easy to grow the business to new markets or more customers online.
5. Competitive Advantage
o Can respond to market changes quickly using digital tools.

Short Example:

Amazon is a digital firm. It uses technology for everything — from customer orders,
tracking, payments, to recommending products using AI.

What is Digital Transformation?

Digital Transformation means using digital technology to change and improve how a
business works, serves customers, and delivers value. It is not just about using computers, but
completely rethinking how a company operates using modern tech.

Benefits of Digital Transformation:

1. Improved Efficiency
o Automates tasks and reduces manual work.
o Example: Online payroll systems save time in calculating salaries.
2. Better Customer Experience
o Makes services faster, easier, and more convenient for customers.
o Example: Online food apps like Zomato or Swiggy show real-time delivery
tracking.
3. Cost Savings
o Reduces spending on paper, manpower, and physical space.
o Example: Digital invoices cut printing and mailing costs.
4. Data-Driven Decisions
o Helps companies make smarter decisions using analytics.
o Example: A retail app can show which products are selling best in different
cities.
5. Flexibility & Innovation
o Makes it easy to introduce new ideas and work remotely.
o Example: Schools running online classes during the COVID-19 pandemic.

Challenges of Digital Transformation:

1. High Initial Cost

o Buying new tech or training staff can be expensive.
o Example: A small shop switching to an online system needs to invest in
software and hardware.
2. Employee Resistance
o Some people may not want to change old ways.
o Example: Staff who are used to paper records may struggle with digital tools.
3. Cybersecurity Risks
o Digital systems can be targeted by hackers.
o Example: A hospital using digital records must protect patient data from
cyberattacks.
4. Need for Skilled Workers
o Requires people who understand and manage digital tools.
o Example: A company may need to hire IT experts to maintain cloud systems.

🔍 Example:

IRCTC (Indian Railways online booking)

Before: People had to go to railway counters for tickets.
After Digital Transformation: People book tickets from their phone anytime — fast, easy, and
paperless.