8/28/2025

Topic 2
Understanding Information Systems
■ Definition
■ Components of Information Systems
FACULTY OF ARTS AND HUMANITIES ■ People: information specialists and users
BACHELOR OF ARTS WITH EDUCATION
■ Categories of Information
INFORMATION AND COMMUNICATION TECHNOLOGY(ICT)
■ Types of Information Systems
INFORMATION SYSTEMS ANALYSIS AND DESIGN ■ The role of Information Systems in organizations
HCT 2101

1 1

DATA & INFORMATION & DATA & INFORMATION &

Knowledge Knowledge
• DATA: • INFORMATION:
– Raw facts representing events, occupancies, – Processed data with relevance and purpose,
measures etc such as business transactions, or, meaningful and useful.
simple observations of the state of the world – Information has value beyond data

– Information is one of an organization’s

most valuable resources

1 1

DATA & INFORMATION & Data, Information, and

Knowledge Knowledge
• KNOWLEDGE
– Knowledge is Information from the human mind
(includes reflection, synthesis, context ), which
guide human behavior in correct way.
– Knowledge: awareness and understanding of a set
of information and ways that information can be
made useful to support a specific task or reach a
decision
The Process of Transforming Data into Information
1
6 1

1
 8/28/2025

Characteristics of Valuable
Characteristics of Valuable

Information contd’
Information
1 1

Example What is an Information System?

■ Supermarket checkout counters ring up millions of pieces of data, such as In order to understand what an information system is, we need to first define
product identification numbers or the cost of each item sold. a system.
■ Such pieces of data can be totaled and analyzed to provide meaningful
information such as the total number of bottles of dish detergent sold at a
particular store, which brands of dish detergent were selling the most rapidly at
that store or sales territory, or the total amount spent on that brand of dish
detergent at that store or sales region.
■ This will influence the management’s buying behavior.

1 1

Information System Components of Information Systems:

1. Hardware
■ Thus, we can define an Information System as an organized combination of
■ The physical devices used in an IS.
people, hardware and software, communication networks, data resources,
policies and procedures. ■ Examples: Computers, servers, storage devices, networking equipment.
2. Software
■ The programs and applications that tell the hardware what to do.
■ Two types:
– System Software (e.g., Operating Systems like Windows, Linux)
– Application Software (e.g., MS Word, ERP systems)

1 1

2
 8/28/2025

Components of Information Systems: Components of Information Systems:

3. Data
5. Processes / Procedures
■ The raw facts and figures that the system processes into meaningful information.
■ The rules, policies, and methods that define how data is collected, processed, and used.
■ Example: Sales numbers, customer records, sensor readings.
■ Ensures that the system meets business goals effectively.
■ Data is considered the core of any information system.
■ Example: Steps for processing an online order, data backup policies.
4. People
■ The users who interact with the system, from developers to managers and end-users.
■ Examples: IT staff, business analysts, employees, customers.

1 1

People in Information Systems People in Information Systems

In an Information System, people are one of the most important components, and they can ■ IT Specialists / Technical Staff
be grouped into different categories:
The people who develop, maintain, and support the system.
■ End Users (Operators / Consumers)
Sub-groups include:
The people who directly use the system to perform their jobs or tasks.
– System Analysts – study business problems and design solutions.
Examples: – Programmers / Developers – write and test software.
– A cashier using a Point of Sale (POS) system – Database Administrators (DBAs) – manage and secure databases.
– A student using an e-learning portal – Network Administrators – manage communication networks.
– A manager checking reports on a dashboard – Support Staff (Helpdesk / Technicians) – provide technical assistance to users.

1 1

People in Information Systems People in Information Systems

■ Managers / Decision Makers
■ External Users
Use information from the system to make strategic, tactical, or operational decisions.
People outside the organization who interact with the IS.
Levels:
– Top-level management – executives using strategic information systems (e.g., Examples: Customers (online shopping systems), suppliers (supply chain systems),
dashboards, business intelligence). government agencies (compliance systems
– Middle management – supervisors using MIS (Management Information Systems).
– Operational management – daily monitoring and control.

1 1

3
 8/28/2025

Categories of information Categories of information

■ Strategic Information – Long-term, for top management to plan and set policies.
Example: Market trends, competitor analysis.
■ Tactical Information – Medium-term, for middle management to allocate resources and
monitor performance.
Example: Sales forecasts, departmental budgets.
■ Operational Information – Day-to-day, for routine operations and decision-making.
Example: Daily sales reports, staff schedules.

1 1

Role of Information Systems in Role of Information Systems in

organizations organizations
■ Supporting Business Operations ■ Enhancing Communication and Collaboration
IS help in the day-to-day running of the organization. IS improve internal and external communication through tools like email, video
conferencing, and collaboration platforms.
Examples: Payroll systems, transaction processing systems, inventory management.
Example: Microsoft Teams, Slack, Zoom.
Benefit: Increases efficiency, reduces errors, automates routine tasks.
Benefit: Faster communication, teamwork across departments and locations.
■ Decision-Making Support
■ Improving Efficiency and Productivity
Provides managers with accurate and timely information for decisions.
Automates repetitive processes, saving time and cost.
Examples: Management Information Systems (MIS), Decision Support Systems (DSS),
Business Intelligence (BI). Example: Online order processing instead of manual entry.
Benefit: Better planning, forecasting, and problem-solving. Benefit: Higher productivity with fewer resources.

1 1

Role of Information Systems in Role of Information Systems in

organizations organizations
■ Supporting Innovation and Competitive Advantage ■ Customer and Supplier Relationship Management
Helps organizations create new products, services, and business models. IS improve relationships through CRM (Customer Relationship Management) and SCM
(Supply Chain Management) systems.
Example: E-commerce platforms, mobile banking apps.
Example: Salesforce (CRM), SAP (SCM).
Benefit: Staying ahead of competitors and meeting customer needs.
Benefit: Stronger customer loyalty, better supplier coordination.
■ Data Management and Knowledge Sharing
Collects, stores, and processes large amounts of data into useful information.
Example: Data warehouses, cloud storage.
Benefit: Better knowledge management and information sharing across departments.

1 1

4
 8/28/2025

IS development lifecycle Categories of Information Systems

■ Feasibility study
There are two broad categories of Information Systems namely Operations
■ Systems investigation Support Systems and Management Support Systems.
■ Systems analysis These two are further sub-divided as illustrated
■ Systems design
■ implementation
■ Review and maintenance

1 1

The Operations Support Systems (OSS)

These efficiently processes business transactions, controls industrial
processes, supports communication and collaboration and updates corporate
databases.

The Operations Support Systems are further subdivided as illustrated

below:
■ Transaction Processing Systems (TPS)
■ Process Control Systems
■ Enterprise Collaboration Systems

1 1

Management Support Systems (MSS)

These support managerial decision making. They provide information such as reports and
displays as well as give direct computer support to managers during decision-making. An
example of such reports is the summarized sales by region.
be aware that Management Support Systems are further sub-divided to support different
managerial decision making needs: We have three types of MSS as shown below:
■ Management Information Systems (MIS) where we have reports and displays. Example: daily
THE END
sales analysis reports
■ Decision Support Systems (DSS) where we have interactive and ad hoc support. Example: a
what-if analysis
■ Executive Information Systems (EIS) where we have critical information for executives and
managers. Example: easy access to actions of competitors. to determine where to spend
advertising dollars.

1 1