Introduction to

information
system
Name: Nazeeha Amrouni
ID:2763
 • Define Information
Technology
“ IT”.

Information technology (IT) is the use of any

computers, storage, networking and other
physical
devices, infrastructure and processes to
create, process, store, secure and exchange
.all forms of electronic data
• Define Information
System “ IS”.

• Information system (IS): A set of interrelated

components that collect, process, store, and
disseminate data and information .
• Data: Raw facts such as an employee number
or total hours worked in a week.
• Information: A collection of data organized and
processed so that it has additional value beyond
the value of the individual facts.
• Discuss why i t i s
importantto study
information system.

information system provides a feedback

mechanism to monitor and control its
operation to make sure it continues to
.meet its goals and objectives
The feedback mechanism is critical to helping
organizations achieve their goals, such as
increasing profits or improving customer
service.
• Describe characteristics of
valuable information
system.

Accessible: Information should be easily accessible by authorized

users so they can
obtain it in the right format and at the right time to meet their
.needs
Accurate: information is error free. In some cases, inaccurate
information is generated because inaccurate data is fed into the
transformation process. This is commonly called garbage in,
.garbage out
Complete: information contains all the important facts. For
example, an investment
.report that does not include all important costs is not complete
Economical: Information should also be relatively economical to
produce. Decision makers must always balance the value of
information
.with the cost of producing it
 Flexible: information can be used for a variety of purposes. For
example, information on how much inventory is on hand for a
particular part can be used by a sales representative in closing a
sale, by a production manager to determine whether more
inventory is needed, and by a financial executive to determine
.the amount of money the company has invested in inventory
Relevant: information is important to the decision maker.
Information showing that lumber prices might drop is probably
.not relevant to a computer chip manufacturer
Reliable: information can be trusted by users. In many cases,
the reliability of the information depends on the reliability of
the data-collection method. In other instances, reliability
depends on the source of the information. A rumor from an
unknown source that oil prices might go up may not be
.reliable
Secure: Information should be secure from access by
.unauthorized users
Simple: Information should be simple, not complex. Sophisticated
and detailed information might not be needed. In fact, too much
information can cause information overload, whereby a decision
maker has too much information and is unable to determine
.what is really important
Timely: information is delivered when it is needed. Knowing last
week’s weather
conditions will not help when trying to decide what coat to wear
.today
Verifiable: Information should be verifiable. This means that
you can check it to make sure it is correct, perhaps by
.checking many sources for the same information
• List components of
information system.

There are two types of IS:

1. IS:
• Collecting (input)
• Manipulation
• Store
• Disseminate data and information (output)
• Feedback
1. Computer based IS:
• software
• Hardware
• networks
• people
• Data.
• Procedures
• Identify c l assification of
those system based on
their usage and users.
Transaction processing system (TPS)
Which capture and process the detailed data necessary to
update records about the fundamental business
operations of the organization.
• Management information system (MIS)
is an organized collection of people, procedures, software,
databases, and devices that provides routine
information to managers and decision makers.
• Expert systems
➢ Dxplain system:
Used in hospitals and medical schools for clinical studies. ➢
PUFF system
➢ PEIRS system
• Decision support system
executive information systems, online analytical processing,
business intelligence, and business analytics have gained in
capabilities and expanded in scope to add new functionality but
all have had the goal of deriving the most value out of the data
available.
:Discuss the roles that IS plays in different business areas

• Accounting and finance

determine the best sources and uses of funds, manage
cash and other financial resources, analyze investments, and perform audits to make
sure that the organization is financially sound and that all financial reports and
documents are accurate.
• Customer service
Information systems are used to capture data about
customers and their interactions with the company to better understand
their needs and issues and enable superior customer service.
• Human resources
Information systems help human resource staff screen
job applicants, administer performance tests to employees, monitor employee
productivity, and generate required government reports.
:Research and development •
Information systems help R&D staff design
products, gather input from customers that leads to new ideas and improvements, and
.enable the sharing of information with a worldwide community of researchers
Sales and marketing •
Information systems help sales and marketing personnel
develop new goods and services (product analysis), determine the
best advertising and sales approaches (promotion analysis), and set optimal product
.prices to get the highest total revenues (price analysis)

:Manufacturing
Information systems are used to process customer
orders, develop production schedules, control inventory levels, and monitor product
.quality
Reference
..

Principles of Information Systems | Ralph M. Stair - •

George W. Reynolds
chapter 1 \
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