STUDY GUIDE
,INTRODUCTION TO BUSINESS INFORMATION
SYSTEMS - INF1505
STUDY GUIDE
Chapter 1
Introduction to Business Information Systems
1.1 What is an Information System?
System
A system is a group of interconnected elements or components that work together to
achieve a particular objective.
A system generally has four main components:
Input
Input refers to the collection and capture of raw data that will be processed by the
system.
Processing
Processing involves changing, analysing, or transforming the input data so that it
becomes meaningful and useful.
Output
Output is the result produced after data has been processed. It may take the form of
useful information, reports, documents, or other results.
,Feedback
Feedback involves evaluating the output produced by a system. The results can then be
used to modify the input or improve the processing activities.
1.1.1 System Performance and Feedback
Feedback represents an important final stage in a system because it helps determine
whether the system is functioning as intended. System performance can be evaluated in
several ways.
Efficiency
Efficiency measures the relationship between what a system produces and the
resources it consumes. A system is efficient when it produces the desired results while
using resources economically.
Effectiveness
Effectiveness indicates how successfully a system accomplishes its intended objectives.
It can be assessed by comparing the goals that were actually achieved with the total
goals that were established.
System Performance Standard
A system performance standard is a clearly defined target or objective against which the
performance of a system can be evaluated.
1.1.2 What Is Information?
Information
Information consists of facts or data that have been processed and organised so that
they have meaning and can be used by people.
In a basic information system, data enters the system as input and information
emerges as output after processing has taken place.
1.1.3 What Is an Information System?
, Information System
An information system consists of interconnected components that collect, process,
store and distribute information. It also provides feedback to help an organisation
accomplish a specific purpose or objective.
Forecasting
Forecasting refers to the process of using available information to estimate or predict
events and conditions that may occur in the future.
1.1.4 Characteristics of Valuable Information
The usefulness or value of information depends largely on the extent to which it assists
decision makers in achieving organisational objectives.
Characteristi Explanation
c
Accessible Information should be available to authorised users in an appropriate
format and at the time it is required.
Accurate Information should be correct and free from errors.
Complete Information should contain the important facts required for making an
informed decision without unnecessary additions.
Economical The cost of producing information should be reasonable when
compared with the value that the information provides.
Flexible Information should be capable of being used for different purposes
when necessary.
Relevant Information should relate directly to the decision or problem being
considered.
Reliable Users should be able to depend on the information when making
decisions.
Secure Information should be protected from access or use by unauthorised
people.