Information
to Business
Information
Systems
(INF 1505):
2020
Semester 1: Unit 1 to 13
1|Page
,Unit 1: An Introduction to Information Systems
1.1 Introduction
• Information is derived from data through the use of information systems, making it
possible for organizations to improve the way they conduct business.
• Information Systems are used in almost every imaginable profession, for example:
o Sales representatives use information systems to advertise products,
communicate with customers and analyse sales trends
o Managers use them to make decisions, such as whether to build a
manufacturing plant or research a cancer drug
• Many types of information systems are used in business organizations. The most
common of these are transaction processing systems (TPS), enterprise resource
planning systems (ERP), management information systems (MIS), decision support
systems (DSS), and group support systems (GSS).
• In addition, some organizations also use specialized information systems such as
knowledge management systems (KMS), systems based on artificial intelligence
(AI), and systems based on virtual reality.
1.1.1 Key Concepts
• Efficiency – A measure of what is produced divided by what is consumed
• Effectiveness – A measure of the extent to which a system achieves its goals; it can
be computed by dividing the goals actually achieved by the total stated goals.
• Forecasting - Predicting future events.
• System performance standard – A specific objective of the system.
• Technology infrastructure – All the hardware, software, databases,
telecommunications, people and procedures that are configured to collect,
manipulate, store and process data into information.
• Procedures - The strategies, policies, methods and rules for using a CBIS.
• Transaction - Any business related exchange, such as payments to employees,
sales to customers and payments to suppliers.
• Transaction processing systems (TPS) – An organized collection of people,
procedures, software, databases and devices used to record completed business
transactions.
• Enterprise resource planning (ERP) system - A set of integrated programs
capable of managing a company’s vital business operations for an entire multisite,
global organization.
• Electronic business (e-business) - Using information systems and the Internet to
perform all business-related tasks and functions.
• Management information system (MIS) - An organized collection of people,
procedures, software, databases and devices that provides routine information to
managers and decision makers.
• Decision support system (DSS) - An organized collection of people, procedures,
software, databases and devices used to support problem-specific decision
making.
• Artificial intelligence (AI) – The ability of computer systems to mimic or duplicate
the functions or characteristics of the human brain or intelligence.
• Knowledge base - A component of an expert system that stores all relevant
information, data, rules, cases and relationships used by the expert system.
2|Page
, • Systems development – The activity of creating or modifying existing business
systems.
1.2 What is an Information System?
1.2.1 What is a System?
• A system is a set of elements or components that interact to accomplish goals
• Systems have inputs, processing mechanisms, outputs, and feedback
o Input – the activity of gathering and capturing data
o Processing – converting or transforming data into useful outputs
o Output – production of useful information, often in the form of documents
and reports
o Feedback – output that is used to make changed to input or processing
activities
• A system processes the input to create the output
• Examples of systems are everywhere – an automatic car wash, the heating in a
building, the human body.
1.2.2 What is Information?
• Information is a collection of facts
• It can take many forms – text, numbers, images, audio clips and video clips are all
examples
• A closely related term is data
• These two terms are often used interchangeably
• An information system (IS) is a set of interrelated components that collect (input),
manipulate & store (process), and disseminate (output) information, and provide
a feedback mechanism to meet an objective
• An information system can be manual, for example paper-based, or computerised.
• Simply a collection of facts.
Characteristics of Valuable Information:
Characteristics Definitions
Accessible Easily accessible by authorized users
Accurate Information that is error free
Complete Contains all the important information
Economical Cost versus benefit is worthy
Flexible Information is useful in different areas
Relevant Contains Information that is important to
decision makers
Reliable Contains information you can depend on
Secure Safe from authorized users
Simple Not complex or difficult to understand
Timely Delivered when needed
Verifiable Check to verify if correct
3|Page
, 1.3 Manual and Computerised Information Systems
1.3.1 Computer-based Information Systems
A Computer-based Information System (CBIS) is a single set of hardware, software,
database, telecommunications, people, and procedures that is configured to collect,
manipulate, store, and process data into information.
1.3.2 Components of a Computer-based Information Systems (CBIS)
• Hardware – any machinery that assists in the input, processing, storage, and output
activities of an information system (e.g. Keyboard, mouse, Monitor etc.)
• Software – the computer programs that govern the operation of the computer (e.g.
Microsoft Windows)
• Database – an organised collection of electronic facts and information typically
consisting of two or more related data files.
• Telecommunications – the electronic transmission of signals for communications;
enables organisations to carry out their processes and tasks through effective
computer networks. Usually involves the following:
o Networks – computers and equipment that are connected in a building,
around the country or around the world to enable electronic communication
o Internet – the world’s largest computer network, actually consisting of
thousands of interconnected networks, all freely exchanging information
o Cloud Computing – a computing environment where software and storage
are provided as an internet service and are accessed via a Web browser
o Intranet – an internal company network built using internet and World
Wide Web standards and products that allows people within an organisation
to exchange information and work on projects
o Extranet – a network based on web technologies that allows selected
outsiders, such as suppliers or business partners to access authorised
resources of a company’s intranet
• People – The people involved include users of the system and information systems
personnel, including all the people who manage, run, program, and maintain the
system.
• Procedures – Procedures include the strategies, policies, methods, and rules for
using the CBIS, including the operation, maintenance, and security of the computer.
1.4 Business Information Systems
Businesses utilize information systems to improve their operations at all levels. Nearly all
workers, from top management to production line employees, come in contact with
computerized systems on a daily basis. This results in a variety of systems functioning in
different areas.
1.4.1 Electronic and Mobile Commerce
E-commerce involves any business transaction executed electronically between
companies (business-to-business, B2B), companies and consumers (business-to-
consumer, B2C), consumers and other consumers (consumer-to-consumer, C2C),
business and the public sector, and consumers and the public sector.
Mobile commerce (m-commerce) refers to business transactions that are carried out
using wireless communication devices.
4|Page
to Business
Information
Systems
(INF 1505):
2020
Semester 1: Unit 1 to 13
1|Page
,Unit 1: An Introduction to Information Systems
1.1 Introduction
• Information is derived from data through the use of information systems, making it
possible for organizations to improve the way they conduct business.
• Information Systems are used in almost every imaginable profession, for example:
o Sales representatives use information systems to advertise products,
communicate with customers and analyse sales trends
o Managers use them to make decisions, such as whether to build a
manufacturing plant or research a cancer drug
• Many types of information systems are used in business organizations. The most
common of these are transaction processing systems (TPS), enterprise resource
planning systems (ERP), management information systems (MIS), decision support
systems (DSS), and group support systems (GSS).
• In addition, some organizations also use specialized information systems such as
knowledge management systems (KMS), systems based on artificial intelligence
(AI), and systems based on virtual reality.
1.1.1 Key Concepts
• Efficiency – A measure of what is produced divided by what is consumed
• Effectiveness – A measure of the extent to which a system achieves its goals; it can
be computed by dividing the goals actually achieved by the total stated goals.
• Forecasting - Predicting future events.
• System performance standard – A specific objective of the system.
• Technology infrastructure – All the hardware, software, databases,
telecommunications, people and procedures that are configured to collect,
manipulate, store and process data into information.
• Procedures - The strategies, policies, methods and rules for using a CBIS.
• Transaction - Any business related exchange, such as payments to employees,
sales to customers and payments to suppliers.
• Transaction processing systems (TPS) – An organized collection of people,
procedures, software, databases and devices used to record completed business
transactions.
• Enterprise resource planning (ERP) system - A set of integrated programs
capable of managing a company’s vital business operations for an entire multisite,
global organization.
• Electronic business (e-business) - Using information systems and the Internet to
perform all business-related tasks and functions.
• Management information system (MIS) - An organized collection of people,
procedures, software, databases and devices that provides routine information to
managers and decision makers.
• Decision support system (DSS) - An organized collection of people, procedures,
software, databases and devices used to support problem-specific decision
making.
• Artificial intelligence (AI) – The ability of computer systems to mimic or duplicate
the functions or characteristics of the human brain or intelligence.
• Knowledge base - A component of an expert system that stores all relevant
information, data, rules, cases and relationships used by the expert system.
2|Page
, • Systems development – The activity of creating or modifying existing business
systems.
1.2 What is an Information System?
1.2.1 What is a System?
• A system is a set of elements or components that interact to accomplish goals
• Systems have inputs, processing mechanisms, outputs, and feedback
o Input – the activity of gathering and capturing data
o Processing – converting or transforming data into useful outputs
o Output – production of useful information, often in the form of documents
and reports
o Feedback – output that is used to make changed to input or processing
activities
• A system processes the input to create the output
• Examples of systems are everywhere – an automatic car wash, the heating in a
building, the human body.
1.2.2 What is Information?
• Information is a collection of facts
• It can take many forms – text, numbers, images, audio clips and video clips are all
examples
• A closely related term is data
• These two terms are often used interchangeably
• An information system (IS) is a set of interrelated components that collect (input),
manipulate & store (process), and disseminate (output) information, and provide
a feedback mechanism to meet an objective
• An information system can be manual, for example paper-based, or computerised.
• Simply a collection of facts.
Characteristics of Valuable Information:
Characteristics Definitions
Accessible Easily accessible by authorized users
Accurate Information that is error free
Complete Contains all the important information
Economical Cost versus benefit is worthy
Flexible Information is useful in different areas
Relevant Contains Information that is important to
decision makers
Reliable Contains information you can depend on
Secure Safe from authorized users
Simple Not complex or difficult to understand
Timely Delivered when needed
Verifiable Check to verify if correct
3|Page
, 1.3 Manual and Computerised Information Systems
1.3.1 Computer-based Information Systems
A Computer-based Information System (CBIS) is a single set of hardware, software,
database, telecommunications, people, and procedures that is configured to collect,
manipulate, store, and process data into information.
1.3.2 Components of a Computer-based Information Systems (CBIS)
• Hardware – any machinery that assists in the input, processing, storage, and output
activities of an information system (e.g. Keyboard, mouse, Monitor etc.)
• Software – the computer programs that govern the operation of the computer (e.g.
Microsoft Windows)
• Database – an organised collection of electronic facts and information typically
consisting of two or more related data files.
• Telecommunications – the electronic transmission of signals for communications;
enables organisations to carry out their processes and tasks through effective
computer networks. Usually involves the following:
o Networks – computers and equipment that are connected in a building,
around the country or around the world to enable electronic communication
o Internet – the world’s largest computer network, actually consisting of
thousands of interconnected networks, all freely exchanging information
o Cloud Computing – a computing environment where software and storage
are provided as an internet service and are accessed via a Web browser
o Intranet – an internal company network built using internet and World
Wide Web standards and products that allows people within an organisation
to exchange information and work on projects
o Extranet – a network based on web technologies that allows selected
outsiders, such as suppliers or business partners to access authorised
resources of a company’s intranet
• People – The people involved include users of the system and information systems
personnel, including all the people who manage, run, program, and maintain the
system.
• Procedures – Procedures include the strategies, policies, methods, and rules for
using the CBIS, including the operation, maintenance, and security of the computer.
1.4 Business Information Systems
Businesses utilize information systems to improve their operations at all levels. Nearly all
workers, from top management to production line employees, come in contact with
computerized systems on a daily basis. This results in a variety of systems functioning in
different areas.
1.4.1 Electronic and Mobile Commerce
E-commerce involves any business transaction executed electronically between
companies (business-to-business, B2B), companies and consumers (business-to-
consumer, B2C), consumers and other consumers (consumer-to-consumer, C2C),
business and the public sector, and consumers and the public sector.
Mobile commerce (m-commerce) refers to business transactions that are carried out
using wireless communication devices.
4|Page
