CHAPTER 1
An Introduction to Information Systems (IS)
Information Systems are used in almost every imaginable profession, for example:
Sales representatives use information systems to advertise products,
communicate with customers and analyse sales trends
Managers use them to make decisions, such as whether to build a
manufacturing plant or research a cancer drug
1. What is an Information System?
First we need to break it down to get to the understanding and definition of IS:
1.1 What is a System?
It is a set of elements or components that interact to accomplish goals. A system consist of
four component:
Input – the activity of gathering and capturing data
Processing – converting or transforming data into useful outputs
Output – production of useful information, often in the form of documents and
reports
Feedback – output that is used to make changed to input or processing activities
1.2 What is Information?
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
,Therefore, an Information system is a set of interrelated components that collect, manipulate, store
and disseminate information and provide a feedback mechanism to meet an objective
Manual and Computerised 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.
Components of a 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 information
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 – users of the system
Procedures – the strategies, policies, methods and rules for using a CBIS
2. Business Information Systems
2.1 Transaction Processing Systems (TPS)
A transaction is any business related exchange, such as payments to employees, sales to customers
and payments to suppliers. Therefore, a TPS is an organised collection of people, procedures,
software, databases and devices used to record completed business transactions.
2.2 Enterprise Resource Planning (ERP)
A set of integrated programs capable of managing a company’s vital business operations for an
entire multisite, global organisation. It checks what is already available in finished products
inventory to meet the projected demand
2.3 Management Information Systems (MISs)
Is an organised collection of people, procedures, software, databases, and devices that
provides routine information to managers and decision-makers.
When designing an MIS:
Clearly define the systems objectives
, Collect and analyse data
Provide information in a useful format for decision-making purposes
Decision Support System (DSS) is an organised collection of people, procedures, software,
databases, and devices used to support problem specific decision making.
2.4 Knowledge Management (KM), Artificial Intelligence (AI), Expert Systems and Virtual Reality
Artificial Intelligence is the ability of a computer system to mimic or duplicate the functions
or characteristics of the human brain or intelligence
Major elements of Artificial Intelligence:
o Robotics
o Vision Systems
o Learning Systems
o Neural Networks
o Expert Systems
Expert System is a system that gives a computer the ability to make suggestions and act like
an expert in a particular field
Virtual Reality is the simulation of a real or imagined environment that can be experienced
visually in three dimensions
3. Systems Development
The activity of creating or modifying existing business systems.
An Overview of Systems Development:
Systems investigation – understand the problem
Systems analysis – determine what must be done to solve the problem
Systems design – the solution is planned out
Systems implementation – the solution is built or bought, and replaces the old system
Systems maintenance and review – the new system is evaluated
4. Global Challenges in Information Systems
People and businesses can get products and services from around the world, instead of around the
corner or across town. However, these opportunities introduce numerous obstacles and issues such
as the ones listed below:
1. Cultural challenges
2. Language challenges
3. Time and distance challenges
4. Infrastructure challenges
5. Currency challenges
An Introduction to Information Systems (IS)
Information Systems are used in almost every imaginable profession, for example:
Sales representatives use information systems to advertise products,
communicate with customers and analyse sales trends
Managers use them to make decisions, such as whether to build a
manufacturing plant or research a cancer drug
1. What is an Information System?
First we need to break it down to get to the understanding and definition of IS:
1.1 What is a System?
It is a set of elements or components that interact to accomplish goals. A system consist of
four component:
Input – the activity of gathering and capturing data
Processing – converting or transforming data into useful outputs
Output – production of useful information, often in the form of documents and
reports
Feedback – output that is used to make changed to input or processing activities
1.2 What is Information?
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
,Therefore, an Information system is a set of interrelated components that collect, manipulate, store
and disseminate information and provide a feedback mechanism to meet an objective
Manual and Computerised 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.
Components of a 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 information
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 – users of the system
Procedures – the strategies, policies, methods and rules for using a CBIS
2. Business Information Systems
2.1 Transaction Processing Systems (TPS)
A transaction is any business related exchange, such as payments to employees, sales to customers
and payments to suppliers. Therefore, a TPS is an organised collection of people, procedures,
software, databases and devices used to record completed business transactions.
2.2 Enterprise Resource Planning (ERP)
A set of integrated programs capable of managing a company’s vital business operations for an
entire multisite, global organisation. It checks what is already available in finished products
inventory to meet the projected demand
2.3 Management Information Systems (MISs)
Is an organised collection of people, procedures, software, databases, and devices that
provides routine information to managers and decision-makers.
When designing an MIS:
Clearly define the systems objectives
, Collect and analyse data
Provide information in a useful format for decision-making purposes
Decision Support System (DSS) is an organised collection of people, procedures, software,
databases, and devices used to support problem specific decision making.
2.4 Knowledge Management (KM), Artificial Intelligence (AI), Expert Systems and Virtual Reality
Artificial Intelligence is the ability of a computer system to mimic or duplicate the functions
or characteristics of the human brain or intelligence
Major elements of Artificial Intelligence:
o Robotics
o Vision Systems
o Learning Systems
o Neural Networks
o Expert Systems
Expert System is a system that gives a computer the ability to make suggestions and act like
an expert in a particular field
Virtual Reality is the simulation of a real or imagined environment that can be experienced
visually in three dimensions
3. Systems Development
The activity of creating or modifying existing business systems.
An Overview of Systems Development:
Systems investigation – understand the problem
Systems analysis – determine what must be done to solve the problem
Systems design – the solution is planned out
Systems implementation – the solution is built or bought, and replaces the old system
Systems maintenance and review – the new system is evaluated
4. Global Challenges in Information Systems
People and businesses can get products and services from around the world, instead of around the
corner or across town. However, these opportunities introduce numerous obstacles and issues such
as the ones listed below:
1. Cultural challenges
2. Language challenges
3. Time and distance challenges
4. Infrastructure challenges
5. Currency challenges
