Chapter 1
1.1. Computers and Information Systems in Daily Life
Why do companies use computers and information systems?
– Reduce cost
– Competitive advantage in the market place, they produce quicker and thus sell quicker
PDA: personal digital assistant(Smartphone) it includes:
• a calendar, address book and task-listing programs
• More advanced:allow wireless connection and built in MP3-players
How does a computer and information system help organisations?
– Assist employees to complete tasks more efficiently and efficiently
– Increases the productivity of employees
– Improve decision making
Information systems: Broader in scope than information technologies, but two overlap
1.2 Computer literacy and information literacy:
Computer Literacy: is skill in using productivity software, such as word
processors,spreadsheets,database and presentation software, as well as having a basic
knowledge of hardware and software, the internet and collaboration tools and technologies.
Information literacy: is understanding the role of Information in generating and using business
intelligence.
Business intelligence(BI): Provides historical, current and predictive views of business operations
and environments and gives organisations a competitive advantage in the market place.
1
,1.3 The beginning: Transaction-processing Systems
Transaction processing systems (TPSs) - Focus on data collection and processing that data.
Automated Programmes which reduce human involvement, costs and time wastage.
Applied to structured tasks:
– Record keeping
– Simple clerical operations
– Inventory control
When is it used?
– When operations are repetitive(printing numerous checks)
– Minimal human involvement(automated payroll system)
– Automated systems are in place
Cardless ATM’s are one of the recent technologies deployed by some banks in order to attract younger
customers.
Benefits:
It reduces costs
1.4 Management Information Systems
NB: Management information system (MIS) - is an organised integration of hardware and
software technologies, data, processes and human elements designed to produce timely,
integrated, relevant, accurate and useful information for decision making purposes.
Elements of MIS:
– Hardware – Input, output, memory device
– Software- Commercial and In-house development
– Data
– Processes – methods used to execute a task
– Human intervention : users, programmers and system analysts
Designing an MIS:
1. Clearly define the system’s objectives
2. Data must be collected and analysed
3. Information must be provided in a useful format for decision making purposes
Many MIS programs: used in private and public sector, e.g. MIS for inventory control provides data, what items
have been ordered and what items are back ordered
2
,1.5 Major Components of an information system:
1) Data:
- consists of raw facts and is considered the input of an information system
- The information which users need impacts the type of data which is collected and used:
2 Sources of data:
– Internal data => information obtained from WITHIN the organisation - sales records +
personnel records
– External data => information obtained from OUTSIDE the organisation - Customers +
suppliers + government + economic conditions + competitors + financial intitutions
- Data has a time orientation, too. Data is collected for performance reports.
- The information which users need impacts the type of data which is collected and
used
Forms of Data:
– Aggregated- subtotals for categories (reporting overall performance in a sales quarter)
– Disaggregated- itemized lists (analyse sales by product, territory or salesperson)
Time based data:
– Past data: collected for performance reports
– Current data: for operational reports
– Future data: budgets or cash flow reports
Problems with data collection:
– If there are conflicting goals or objectives or not aware of critical success factors = affects
reliability and effectiveness of the organisations information system.
3
, 2) Database
- is a collection of all relevant data organised in a series of integrated files
What is a database management system used for
- Create, organise and management of database (TO create a database a system such as
Oracle is used)
- Useful for reducing time needed to gather,process and interpret data manually
3) Processing
- generates the most useful type of information for decision making, including transaction-
processing reports and models for decision analysis.
- A good information system :
• has models which support all levels of decision-making
• should be able to grow with the business.
Information that can be gathered:
- Transaction processing reports
- Modes for decision analysis
4) Information
- consists of facts that have been analysed by the process component and is an output of an
information system, and is more useful to the decision making process.
- The Quality of an information system is determined by the usefulness of the information
- The usefulness determines the success of the information system
- Information is useful if it helps users to make correct decisions in a timely manner.
Useful information is:
- Timely
- Integrated with other data and information
- Consistent and accurate
- Relevant
4
1.1. Computers and Information Systems in Daily Life
Why do companies use computers and information systems?
– Reduce cost
– Competitive advantage in the market place, they produce quicker and thus sell quicker
PDA: personal digital assistant(Smartphone) it includes:
• a calendar, address book and task-listing programs
• More advanced:allow wireless connection and built in MP3-players
How does a computer and information system help organisations?
– Assist employees to complete tasks more efficiently and efficiently
– Increases the productivity of employees
– Improve decision making
Information systems: Broader in scope than information technologies, but two overlap
1.2 Computer literacy and information literacy:
Computer Literacy: is skill in using productivity software, such as word
processors,spreadsheets,database and presentation software, as well as having a basic
knowledge of hardware and software, the internet and collaboration tools and technologies.
Information literacy: is understanding the role of Information in generating and using business
intelligence.
Business intelligence(BI): Provides historical, current and predictive views of business operations
and environments and gives organisations a competitive advantage in the market place.
1
,1.3 The beginning: Transaction-processing Systems
Transaction processing systems (TPSs) - Focus on data collection and processing that data.
Automated Programmes which reduce human involvement, costs and time wastage.
Applied to structured tasks:
– Record keeping
– Simple clerical operations
– Inventory control
When is it used?
– When operations are repetitive(printing numerous checks)
– Minimal human involvement(automated payroll system)
– Automated systems are in place
Cardless ATM’s are one of the recent technologies deployed by some banks in order to attract younger
customers.
Benefits:
It reduces costs
1.4 Management Information Systems
NB: Management information system (MIS) - is an organised integration of hardware and
software technologies, data, processes and human elements designed to produce timely,
integrated, relevant, accurate and useful information for decision making purposes.
Elements of MIS:
– Hardware – Input, output, memory device
– Software- Commercial and In-house development
– Data
– Processes – methods used to execute a task
– Human intervention : users, programmers and system analysts
Designing an MIS:
1. Clearly define the system’s objectives
2. Data must be collected and analysed
3. Information must be provided in a useful format for decision making purposes
Many MIS programs: used in private and public sector, e.g. MIS for inventory control provides data, what items
have been ordered and what items are back ordered
2
,1.5 Major Components of an information system:
1) Data:
- consists of raw facts and is considered the input of an information system
- The information which users need impacts the type of data which is collected and used:
2 Sources of data:
– Internal data => information obtained from WITHIN the organisation - sales records +
personnel records
– External data => information obtained from OUTSIDE the organisation - Customers +
suppliers + government + economic conditions + competitors + financial intitutions
- Data has a time orientation, too. Data is collected for performance reports.
- The information which users need impacts the type of data which is collected and
used
Forms of Data:
– Aggregated- subtotals for categories (reporting overall performance in a sales quarter)
– Disaggregated- itemized lists (analyse sales by product, territory or salesperson)
Time based data:
– Past data: collected for performance reports
– Current data: for operational reports
– Future data: budgets or cash flow reports
Problems with data collection:
– If there are conflicting goals or objectives or not aware of critical success factors = affects
reliability and effectiveness of the organisations information system.
3
, 2) Database
- is a collection of all relevant data organised in a series of integrated files
What is a database management system used for
- Create, organise and management of database (TO create a database a system such as
Oracle is used)
- Useful for reducing time needed to gather,process and interpret data manually
3) Processing
- generates the most useful type of information for decision making, including transaction-
processing reports and models for decision analysis.
- A good information system :
• has models which support all levels of decision-making
• should be able to grow with the business.
Information that can be gathered:
- Transaction processing reports
- Modes for decision analysis
4) Information
- consists of facts that have been analysed by the process component and is an output of an
information system, and is more useful to the decision making process.
- The Quality of an information system is determined by the usefulness of the information
- The usefulness determines the success of the information system
- Information is useful if it helps users to make correct decisions in a timely manner.
Useful information is:
- Timely
- Integrated with other data and information
- Consistent and accurate
- Relevant
4
