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The Basics of Information Systems


A Management Information System (MIS) is an organised collection of people, ... Management Information Systems. Management information systems typically provide ... – PowerPoint PPT presentation

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Title: The Basics of Information Systems

The Basics of Information Systems
Andrea Carlin Computing
What is an Information System?
  • An Information System is a set of interrelated
    components that Collect, Manipulate, and Organise
    data and information and also to provide a
    feedback mechanism to meet an objective.

Data versus Information
  • Data Consists of raw facts, such as an
    employees name and number of hours worked in a
    week, or sales orders.
  • Information A collection of facts(or data)
    organised in such a way that they have additional
    value beyond the value of the facts themselves.
  • Process Turning Data into Information.

The Process of Transforming Data into Information
The Transformation Process (applying Knowledge
by selecting Organising and Manipulating Data)
The Components of an information System
As mentioned previously, an Information System
(IS) is a set of Interrelated elements or
components that collect (input), Manipulate
(process) and Disseminate (output) data
Information And provide a feedback mechanism to
meet an objective.
Types of Information Systems
  • 1 Manual Information Systems
  • Eg. Some investment analysts manually draw charts
    and trend lines to assist them in making
    investment decisions.
  • 2 Computerised Information Systems
  • The majority of Information Systems now are
    Computer based.

Computer Based Information Systems
  • Computer based information systems (CBIS) consist
  • Hardware
  • Software
  • Databases
  • Telecommunicatios
  • People
  • Eg. Payroll Systems, stock control systems.

Types of Computer Based Information Systems
  • The most common types of Information
  • Systems used in Business Organisations are
  • 1. Electronic Commerce Systems
  • 2. Transaction Processing Systems
  • 3. Decision Support Systems
  • 4. Management Information Systems
  • 5. Expert Information Systems

1. Electronic Commerce Systems
  • E-commerce involves any business transaction
    executed electronically between parties such as
    companies (business-to- business), companies to
    consumers (business-to-consumers)
  • Eg. on-line shopping (fastest growing segment as
    consumers are becoming more confident with the
    use of the internet

2. Transaction Processing Systems
  • A Transaction is any business-related exchange
    such as payments to employees, sales to
  • A Transaction Processing System (TPS), is an
    organised collection of people, procedures,
    software, databases and devices used to record
    completed business transactions.

Transaction Processing Systems
  • One of the first business systems to be
    computerised was the payroll system. The primary
    inputs for a payroll TPS are the number of
    employee hours worked during the week and pay
    rate The primary output consists of pay
  • Consider what would happen if an organisation had
    to function without a TPS for even one day…. How
    many employees would be paid?? if paid how many
    of them would be correct??

Transaction Processing Systems
  • Transaction Processing systems are used for
    routine, repetitive and ordinary business
    transactions, but transactions that are critical
    to the daily function of that business.

Example of a Transaction Prcessing System
3. Decision Support Systems
  • A Decision Support System (DSS), is an organised
    collection of people, procedures, software,
    databases and devices used to support
    problem-specific decision making.
  • The focus of a DSS is on decision making
  • A DSS helps a manager do the right thing

Decision Support Systems
  • DSS are used when the problem is complex and the
    information needed to make the best decision is
    difficult to obtain and use.
  • A DSS operates from a managerial perspective and
    it recognises that different managerial styles
    and decision types require different systems.

Decision Support System
4. Management Information Systems
  • A Management Information System (MIS) is an
    organised collection of people, procedures,
    software, databases and devices used to provide
    routine information to managers.
  • The focus of an MIS is primarily on operational
    efficiency. Marketing, production, finance and
    other functional areas are supported by MIS and
    linked through a common database

Management Information Systems
  • Management information systems typically provide
    standard reports generated with data and
    information from the transaction processing
  • Eg. A summary report of total payroll costs might
    help an accounting manager control future payroll

Management Information Systems
  • One report from one department may be useful to a
    manager in another department. For instance, the
    total payroll summary report produced initially
    for an accounting manager might also be useful to
    a production manager to help monitor and control
    labour and job costs.

Expert System
  • Expert Systems give the computer the ability to
    make suggestions and act like an expert in a
    particular field.
  • The unique value of expert systems is that they
    allow organisations to capture and use the wisdom
    of experts and specialists.
  • Expert systems can be applied to almost any field.

Expert System
  • Expert Systems have been used to monitor complex
    systems such as nuclear reactors, perform medical
    diagnoses, perform credit evaluations.
  • The collection of data, rules, procedures and
    relationships that must be followsed to achieve
    value or proper outcome is contained in the
    expert systems Knowledge Base.

Part 2
The Information Systems Department
  • Many large organisations have a department
    deadicated to information systems with their
    organisation, we will look at
  • The Role of the IS Department
  • Role Players in an IS Department

The Role of the Information Systems Department
  • The Information Systems (IS) department is
    responsible for designing, building, and managing
    an organization's information systems.
  • In years past, the IS department served only the
    informational needs of managers. Today, the IS
    team supports all workers in a business.

The Role of the IS Department
  • An IS department's tasks include
  • designing,
  • planning,
  • installing,
  • maintaining systems,
  • generating reports,
  • cost control.

Role Players in an IS Department
  • An IS department can include many members with
    many different skills. A large IS staff may
  • Managers
  • Computer Scientists
  • Systems Analysts
  • Trainers
  • Programmers
  • Database Specialists
  • System or Network Managers