The document discusses the definitions and distinctions between data and information, emphasizing the importance of converting raw data into meaningful information for various organizational needs. It outlines different types of information and their strategic roles within and outside organizations, and details information systems such as transaction processing systems, management information systems, decision support systems, and executive support systems, each serving specific operational and decision-making purposes. Additionally, it addresses the significance of office automation systems and networking, including types and topologies of networks, as well as telecommunication networks and their applications.

1. Chapter - 1
Information Systems

2. Data V/s Information
Data –
Raw facts or observations, typically about physical or business
transactions.
Group of non-random / unstructured symbols in the form of text,
numbers, images or voice representing quantities, actions or objects.

3. Data V/s Information
Information –
Conversion (organization) of raw data into useful / meaningful
form.
Proper arrangement / organization of raw facts into useful
messages.
Ex - Reports

4. Types of Information –
1. Strategic Information –
Needed for long term planning / taking decisions.
It contains specific, precise & straightforward information.
For Ex – Diversification of Business, Opening Overseas branches,
2. Tactical Information –
Needed for short term planning / taking decisions.
Used for Control the functioning of the organization.
For Ex – Developing policies, HR Planning, Changing the credit
limit of customers / Stock Limit, Forecasting, etc.,

5. 3. Operational Information –
Needed for day to day operations of organization.
It is well structured & more voluminous.
For Ex – Employee Attendance Maintenance, Re-order of goods,
Receiving Orders from customers, Rules & Regulations, etc.
4. Statutory Information –
Information which are required by a law / Regulators / Govt.
authorities.
For Ex – Filing annual Tax, P/L statements, Compliance Reports to
Regulators, Pollution Compliance Report, Labour compliance
reports, Affiliation reports, etc.,

6. Strategic Role of Information
1. Within the Organization :
Need to all the functional departments for a variety of needs.
Used in all the management functions like strategic planning,
organizing, management control, operational control, .

7. Strategic Role of Information
2. Outside the organization :
Government, Regulators, Auditors, Share holders etc.
Government need various information to monitor & control
activities like frauds, irregularities, etc,
Regulators – SEBI / RBI / IRDA / TRAI.
Used to market the products / services.
To build partnerships with other companies.

8. Qualities of Effective Information –
1. Accurate
2. Complete
3. Trans worthy / Credible
4. Timely
5. Up to date
6. Relevant
7. Brief – Without repeating the same contents
8. Significance Understandable

9. An Information System is an organized combination / assemblage of
people, hardware, software, communication networks and the data
resources that collects, transforms, Process and disseminates
information in organization.
Information System

10. Need of an Computer based IS
Repeated processing of same data.
Processing of large volume of data.
Fast processing is needed for timely information.
Increase in the complexity of business.
Operations scattered in different geographical locations.
Reducing the cycle time & delighting the customer.
Cost cutting.

11. INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Invento
ry
System
Marketing
System
Custome
r Service
System
IT Vs IS

12. Organization as an IS

13. Classification of IS
Information
Systems
Operations
Support System
Management
Support System
Transaction
processing
systems
Process
control
systems
Office
automation
systems
Manageme
nt
informatio
n systems
Decision
support
systems
Executive
information
systems

14. Transaction Processing System (TPS)
A TPS is scrutinized for conformance to the rules, policy or
guidelines.
A system that handles a business’s routine and recurring
information transaction and records complete fundamental
business exchanges.
Used at Operational level of the organization.

15. Transaction Processing System (TPS)
Handle routine, yet critical tasks.
Perform simple calculations.
It helps an organization to add value to its products &
services.
Goals of TPS are –
To automate repetitive information processing activities.
Increase speed.
Increase accuracy.
Greater efficiency.

16. Transaction Processing System (TPS)
Examples - POS system, on-line cash registers, ATM,
Purchasing system, Accounting systems, Payroll, CRM..,

17. Management Information System
The process of effective and efficient planning, organizing,
leading, implementing, controlling and adjusting a set of
people, procedures, and resources that collects, transforms and
disseminates information in a organization.
Providing right information to the right people in the right format at right
time.
Helps middle managers for monitoring, controlling, decision -making, and
administrative activities.

18. It summarizes and reports on the basic operations.
Characteristics of MIS –
Routine information for routine decisions.
Operational efficiency.
Use transaction data (TPS) as main input.
Databases integrate MIS in different functional areas.

19. Overview of MIS

20. Goals of the MIS –
1. Enhances communication among employees.
2. Support the organization’s strategic goals and directions.

21. Uses of the MIS –
1. Effective Planning.
2. Improving the quality of decision.
3. Improving the efficiency of operations and generating accurate
results.
4. Minimizing the duplication of efforts.
5. Controlling activities.
6. Possible clerical cost reduction.
7. Intangible benefits.
8. Improved work environment & job satisfaction.

22. Applications of MIS –
Generating various kinds of reports like Scheduled reports, Demand
reports, Exception reports, Drill Down report, etc.,
Short term Forecasting - Sales forecasting, Capital forecasting,
Manufacturing planning and scheduling, Inventory management and
planning, Advertising and product pricing.

23. Decision Support Systems (DSS)
System used to support specific decision making & Problem solving.
Interactive support for non-routine decisions or problems.
Decision makers insight & judgment are needed to control the
decision process.
It strive to make effective decisions on unstructured or semi -
structured problems via., analyzing part of the problem.

24. Decision Support Systems (DSS)
It can also be used for future forecasting.
It enables Collection of data, analytical models and user friendly software
to support a decision making.
Use internal & external data.
Advanced Graphical capabilities & GUI for analysis purpose.
It is usually on-line & related to real time.
Helping to automate managerial processes.

25. Structure of Decision Support System
Model
Management
System
Data
Management
Dialog
Management
Internal and External
Databases
User
...
Supporting
Tools

26. Functions of DSS –
1. Model Building – Identifying most appropriate model
(Financial, Statistical, Graphical, Project Management Model).
2. What if Analysis – Assessing the impact of changes, value &
the inter-relationships of model variables.
3. Goal Seeking – Determining the input required to achieve a
certain goal.

27. 4. Risk Analysis – It allows decision makers to determine risk
associated with various alternatives.
5. Graphical Analysis – It helps managers to understand large
volumes of data & identify the impacts of various courses of
action.

28. Applications of DSS -
Product pricing, sales / service profitability[future forecast],
Capital forecasting, other financial forecasting, risk
calculations, etc.,
For Ex -
Selection of Vendor
Comparative sales figures between one week and the next.
Projected revenue figures based on new product sales assumptions.

29. Executive Support Systems (ESS) / EIS
Specialized decision support system used at the middle & top level
management of an organization.
Helps top executives for tracking critical success factors that are
important for achieving a firm’s strategic objectives.
This systems filter, compress and track critical data.
It employs advanced graphics software to provide highly visual and
easy-to-use representations of complex information and current
trends.

30. Executive Support Systems (ESS) / EIS
These systems are not designed to solve specific problems, but to
tackle a changing array of problems.
ESS provides a generalized computing and telecommunications
capacity that can be applied to a changing array of problems.
ESS enables the executive to ‘drill down’ quickly to lower levels, in
areas of particular interest to them.

31. Features / Properties of an ESS –
1. Easy To Use.
2. Access To Data.
3. Data Analysis.
4. Quality Presentation.
5. Tailored to Individual Executives.
6. Support the Need for External Data.
7. Have a Future Orientation.

32. ESS Supports for –
Strategic planning
Strategic organizing and staffing
Strategic control
Crisis management

33. Advantages of ESS –
Access a broader range of information faster in a more focused way.
Condensed information reduces the amount of data to be reviewed.
A clear link to business objectives.
The best use of technology.
Recognize the existence of problems and managing the solution of those
problems.
Having the capacity to integrate with other systems.

34. Types of Information used in ESS –
Predictions, speculations, forecasts, estimates (78.1%)
Explanations, justifications, assessments, interpretations (65.6%)
News reports, industry trends, external survey data (62.5%)
Schedules, formal plans (50.0%)
Opinions, feelings, ideas (15.6%)
Rumors, gossip (9.4%)
Major Commercial ESS Software Vendors -
– Comshare Inc. (www.comshare.com)
– Pilot Software Inc. (www.pilotsw.com)

35. Relationship b/w different ISs
Figure 2-9

36. Office Automation System
(OAS)
To automate office procedures & make them more efficient &
productive.
OAS refers to the use of computer and software to digitally create,
collect, store, manipulate, and transfer office information needed for
accomplishing basic tasks and goals.
It will going to alter the nature of office work altogether.
It helps in reducing the office/clerical personnel.

37. Basic functions of OAS –
1. Data Storage And Manipulation – Word processing, Spread sheet
application, Image handling, Desktop publishing.
2. Data Exchange
3. Data Management
Advantages –
Office automation can get many tasks accomplished faster.
It eliminates larger staff.
Efficient memory management.
Multiple user can use simultaneously.

38. Dis – advantages –
1. Workplace resistance
2. Initially takes time to adjust to new system.
3. Training of personnel to effectively use an office automation.
4. It requires huge amount of money to implementation and
maintenance.
5. It can leads to some health problems.

39. Networking
Group of computers and other devices connected in some ways so
as to be able to exchange data.
It primarily fulfills the requirement of communication.
Each of the devices on the network can be thought of as a node.
Each device can be geographically located anywhere.

40. Features of networking –
1. It allows sharing of hardware resources like printer, scanner, disk
drives, modems.
2. It allows the information to share across the company.
3. It enables the electronic transfer of mail, document or data.
4. It enables interaction b/w different computers for the purpose of
processing, sharing & communicating.
5. It enables endless integration of the business functions &
operating divisions.

41. Advantages of Networking –
1. A user can logon to a computer anywhere on the network and access
their work files from the file server.
2. Resource Sharing
Hardware (computing resources, disks, printers)
Software (application software)
3. Communication – Email, Message broadcast.
4. It saves money and time.
5. It is easy and convenient to monitor users.

42. Types of Networks
1. LAN (Local Area Network) - Network in small geographical
Area (Room, Building or a Campus)
Example – Within Office, cyber cafe, office intercom.
2. MAN (Metropolitan Area Network) - Network in a City /
region.
Example – MTNL, A chain of community colleges.
3. WAN (Wide Area Network) - Network spread geographically
(across Country or across Globe).
Example – Internet, Intranet, Extranet.

43. Network Topology
The network topology defines the way in which computers, printers,
and other devices are connected.
A network topology describes the layout of the wire and devices as
well as the paths used by data transmissions.
Three commonly used network topologies are –
1. Bus topology
2. Ring topology
3. Star topology
4. Tree topology

44. 1. Bus Topology –
All computers and devices connected to central cable or bus.
Allows information to be directed from one computer to the other.
Consists of a main run of cable with a terminator at each end.

45. 2. Ring Topology –
Cable forms closed ring or loop, with all computers and devices arranged
along ring.
Data travels from device to device around entire ring, in one direction.
Uses a Packet / frame / token to pass information from one computer to
the other.

46. A frame travels around the ring, stopping at each node. If a
node wants to transmit data, it adds the data as well as the
destination address to the frame.
The frame then continues around the ring until it finds the
destination node, which takes the data out of the frame.

47. 3. Star Topology –
All devices connect to a central device, called hub. All data transferred
from one computer to another passes through hub.

48. 4. Tree Topology –
A tree topology connects multiple star networks to other star
networks.

49. Factors to consider while choosing Topology :
1. Cable Type – Bandwidth, distance, environmental
condition.
2. Cable length
3. Scalability
4. Reliability
5. Cost
6. Security

50. Telecommunication Network
Telecommunication is communication of information by
electronic means (signals) over some distance.
It is a collection of compatible h/w & s/w arranged to
communicate.
It can transmit text, graphic images, voice or video files.

51. Difference b/w Network & Telecommunication
Network

52. Telecommunication Network
Essential components of a telecommunication system –
1. Computer to process
2. I/p or O/p devices for sending & receiving & terminals.
3. Communication channels such as phone lines, co-axial cable,
fibre-optic cable & wireless transmission.
4. Processors such as modem, multiplexers, controllers.
5. Software such as protocols.

53. Channels of Telecommunication
Means by which signals (data) are sent from one computer to another
(either by cable or wireless means).
1. Twisted Pair Cable -

54. 2. Co – Axial Cable -

55. 3. Fibre Optic Cable –

56. Wireless Communication

57. Channels of Wireless Systems
Wireless LANs
Satellite Systems
Paging Systems
Bluetooth

58. Applications of Telecommunication Network –
E-mail
Searchable Data (Web Sites)
E-Commerce
Internet Telephony (VoIP)
Video Conferencing
Chat Groups
Internet Radio