This document provides an overview of key concepts in information systems, including: - Information systems combine people, processes, and technology to achieve business objectives. They support decision making, coordination, and control. - Data is raw facts that are transformed into meaningful information. Information systems involve collecting, processing, storing, and distributing information. - Knowledge represents the application of information by individuals, while wisdom involves applying knowledge to solve new problems. - E-commerce involves using digital technologies and the internet for business processes like sales, communication, and transactions between businesses, consumers, and governments.

1. Chapter One: Fundamentals of
Information Systems
Outline of this Chapter:-
 Introduction of Information Systems
 Data and Information
 Knowledge and Wisdom
 E- Commerce
 Business Information System
 information requirements of managers
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2. Fundamentals of Information Systems
 Information systems are the combination of people,
information technology, and business processes to
accomplish a business objective.
 Every information system (IS) has people, processes, and
information technology.
 In fact, many IS professionals add most of their value
working with people and processes.
 They manage the programmers but typically avoid
programming themselves.
 We can represent an information system as a triangle
with people, processes, and information technology
(computers) on the three vertices.
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3. Con’t…
 An information system can be defined technically as a set of:-
 interrelated components that collect (or retrieve),
 process,
 store, and
 distribute information to support decision making and control in an
organization.
 In addition to:-
 supporting decision making,
 coordination, and control
 information systems may also help managers and workers analyze problems,
 visualize complex subjects, and
 create new products
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4. The three parts of the information
systems triangle
 Figure 1.1 Information Systems Triangle
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5. Information systems contain
 Information systems contain information about
significant:-
 people
 places, and
 things within the organization or in the environment
surrounding it.
Information systems contain:-
Data:
 raw facts or observations that are considered
to have little and transformed into information.
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6. several definitions common use of
data:-
 A series of non-random symbols, numbers, values or words.
 A series of facts obtained by observation or research and recorded.
 A collection of non-random facts.
Examples of data include:
 Today’s date
 Measurements taken on a production line
 Records of a business transaction, such as a sale or purchase.
 information
data that have been
 shaped into a form that is meaningful and useful to human beings.
 processed so that they are meaningful;
 processed for a purpose;
 interpreted and understood by the recipient.
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7. What is information?
 Information means data that have been shaped into a
form that is meaningful and useful to human beings.
 there are several definitions of information that are in
common use data that have been:-
 processed so that they are meaningful
 processed for a purpose
 interpreted and understood by the recipient.
Some examples of information include:
A bank statement
A sales forecast
A telephone directory
Graphs of trends in visitor numbers to a web site
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8. Creating Information
 Data processes are sometimes also known as
‘transformation processes’.
 These includes three activities
1. Input captures or collects raw data from within the
organization or from its external environment.
2. Processing converts this raw input into a meaningful
form.
3. Output transfers the processed information to the
people who will use it or to the activities for which it will
be used.
 Information systems also require feedback, which is
output that is returned to appropriate members of the
organization to help them evaluate or correct the input
stage.
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9. Data processes
 Some examples of data processes are include the following:
a. Classification
b. Rearranging/sorting
c. Employee data
d. Aggregating
e. Performing calculations.
f. Selection – this involves choosing data based on a set of selection
criteria.
g. Value of information:- tangible value and intangible value
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10. Sources of information
 Information can be gathered through:-
Formal communication: tends to be presented in a consistent manner
Informal communication: takes place is by word of mouth
major disadvantages of informal communication
 cannot deal with large volumes of information
 it is relatively slow and inefficient
 restrict what information is transmitted
 often ignored in favor of formal communication
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11. Attributes of Information Quality
 Time Dimension:- The time dimension describes the time
period that the information deals with and the frequency
at which the information is received.
 Content Dimension :- The content dimension describes
the scope and contents of the information.
 Form Dimension:- The form dimension describes how the
information is presented to the recipient.
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12. Attributes of Information Quality
 Information can be describe its quality.
 Table 1.1 summarizes information characteristics that can be used to assess quality
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13. Knowledge and Wisdom
 definitions of knowledge, many tend to agree that it involves
harnessing a person’s unique abilities, such as his or her
perceptions, experiences, intuition and analytical skills.
 When these abilities are combined with the information the
person holds, this represents knowledge.
 In general, knowledge can be described as :-
 It may help to think of explicit knowledge as ‘know-what’ and
 tacit knowledge as ‘know-how’.
Wisdom
 Wisdom combines the characteristics of knowledge with the
ability to apply such knowledge to new situations and solve
problems
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14. Business Information System(BIS)
 A BIS is a group of interrelated components that work collectively to:
£ input, processing, output, storage and control actions in order to
convert data into information products.
£ BIS that can be used to support forecasting, planning, control,
coordination, decision making and operational activities in an
organization.
£ Resources that Support BIS
BIS typically rely on five basic resources:
 People
 Hardware
 Software
 communications and data.
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15. PERSPECTIVES ON INFORMATION SYSTEMS
 information systems and technologies informally without defining the
terms.
Information technology (IT) consists of all :-
 hardware and
 software that a firm needs to use in order to achieve its business
objectives.
This includes not only :-
 computer machines
 storage devices, and handheld mobile devices,
 but also software, such as the Windows or Linux operating systems,
 Microsoft Office desktop productivity suite, and
 the many thousands of computer programs that can be found in a
typical large firm.
 Information systems are more complex and understood the
technology and a business perspective.
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16. E-business
 e-business covers both e-commerce (buying and selling online) and
use digital technologies.
 Process using Web technology easily communicate with
 partners, vendors and customers
 connect back-end data systems and
 transact commerce in secure manner
use of the internet to network for:-
 empower business processes
 electronic commerce
 organizational communication and collaboration within
accompany and with its customers, suppliers, and other
stakeholders
 e-businesses utilize the internet, intranets, extranets and
other networks to support their commercial processes.
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17. TYPES OF E-COMMERCE
The electronic commerce categories are:-
Business-to-business (B2B) E-commerce
 electronic commerce involves sales of goods and services
among businesses.
 It is manufacturer selling/ issuing goods the retails or
wholesaler. Eg. INDIA MART, ALIBABA
 ChemConnect’s Web site for buying and selling chemicals
and plastics is an example of B2B e-commerce.
SUPPLIS order processing
Order
Business org.
Retailer Website.
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18. Business-to-consumer (B2C)
 B2C electronic commerce involves retailing products and
services to individual shoppers.
 BarnesandNoble.com, which sells books, software, and music
to individual consumers, is an example of B2C e-commerce.
Other e.g. Freelancer, Fiverr etc.
 B2C can involve Activities such as product research
Consumer-to-consumer (C2C)
 transactions take place between private individuals.
 Perhaps the best examples of C2C commerce are online
auction sites and peer-to- peer systems.
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19. Business-to-government (B2G)
 transactions take place between companies and public-sector
organizations.
Mobile commerce (m-commerce)
m-commerce is a relatively new development and involves selling
goods or services via wireless technology, especially mobile phones
and PDAs.
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20. Information and Managerial
Decision Making
 All activities must be planned and monitored by managers according
to well-informed decisions.
 The roles of BIS in supporting different aspects of managerial decision
making are follows:-
 The information requirements of managers
 The success and the manager’s works (activities) depends upon access
to high-quality information.
 It is here that BIS have a role, as a means of supporting the manager’s
work by providing the information he or she needs (H. Fayal’s
definition
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21. Decision behavior
 The ways in which managers make decisions, and the factors that
influence those decisions, are Often described as decision behavior.
Decisions can be classed as structured or unstructured
 Structured decisions tend to involve situations where the rules
and constraints governing the Decision are known.
 They tend to involve routine or repetitive situations where the
number of possible courses of action is relatively small.
Eg involves stock control.
 Structured decisions are often described as programmable,
meaning that they are easily automated.
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22. Unstructured decisions
 Unstructured decisions tend to involve more complex
situations, where the rules governing the decision are
complicated or unknown.
 A good example of an unstructured decision might be
whether or not an organization should open a new
branch in a particular area.
 cognitive style
 Manager’s cognitive style will fall between analytical
and intuitive styles.
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23. Levels of managerial decision
making
 The characteristics of the decisions taken in an organization vary
according to the level at which they are taken.
 strategic level, managers are largely concerned with long-term
organizational planning.
 Decisions tend to be unstructured and are made infrequently.
An example of a decision taken at the strategic level might be a
choice of new markets to move into.
 tactical level managers are largely concerned with medium-term
planning.
 Managers monitor the performance of the organization, control
budgets, allocate resources and set policies.
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24. operational level managers
 operational level managers deal with short-term
planning and the day-to-day control of the
organization’s activities.
 The decisions taken at this level direct the organization’s
he medium-term goals, abiding by the budgets, policies
and procedures set at the tactical level.
 highly structured and have little impact on the
organization as a whole.
 An example of a decision taken at setting a daily or
weekly production schedule.
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