This document provides an overview of information systems concepts. It defines an information system as a combination of people, hardware, software, networks, and policies that collects, transforms, and disseminates information. The document discusses the components of an information system, including technology, applications, development, and management. It also covers data versus information, types of information systems, and trends in information systems such as e-business.

1. Foundation Of Information
Systems In Business
MODULE-1
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2. Learning Objectives:
 Understand the concept of a system and how
it relates to information systems.
 To Learn to differentiate between data &
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information
 To understand the trends in IS
 To Know the components of an IS & its
resources
 To Know the Application of IS in
organizational functions

3. What Is An Information System?
 An Information System can be any organized
combination Of:
- People,
- Hardware,
- Software,
- Communications networks,
- Policies.
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4. What Is An Information System?
(continued)
 People rely on modern information systems
to communicate using a variable:
- Physical devices (hardware).
- Information processing instruction and
procedures (software).
- Communications channels (network).
- Stored data (data resources).
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5. Examples Of Information Systems:
 Smoke signals for communication
 Card catalog in a library
 The cash register
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6. Definitions
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 Data
 Raw facts such as an employee’s name and
number of hours worked in a week, inventory
part numbers or sales orders.
 Information
 A collection of facts organized in such a way
that they have additional value beyond the
value of the facts themselves.

7. Definitions
Data
Raw facts such as an employee’s name and number of hours worked
in a week, inventory part numbers or sales orders.
Information
A collection of facts organized in such a way that they have additional
value beyond the value of the facts themselves.
Data
Information
$35,000 12 Units
$12,000 J. Jones
Western Region
$100,000 100 Units
35 Units
Data
Processing
Salesperson: J. Jones
Sales Territory: Western
Region Current Sales:
147 Units = $147,000

8. Information Systems
An information system(IS) is typically considered to be a set of interrelated elements
or components that collect(input), manipulate(processes), and disseminate (output)
data and information and provide a feedback mechanism to meet an objective.
Open System
Close System
Definitions

9. Computer-based Information System
An Information System is an organized combination of people, hardware, software,
communication networks and the data resources that collects, transforms and
disseminates information in a organization.

10. Software
 Computer software falls into two classes:
systems software and applications software.
1) Systems Software: Manage the resources of
the computer system and simplifies
programming. An operating system is the
principal system software. It manages all the
resources of a computer system and provides
an interface through which the system's user
can deploy these resources.
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11. Contd..
2) Application Software: Are programs that
directly assist end users in doing their work.
They are purchased as ready-to-use
packages. Applications software directly
assists end users in doing their work.
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12. Databases
 Databases are organized collections of
interrelated data used by applications
software. Databases are managed by
systems software known as database
management systems (DBMS) and shared by
multiple applications.
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13. Telecommunications
 Telecommunications are the means of
electronic transmission of information over
distances. Today, computer systems are
usually interconnected into
telecommunications networks. Various
network configurations are possible,
depending upon an organization's need.
These include:
 1. Local area networks (LAN) 2. Metropolitan
area networks (MAN) 3. Wide area networks
(WAN) Mr.Harish.R, Don Bosco Institute of Technology 13

14. INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
IS Vs IT

15. Computer Based Information System
& Information Technologies:
1. Computer hardware technologies-Micro
Computers, Midsize servers, input,output
and storage devices.
2. Computer software technologies-Operating
systems, web browsers, software
productivity suites.
3. Telecommunications network technologies-intranets,
extranets, Wi-fi, LAN, WAN.
4. Data resource management technologies-
DBMS Software for development, access.
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16. DISCUSS
 Information is resource or not???
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17. The Major Areas Of Information Systems
Knowledge Needed By Business Professionals
1. Foundation concepts.
concept about the components and roles of
information systems.
2. Information technologies.
hardware, software, networks, data
management, many internet based
technologies.
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18. The Major Areas Of Information Systems
Knowledge Needed By Business Professionals
(continued)
3. Business applications.
operations, management, competitive advantage of
a business.
4. Development processes.
plan, develop, and implement information systems
to meet business opportunities.
5. Management challenges.
the challenges of effectively and ethically managing
information technology at end user, enterprise, and
global levels of a business.
Ex:- Cyber Crime, Hacking, Cyber Theft, Piracy, Viruses
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& Worms

19. The Fundamental Roles Of
Information System In Business
There are three fundamental reasons:
1. Support of its business processes and
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operations.
2. Support of decision making by its employees
and managers.
3. Support of its strategies for competitive
advantage.

20. Trends In Information Systems:
1. Data processing: 1950s – 1960s
- electronic data processing systems
-- transaction processing, record keeping,
and traditional accounting applications.
2. Management reporting: 1960s – 1970s
- management information systems
-- management reports of pre-specified
information to support decision making.
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21. Trends In Information Systems
(continued):
3. Decision support: 1970s – 1980s
- decision support systems
4. Strategic and User Support: 1980s – 1990s
- end user computing systems
- executive information systems
- expert systems
- strategic information systems
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22. Trends In Information Systems
(continued):
4. Electronic Business and Commerce: 1990s
– 2000s
- internet based e business and
e-commerce systems
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23. The Role Of “E Business” In Business
 Many business today are using internet
technologies to Web enable business
process and to create innovative e business
application.
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24. The Role Of E Business In Business
(continued)
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 E business:
the use of internet technologies to work and
empower business process, electronic
commerce, and enterprise collaboration
within a company and with its customers,
suppliers, and other business stakeholders.

25. Business Today
Manufacturing and
production
Accounting
and finance
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Engineering
and
research
Supply chain management:
procurement, distribution, and
logistics
Customer relationship management:
Marketing, Sales, Customer Service
Company
Boundary
Internet
Internet

26. Business Today (continued)
Suppliers and other
business partners
Extranets
Company
Boundary
Consumers and business
customers
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Extranets

27. Business Today (continued)
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 Intranet:
the internet and internet like networks inside
the enterprise.
 Extranet:
the internet and internet like networks
between an enterprise and its trading
partners.

28. Business Today (continued)
 Electronic commerce:
the buying, selling, marketing, and servicing
of products, services, and information over a
variety of computer networks.
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29. The IS (Information System)
Functions:
 A major functional area of business equally
as important to business success, as the
function of:
- accounting,
- finance,
- operations management,
- marketing,
- human resource management.
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30. The IS (Information System)
Functions (continued):
 An important contributor to:
- operational efficiency,
- employee productivity,
- customer service and satisfaction.
 A major source of information and support
needed to promote effective decision making
by managers and business professionals.
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31. The IS (Information System)
Functions (continued):
 A vital ingredient in developing competitive
products and services that give an
organization a strategic advantage in the
global market place.
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32. Mr.Harish.R
32
Foundation Concepts: The
Components Of Information Systems:
 Technology:
the computer network are systems of information
processing component that use a variety of:
hardware,
software,
data management,
and telecommunication network technologies.
 Applications:
the electronic business and commerce applications
involve interconnected business information systems.

33. Foundation Concepts: The Components Of
Information Systems (continued):
 Development:
that developing ways to use information
technology in business includes designing the
basic components of information system.
 Management:
the managing information technology
emphasizes the quality, strategic business
value, security.
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34. What Is A System?
Systems have three basic functions:
1. Input:
Involves capturing and assembling elements
that enter the system to be processed.
Example: - raw materials,
- energy,
- data.
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35. What Is A System? (continued)
Systems have three basic functions (continued):
2. Processing:
involves transformation processes that convert input
into output.
Example: - manufacturing process,
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3. Output:
involves transferring elements that have been
produced by a transformation process to their
ultimate destination.
Example: - finished products,
- human services

36. Stakeholders In The Business
Environment
Management
Information System
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Economic
Resources: people,
money, material,
machines, land,
facilities, energy,
information
Business Process:
market, develop,
produce, and
deliver, products
and services,
support customers,
other processes
Goods and Services:
products, services,
payments, contributions,
information, other effects
INPUT
PROCESSING
OUTPUT
CONTROL
FEEDBACK
Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community,
Government Agencies, Suppliers

37. Components Of An Information
System
PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and
procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES
(communications media and network support); DATA RESOURCES (data and knowledge bases);
SYSTEM ACTIVITIES
Control System Performance
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Input Of Data
Resources
Processing
Data Into
Information
Output Of
Information
Products
Storage Of Data Resources

38. Examples Of Information System
Resources And Products
Information Systems Resources And
Products
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People
Resources
Hardware
Resources
Software
Resources
Data
Resources
Network
Resources

39. Information Systems Resources And
Products
 People resources:
- specialist (system analysts, software
developers, system operators).
- end users (anyone else who uses
information systems).
 Hardware resources:
- machines (computers, video monitor, magnetic disk
drives, printers, optical scanners).
- media (floppy disks, magnetic tape, optical disks,
plastic cards, paper forms).
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40. Information Systems Resources And
Products (continued)
 Software resources:
- programs (operating system program, spreadsheet
programs, word processing programs).
- procedures (data entry procedures, error correction
procedures).
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 Data resources:
- product description, customer records, employee
files, inventory databases.

41. Information Systems Resources And
Products (continued)
 Network resources:
- communications media, communication
processors, network access and control
software.
 Information products:
- management reports and business
documents using text and graphics displays,
audio responses, and paper forms.
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42. Business Examples
INFORMATION SYSTEM ACTIVITIES
 Input. (optical scanning of bar coded tags on
merchandise)
 Processing. (calculating employee pay, taxes, and
other payroll deductions)
 Output. (producing reports and displays about sales
performance)
 Storage. (maintaining records on customers,
employees, and products)
 Control. (generating audible signals to indicate proper
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43. LEARNING OUTCOMES
As a business professional, You should be able
to recognize the fundamental components of
information systems You encounter.
You should be able to identify:
** The people, hardware, software, data, and network
resources they use.
** The types of information products they produce.
** The way they perform input, processing, output,
storage, and control activities.
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44. THANK YOU
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