People and businesses need information for different purposes. For individuals, information provides entertainment and enlightenment, while businesses use information for decision making, problem solving, and control. Data refers to raw facts, while information involves organizing data in a way that provides value beyond the individual facts. An information system is made up of interrelated components that collect, process, store, and disseminate data and information to meet an objective.

1. Why Do People Need Information?
◦ Individuals - Entertainment and enlightenment
◦ Businesses - Decision making, problem solving and control
Data /Information
 Data: raw facts
 Information: collection of facts organized in such a way that they have value beyond the facts
themselves

5. Organizing -
 Divide the task to activities
 Delegating authority
Staffing-
 Right person at the right job.
Directing-
 Motivating
 Communicating
Controlling –
 Controlling and planning are the two faces of the same coin
 Control ensures that activities are being performed as per plans

9.  MI is required by the managers in decision making
 MI refers to the quality of information in terms of
- timeliness
- accuracy
- completeness
- adequate

10. System
• is a group of interrelated or interacting elements forming a unified whole
- E.g-sun & planets, human body
• is a group of interrelated components working together toward a common goal by accepting
inputs & producing outputs in an organized transformation process
A set of elements or components that interact to accomplish goals
 Input
 Processing mechanism
 Feedback
 Output
 System boundary

11. System has 3 basic components or functions,
Input - involves capturing and assembling elements that enter the system to be processed
e.g-raw material
Processing –involves transformation processes that convert input into output
e.g – mathematical calculation
Output-involves transferring elements that have been produced by a transformation process to their
ultimate destination
e.g-finished products
Feedback -is about the performance of a system
Control – monitoring & evaluating feedback to determine whether a system is moving toward the
achievement of its goals.

12. The control function then makes necessary adjustments to a system’s input and processing
components to ensure that it produces proper output.
e.g – sales executive in allotting the territories

13. A system does not exist in a vacuum, it exists & functions in an environment containing other
systems
Subsystem –A system that is a component of a larger system, where the larger system is its
environment.
System boundary –A system is separated from its environment and other systems by its system
boundary.
Interface- Several systems may share the same environment. Some of these systems may be
connected to one another by means of a shared boundary, or interface.

14. Information System
A set of interrelated components that collect, manipulate, and disseminate data and
information, and provide feedback to meet an objective
 Examples: ATMs, airline reservation systems, payroll systems
 WHY INFORMATION SYSTEMS?
Three important reasons why IS makes a difference to the success of a business
• Foundation of doing business
• Productivity
• Strategic opportunity and advantage
• 3.Strategic Opportunity and Advantage
• Create competitive advantage: IS makes it possible to develop competitive advantages.

15. • New Business Models: Dell Computer has built its competitive advantage on an IS enabled build-
to-order business model that other firms have not been able to imitate.
• Create new services: eBay.com
• Differentiate yourself from your competitors: Flipkart.com
IMPACT OF IT IN BUSINESS FIRMS
1. Internet growth and technological Convergence
2. Transformation of Business Enterprise
3. Growth of a globally connected economy
4. Growth of knowledge and information-based economies
5. Emergence of the digital firm
IMPACT OF IT IN BUSINESS FIRMS..
2.Transformation of the Business Enterprise
• Flattening
• Decentralization
• Flexibility
• Location independence
• Low transaction and coordination costs
• Collaborative work and teamwork
3. Globalization
• Management and control in a global marketplace
• Competition in world markets
4.Rise of the Information Economy
• Knowledge and information-based economies
• New products and services
6. The Emerging Digital Firm

16. • Is one in which nearly all of the organization's significant business relationships with customers,
suppliers and employees are digitally enabled.
Core business processes are accomplished through digital networks and linking multiple organist
ions
• Business processes refer to the set of logically related tasks developed to achieve specific
business results
Eg: developing a new product, hiring of employees
Advantages
 Sense and respond to their environment far more rapidly than traditional firms
 Flexible
 In Digital firms, both time shifting and space shifting are the norm
 Operational excellence-improves efficiency
 Improved decision making-real time information
 Competitive advantage
 Collaboration
 survival

17. Why Study Information Systems?
 improve the efficiency and effectiveness of their business processes,
 managerial decision making,
 workgroup collaboration, thus strengthening their competitive positions in a rapidly changing
marketplace.
Why Study Information Systems
 Internet-based systems have become a necessary ingredient for business success in today’s
dynamic global environment.
 Information technologies are playing an expanding role in business.
 Require to survive and prosper
 What business wants to do in 5 years often depends on its system

19. Information Systems vs. Information Technology
 Information Systems (IS) – all components and resources necessary to deliver information and
information processing functions to the organization
 Information Technology (IT) – various hardware components necessary for the system to
operate

20. The information system emphasizes 4 major concepts that can be applied to all types of
information systems
*People, hardware, software, data, and networks.
*People resources include end users and IS specialists, hardware resources consist of machines and
media, software resources include both programs and procedures, data resources can include data
and knowledge bases, and network resources include communications media and networks.
*Data resources are transformed by information processing activities into a variety of information
products for end users.
*Information processing consists of input, processing, output, storage, and control activities.

22. People resources-People are required for the operation of all information systems
End users- are people who use an information system or the information it produces.
IS specialists –are people who develop and operate information systems
System analysts-design information systems based on the information requirements of end users.
System developers-create computer programs based on the specifications of systems analysts.
System operators-monitor and operate large computer systems and networks.
Hardware resources-include all physical devices and materials used in information processing.
Machines-physical devices (computers, peripherals, telecommunications networks, etc.)
Media- all tangible objects on which data are recorded (paper, magnetic disks etc.)
Computer system –which consist of central processing units containing microprocessors, and a
variety of interconnected peripheral devices

23. Computer peripherals-which are devices such as a keyboard or electronic mouse for input of data
and commands, a video screen or printer for output of information, and magnetic or optical disks for
storage of data resources.
Software resources-include all sets of information processing instructions
Program –a set of instructions that causes a computer to perform a particular task
Procedures-set of instructions used by people to complete a task
Examples of software
System software-such as an operating system program, that controls and supports the operations of
a computer system.
Application software-are programs that direct processing for a particular use of computers by end
users.
Data resources-Data constitutes a valuable organizational resource
Databases - a collection of logically related records or files. A database consolidates many records
previously stored in separate files so that a common pool of data records serves many applications.
Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference
about various subjects.
Network resources-
 Telecommunications networks like the Internet, intranets, and extranets have become
essential to the successful electronic business and commerce operations of all types of
organizations and their computer-based information systems. Network resources include:
 Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave, and
satellite wireless systems.
 Network support (people, hardware, software, and data resources that directly support the
operation and use of a communications network).
 Information system activities – information processing(data processing) include the following
 Input of Data Resources:
 *Data about business transactions and other events must be captured and prepared for
processing by the inputactivity. Input typically takes the form of data entry activities such as
recording and editing.
 *Once entered, data may be transferred onto a machine-readable medium such as magnetic
disk, until needed for processing.

24. Processing of Data into Information:
 Data is typically subjected to processing activities such as calculating, comparing, sorting,
classifying, and summarizing. These activities organize, analyze, and manipulate data, thus
converting them into information for end users.
 A continual process of correcting and updating activities must maintain quality of data stored in
an information system.
IS support an organization's
• Business processes & operations-involves dealing with information systems that support the
business processes and operations in a business.
E.g-customer purchases, keep track of inventory, sales trend
• Decision making by employees & managers-help decision makers to make better decisions and
attempt to gain a competitive advantage.
e.g-what kind of merchandise need to be added or discontinued

25. • Strategies for competitive advantage-help decision makers to gain a strategic advantage over
competitors requires innovative use of information technology.
e.g-store manager might take a decision to install touch screen kiosks, on line shopping
 e-business is defined as the use of Internet technologies to work and empower business
processes, electronic commerce, and enterprise communication and collaboration within a
company and with its customers, suppliers, and other business stakeholders.
 Enterprise collaboration systems. Involve the use of software tools to support communication,
coordination, and collaboration among the members of networked teams and workgroups. An
internetworked e-business enterprise depends on intranets, the Internet, extranets, and other
networks to implement such systems.
 Electronic commerce is the buying and selling, and marketing and servicing of products, services,
and information over a variety of computer networks. An internetworked e-business enterprise
uses the Internet, intranets, extranets, and other networks to support every step of the
commercial process.
MANAGERIAL CHALLENGES OF INFORMATION TECHNOLOGY

26. • Should not be measured only in terms of its efficiency – minimizing the cost & time -----------
• Success should be measured in terms of effectiveness, in supporting the business strategy
• Mismanagement and misapplication of IS
A MIS is
• An integrated user machine system
• For providing information
• To support the operations, management, analysis,& decision making functions
• In an organization
The system utilizes
• Computer hardware & software
• Manual procedures

27. • Models for analysis, planning & control& decision making
• A database
MIS is the
marriage
Management information and system
MIS provide,
 MI required by the managers in decision making
 MI refers to the quality of information in terms of
- timeliness
- accuracy
- completeness
- adequate
Functions of MIS
 Data capturing
 Processing of data
 Storage of information
 Retrieval of information
 Dissemination of MI
Jefferson State University
 People – students
 Hardware – computer system & printer
 Software-word processing & networked operating system
 Data – case (text)
 Output – final document
 Input – system accepts input in the form of data entered by students

28.  Processing – word processing software processes this input (text) & represents in the form of
report for storage or for printing
 Output – a copy of the document saved on disk, display the same on the screen or printed.
 Storage – on disk drive & secondary memory
 Control – warning message