Concept of Data and Information, Information Systems

Data Data are raw facts or observations, typically about physical phenomena or business transactions. More specifically, data are objective measurements of the attributes (characteristics) of entities, such as people, places, things, and events. Think of data as a "raw material" - it needs to be processed before it can be turned into something useful. Hence the need for "data processing". Data comes in many forms - numbers, words, symbols. Data relates to transactions, events and facts. On its own - it is not very useful. Think of the data that is created when you buy a product from a retailer. This includes: - Time and date of transaction (e.g. 12:45 Monday 12 November 1979) - Transaction value (e.g. Rs 66.00) - Facts about what was bought (e.g. hairdryer, cosmetics pack, shaving foam) and how much was bought (quantities) At its simplest, this data needs processing at the point of sale in order for the customer to receive a valid receipt. So the data about the transaction is processed to create "information" - in this case a receipt. You can imagine that the same data would also be useful to the manager of the retail store. For example, a report showing total sales in the day, or which are the best-selling products. So the data concerning all shop transactions in the day needs to be captured, and then processed into a management report. Information Information: - is processed data, which has been placed in a meaningful and useful context for an end user. Data is subjected to a value-added process (data processing or information processing) where: Its form is aggregated, manipulated, and organized. Its content is analyzed and evaluated. It is placed in a proper context for a human user. Information is data that has been processed in such a way as to be meaningful to the person who receives it. Following are the different type of information used in an bussiness organization. (1) Strategic information: used to help plan the objectives of the business as a whole and to measure how well those objectives are being achieved. Examples of stategic information include: - Profitability of each part of the business - Size, growth and competitive structure of the markets in which a business operates - Investments made by the business and the returns (e.g. profits, cash inflows) from those investments (2) Tactical Information: this is used to decide how the resources of the business should be employed. Examples include: - Information about business productivity (e.g. units produced per employee; staff turnover) - Profit and cash flow forecasts in the short term - Pricing information from the market (3) Operational Information: this information is used to make sure that specific operational tasks are carried out as planned/intended (i.e. things are done properly). For example, a production manager will want

information about the extent and results of quality control checks that are being carried out in the manufacturing process.

SYSTEM CONCEPTS A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. A system (sometimes called a dynamic system) has three basic interacting components or functions. These include: Input involves capturing and assembling elements that enter the system to be processed. Processing involves transformation processes that convert input into output. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. Feedback and Control: Two additional components of the system concept include feedback and control. A system with feedback and control components is sometimes called a cybernetic system, that is, a self-monitoring, self-regulating system. Feedback is data about the performance of a system. Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goals. The control function then makes necessary adjustments to a system's input and processing components to ensure that it produces proper output. System Characteristics: A system does not exist in a vacuum; rather, it exists and 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. Open System: A system that interacts with other systems in its environment is called an open system (connected to its environment by exchanges of inputs and outputs). Adaptive System: A system that has the ability to change itself or its environment in order to survive is called an adaptive system.

Information Systems
An information system (IS) can be any organized combination of people, hardware, software, communications networks, and data resources that collect, transforms, and disseminate information in an organization. Computer-based information systems (IS) use hardware, software, the Internet, and other telecommunications networks, computer-based data resource management techniques, and other forms of information technologies (IT) to transform data resources into a variety of information products for consumers and business professionals.

Figure: 1

COMPONENTS OF AN INFORMATION SYSTEM:

An information system model expresses a fundamental conceptual framework for the major components and activities of information systems. An information system depends on the resources of people, hardware, software, data, and networks to perform input, processing, output, storage, and control activities that convert data resources into information products. The information systems model outlined in the text emphasizes four major concepts that can be applied to all types of information systems: People, hardware, software, data, and networks, are the five basic resources of information systems. 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. INFORMATION SYSTEM RESOURCES The basic IS model shows that an information system consists of five major resources: People resources Hardware resources Software resources Data resources Network resources

People Resources: People are required for the operation of all information systems. These people resources include end users and IS specialists.

End Users (also called users or clients) are people who use an information system or

the information it produces. Most of us are information system end users. And most end users in business are knowledge workers, that is, people who spend most of their time communicating and collaborating in teams of workgroups and creating, using, and distributing information.

IS Specialists are people who develop and operate information systems. They include
system analysts, software developers, system operators, and other managerial, technical, and clerical IS personnel. Systems analysts design information systems based on the information requirements of end users. Software developers create computer programs based on the specifications of systems analysts. System operators monitor and operate large computer systems and networks.

Hardware Resources: 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.) Examples of hardware in computer-based information systems are: Computer Systems which consist of central processing units containing microprocessors, and a variety of interconnected peripheral devices. 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: 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 resources are: 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. Procedures are operating instructions for the people who will use an information system. Data Resources: Data constitutes a valuable organizational resource. Thus, data resources must be managed effectively to benefit all end users in an organization. The data resources of information systems are typically organized into: 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. Telecommunications networks consist of computers, communications processors, and other devices interconnected by communications media and controlled by communications software. The concept of network resources emphasizes that communications networks are a fundamental resource component of all information systems. Network resources include:

Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and

INFORMATION SYSTEM ACTIVITIES Information processing (or data processing) activities that occur in information system include the following: Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance Input of Data Resources: Data about business transactions and other events must be captured and prepared for processing by the input activity. 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 or type, until needed for processing. 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. Output of Information Products: Information in various forms is transmitted to end-users and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users. Storage of Data Resources: Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in an organized manner for later use. Control of System Performance: An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. Feedback must be monitored and evaluated to determine if the system is meeting established performance standards.

 Feedback is used to make adjustments to system activities to correct deficiencies. THE FUNDAMENTAL ROLES OF IS APPLICATIONS IN BUSINESS Information systems perform three vital roles in any type of organization. That is, they support an organizations: Business processes and operations Decision making by employees and managers Strategies for competitive advantage

Three major roles of the business applications of information systems include: Support Business Processes involves dealing with information systems that support the business processes and operations in a business. Support Decision Making help decision makers to make better decisions and attempt to gain a competitive advantage. Support Competitive Advantage help decision makers to gain a strategic advantage over competitors requires innovative use of information technology. TRENDS IN INFORMATION SYSTEMS The roles given to the information systems function have expanded significantly over the years. 1950s - 1960s - Data Processing - Electronic data processing systems Role: Transaction processing, record keeping, and accounting, and other electronic data processing (EDP) applications 1960s - 1970s - Management Reporting Management information systems Role: Providing managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes. 1970s - 1980s - Decision Support - Decision support systems Role: The new role for information systems was to provide managerial end users with ad hoc support of their decision-making process. This support would be tailored to the unique decision-making styles of managers as they confronted specific types of problems in the real world. 1980s - 1990s - Strategic and End User Support Role: End users could use their own computing resources to support their job requirements instead of waiting for the indirect support of corporate information services departments.

 End User Computing Systems Role: Direct computing support for end user productivity and work group collaboration. Executive Information Systems (EIS) Role: These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the formats they prefer. Expert Systems (ES) and other Knowledge-Based Systems Role: Expert systems can serve as consultants to users by providing expert advice in limited subject areas. Strategic Information Systems (SIS) Role: Information technology becomes an integral component of business processes, products, and services that help a company gain a competitive advantage in the global marketplace. 1990s - 2000 Electronic business and commerce systems Role: The rapid growth of the Internet, intranets, extranets, and other interconnected global networks has revolutionising the operations and management of todays business enterprises.