1

INFORMATION SYSTEMS FOR

MANAGERS
(SLIT 501)

IBS
Data, Information, and
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Information Systems

“Data,” “Information,” and “System” are

commonly used terms
Important to understand their similarities
and differences
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Data vs. Information

• Data: a given or fact

– Can be number, statement, or picture
– Is the raw material in the production of
Information
• Information: facts or conclusions that have
– Meaning within context
– Composed of data that has been manipulated
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Data Manipulation

Data manipulation is the process of changing data

to make it easier to read or be more organized.

• New information can be generated from data,

such as averages, trends, etc.
• Raw data is hard to read
• Information is more useful to business than data
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Generating Information

Process: the manipulation of data

– Usually produces information
– May produce more data

A piece of information (output of a process) in

one context may be considered data (input to a
process) in another context
Generating Information
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(continued)
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Attributes of Information Quality

Timeliness
Accuracy
Relevance
Adequacy (Sufficient Quantity)
Completeness
Explicitness (No Need of further analysis)
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What is a System?

A group of interrelated components, with a clearly

defined boundary, working together toward a
common goal by accepting inputs and producing
outputs in an organized transformation process.
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What is a System? (Cont….)

System: array of components that work

together to achieve goal or goals
• System
– Accepts input
– Processes input
– Produces output
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What is a System? (Cont.…) 0

• System may have multiple goals

• System may contain subsystems
• Subsystem: component of a larger system
• Subsystems have sub-goals that contribute to
main goal
• Subsystems can receive input from and transfer
output to other subsystems
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Types of Systems 1

 Open & Closed Systems

 Physical & Abstract System
 Deterministic & Probabilistic System
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Open and Closed Systems 2
An open system interfaces and interacts with
other system. An open system needs to receive
feedback to change and continue to exist in its
environment.
Example: A marketing system is an open system.

A closed system does not exchange the

information with its environment. It does not
have any connection to the other system.

Example: Research & development of organization,

ICU dept. of hospital, etc.
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Physical & Abstract System 3
Physical system are tangible entities that may
be static or dynamic in operations.
For example the physical parts of the computer center
are the computers, desk, chair, etc. that facilitate
operation of the computer

Abstract systems are conceptual and non

physical entities.

They may be formulas of relationship among

set of variables or models, software/ program.
Deterministic & Probabilistic System
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A deterministic system works with certainty in
predictable manner. The interaction among its
subsystem is known in advance.
Example: A computer system which works on
the principal GIGO.

Probabilistic system operates with uncertainty

as certain degree of error is always attached
with prediction of what the system will do.

Example: A student admission system in a

college is probable in nature
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A Business System 5
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Information Systems 6

“Information systems (IS) is the study of

complementary networks of hardware and software
that people and organizations use to collect, filter,
process, create, and distribute data.”
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Information Systems (Cont….) 7

“Information systems are combinations of hardware,

software, and telecommunications networks that
people build and use to collect, create, and distribute
useful data, typically in organizational settings.”
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Information Systems (Cont….) 8

“Information systems are interrelated components

working together to collect, process, store, and
disseminate information to support decision making,
coordination, control, analysis, and visualization in
an organization.”
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Information Systems (Cont….) 9

As you can see, these definitions focus on two

different ways of describing information
systems: the components that make up an
information system and the role that those
components play in an organization
Information Systems :
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Components 0

•Computer Hardware and Software

•Telecommunications
•Databases and Data Warehouses
•Human Resources
•Procedures
Information Systems :
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Components 1

•An Information System (IS) is a system that

accepts inputs in the form of data resources,
processes them and provides output in the form
of information.

Information systems are designed in such a way as to

help the managers analyze data and to enable
decision-making
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Types of Information Systems 2

Operation Support System

Management Support System

Types of Information Systems :
2
Operation Support System 3

Transaction Processing System

Process Control Systems
Enterprise Collaboration System
Specialized Processing Systems
Expert System
Knowledge Management System
Strategic Information System
Functional Business System
Types of Information Systems :
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Management Support System 4

Management Information System

Decision Support System
Executive Information System
Specialized Processing Systems

Expert System
Knowledge Management System
Strategic Information System
Functional Business System
Types of Information Systems :
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Operation Support System 5

The role of a business firm’s operations support

system is to process business transactions, control
industrial processes, support enterprise
communications and collaborations, and update
corporate databases efficiently.
Types of Information Systems :
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Examples of Operation Support System 6

Transaction Processing System

A transaction process system (TPS) is an
information processing system for
business transactions involving the collection, modification
and retrieval of all transaction data. TPS is also known as
real-time processing system.
Types of Information Systems :
2
Examples of Operation Support System 7

Process Control Systems

A process control system monitors the manufacturing
environment and electronically controls the process or
manufacturing flow based on the various set-points given by
the user.

Example : A Petroleum Refinery uses electronic sensors linked to computers to

monitor chemical processes continually and make instant (real-time) adjustments
that control the refinery process.
Types of Information Systems :
2
Examples of Operation Support System 8

Enterprise Collaboration System

Enterprise Collaboration Systems support team, workgroup,
and enterprise communications and collaborations.

Examples : e-mail, chat, and videoconferencing groupware systems.

Types of Information Systems :
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Management Support System 9

Information systems that focus on providing information

and support for effective decision making by managers.

MSS enables senior management to access common, shared

sources of internal and external information that have been
summarized in easy-to-access, graphical displays.
Types of Information Systems :
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Examples of Management Support System 0

Management Information System (MIS)

Management information system, or MIS, broadly refers to

a computer-based system that provides managers with the
tools to organize, evaluate and efficiently manage
departments within an organization.
Types of Information Systems :
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Examples of Management Support System 1

Decision Support System (DSS)

DSS are interactive software-based systems intended to help

managers in decision-making by accessing large volumes of
information generated from various related information systems
involved in organizational business processes.
A decision support system helps in decision-making but does not
necessarily give a decision itself.
Types of Information Systems :
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Examples of Management Support System 2

Executive Information System (EIS)

Executive information system is a computer based system
that serves the information that is needed by the various top
executives. It provides very rapid access to the timely
information and also offers the direct access to the different
management reports.
Types of Information Systems :
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Specialized Processing Systems 3

Expert System

Expert Systems provide expert advice and act as expert

consultants to users for operational chores or managerial
decisions.

Example : Portfolio Management

Types of Information Systems :
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Specialized Processing Systems 4

 Knowledge Management Systems

Knowledge Management Systems are knowledge based

systems that support the creation, organization, and
dissemination of business knowledge with in the
enterprise.

Examples : Sales Proposal Strategies, Customer Problem Resolution System

Types of Information Systems :
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Specialized Processing Systems 5

Strategic Information Systems

The information systems that companies use to help

achieve their goals and become more
efficient. Businesses use these systems to achieve a
competitive advantage on their competitors.

For example, a strategic information system can be used to provide a product at

a lower cost than competing organizations.
Types of Information Systems :
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Specialized Processing Systems 6

Functional Business Systems

These systems support a variety of operational

and managerial applications of the basic business
functions of a company.

Information Systems that support applications in accounting, finance,

marketing, human resource management
MIS: Role in Organizational Development
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A Management Information System (MIS) is

an information system used for decision-making, and for the
coordination, control, analysis, and visualization of
information in an organization.

The study of the MIS involves people, processes and

technology in an organizational context.
MIS: Role in Organizational Development 3
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In a corporate setting, the ultimate goal of the use of a

management information system is to increase the value
and profits of the business. This is done by providing
managers with timely and appropriate information
allowing them to make effective decisions within a
shorter period of time.
MIS: Role in Organizational Development 3
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 Improve an organization's operational efficiency, add value to

existing products, engender innovation and new product
development, and help managers make better decisions.
 Acting as a communication and planning tool.
 The availability of customer data and feedback can help the
company to align its business processes according to the needs
of its customers.
 MIS can help a company gain a competitive advantage.
 MIS reports can help with decision-making as well as reduce
downtime for actionable items.
Internet, Intranet, and Extranet 4
(INTERNET) 0

The Internet is an immense global network

comprising smaller interconnected networks linking
millions of computers around the world.

The Internet is a network of networks composed of

cables and computers.
Internet, Intranet, and Extranet 4
(INTRANET) 1

An intranet is a private network accessible only to an

organization’s staff. Unlike the Internet, an internal
intranet provides a wide range of information and
services to employees of an organization but these
tools and information are unavailable to the public.

Increasingly, businesses are relying on intranets to deliver tools such as

collaboration, scheduling, customer relationship management tools, and
project management to increase the productivity of the organization
Internet, Intranet, and Extranet 4
(INTRANET) 2

Just as organizations set up web sites to provide global

access to information about their business, they also set up
internal web pages to provide information about the
organization to the employees. This internal set of web
pages is called an intranet.

Web pages on the intranet are not accessible to those

outside the company; in fact, those pages would come up
as “not found” if an employee tried to access them from
outside the company’s network.
Internet, Intranet, and Extranet 4
(EXTRANET) 3

In some cases organizations make the decision to

allow external parties such as customers and
suppliers to have access to their intranet. When these
outside parties are provided access to a subset of the
information accessible from an
organization’s intranet the intranet becomes
an extranet.
Internet, Intranet, and Extranet 4
(EXTRANET) 4

Sometimes an organization wants to be able to collaborate

with its customers or suppliers while at the same time
maintaining the security of being inside its own network.
In cases like this a company may want to create
an extranet.

Extranets can be used to allow customers to log in and

check the status of their orders, or for suppliers to check
their customers’ inventory levels.
How an Extranet works? 4
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World Wide Web(WWW) 4
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The World Wide Web (or simply “the Web”) is just a

portion of the Internet-albeit a large portion. The
Web is a subsystem of computers that can be
accessed on the Internet using a special protocol, or
language, known as hypertext transfer
protocol (http).
World Wide Web(WWW) 4
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The Web, is composed of information-

documents, pictures, sounds, streaming videos,
and so on. It’s connected not through cables, but
rather through hypertext links that allow users to
navigate between resources on the Internet.

Richard T. Griffiths, “Chapter Two: The World Wide Web (WWW),” The History of the
Internet, http://www.let.leidenuniv.nl/history/ivh/chap2.htm (accessed June 2, 2006).
World Wide Web(WWW) :
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Web Technologies 8
Documents on the Web are called Web pages, and they’re stored
on Web sites.
Each site is maintained by a Webmaster and opens with a home
page. Each Web page is accessed through a unique address called
a uniform resource locator (URL).
A search engine is a software program that scans Web pages
containing specified keywords and provides a list of documents
containing them. The most popular search engine is Google; others
include Yahoo!, Ask, and Hotbot.
A Web browser is software that locates and displays Web pages.
World Wide Web(WWW) 4
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For example, if you want to find statistics on basketball star

Shaquille O’Neal, you could type in the URL address
http://www.nba.com/playerfile/shaquille_oneal
The prefix http:// is the protocol name
www.nba.com the domain name
playerfile the subdirectory name
and shaquille_oneal the document name (or Web page).
A computer that retrieves Web pages is called a Web
server
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Reference Material Sources: 0

•https://opentextbook.site/informationsystems2019/chapter/chapter-1-what-is-an-
information-system-information-systems-introduction/
•https://paginas.fe.up.pt/~acbrito/laudon/ch2/chpt2-1main.htm

•https://2012books.lardbucket.org/books/an-introduction-to-business-v1.0/s19-05-
data-communications-networks.html
•https://opentextbook.site/informationsystems2019/chapter/chapter-8-business-
processes-information-systems-introduction/