Introduction
Mst. Tamanna Akter
Dept. of Business
Administration, SUST
Data Versus Information
Data are the raw material from which
information is generated.
Information is processed data that is
useful to the decision maker.
Data are streams of raw facts.
Information is data shaped into
meaningful form.
Data Versus Information
Data is a representation of a fact, a
number, a word, an image, a picture or a
sound. For example, the number 10 is
data; it might represent image, a picture, or
a sound.
Information is data that is meaningful or
useful to someone. For example, the
statement “ There are 10 books left in
inventory”.
Data versus Information
Monthly Sales Report
for West Region
an n Sales Rep: Charles Mann
100 rles M
00 ha oe s Emp No. 79154
12 t C Sh Item Qty Sold Price
e s M
W 54 T TM Shoes 1200 $100
791
Data Vs. Information
Data Vs. Information
Data is raw, unprocessed information.
Information is data that has been processed
to make it useful to its recipient.
Knowledge is information that has been
assimilated into a coherent framework of
understanding: usually within the human
mind.
Data ‐> is processed into ‐> Information ‐>
is assimilated into ‐> Knowledge
Relationship between data,
information and knowledge
(DIK Model)
Characteristics/Quality of
Information (CARTA Model)
Characteristics/Quality of
Information (CARTA Model)
Completeness: the degree to which all the
information required is present. In an ideal world,
people would have every scrap of information they
needed to make a decision. In the real world, people
never have all the information they need.
For example, take a town planner using a geographic
information system to make decisions about where to
permit new growth in a city. If some of the data layers
were missing, or if some districts in the town had no
submitted data, they would likely make a relatively
poor decision. Ideally, they would have complete
information on the city.
Characteristics/Quality of
Information (CARTA Model)
Accuracy: the level of errors/incorrect information
within the overall information. If the information on
which people are trying to base their decisions is
inaccurate, they are less likely to make good
decisions.
For example, if a personnel manager is trying to
retrench staff on a 'last in, first out' basis, inaccurate
information about staff dates of joining service will
lead to misguided decisions. Whereas if they had
more accurate information, that would lead to a
better decision.
Characteristics/Quality of
Information (CARTA Model)
Relevance: the degree to which information is
necessary in order to complete the task/decision
at hand. Information is of little value if it is not
relevant to the decision under consideration.
For example, imagine a customer trying to find
details on your Web site about a particular service
your organisation offers but all they find is stuff
about your organisation's history, staffing,
philosophy, etc. If you redesign the site to produce
more relevant information, you'll support better
decisions by your customers.
Characteristics/Quality of
Information (CARTA Model)
Timeliness: the degree to which information
arrives within a required timeframe. All
decisions and actions have to be taken by a
certain time, and information is of little value
if it arrives after a decision has been taken.
For example, if a manager is forecasting
future sales, and one region's sales
estimates arrive after the forecasts have
been produced, that information is probably
worthless.
Characteristics/Quality of
Information (CARTA Model)
Appropriateness of presentation: the degree to
which information is accessible and intelligible to the
recipient. Information is of little benefit if it cannot be
accessed or understood by the decision maker.
For example, if you show a farmer in a developing
country a geographic information system of soil types
or weather patterns but they have no understanding
of maps so it does not make any sense to them, it
will provide no benefit to their agricultural decision
making.
System
System is a set of interrelated
components that are working together to
achieve common goal. It is a organized,
purposeful structure regarded as a 'whole'
consisting of interrelated and
interdependent elements (components,
entities, factors, members, parts etc.).
System
System is 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.
What is a System?
Environment
Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals
Input of Manufacturing Output of
Raw Materials Process Finished Products
System Boundary
Other Systems
System Components
Input – capturing and assembling
elements that enter the system to be
processed
Processing – transformation steps
that convert input into output
Output – transferring elements that
have been produced by a
transformation process to their ultimate
destination
Information Systems
An Information System is a collection
of components that work together to
provide information to help in the
operations and management of an
organization.
Information systems is a set of
interrelated components that collect,
process, store, and distribute
information to support decision making
and control in an organization.
Information System
Information system is any organized
combination of people, hardware,
software, communications networks, and
data resources that stores, retrieves,
transforms, and disseminates information
in an organization.
Information Systems (IS) – all
components and resources necessary to
deliver information and information
processing functions to the organization
Information System
Information System (IS): a socio‐technical
system of information, people, tasks and
technology that accepts, processes, stores, and
outputs information for decision‐making or learning.
So the first part of the definition ("socio‐technical
system of information, people, tasks and
technology") represents what the information system
is made up of; a structural definition. The second
part ("that accepts, processes, stores, and outputs
information") represents what the information
system does; a process definition.
Information System
Information system:
Set of interrelated components
Collect, process, store, and distribute
information
Support decision making, coordination,
and control
Information Technology
Information technology is the tools and
techniques that support the design and
development of information systems. It
includes hardware, software, database,
network.
The technology uses to generate
information is called Information Technology
( IT).
Information Systems vs.
Information Technology
Information Technology (IT) – various
hardware components necessary for the
system to operate.
Information Technology is the
integration of computers, communications
equipment, and other technology used in
information systems.
Information Technology
Information Technology (IT): electronic
means of handling digital data. So in this
definition, information technology covers
things like computers, mobile phones, the
Internet, the Web, personal digital
assistants (PDAs), software programs, and
the like. We treat IT as meaning the same
as ICT: information and communication
technologies.
Computer systems
Computer systems will include the
computer along with any software and
peripheral devices that are necessary to
make the computer function. Every
computer system, for example, requires
an operating system.
Computer Information
Systems
When Information System includes
Computers, such system may be called
computer information systems ( CIS).
Computer Information System (CIS) is
often a track within the computer science
field studying computers and algorithmic
processes, including their principles, their
software & hardware designs, their
applications, and their impact on society.
Onion-Ring Model
Components/Resources of
an Information System
Components
Hardware - Equipment such as computers
Software - Instructions for the equipment
Data - Facts stored in the system
People - People who operate the system
Network – communication media and process
Procedures for the people to follow
Components of an
Information System
Components of an
Information System
Hardware: The first component of an
information system is hardware, which
consists of all physical devices and materials ,
the computers, communication equipment and
other devices used in a system.
Software: Software consists of instructions
that tell hardware what to do. Computers and
computer controlled hardware, such as
communications equipment, cannot function
without software; they must have instructions
to tell them what to do.
Components of an
Information System
Data: The data component of an information system
consists of all data that is kept in computers in the
system and that is used by the software of the system.
People: An information system does not operate by
itself; people are needed to make it run. People have
to supply input to the system, receive output
information from the system, operate the hardware in
the system, and run the software that is part of the
system. End users: End users are people who use an
information systems or information it produces. IS
specialists: IS specialists are people who develop
and operate information systems.
Components of an
Information System
Network – communication media and process.
A computer network is a telecommunications
network that allows computers to exchange
data.
Procedures: The final components of an
information systems consists of procedures,
which are instructions that tell people how to
use and operate the system.
Organizational dimension of
information systems
Hierarchy of authority, responsibility
Senior management
Middle management
Operational management
Knowledge workers
Data workers
Production or service workers
Organizational dimension of
information systems
Separation of business functions
Sales and marketing
Human resources
Finance and accounting
Manufacturing and production
Unique business processes (set of activities that
accomplish a specific organizational goal. The four main
types of business processes are operational, supporting,
management, and strategic. Operational processes directly
create value for customers, like making products. Supporting
processes help the core operations run smoothly, such as
hiring new employees.)
Unique business culture
Organizational politics (office politics
or workplace politics, is the practice
of employees using power and
influence to get what they want)
Management dimension of
information systems
Management dimension of information
systems
Managers set organizational strategy for
responding to business challenges
In addition, managers must act creatively:
Creation of new products and services
Occasionally re-creating the
organization
Technology dimension of
information systems
Technology dimension of information
systems
Computer hardware and software
Data management technology
Networking and telecommunications
technology
Networks, the Internet, intranets and
extranets, World Wide Web (a system of interconnected web
pages that are accessible through the internet).
IT infrastructure: provides platform that system
is built on
Levels in a firm
Business organizations are hierarchies
consisting of three principal levels:
senior management, middle
management, and operational
management. Information systems
serve each of these levels. Scientists
and knowledge workers often work
with middle management.
Levels in a firm
Functions/Activities of an
Information System
An information system contains information about
an organization and its surrounding environment.
Three basic activities—input, processing, and
output—produce the information organizations
need. Feedback is output returned to appropriate
people or activities in the organization to evaluate
and refine the input. Environmental actors, such as
customers, suppliers, competitors, stockholders,
and regulatory agencies, interact with the
organization and its information systems.
Functions/Activities of an
Information System
Three activities of information systems
produce information organizations need
Input: Captures raw data from organization
or external environment
Processing: Converts raw data into
meaningful form
Output: Transfers processed information to
people or activities that use it
Functions/Activities of an
Information System
Feedback:
Output is returned to appropriate
members of organization to help evaluate
or correct input stage.
Functions/Activities of an
Information System
Functions/Activities of an
Information System
Input Function accepts the input data from
outside the system.
Storage Function retains input data and
retrieves stored data.
Processing Function calculates and in other
ways manipulates the input and stored data.
Output Function produces results of
processing for use outside the system.
Feedback Function is the output that is
returned to appropriate members of the
organization to help them evaluate or correct the
input state.
Figure 1.1 Input-process-output
CIPSODAR Model
Business perspective on
information systems
Business perspective on information
systems:
Information system is instrument for creating
value
Investments in information technology will
result in superior returns:
Productivity increases
Revenue increases
Superior long-term strategic positioning
Business information value
chain
Business information value chain
Raw data acquired and transformed through
stages that add value to that information
Value of information system determined in part
by extent to which it leads to better decisions,
greater efficiency, and higher profits
Business perspective:
Calls attention to organizational and managerial
nature of information systems
The Business Information
Value Chain
The Business Information
Value Chain
From a business perspective,
information systems are part of a
series of value-adding activities for
acquiring, transforming, and
distributing information that managers
can use to improve decision making,
enhance organizational performance,
and, ultimately, increase firm
profitability.
Information Technology
Investment
Investing in information technology
does not guarantee good returns.
There is considerable variation in the
returns firms receive from systems
investments.
Factors:
Adopting the right business model
Investing in complementary assets
(organizational and management capital)
Complementary assets
Complementary assets:
Assets required to derive value from a
primary investment
Firms supporting technology investments
with investment in complementary assets
receive superior returns
Example: Invest in technology and the
people to make it work properly
Complementary assets
Complementary assets include:
Organizational assets, for example:
Appropriate business model
Efficient business processes
Managerial assets, for example:
Incentives for management innovation
Teamwork and collaborative work environments
Social assets, for example:
The Internet and telecommunications infrastructure
Technology standards
Contemporary Approaches
to Information Systems
The study of
information
systems deals
with issues
and insights
contributed
from technical
and
behavioral
disciplines.
Contemporary Approaches
to Information Systems
Technical approach
Emphasizes mathematically based
models
Computer science, management
science, operations research
Behavioral approach
Behavioral issues (strategic business
integration, implementation, etc.)
Psychology, economics, sociology
Contemporary Approaches
to Information Systems
Management Information Systems
Combines computer science, management
science, operations research, and practical
orientation with behavioral issues
Four main actors
Suppliers of hardware and software
Business firms
Managers and employees
Firm’s environment (legal, social, cultural
context)
A Sociotechnical Perspective
on Information Systems
Sociotechnical view
Optimal organizational performance
achieved by jointly optimizing both social
and technical systems used in production
Helps avoid purely technological
approach
A Sociotechnical Perspective
on Information Systems
In a sociotechnical perspective, the performance of a system is
optimized when both the technology and the organization mutually
adjust to each other until a satisfactory fit is obtained.
The Role of Information
Systems in Business Today
How information systems are transforming
business
Emerging mobile digital platform
Growing business use of “big data”
Growth in cloud computing ---the delivery of
computing services—including servers, storage,
databases, networking, software etc.—over the
internet (“the cloud”) .
Globalization opportunities
Internet has drastically reduced
costs of operating on global scale
Increases in foreign trade,
outsourcing
Presents both challenges and
opportunities
How Information Systems
Are Transforming Business
Cell phones, BlackBerrys, iPhones, e-mail, and
online conferencing over the Internet have all
become essential tools of business.
Over 247 million Americans have mobile phones
(67% of the population) and 167 million of these
people access the internet using smartphones.
Two hundred and twenty-seven million people in
China access the Internet using mobile devices in
2010, nearly two-third of the total internet user
population (Wireless federation, 2010).
How Information Systems
Are Transforming Business
By June 2014, more than 114 million
businesses worldwide had dot-com Internet
sites registered.
The online retail industry is estimated to
touch INR 7000 crore by 2015, with an
annual growth rate of 35%.
Today, 196 million Americans shop online,
and 163 million have purchased online.
Every day about 90 million Americans go
online to research a product or service.
How Information Systems
Are Transforming Business
There are 285 million cell phone subscribers in
the United States, and nearly 5 billion worldwide
(Dataxis, 2010).
There are 952 million cell phone subscribers in
China, and nearly 5 billion worldwide (Dataxis,
2010).
India’s growth of mobile subscribers to 865
million has grown shortly since 2009.
The total number of Mobile Phone subscriptions
has reached 131.376 million at the end of
June, 2016 in Bangladesh
How Information Systems
Are Transforming Business
The total number of Internet Subscribers has
reached 63.290 million at the end of June, 2016
in Bangladesh.
China’s online shopping market has reached 170.2
billion Yuan, which was a rise of over 76% on the
year to year comparison. The single’s day
(November 11, 2011) created history for China’s
online business at Taobao Mall along with
Taobao.com totaled a business of 8.56 billion Yuan
with 10 million orders. Thailand online shopping
trends shows a rise of nearly 60%.
How Information Systems
Are Transforming Business
As newspaper readership continues to
decline, more than 168 million people
receive their news online. About 83 million
people watch a video online everyday, 66
million read a blog, and 25 million post to
blogs, creating an explosion of new writers
and new forms of customer feedback that
did not exist five years ago.
How Information Systems
Are Transforming Business
Social networking site Facebook attracted
150 million monthly visitors in 2014 in the
United States, and over 500 million
worldwide. Businesses are starting to use
social networking tools to connect their
employees, customers, and managers
worldwide. Many Fortune 500 companies
now have Facebook pages.
How Information Systems
Are Transforming Business
Despite the recession, e-commerce and
Internet advertising continue to expand.
Google’s online ad revenues surpassed
$17 billion in 2013, and Internet
advertising continues to grow at more than
15 percent a year, reaching more than $43
billion in revenues in 2013.
Baidu, the Chinese internet search engine
provider, recorded a 78% growth in 2010,
garnering ad revenue of $1.2 billion.
How Information Systems
Are Transforming Business
New businesses and industries
appear, old ones decline, and
successful firms are those who
learn how to use the new
technologies.
The Role of Information
Systems in Business Today
In the emerging, fully digital firm:
Significant business relationships are digitally
enabled and mediated.
Core business processes are accomplished
through digital networks.
Key corporate assets are managed digitally.
Digital firms offer greater flexibility in
organization and management.
Time shifting, space shifting
Digital firm
A digital firm is one in which nearly all of
the organization’s significant business
relationships with customers, suppliers,
and employees are digitally enabled and
mediated. Core business processes are
accomplished through digital networks
spanning the entire organization or linking
multiple organizations.
Digital firm
Business processes refer to the set of logically
related tasks and behaviors that organizations
develop over time to produce specific business
results and the unique manner in which these
activities are organized and coordinated.
Key corporate assets—intellectual property, core
competencies, and financial and human assets—are
managed through digital means. In a digital firm, any
piece of information required to support key business
decisions is available at any time and anywhere in
the firm.
Digital firm
Time shifting refers to business being
conducted continuously, 24/7, rather than in
narrow “work day” time bands of 9 A.M. to 5
P.M.
Space shifting means that work takes place
in a global workshop, as well as within
national boundaries. Work is accomplished
physically wherever in the world it is best
accomplished.
Digital firm
Many firms, such as Cicso systems, 3M and
IBM are close to becoming digital firms, using
the internet to drive every aspect of their
business.
Most other are not fully digital, but they are
moving toward close digital integration with
suppliers, customers and employees.
Many firms are replacing traditional face-to-
face meeting with virtual meetings using
video-conferencing.
The Role of Information
Systems in Business Today
Growing interdependence
between:
Ability to use information technology
and
Ability to implement corporate
strategies and achieve corporate
goals
The Role of Information
Systems in Business Today
Firms invest heavily in information
systems to achieve six strategic
business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
The Interdependence Between
Organizations and Information
Technology
In contemporary systems there is a growing interdependence between a firm’s information
systems and its business capabilities. Changes in strategy, rules, and business processes
increasingly require changes in hardware, software, databases, and telecommunications. Often,
what the organization would like to do depends on what its systems will permit it to do.
Benefits of Information
Systems
1. Better information
2. Improved service
3. Increase productivity
4. Competitive advantage
Operational excellence
Operational excellence:
Improvement of efficiency to attain higher
profitability
Information systems, technology an
important tool in achieving greater
efficiency and productivity
Walmart’s Retail Link system links
suppliers to stores for superior
replenishment system
Improved decision making
Improved decision making
Without accurate information:
Managers must use forecasts, best guesses, luck
Results in:
Overproduction, underproduction
Misallocation of resources
Poor response times
Poor outcomes raise costs, lose customers
Example: Verizon’s Web-based digital dashboard
to provide managers with real-time data on
customer complaints, network performance, line
outages, and so on
Competitive advantage
Competitive advantage
Delivering better performance
Charging less for superior products
Responding to customers and
suppliers in real time
Examples: Apple, Walmart, UPS
History of the role of
Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Data Management Decision Strategic & Electronic
Processing Reporting Support End User Commerce
Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys
Electronic
Expert Systems
Business &
SIS
Commerce
-Internetworked
E-Business &
Commerce
Benefits of Information
Systems
1. IS can perform calculations or process
paperwork much faster than people.
2. IS can help companies learn more about the
purchase patterns and preferences of their
customers.
3. IS provide new efficiencies through services
such as ATMs, IP telephony, Computer
controlled Airplanes and Air Terminals
4.IS have made possible new medical
advances in surgery, radiology and patient
monitoring.
5. The internet distributes information instantly
to millions of people across the world.
Pitfalls of Information
Systems
1. By automating activities that were previously
performed by people, IS may eliminate job.
2. IS may allow organization to collect personal
information about people that violate their privacy.
3. IS are used in so may aspects of everyday life
that system outages can cause shutdown of
businesses or transportation services, paralyzing
communities.
4. Heavy users of IS may suffer repetitive stress
injury, technostress and other health problems.
5. The internet can be used to distribute illegal
copies of software, books, articles, and other
intellectual property.
Benefits & Pitfalls of
Information Systems
Benefits Pitfalls
1. IS can perform calculations or process 1. By automating activities that were
paperwork much faster than people. previously performed by people, IS may
eliminate job.
2. IS can help companies learn more about 2. IS may allow organization to collect
the purchase patterns and preferences of personal information about people that
their customers. violate their privacy.
3. IS provide new efficiencies through 3. IS are used in so may aspects of
services such as ATMs, IP telephony, everyday life that system outages can cause
Computer controlled Airplanes and Air shutdown of businesses or transportation
Terminals services, paralyzing communities.
4. IS have made possible new medical 4. Heavy users of IS may suffer repetitive
advances in surgery, radiology and patient stress injury, technostress and other health
monitoring. problems.
5. The internet distributes information 5. The internet can be used to distribute
instantly to millions of people across the illegal copies of software, books, articles,
world. and other intellectual property.
Thank
You
