Syllabus Focus: Unit 1 Module 1 Content 5

Specific Objective 5: explain information processing

Content: Definition of information processing (input process, output process); manual versus automated
information processing; components of manual information processing: collect, collate,
analyze, present and disseminate; components of automated information processing: input
(data capture or entry), process(for example, analyze, sort, calculate), store, retrieve, output
(present and disseminate); transmit data and information. Interrelationship between data and
information through information processing.

Information Processing
Information processing may be defined as the manipulation of data to produce useful
information.

There are two types of information processing:

 Manual Information Processing
 Automated Information Processing

Manual information system is a system whereby humans are required to perform all the tasks.
In manual information systems, no mechanical or electronic devices are used to perform any
task, all are done manually.
Components of manual information processing includes:
 collect – gathering the data
 collate – combining the data gathered
 analyse – examine the data and make it useful
 present – put the data gathered in a useful form in order to gain meaningful output.
 Disseminate – distribute the output

All tasks can be broken down into three stages: input, process and output.

An example of a manual information system is a telephone directory. Suppose you have a friend
whose phone number and surname you know but whose address you need to find. Using the
surname and phone number you would have to search through the list of names corresponding
with the friend’s surname and try to match the phone number. Once the phone number has been
found you can read off the address.

The input data were surname and telephone number; the processing activities were search and
locate; and the output was address.

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An automated information processing system is a system that uses information technology
tools and facilities, such as a computer and a printer, to transform raw data into information.
Computerised information systems are much more flexible than manual ones and a lot faster.
With a computerised system you could type in a phone number and, if the number was stored in
the system, the name and address could be provided immediately.

Components of automated information processing includes:

 input (data capture or entry)
 process (for example, analyse, sort, calculate)
 store, retrieve, output (present and disseminate);

The major tasks are the same for both a manual and computerised information system: data entry
or capture (input), processing (process), presentation and distribution (output).

Information system can be either manual or automated (computerized), or a combination

of both.

Which of the following are examples of a manual information system, and which are automated
information system?
(i) A page from a well-known story book
(ii) A bus schedule
(iii) A payroll database management system
(iv) A catalogue
(v) Electronic funds transfer system
(vi) An examination timetable
(vii) A dictionary

Examples of Manual Information Systems include:

 address books
 dictionaries
 telephone directories
 school timetables

For most businesses, there are a variety of requirements for information. Senior managers need
information to help with their business planning. Middle management needs more detailed
information to help them monitor and control business activities. Employees with operational
roles need information to help them carry out their duties. As a result, businesses tend to have
several "information systems" operating at the same time.

Transaction processing system (TPS):

A TPS collects and stores information about transactions, and controls some aspects of
transactions. A transaction is an event of interest to the organisation. e.g. a sale at a store. A TPS

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is a basic business system. It is often tied to other systems such as the inventory system which
tracks stock supplies and triggers reordering when stocks get low. It serves the most elementary
day-to-day activities of an organisation and it supports the operational level of the business.

TPS usually has high volumes of input and output and provides data which is summarised into
information by systems used by higher levels of management. it need to be fault-tolerant.

Sub-species of TPS:

Manufacturing and production systems: Systems that supply data to operate, monitor
and control the production process. e.g. purchasing, receiving, shipping, process control,
robotics, inventory systems, scheduling, engineering, operations, quality control, resource
management etc.
e.g. A system in a factory that:
gets information from measuring samples of products
does statistical analysis of samples
shows when operators should take corrective action

Sales and Marketing systems: Systems that support the sales and marketing function by
facilitating the movement of goods and services from producers to customers.
Examples:
 sales support - keep customer records, follow-up
 telemarketing - use phone for selling
 order processing - process orders, produce invoices, supply data for sales analysis
and inventory control
 point-of-sale - capture sales data at cash register often by scanner
 customer credit authorisation - advise on credit to be allowed to customer.
Example:
A Store's Sales System would:
automatically record and total purchase transactions and prints out a packing list
improve customer service
maintain customer data

Finance & Accounting Systems: Systems that maintain records concerning the flow of
funds in the firm and produce financial statements, such as balance sheets and income
statements.e.g. for Budgeting; General Ledger; Billing: Cost Accounting, Accounts
Receivable / Payable; Funds Management Systems, Payroll. They were among the
earliest systems to be computerised.
Examples of financial systems: cash management, loan management, check processing,
securities trading.
Example: Visa's Credit Card payment system.

Human Resources System: Systems that deal with recruitment, placement, performance
evaluation, compensation, and career development of the firm's employees.
Examples: personnel record keeping, applicant tracking, positions, training and skills,
benefits.

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Decision support system (DSS):
Helps strategic management staff (often senior managers) make decisions by providing
information, models, or analysis tools. For support of semistructured and unstructured decisions
(structured decisions can be automated). Used for analytical work, rather than general office
support.
They are flexible, adaptable and quick. The user controls inputs and outputs. They support the
decision process and often are sophisticated modelling tools so managers can make simulations
and predictions.
Their inputs are aggregate data, and they produce projections. An example job for a DSS would
be a 5 year operating plan.

Management information system (MIS):

Condenses and converts TPS data into information for monitoring performance and managing an
organisation.
Transactions recorded in a TPS are analyzed and reported by an MIS.
They have large quantities of input data and they produce summary reports as output. Used by
middle managers. An example is an annual budgeting system.

Executive information system (EIS):

Also known as an Executive Support System (ESS), it provides executives information in a
readily accessible, interactive format. They are a form of MIS intended for top-level executive
use. An EIS/ESS usually allows summary over the entire organisation and also allows drilling
down to specific levels of detail. They also use data produced by the ground-level TPS so the
executives can gain an overview of the entire organisation.
Used by top level (strategic) management. They are designed to the individual. They let the CEO
of an organisation tie in to all levels of the organisation. They are very expensive to run and
require extensive staff support to operate.

Office automation system (OAS):

OAS provides individuals effective ways to process personal and organisational data, perform
calculations, and create documents. e.g. word processing, spreadsheets, file managers, personal
calendars, presentation packages
They are used for increasing personal productivity and reducing "paper warfare". OAS software
tools are often integrated (e.g. Word processor can import a graph from a spreadsheet) and
designed for easy operation.
OAS Subspecies:
Communication systems: helps people work together by sharing information in many
different forms
Teleconferencing (including audioconferencing, computer conferencing,
videoconferencing), electronic mail, voice mail, fax

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 Groupware system: helps teams work together by providing access to team data,
structuring communication, and making it easier to schedule meetings. For sharing
information, controlling work flows, communication/integration of work

Expert Systems: This is a computer system or program that uses artificial intelligence
techniques to solve problems that ordinarily require a knowledgeable human. The method used
to construct such systems, knowledge engineering, extracts a set of rules and data from an expert
or experts through extensive questioning. This material is then organized in a format suitable for
representation in a computer and a set of tools for inquiry, manipulation, and response is applied.
While such systems do not often replace the human experts, they can serve as useful adjuncts or
assistants. Among some of the successful expert systems developed are INTERNIST, a medical
diagnosis tool that contains nearly 100,000 relationships between symptoms and diseases, and
PROSPECTOR, an aid to geologists in interpreting mineral data."

Expert systems imitate human experts in many different fields of expertise. Such systems contain
rules (such as decision tables) that help a human answer expert questions.
One day, a system is built that contains all the rules you intuitively use to make your rock
identification decisions. By answering a few simple questions presented by the expert system, a
human can identify a rock just as well as you can.
Expert systems are built with decision-making rules, and they can ask humans a series of
questions to narrow down the correct answer. One early and influential expert system was
MYCIN, a disease diagnosis system.
Advantages of expert systems:
 The computer can store far more information than a human.
 The computer does not 'forget', make silly mistakes or get drunk when it is most needed.
 Data can be kept up-to-date.
 The expert system is always available 24 hours a day and will never 'retire'.
 The system can be used at a distance over a network.

Expert systems are computer application programs that take the knowledge of one or more
human experts in a field and computerize it so that it is readily available for use. The human
experts do not need to be physically present to accomplish a specialized project or task. Expert
systems are only designed to be “expert” in a very narrow and specific task or subject field. They
contain the acquired expert knowledge and try to imitate the expert’s evaluation processes to
offer a conclusion. An advantage of an expert system is that it may include the knowledge of
many experts in one specific field.
Expert systems usually contain two components: a knowledge base and an inference engine
program, enabling it to suggest conclusions. The knowledge base is programmed in an IF ...
THEN logical rules structure. Such a structure is a series of IF conditions that, if met, THEN a
specific result may be concluded.
An example would be:
IF the animal is a bird
it does not fly
it swims
it is black and white
THEN it is a penguin

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The expert system rules out options with each question until there remains an option with high
probability. The rules and questions, of course, are provided by expert humans in the first place.

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