CHAPTER ONE

FUNDAMENTAL OF
BUSINESS INFORMATION
SYSTEMS

Prepared by Pn. Norhafeeza Bambang Shaidi

Commerce Department
Nilai Polytechnic

SUB TOPIC

DATA AND
INFORMATION

WHAT IS DATA ?

WHAT IS
INFORMATION ?

There are several definitions for data that are

in common use:

There are several definition of

information that are in common use:
a) Data have been processed so that
are meaningful
b) Data that have been processed for
a purpose
c) Data that have been interpreted
and understood by the recipient.

DATA:

Exampl
e

Students fill an admission form when they get admission in

college. The form consists of raw fact bout the students. These
raw facts are student's name, father name, address etc. The
purpose of collecting this data is to maintain the records of the
students during their study period in the college.
INFORMATION:

Data collected used to generate different type of information.

The institution can use it to determine the students intake for
every semester and the government can use the information in
important decision to improve literacy rate.

ANOTHER EXAMPLE:
Data Manipulation
Example: customer survey
Reading through data collected from a customer
survey with questions in various categories would be
time-consuming and not very helpful.
When manipulated, the surveys may provide useful
information.

WHAT IS SYSTEM?
System:
A set of components that
work together to achieve
a common goal
Subsystem:
One part of a system
where the products of
more than one system
are combined to reach
an ultimate goal

DATA, INFORMATION AND

SYSTEMS

Several subsystems make up this corporate accounting

system.

Figure 1.1 Input-process-output

SYSTEM

OUTPUT

 Transferring elements that have been produced

by a transformation process to their ultimate
destination
Finished products, human services, and
management information must be transmitted to
their human users
Transformation processes that convert input into
output
E.g. : manufacturing process, the human
breathing process, or mathematical calculations

Capturing and assembling elements that enter

the system to be processed
E.g. : raw materials must be secured and
organized for processing

output

proce
ss

input

INFORMATION SYSTEMS?

TYPES OF INFORMATION SYSTEMS

An organization consists of many people with different interests,
specialties, and levels.
How a single information system can provide all the information
that an organization needs?
There is no such single information system.
An organization should have different info systems for different
interests, specialties, and levels.

Presentatio
n

Difference methods can be used to make

information clearer and more accessible to
the recipient

Media

Information should be presented using the

correct medium.eg=video projector

Detail

The information should be contain the

correct level of detail in order to meet the
recipients information needs

Order

Information should be provided in the

correct order

The recipient should be able to locate

specific items quickly and should be able to
understand the information easily

Clarity

Decision Support System (DSS)

Executive Information System (ESS)

THE RELATIONSHIP
ESS

MIS

OAS

DSS

TPS

BASIC RESOURCES OF IS

PEOPLE RESOURCE

HARDWARE
RESOURCE

Computer system

Computer Peripherals

Which consist of
central processing
units.
Laptop , tablet or
desktop microcomputer
system.

A peripheral is a device
attached to a host
computer.
Keyboard , electronic
mouse.
Stylus for input of data
and commands
Video screen or printer
for output of
information
Magnetic or optical disk
drives for storage of
data resources.

SOFTWARE RESOURCE
Includes all sets of information
processing instructions.
They all require software
resources in the form of
information processing
instructions and procedures in
order to properly capture ,
process and disseminate
information to their users.

Example of software
resources

DATA RESOURCE
Data that were previously
captured as a result of a
common transaction are now
stored, processed, and
analyzed using sophisticated
software application that can
reveal complex relationship
about sales, customers,
competitors, and markets.

Databases
that hold
processed
and
organized
data.

The data
resources of
information
system are
typically
organized,
stored, and
accessed by
a variety of
data
resource
managemen
t
technologica
l into :

Knowledge
bases that
hold
knowledge in a
variety of
forms such as
facts, rules
and case
examples
about
successful
business
practices.

NETWORK RESOURCE
Communication media
Twisted-pair , coaxial and fiber-optic
cables and microwave.

Networks infrastructure
Modems and internetwork processors.

Summary Components of an information system

LEVELS OF MANAGERIAL
DECISION MAKING

STRATEGIC

Managers are largely concerned with long

term organizational planning
The decisions made are likely to have a
large impact on the organization.
E.g. : a choice of new markets to move into

TACTICAL

Managers are largely concerned with long

medium term planning
Decisions taken are used to set medium
term goal
E.g. : setting a departmental budget

OPERATIONAL

Managers deal with short term planning and

the day-to-day control of organization
activities
Decisions tend to be highly structured, little
impact on the organization
E.g. : setting a daily or weekly production
schedule

THE PICTURE

 Executive level (top)

Long-term decisions
Unstructured decisions

Managerial level (middle)

Decisions covering weeks and months
Semistructured decisions

Operational level (bottom)

Day-to-day decisions
Structured decisions

BENEFITS OF
INFORMATION SYSTEMS
BETTER INFORMATION