Amity Business School

DATA
• Data are streams of raw facts, representing event occurring in an organization or the
physical environment before they have been organized and arranged into a form that
people can effectively understand and use.
• Data refers to a collection of organized information, usually the results of experience,
observation or experiment, or a set of premises. This may consist of numbers, words or
images, particularly as measurements or observations of a set of variables.

INFORMATIO
• Information is data that have been coverted or shaped into a form which is
N end users.
meaningful and useful context for specific
• Information as a concept bears a diversity of meanings, from everyday usage to
technical settings. The concept of information is closely related to notions of
constraint, communication, control, data, form, instruction, knowledge, meaning,
mental stimulus, pattern, perception and representation.

© 2006 Prentice Hall, Inc. 5 – 11

 Amity Business School

© 2006 Prentice Hall, Inc. 5 – 22

 Amity Business School

FUNCTION OF AN INFORMATION SYSTEM

© 2006 Prentice Hall, Inc. 5 – 33

 Amity Business School

SOURCE OF MANAGEMENT
INFORMATION
Employees
Corporate
Databases Corporate
Databases
of Intranet
of
External
Internal
Data Decision
Data
Support
Systems

Transaction Databases Management Executive

Business Processing of Information Application Support
Transactions Systems Valid Systems Databases Systems
Transactions

Drill-down reports Expert

Exception reports Systems
Demand reports
Operational Key-indicator reports
Databases
Input and Scheduled
Error list Reports

© 2006 Prentice Hall, Inc. 5 – 44

 Amity Business School

Organization Structures
• Senior management makes long-range strategic
decision about products and services as well as ensures
financial performance of the firm.

• Middle management carries out the programs and

plans of senior management.

• Operation management is responsible for

monitoring the daily activities of the business.

© 2006 Prentice Hall, Inc. 5 – 55

 Amity Business School

© 2006 Prentice Hall, Inc. 5 – 66

 Amity Business School

Business Processes
• Business processes refer to the manner in which work is
organized , coordinated , and focused to produce the
valuable product and service.

© 2006 Prentice Hall, Inc. 5 – 77


Example of functional Business processes:-
• FUNCTIONAL AREA
Manufacturing & Production
Sales & marketing
Finance & Accounting
Human Recourses
© 2006 Prentice Hall, Inc.
Amity Business School
BUSINESS PROCESS
Assembling the product
Checking for quality
Producing bills of materials
Identifying customers
Making customers aware of the
product
Selling the product
Paying creditors
Creating financial statements
Managing cash accounts
Hiring employees
Evaluating employees job
performance
5 – 88
 Amity Business School

SYSTEM
Set of components that interact to
accomplish some purpose

Sub-systems Interfaces Goal

Essential characteristics of a system are

“composed of interacting parts, each one
having interest of its own.”

© 2006 Prentice Hall, Inc. 5 – 99

 Amity Business School

Some Examples
University :
Components : Students, Faculty, Staff, Administration
Building, Equipment, Ideas and
Procedures.

Goals : Educating Student

Producing Research
Providing service to community

Business Organizations :
Components : Marketing, Productions, Sales, Research,
Finance Etc.

Goals Stake holders return

Social Objective

© 2006 Prentice Hall, Inc. 5 –10

10
 Amity Business School

Information System Resources

Information System depends on five basic Resources. These are -

PEOPLE SOFTWARE HARDWARE

COMPONENTS OF INFORMATION SYSTEM

DATA NETWORK

© 2006 Prentice Hall, Inc. 5 –11

11
 Amity Business School

• People Resources – People are required for the

operation of all information system. It include
End User and Information System specialist.
End Users – The people who use an information
system or the information it produces. Ex:
Accountants, salespeople, customers.
IS Specialists – The people who develop and
operate information systems based on the
requirements of end users. Ex: programmers,
analysts, system operators.

© 2006 Prentice Hall, Inc. 5 –12

12
 Amity Business School

• Hardware Resources

– Machines, such as computers

and other devices, and media,
such as paper, disks

– Computer Systems such as the

personal computer (desktop),
mainframe, or laptop

– Computer peripherals such as

keyboard, mouse, monitor,
scanner, printer, disks

© 2006 Prentice Hall, Inc. 5 –13

13
 Amity Business School

• Software Resources
– Programs – sets of
operating instructions
that direct and control
computer hardware

– Procedures – sets of
information
processing
instructions that
people need

© 2006 Prentice Hall, Inc. 5 –14

14
 Amity Business School

• Software Resources continued

– System Software – such as
operating system that supports
the operations of a computer
system. Ex. Windows 98

– Application Software – programs

that direct processing for a
particular use of computers by
end users. Ex. Excel

– Procedures – operating
instructions for people who will
use an IS. Ex. Instructions for
filling out a form.

© 2006 Prentice Hall, Inc. 5 –15

15
 Amity Business School

• Data Resources
– Types of data
• Text data
• Image data
• Audio data
– Data Storage
• Databases – hold processed
and organized data
• Knowledge bases – hold
knowledge in a variety of
forms such as facts, rules,
and case examples of
successful business practices

© 2006 Prentice Hall, Inc. 5 –16

16
 Amity Business School

• Software Resources
– Programs – sets of
operating instructions that
direct and control
computer hardware

– Procedures – sets of
information processing
instructions that people
need

© 2006 Prentice Hall, Inc. 5 –17

17
 Amity Business School

Network Resource

Telecommunication Technologies and

Networks like Intranet, Internet, Extranet
have become essential to the success
electronic and Commerce operations of all
types of organizations.

© 2006 Prentice Hall, Inc. 5 –18

18
 Amity Business School

Introduction to Information Systems

Definition:-

An Information System is a system that uses information technology to

capture, transmit, store, retrieve, manipulate, or display information.

Objectives of Information Systems:-

• Efficient Operations
• Effective Management
• Competitive Advantage
• Long-Term Goals

© 2006 Prentice Hall, Inc. 5 –19

19
 Amity Business School

DECISION SUPPORT SYSTEM

• Decision support system are computer based information systems that provide
interactive information support to managers and business professionals during
the decision-making process.

© 2006 Prentice Hall, Inc. 5 –20

20
 Amity Business School

Using Decision support system:-

• Decision support system involves four basic types of

analytical modeling actives.

• What-if analysis
• Sensitivity analysis
• Goal-seeking analysis
• Optimization analysis

© 2006 Prentice Hall, Inc. 5 –21

21
 Amity Business School

Characteristics of decision support system

• 1.Integrates data with decision-making

models.
• 2.Solves semi-structured and unstructured.
• 3.support a wide variety of decision making
processes and styles.
• 4.facilitates decision making under
dynamic condition.

© 2006 Prentice Hall, Inc. 5 –22

22
 Amity Business School

© 2006 Prentice Hall, Inc. 5 –23

23
 Amity Business School

Management Information Systems (MIS)

• Management information system (MIS)

• An MIS provides managers with information and
support for effective decision making, and provides
feedback on daily operations
• Output, or reports, are usually generated through
accumulation of transaction processing data
• Each MIS is an integrated collection of subsystems,
which are typically organized along functional lines
within an organization

© 2006 Prentice Hall, Inc. 5 –24

24
 Amity Business School

Characteristics of a Management
Information System
• Provides reports with fixed and standard
formats
– Hard-copy and soft-copy reports
• Uses internal data stored in the computer
system
• End users can develop custom reports
• Requires formal requests from users

© 2006 Prentice Hall, Inc. 5 –25

25
 Amity Business School

Management Information Systems

for Competitive Advantage

• Provides support to managers as they work to

achieve corporate goals
• Enables managers to compare results to
established company goals and identify
problem areas and opportunities for
improvement

© 2006 Prentice Hall, Inc. 5 –26

26
 Amity Business School

EXECUTIVE INFORMATION SYSTEM

• E.I.S. are Information Systems that combine

many of the features of the Management
Information systems and Decision Support
Systems.

• The first goal of E.I.S. is to provide

executives to easy access to Information
about the firm’s critical success factors.

© 2006 Prentice Hall, Inc. 5 –27

27
 Amity Business School

FEATURES OF E.S.I.
• AN E.S.I. Information is presented in forms
tailored to the preferences of executives using
systems.
• An E.I.S. include exception reporting and
trend Analysis.
• The ability to drill down which allows
executives to quickly retrieve displays of
related information at lower levels of details.

© 2006 Prentice Hall, Inc. 5 –28

28
 Amity Business School

STRATEGIC INFORMATIONS
SYSTEMS

• S.I.S. support the competitive position and

strategies of a business enterprises.

• The strategic Information system can be any

kind of information system. Example T.P.S.,
M.I.S. and D.S.S.

© 2006 Prentice Hall, Inc. 5 –29

29
 Amity Business School

BASIS STATEGIES IN THE

BUSINESS USE OF I.T.
• Lower cost
• Differentiate
• Innovate
• Promote growth
• Develop alliances.

© 2006 Prentice Hall, Inc. 5 –30

30
 Amity Business School

Strategic Use of I.T.

• Develop Enterprises Information Systems whose
convenience and efficiency creates switching costs
that lock in customers or suppliers.
• Make major investment in advanced I.T.
applications that build barriers to entry against
industry competitors r outsides.
• include I.T. component in product and services to
make substitution of competing products or services
more difficult.
• leverage investments in I.S. people, hardware,
software, database and networks from operational
uses into strategic applications.
© 2006 Prentice Hall, Inc. 5 –31
31
 Amity Business School

Expert System
• An expert system is a knowledge-based information
system that uses its knowledge about a specific,
complex application area to act as an expert
consultant to end user.

• System provide answers to questions in a very

specific problem area by making human life
inferences about knowledge contained in a
specialized knowledge base.

© 2006 Prentice Hall, Inc. 5 –32

32