SYSTEM CONCEPT:
A System as a group of interrelated or interacting element forming a unit which, working towards a common goal. e.g. The System of sun and planets, the system of human body, the system of a college, the system of business organisation.
For the field of Information Technology "A System is a group of interrelated component working together toward a common goal by accepting inputs and producing output in an organised transformation process. Such as a system (called dynamic system has three basic interacting components or element.
- Input:Input involves capturing and assembling element that enter the system to be processed. For example: raw material, energy, data and human effort must be secured (protected) and orgainse for process
- Processing:
It is method or series of steps by which data changes into information (output). Examples are a manufacturing process, the human breathing process, or mathematical calculations etc. - Output:Result of process data and instruction that is obtained from the system. For example, finished products, result etc.
Feedback & Control:
- Feedback:
Feedback is data about the performance of a system. It is necessary to know whether the results of data processing are helpful for the business or not. In this step, we take the comments of different users about the data processing system and its output. This step is helpful for future planning. For example, data about sales performance is feedback to a sales manager. - Control:
Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal. The control function then makes necessary adjustments to system's input and processing components to ensure that it produces proper output. For example, a sales manager exercises control when he or she reassigns salespersons to new sales territories after evaluating feedback about their sales performance.
CHARACTERISTICS OF SYSTEM
The characteristics of a common system are as under:
- A system does not exist in a volume rathe than it exist and functions in an environment containing other system.
- A large system may have more than one small system called sub system and the large system is its environment.
- Several system may share the same environment. Some of these system may be connected to one another by mean of share boundary or interface.
- A system may be open system that is a system that interact with other system in its environment.
- A system has the ability to change itself or the environment in order to survive as an adaptive system.
Example:
Organisation such as business and government agencies are good examples of the system in society, which is their environment, society contains a multitude of such systems, including individuals and their social, political and economic institutions. Organisations themselves consist of many subsystem, such as department, division, and other work groups. Organisations are open system, because they interface and interact with other systems in the environment.
NAME & DIAGRAM OF COMPONENT OF AN INFORMATION SYSTEM
Information System is a system that accepts data resources as input and processes them into information products as output.
- Resources:
People, hardware, software, data and networks are five basic resources consist of Information System. - Activities:
Input, Processing, Output, Storage & Controls. All information system uses these components to transform raw material into information product.
INFORMATION SYSTEM RESOURCE WITH HELP OF DIAGRAM
Information System consists of five major resources people, hardware, software, data and network, which you can see above diagram.
- People Resource:
People are required for the operation of all Information System. People resources include programmer and all other person who use computer. The basic purpose of any Information System is to provide information to the people. - Specialists:
Are people who develop[ and operate Information System. They include System Analysts, Programmers, Computer Operators, and other Managerial Technical and Clerical IS Personal (Workers), - End Users:
End user also called users or client)____ any one else who uses Information System. - Hardware Resources:
The hardware component consists of all the physical devices used with in the Information System. The equipment includes hardware like computer, terminals and printers and non-computer equipment like typewriter, other machine, paper, printing ribbon etc/ - Machine:
Computers, video monitors, magnetic disk devices, printers, optical disk, - Media:
Media (tangible object on which data recorded): Floppy disk, magnetic tape, optical disks, plastic cards, paper forms, CD's Rom. - Software Resources:
The computer programmed used for processing information and control hardware such as MS-Office, payroll program, peach-tree and Windows etc. - Data Resources:
Data is raw material of Information System. Data is necessary for any Information System. Any deficiency in data causes it seriously. Data can take many forms, including Alphabetic, numeric, alphanumeric data, other character that describes business transaction. The data resources are organised, stored, and accessed by a variety of sources management technologies.
For Example: Name, Address, Product descriptions, Customer records, employee files, inventory databases. - Network Resources:
Networks used for data communication and internet to exchange information.
INFORMATION SYSTEM ACTIVITIES
The Information System activities (functions) are input, processing, output, storage and control.- Input of Data Resource:
Data about business transactions and other events must be captured and prepared for processing by the input or data entry activity such as recording and editing. End-user enter data directly into a computer system or record data on some type of physical medium such as paper form. Once entered, data may be transfer on to a machine-readable medium such as magnetic disk, optical disk etc until needed for processing.
For example sale data could be captured by sale person using computer keyboard are optical scanning device to enter data into the computer. - Processing of Data in to Information:
Data are usually process through calculating: computing, sorting, organise, analyze manipulate data, thus converting data into information for end user.
For example calculating employee's pay, taxes and other payroll deduction. - Output of Information Product:
Information in various forms in transmitted to end users and make available to them in the output activity. Productions of appropriate information products for end user as the goal of information system. Common information product include massages, reports, forms, and graphics image which may be provided by video displays, audio response, paper report, and multimedia e.g. producing and displays about sales performance. - Storage of Data Resources: Storage is a basic system component of an Information System in which data and information are retained in an organise manner for latter use. Stored data are commonly organised in to fields, records, files and database e.g. Storing record of customer, employees and products.
- Control of System Performance:
It involves measuring performance and taking corrective decision if required. An Information System should produce feedback about its input, processing, output and evaluated to determine if the system is not meeting standards. Then appropriate system activities must be adjusted so that proper information product is produce for end users. These activities are known as control.
For example a manage may discover that subtotal of sales amount in a sales reports do not add up to total sales. This might mean that data entries or processing procedure need to be corrected. Then change would have to be make to ensure that all sales transactions would be properly captured and process by a sales information system e.g. Generating audible signals to indicate proper entry of sales data.
RECOGNISING INFORMATION SYSTEM (Different Types of Information System)
There are many kinds of Information System in the real world. All of them use hardware, software, people and othher resources to transform data in to information product. There are different types of Information System, which are as under.Manual Information System:
In manual Information System every thing is done by hand. All types of calculations, processing and operations required to convert data into information, are performed by human beings. In Manual Information System peoples use simple tools such as pencils and paper etc.Mechanical Information System:
In this data processing different calculation processing is performed with mechanical machine.Electronic Data Processing System or Computer Based Information System:
The Computer based Information System where people use computer system to transform data in to information products. The input of data is given to the computer, which converts this data into information by applying the required processing. In computer different software packages are used for data processing.
As a business professional, you should be able to recognise the fundamental of Information System.- The people, hardware, software, data and network resources they use.
- The types of Information Product they produce.
- The way they perform input, processing, output, storage and control activities.
EXPANDING ROLE OF INFORMATION SYSTEM
Until the 1960s, the role of most Information System was simple transaction processing, record keeping, accounting and other electronic data processing applications. Then another role was added as the concept of management information systems (MIS). By the 1970s, respecified information products produced by such MIS ware not adequately meeting many of the decision making needs of management. So the concept of decision support system (DSS) was born. In the 1980s, several new roles of Information System appeared. First the rapid development of microcomputer processing power, application software package and telecommunication networks gave birth to the phenomenon of end user computing. Now end useres could use their own computing resources to support their job requirement instead of waiting for the indirect support of corporate information services edepartment.Second Executing Information Systems attempted to give top executive an easy way to get the critical information they want, when they want it, tailored to the formats they prefer.
Third, the use of Artificial Intelligence (AI) technique to business information systems, expert system (ES) and other knowledge based systems forged a new role for Information System.
An important new role the concept of strategic role for information system, sometimes called strategic information system (SIS) (1980 - 90). In this concept information technology becomes an integral component of business process, products and service that help a company gain a competitive advantage in the global marketplace.
Finally, the rapid growth of the internet, intranet, extra-net and other interconnected global networks of the 1990s has dramatically changed the capabilities of Information System in the business. Inter networked enterprises that is e-commerce and e-business.
TYPES OF INFORMATION SYSTEM
There are two types of Information System of Information System can be classified in to two types.- Operation Support System.
- Management Support System.
Operation Support System:
An Information System that collects, process and stores data generated by the operations systems of an organisation and produces data and information for input in to management information system or the control of an operations system. These system produce a variety of information products for internal and external use. The role of Operation Support System in the business firms is to efficiently process business transactions, control industrial process, support enterprise communication and collaboration and update corporate database.There are three types of Operation Support Systems.
- Transaction Processing System:
This system is used to store and process day-to-day business activities. Automated Teller Machine (ATM) is an example of Transaction Processing System (TPS). This system processes data faster reduce clerical costs and improves customer service. Transaction processing system process transaction in two ways. - Batch Processing:
In this data of transactions is accumulated over a period of time and process periodically. - Real Time Processing:
In this data are processed immediately after a transaction occurs. - Process Control System:
Process control system monitor and control physical process. e.g. a petroleum refinery uses electronic sensors linked to computers to continually monitor chemical process and make instant (real time) adjustments that control refinery process. - Office Automation System:
Office Automation Systems collect, process, store and transmit information in the form electronic office communications. Office Automation System provides the facilities to create and distribute graphics and documents, send messages, schedule appointment, browse the web and publish web pages. The Office Automation System enhances office communication and productivity. Most important Office Automation Software is Word Processing, Spread Sheet, Database. Presentation, E-Mail, Web Browser and Personal Information Management...
For Example a business may Word-Processing for office correspondence, electronic mail to send and receive electronic messages, desktop publishing to produce a company newsletter and teleconferencing to hold electronic meetings.
Management Support System:
An Information System that provides information to support managerial decision making is called Management Support System (MSS). Management Support System providing information and support for management decision-making by all types of manager and business professionals. More specifically, several major types of Information Systems are needed to support a variety of managerial end user responsibility.Many types of Information Systems are required to support managerial end users responsibilities. Their major categories are:
- Management Information System (MIS):
Management Information System is used to generate timely, accurate and organised information for the manager and other users. This information is used to make decision, solve problems, supervise activities and monitor process. It provides useful information for the management to make important decision about the organisation. MIS creates three types of information.- Detailed report: It contains only transaction.
- Summery Report: It consolidates data to review it quickly and easily. It normally contains totals, tables and graph.
- Exception Report: It identifies data out side of a normal condition. This condition is called exception criteria.
- Decision Support System (DSS):
Decision Support System is used to analyse data and make decision. Different manager require different types of information. DSS provides information for different type of users according to their needs. A DSS helps different users to find the information they need. - Executive Information System (EIS):
The goal of computer-based Executive Information System is to provide top and middle management with immediate and easy access to selective information. It supports the strategic information needs of executive management. Executive Information System provides critical information in easy-to-use displays to executive and managers. It present information as a chart and table. For example top executive may use touch screen terminals to instantly view text and graphics displays that highlight key areas for orgiansational and competitive performance.
CLASSIFICATION OF INFORMATION SYSTEM
There are five types others categories of Information System.- Expert System:
An Expert System is a knowledge based Information System that uses its knowledge about a specific area to act as an expert consultant to users medicine, engineering, physical science and business. For example: Expert System now helps diagnose illness, search for minerals, analyse compound, recommend repair and do financial planning. OR
An Expert System is an intelligent computer program, which contains knowledge about some particular field to assist human expert or provide information to those people who do not have any access to an expert in that particular field. - End Users Computing System (Knowledge Management System):
End Users Computing Systems are computer-based information system that directly support both the operational and managerial applications of end users. End Users Computing are the direct use of computers by end users. In End User Computing System end users use microcomputer workstations, software packages and databases for personal productivity, information retrieval, decision support and application development. For example, users may use word-processing, spreadsheet, send e-mail and retrieve information from data base. End Users Computing is the involvement of end users (including employees, managers and executive) in the development use if information system. - Strategic Information System:
The Strategic Information System using information technology to develop products, services and capabilities that gives company strategic advantages over the competitive forces it faces in the global marketplace. This creates Strategic Information System, information system that support or shape the competitive position and strategic of an enterprise. So a Strategic Information System can be any kind of Information System (TPS, MIS, DSS etc) that helps an organisation gain a competitive advantages, reduce competitive disadvantages, or meet other strategic enterprise objective. e.g. online stock trading, shipment tracking and e-commerce WEB systems. - Business Information System:
Information System that support basic business functions such as accounting or marketing are known as Business Information System. Business Information Systems provide managers with a variety of information products to support their decision-making responsibilities in each of the functional area of business. for example Information System that support application in accounting finance, marketing, operation management and human resources management.
Financial Managers need information concerning financing cost and investment returns provided by financial information system. Marketing managers need information about sales performance and trends provided by marketing information system. - Integrated Information System:
Many software applications use a mixture of different types of Information Systems to create information for different types of users. Most Information System designed to produce information and support decision making for various levels of management and business function as well as do record keeping and transaction processing.



