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  • 1. DATA, INFORMATION, AND SYSTEMS Data vs. Information Data A given, or fact; a number, a statement, or a picture. Represents something in the real world. The raw materials in the production of information. Information Data that have meaning within a context. Data in meaningful form. Data after manipulation. What Is a System? System: A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.A system (sometimes called a dynamic system) has three basic interactingcomponents or functions. These include: Input involves capturing and assembling elements that enter the system to beprocessed. Processing involves transformation processes that convert input intooutput.Output involves transferring elements that have been produced by a transformationprocess to their ultimate destination. Feedback and Control are two additional components of the system concept.A system with feedback and control components is sometimes called a cyberneticsystem, that is, a self-monitoring, self-regulating system. Feedback is data about the performance of a system.Control involves monitoring and evaluating feedback to determine whether a systemis moving toward the achievement of its goals. The control function then makesnecessary adjustments to a systems input and processing components to ensure that itproduces proper output. Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

2. Why Do People Need Information? Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control.INFORMATION SYSTEMAn organized combination of people, hardware, software, communication networks,and data resources. It is a system that uses the resources of hardware, software, andpeople to perform input, processing, output, storage, and control activities thattransform data resources into information products. The purpose is to collect,transform, and disseminates information in an organization.CLASSIFICATION OF INFORMATION SYSTEMS Information Systems perform important operational and managerial support roles inbusinesses and other organizations. Therefore, several types of information systemscan be classified conceptually as either: 3. 1. Operations Support Systems 2. Management Support SystemsOperations Support SystemsInformation systems are needed to process data generated by and used in businessoperations. Such operations support systems (OSS) produce a variety of informationproducts for internal and external use. However, they do not emphasize producing thespecific information products that can best be used by managers. Further processingby management information systems is usually required. The role of a business firmsoperations support systems is to: Effectively process business transactions Control industrial processes Support enterprise communications and collaboration Update corporate databases.Transaction Processing Systems (TPS) Focus on processing the datagenerated by business transactions and operations. Transaction processing systemsrecord and process data resulting from business transactions (sales, purchases,inventory changes). TPS also produce a variety of information products for internal orexternal use (customer statements, employee paychecks, sales receipts etc.).TPS process transactions in two basic ways: Batch Processing - transactions data is accumulated over a period of time andprocessed periodically. Real-time (or online) processing - data is processed immediately after atransaction occurs.Process Control Systems (PCS) - Process control systems are systems, whichmake use of computers to control ongoing physical processes. These computers aredesigned to automatically make decisions, which adjust thePhysical production process. Examples include petroleum refineries and the assemblylines of automated factories.Enterprise Collaboration Systems - Enterprise collaboration systems areinformation systems that use a variety of Information technologies to help peoplework together. Enterprise collaboration systems help us Collaborate- to communicate ideas Share resources Co-ordinate our cooperative work efforts as members of the many formal and informal process and project teams.The goal of enterprise collaboration systems is to use information technology toenhance the productivity and creativity of teams and workgroups in the modernbusiness enterprise. 4. Management Support Systems (MSS)Management support systems focus on providing information and support foreffective decision making by managers. They support the decision-making needs ofstrategic (top) management, tactical (middle) management,and operating (supervisory) management. Conceptually, several major types ofinformation systems support avariety of decision-making responsibilities: Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS)Management information systems - are the most common form ofmanagement support systems. They provide managerial end users with informationproducts that support much of their day-to-day decision-making needs. MIS provide avariety of prespecified information (reports) and displays to management that can beused to help them make more effective, structured types of day-to-day decisions.Information products provided to managers include displays and reports that can befurnished: On demand Periodically, according to a predetermined schedule Whenever exceptional conditions occurDecision support systems -Provide managerial end users with information in aninteractive session on an ad hoc (as needed) basis. Managers generate the informationthey need for more unstructured types of decisions in aninteractive, computer-based information system that uses decision models andspecialized databases to assist the decision-making processes of managerial end users.Executive information systems - Provide top and middle management withimmediate and easy access to selective information about key factors that are criticalto accomplishing a firms strategic objectives. EIS are easy to operate andunderstand.Other Classifications of Information Systems:Several other categories of information systems that support either operations ormanagement applications include: Expert systems End user computing systems Business information systems Strategic information systems 1. Expert Systems are knowledge-based systems that provide expert advice andact as expert consultants to the users. 5. 2. End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications. 3. Business information systems support the operational and managerial applications of the basic business functions of a firm. 4. Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage. MANAGEMENT INFORMATION SYSTEMS(MIS)Management information systems (MIS) are a combination of hardware and softwareused to process information automatically. Commonly, MIS are used withinorganizations to allow many individuals to access and modify information. In mostsituations, the management information system mainly operates behind the scenes,and the user community is rarely involved or even aware of the processes that arehandled by the system.A computer system used to process orders for a business could be considered amanagement information system because it is assisting users in automating processesrelated to orders. Other examples of modern management information systems arewebsites that process transactions for an organization or even those that serve supportrequests to users. A simple example of a management information system might bethe support website for a product, because it automatically returns information to theend user after some initial input is provided.Online bill pay at a bank also qualifies as a management information system whena bill is scheduled to be paid, the user has provided information for the system to actagainst. The management information system then processes the payment when thedue date approaches. The automated action taken by the online system is to pay thebill as requested. Since the bills within an online bill pay system can be scheduled tobe automatically paid month after month, the user is not required to provide furtherinformation. Many times, the bill pay system will also produce an email for the userto let him know that the action has occurred and what the outcome of the action was.Management information systems typically have their own staff whose function it isto maintain existing systems and implement new technologies within a company.These positions are often highly specialized, allowing a team of people to focus ondifferent areas within the computer system. In recent years, colleges and universitieshave begun offering entire programs devoted to management information systems. In 6. these programs, students learn how to manage large interconnected computer systemsand troubleshoot the automation of these management information systems."MIS primarily serve the functions of planning, controlling, and decision making atthe management level." MIS are one of a number of different types of informationsystems that can serve the needs of different levels in an organization. For example,information systems might be developed to support upper management in planningthe companys strategic direction or to help manufacturing in controlling a plantsoperations. Some of the other types of information systems include: transactionprocessing systems, which simply record the routine transactions needed to conductbusiness, like payroll, shipping, or sales orders; and office automation systems, whichare intended to increase the productivity of office workers and include such systemsas word processing, electronic