UNIT – 1

Introduction
What is data?
▫ Raw facts
▫ Alphanumeric, image, audio, and video
Data Types Input Process Output
000001100
Numbers 12 + 8 = 20
20
000001000
---------------
000010100

Text This is a test 84 104 73 115 … This is a test

0010000000000000000
0100000000000001001
0110000011000011011
0111111111111001111
Images 1111111111111011111
1111111111100011111

pitch or Time 
volume 

Sound
8905…
000001000 000001001 000010100 …

00101010111 00101010111 00101010111

Video 11010101010
01010101010
11110100011
11010101010
01010101010
11110100011
11010101010
01010101010
11110100011
00101011011 00101011011 00101011011

00101010111 00101010111
11010101010 11010101010
01010101010 01010101010
11110100011 11110100011
00101011011 00101011011
What is Information?
▫ Organized collection of facts
▫ Organized in such a way that they have additional
value beyond the value of the facts themselves
What is System?
▫ A collection of interrelated components
 With a clearly defined boundary
 Working together
 To achieve a common set of objectives
 Elements of A System

INPUT PROCESS OUTPUT

Elements of a Cybernetic System

INPUT PROCESS OUTPUT

FEEDBACK/ CONTROL
• Input
▫ Capturing or assembling elements that enter the system – to be processed
▫ Raw materials, energy, data, human effort

• Process
▫ Transformation process – convert input to output
▫ Manufacturing process, mathematical calculations

• Output
▫ Transferring elements to destination
▫ Finished products

• Feedback
▫ Data about performance of a system

• Control
▫ Monitoring and evaluating feedback
▫ Determines whether system is running towards the achievement of goal.
What is Information System?
▫ Organized combination of people, h/w, s/w,
communication n/w’s & data resources
▫ That stores, retrieves, transforms &
disseminates information in an organization
Components of an Information System
IS Resources:
 Hardware Resources
 Software Resources
 People Resources
 Data Resources
 Network Resources

IS Products:
 Paper Reports
 Visual Displays
 Multimedia Documents
 Electronic Messages
 Graphics images
 Audio Responses
 System Interdependence

INTERDEPENDENCE
HARDWARE

BUSINESS SOFTWARE DATABASE

• Strategy
• Rules
TELE-
• Procedures COMMUNICATIONS

ORGANISATION INFORMATION SYSTEM

Major Roles of Information Systems

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations
History of the role of Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data
Management
Processing
Information Decision
- TPS
Systems Support
Systems
End User Electronic
- Ad hoc
Computing Business &
Reports
(EIS) Commerce
Expert -
Systems Internetworked
E-Business &
Commerce
 Types of Information Systems
Information Systems

Operations Management
Support Support
Systems Systems

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems
 MANAGEMENT INFORMATION SYSTEM
• MIS is a system consisting of people, machines, procedures,
databases, data models and its elements.
• MIS is a set of subsystems which are rationally interrelated
which transforms data into meaningful information to the
recipient to enhance his productivity according to his styles
and characteristics.
• The system gathers data from internal and external sources
of an organization – processes it – supplies Management
Information – to assist managers in the process of decision
making.
Characteristics of MIS
• System approach
• Management Oriented
• Need based
• Exception based
• Future oriented
• Integrated
• Common data flows
• Long Term Planning
• Sub System Concept
• Central Database
Functions of MIS
• Data Capturing
• Processing of Data
• Storage of Information
• Retrieval of Information
• Dissemination of Management
Information
 Functions of MIS
User User User
Source Source Source

Data
Processing Dissemination
Capture

Source Source
Retrieval

Storage Of
Data
BUSINESS MODEL
Modeling a System
• Model
▫ An abstraction or an approximation that is used
to represent reality
• Types of models
▫ Narrative (aka descriptive)
▫ Physical
▫ Schematic
▫ Mathematical
Why do we need models?

• Making the understanding of complex systems

easier (simplifies)
• Can be used to design – make models of new
systems
• Makes communication about systems easier (e.g.
a picture can communicate a thousand words)
Business
Strategy

Building An MIS
Business
Model

Business
Process

Organizations

MIS

Database
 Money People Facilities Material

Input Processing Output

Raw Materials Fabricate Finished Goods

Piece – Parts Assemble Test Shipping

Feedback / Control

Business as a System
Framework for IS
Framework
• Conceptual model of IS
• Helps understand and communicate about IS
• Facilitates future discussions about different types of
decisions, information requirements & types of CBIS
• Types
▫ Simon’s Framework
▫ Robert Anthony’s Framework
▫ Gorry & Scott Morton’s Framework
Simon’s Framework

Top
Layer (3)

Middle
Layer (2)

Bottom
Layer (1)
Robert Anthony’s Framework

Strategic
Planning

Management
Control

Operational
Control
 Gorry & Scott-Morton’s Framework
Classification Operational Management Strategic
Control Control Planning

Structured Order Budgets, Warehouse/

processing, personnel Location,
accounts reports transportation
payable mode mix

Semi- Inventory Analysis of Introduction of a

Structured control, Variance new product
production
planning

Unstructured Cash Management of Planning for R &

management Personnel D