Chapter 2 SYSTEM

Introduction to Information System • A system can be defined as a collection of parts

that interact, interconnect, and work together to
 Information system (IS) is used by people and accomplish certain objectives.
business organizations for the improvement of • A system is a set of elements or components
processes and operations to make things simpler that interact to accomplish goals.
and easier. • A subsystem is a part of a whole system that has
 It is a combined set of modules for gathering, its own area of immediate focus.
processing, and storing of data and for delivering
of information and digital products. TYPES OF SYSTEM
• Natural systems
DATA o These systems are made by nature.
• Data from the Latin word, datum, refer to raw,  Typhoons, floods etc.
unorganized, and unprocessed facts. • Man-made systems
• Data can be in the form of a number, alphabet, o These systems are designed, developed,
date, measurement, and even statement. and implemented by human beings.
• Data are facts that are collected, recorded,  Transportation system,
stored, and processed by a system. education and health system,
• Insufficient for decision-making computer system

INFORMATION COMPUTER SYSTEM

• Information is popularly described as refined, • A computer system is an integrated form of
structured, and organized data. A process is different components that work together to give
required to transform data into information. a desirable result. (tutorial.com)
• Information is data that have been organized • A computer system is a basic, complete and
and processed to provide meaning and improve functional hardware and software setup with
decision-making. everything needed to implement computing
performance. (techopedia.com)
CONCEPT OF DATA VS. INFORMATION • A computer system takes inputs and processes
them to create inputs.

CHARACTERISTICS OF QUALITY INFORMATION

INFORMATION SYSTEM
• Information System (IS) is a man made system
that collects, stores, retrieves, process, manages,
disseminates, and analyzes information needed
to facilitate a business organization’s operational
functions and support its management in
making decision.
• Information system is a set of interrelated
elements or components that collect (input),
manipulate (process), store, and disseminate
(output) data and information and provide a
corrective reaction (feedback mechanism) to
meet an objective.
• IS provides a feedback mechanism to monitor
and control its operation to make sure it
continues to meet its goal and objectives.
INFORMATION SYSTEM THREE LOGICAL COMPONENTS OF BUSINESS PROCESS
 Input is the activity of gathering and capturing WITHIN THE SCOPE OF AN IS
raw data. • Information process
• Processing means converting or transforming o refers to a portion of an IS closely
data into useful outputs. related to a specified business process.
• Output involves producing useful information, • Operation Process
usually in the form of documents and reports. o refers to man-made IS that consists of
• Feedback is information from the system that is people, policies, procedures, and
used to make changes to input or processing equipment whose main objective is to
activities. accomplish a certain goal of a particular
business organization.
• Management Process
o refers to man-made IS that consists of
people, policies, procedures, and
equipment whose main objective is to
plan, manage, and control the overall
operations of a business organizations.

INFORMATION TECHNOLOGY VS
INFORMATION SYSTEM
• Information Technology refers to any
technological or computer-based tool primarily
used for supporting the needs of business
INFORMATION SYSTEM organizations.
• Master Data • Information System collects, stores, retrieves,
o Permanent data stored in IS for a long time. processes, manages, disseminates, and analyzes
o These data may include. information needed to facilitate organizations
 Customer master data operational functions and support management
 Employee master data in making decisions.
 Subject master data
CAPABILITIES OF AN IS
• Two types of updates in Master Data • Processing transactions quickly and precisely.
o Information Processing – data processing • Managing large capability storage and fast and
functions that are commonly related to easy access storage.
internal operations and economic and • Efficiently communicating through a network.
financial activities. • Easing information overload for users.
o Data Maintenance – system’s functional • Supporting decision making.
activities such as adding, saving, deleting, • Serving as a competitive weapon against
updating, retrieving, and editing data from competitors.
the master data. • Uniting an organization through the coordination
of its big and small groups.
FIVE MAJOR COMPONENTS OF IS • Strengthening organizational memory and
 Hardware – physical layer of the information learning and exploring new things.
system • Determining the process of separating products
o Example: Servers, workstations, networks, and services.
scanners, mobile devices • Automating business process.
 Software – programs that control the hardware
 Data – raw material/facts that an information MAJOR ROLE OF IS
system transforms into useful information. • Managing Operations
 Procedure – describe the tasks and business ❑ Operation Management
functions that users, managers, and IT staff • Supporting Customer Interactions
members perform to achieve a specific result. ❑ CRM
 People – have an interest in an information • Making Decisions
system are known as stakeholders (Management
❑ Business Intelligence
group, users/end user)
• Collaborating on Teams
❑ Social Networking sites
• Gaining Competitive advantage
• Individual productivity
COMPUTER-BASED INFORMATION SYSTEM OTHER COMPONENTS OF CBIS
• A Computer-Based Information System (CBIS) is • Telecommunication – refers to the electronic
a single set of hardware, software, databases, transmission of information within a specific
telecommunications, people, and procedures distance.
that are configured to collect, manipulate, store, • Internet – the largest type of network that
and process data into information. allows users to share information worldwide.
• World Wide Web (WWW) – accessible through
COMPONENTS OF CBIS the internet, and it consists of multimedia
• Hardware – consists of computer equipment collections that are stored in a particular
used to perform input, processing, storage, and database of CBIS.
output activities.
o Input Devices TYPE OF INFORMATION SYSTEM
o Output Devices • Transaction Processing System
o Central Processing Unit o Known as real real-time processing system.
 Control Unit o An IS for all types of business transactions.
 Arithmetic Logic Unit o It captures, stores, classifies, maintains,
 Memory Unit updates, and retrieves transaction data for
o Storage devices records keeping and inputting data to other
 Primary storage types of CBIS.
 Secondary storage  Batch Processing
 Online/Real time Processing
 Software – refers to the set of computer • Management Information System
program that control the overall operation of the o Consist of hardware and software
computer system. application that support all the
o Types of Software organization’s business transactions.
 System Software – control the o Collects raw data from different computer
overall operation of a computer. systems, analyzes and process them and
 Application Software – refers to an report them to assist and serve in decision
end user program also known as making.
productivity software. • Decision Support System
o Software licenses - Software can be divided, o A computer-based application that helps
from a commercial point of view, using two companies identify and give solutions by
features: the cost and the permission to be making decisions on how to solve problems
modified. including issues on raw data, documents,
 Cost employee and company profiling and
 Freeware management and business models.
 Shareware o Responsible for delivering information to
 Commercial managers who makes assessments about
 Subscription-based specific scenarios that are not well-
 Private managed.
 Permission • Executive Information System
 Open source o A specialized DSS that assists senior
 Copyleft executive in making decisions.
 Proprietary o It provides easy access to valuable
information necessary to achieve
COMPONENTS OF CBIS organizational goals
 Database – a collection of related files and o Four components
records that are stores in a special location for  Hardware
easy access.  Software
 Networks – the connection of two or more  Telecommunication
computers established for the purpose of  User Interface
sharing various data.
 Procedures – the rules, policies, and methods
that administer the operation of a computer
system.
• People – the most crucial component of IS.
DEVELOPING INFORMATION SYSTEM • System Development
• System Development consists of the procedures o The new system is developed. The new
in building and upholding information system components and programs must be
(IS) obtained and installed. Users of the
• Systems development is the activity of creating system must be trained in its use.
or modifying information systems. • System Testing
• System Development Life Cycle (SDLC) is one of o All aspects of performance must be
the methodologies used in software tested. If necessary, adjustments must
development. be made at this stage.

SYSTEM DEVELOPMENT LIFE CYCLE

• SDLC emphasizes that the system can be
developed in a series of phases.
• Systems Development Life Cycle (SDLC) is a
conceptual model used in project management
that describes the stages involved in an
information system development project, from
an initial feasibility study through maintenance
of the completed application. (techtarget.com)

• System Implementation
o The system is ready for deployment or
implementation.
• System Maintenance
o Project teams carefully assess the
system to help reduce the cost of
operation and maintenance through
several methods like feedback
collection, error detection and
elimination, and optimal performance
standards.

INFORMATION SYSTEM SECURITY

• Information Security
o Protecting information and information
systems from malicious software and
unauthorized access, use, disclosure,
PHASES OF THE SDLC modification, disruption, or destruction.
• System Planning • Information Security Management
o Begins with a formal request which is o process of identifying the security
known as System request controls to keep and defend information
o Perform a preliminary investigation assets.
 Key part of the preliminary
investigation is a feasibility study
 Technical
 Economic
 Operational
• System Analysis
o Understand the proposed system
o Build a logical model of the new system
• System Design
o Determines how the new system should
be developed to meet the business
needs defined during systems analysis.