Management Information Systems (MIS) 2011/2012 Lecture (3)

Information Systems: Definitions and Components

What Is an Information System?
Information system has been defined in terms of two
perspectives: one relating to its function; the other relating to its
structure. From a functional perspective; an information system is
a technologically implemented medium for the purpose of recording,
storing, and disseminating information expressions as well as for the
supporting of inference making. From a structural perspective; an
information system consists of a collection of people, processes,
data, models, technology and partly formalized language, forming a
cohesive structure which serves some organizational purpose or
function.
The functional definition has its merits in focusing on what actual
users from a conceptual point of view- do with the information
system while using it. They communicate with experts to solve a
particular problem. The structural definition makes clear that IS are
socio-technical systems, i.e., systems consisting of humans, behavior
rules, and conceptual and technical artifacts.
An information system can be defined technically as a set of
interrelated components that collect (or retrieve), process, store, and
distribute information to support decision making and control in an
organization. In addition to supporting decision making, coordination,
and control, information systems may also help managers and
workers analyze problems, visualize complex subjects, and create
new products.
Three activities in an information system produce the information
that organizations need to make decisions, control operations,

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Management Information Systems (MIS) 2011/2012 Lecture (3)

analyze problems, and create new products or services. These

activities are input, processing, and output. Input captures or collects
raw data from within the organization or from its external
environment. Processing converts this raw input into a more
meaningful form. Output transfers the processed information to the
people who will use it or to the activities for which it will be used.
Information systems also require feedback, which is output that is
returned to appropriate members of the organization to help them
evaluate or correct the input stage.

Figure 6: Functions of an
information
system

What Is A Computer-Based Information System?

A computer-based information system (CBIS) is an information
system that uses computer technology to perform some or all of its
intended tasks.

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Management Information Systems (MIS) 2011/2012 Lecture (3)

Such a system can include as little as a personal computer and

software. Or it may include several thousand computers of various
sizes with hundreds of printers, plotters, and other devices, as well
as communication networks (wire-line and wireless) and databases.
In most cases an information system also includes people. The basic
components of information systems are listed below. Note that not
every system includes all these components.
Components of Information Systems

1. Resources of people: (end users and IS specialists, system

analyst, programmers, data administrators etc.).
2. Hardware: (Physical computer equipments and associate device,
machines and media).
3. Software: (programs and procedures).
4. Data: (data and knowledge bases), and
5. Networks: (communications media and network support).

People Resources

End users: (also called users or clients) are people who use an
information system or the information it produces. They can be
accountants, salespersons, engineers, clerks, customers, or
managers. Most of us are information system end users.
IS Specialists: people who actually develop and operate
information systems. They include systems analysts,
programmers, testers, computer operators, and other managerial,
technical, and clerical IS personnel. Briefly, systems analysts

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Management Information Systems (MIS) 2011/2012 Lecture (3)

design information systems based on the information

requirements of end uses, programmers prepare computer
programs based on the specifications of systems analysts, and
computer operators operate large computer systems.

Hardware Resources

Machines: as computers and other equipment along with all data

media, objects on which data is recorded and saved.
Computer systems: consist of variety of interconnected peripheral
devices. Examples are microcomputer systems, midrange
computer systems, and large computer systems.

Software Resources

Software Resources includes all sets of information processing

instructions. This generic concept of software includes not only the
programs, which direct and control computers but also the sets of
information processing (procedures). Software Resources includes:
System software, such as an operating system
Application software, which are programs that direct processing
for a particular use of computers by end users.
Procedures, which are operating instructions for the people, who
will use an information system. Examples are instructions for
filling out a paper form or using a particular software package.

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Management Information Systems (MIS) 2011/2012 Lecture (3)

Data Resources

Data resources include data (which is raw material of information

systems) and database. Data can take many forms, including
traditional alphanumeric data, composed of numbers and
alphabetical and other characters that describe business
transactions and other events and entities. Text data, consisting of
sentences and paragraphs used in written communications; image
data, such as graphic shapes and figures; and audio data, the human
voice and other sounds, are also important forms of data. Data
resources must meet the following criteria:
Comprehensiveness: means that all the data about the subject are
actually present in the database.
Non-redundancy: means that each individual piece of data exists
only once in the database.
Appropriate structure: means that the data are stored in such a
way as to minimize the cost of expected processing and storage.

The data resources of IS are typically organized into:

o Processed and organized data-Databases.

o Knowledge in a variety of forms such as facts, rules, and case

examples about successful business practices.

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Management Information Systems (MIS) 2011/2012 Lecture (3)

Network Resources

Telecommunications networks like the Internet, intranets, and

extranets have become essential to the successful operations of all
types of organizations and their computer-based information
systems. Telecommunications networks consist of computers,
communications processors, and other devices interconnected by
communications media and controlled by communications software.
The concept of Network Resources emphasizes that communications
networks are a fundamental resource component of all information
systems.
Network resources include:
Communications media: such as twisted pair wire, coaxial cable,
fiber-optic cable, microwave systems, and communication satellite
systems.
Network support: This generic category includes all of the people,
hardware, software, and data resources that directly support the
operation and use of a communications network. Examples
include communications control software such as network
operating systems and Internet packages.

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Figure 7: Components of
Information System

Difference between Computers and Information

Systems

Computers provide effective and efficient ways of processing

data, and they are a necessary part of an information system. An IS,
however, involves much more than just computers. The successful
application of an IS requires an understanding of the business and its
environment that is supported by the IS. For example, to build an IS
that supports transactions executed on the New York Stock
Exchange, it is necessary to understand the procedures related to

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buying and selling stocks, bonds, options, and so on, including

irregular demands made on the system, as well as all related
government regulations.
In learning about information systems, it is therefore not
sufficient just to learn about computers. Computers are only one part
of a complex system that must be designed, operated, and
maintained. A public transportation system in a city provides an
analogy. Buses are a necessary ingredient of the system, but more is
needed. Designing the bus routes, bus stops, different schedules,
and so on requires considerable understanding of customer demand,
traffic patterns, city regulations, safety requirements, and the like.
Computers, like buses, are only one component in a complex system.

Information Technology and Information Systems

Information technology broadly defined as the collection of

computer systems used by an organization. Information technology,
in its narrow definition, refers to the technological side of an
information system. It includes the hardware, software, databases,
networks, and other electronic devices. It can be viewed as a
subsystem of an information system. Sometimes, though, the term
information technology is also used interchangeably with information
system.
The term IT in its broadest sense used to describe an
organizations collection of information systems, their users, and the
management that oversees them.

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A major role of IT is being a facilitator of organizational activities

and processes. That role will become more important as time passes.
Therefore, it is necessary that every manager and professional staff
member learn about IT not only in his or her specialized field, but
also in the entire organization and in inter-organizational settings as
well.
Obviously, you will be more effective in your chosen career if you
understand how successful information systems are built, used, and
managed. You also will be more effective if you know how to
recognize and avoid unsuccessful systems and failures. Also, in
many ways, having a comfort level with information technology will
enable you, off the job and in your private life, to take advantage of
new IT products and systems as they are developed. (Wouldnt you
rather be the one explaining to friends how some new product works,
than the one asking about it?) Finally, you should learn about IT
because being knowledgeable about information technology can also
increase employment opportunities. Even though computerization
eliminates some jobs, it also creates many more.
The demand for traditional information technology staffsuch as
programmers, systems analysts, and designersis substantial. In
addition, many excellent opportunities are appearing in emerging
areas such as the Internet and e-commerce, m-commerce, network
security, object-oriented programming, telecommunications,
multimedia design, and document management.
According to a study by the U.S. Bureau of Labor Statistics, each
of the top seven fastest-growing occupations projected through 2010

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fall within an IT- or computer related field. These top seven

occupations are:
1. Computer software applications engineers
2. Computer support specialists
3. Computer software systems engineers
4. Network and computer systems administrators
5. Network systems and data communications analysts
6. Desktop publishers
7. Database administrators

To exploit the high-paying opportunities in IT, a college degree in

any of the following fields, or combination of them, is advisable:
computer science, computer information systems (CIS),
management information systems (MIS), electronic commerce, and
e-business. Within the last few years, many universities have started
e-commerce or e-business degrees. Many schools offer graduate
degrees with specialization in information technology.

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