Introduction to Information Technology Lecture Note
CHAPTER FOUR
INFORMATION SYSTEM
What is System?
Interrelated set of components that work together within an identifiable boundary to achieve a common
goal/objective. Collection of parts which are related to each other and which may depend on each other and
which work together as a coherent whole.
A system has the following characteristics
o Components - an irreducible part or an aggregate of parts, also called subsystems or elements E.g.
Debre Markos university-->Colleges-->departments
o Interrelationship among the components - function of one is somehow dependent on the function and
existence of the other component. Output from one is input for another, the dependence of a part on one
or more other parts.
o A boundary - line that marks the inside and the outside of a system and which sets of or separates the
system from its environment. It establishes the limits of the system. Components within the boundary
can be changed whereas systems outside the boundary cannot be changed.
o A purpose - objective or overall goal of the system. Purpose is the main reason for the existence of the
system.
o An environment - consists of everything outside of the system and interfaces with the system.
o Interfaces - point of contact where a system meets its environment or where subsystems meet each
other.
o Input - consists of whatever the system takes in from the environment in order to fulfill its purpose.
o Output - whatever returns to the environment as a product (goods or services). Output from individual
subsystems may be inputs to other subsystems.
o Constraints - limits or restrictions to what a system can accomplish.
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Characteristics of system
Information systems
Data
Are row facts about the organization and its business transaction. Figures, images, or sounds collected from
observation or records about events, objects or people. Most data items have little meaning and use by
themselves. Are a by-product of doing business.
Information
Is data that has been refined and organized by processing and purposeful intelligence? Information is a
resource created from the data to serve the management and decision making needs of the business.
Information has meaning within a specific context and is useful for making a decision, solving a problem,
performing a task etc.
Information system transforms data into information
An information system (IS) is an arrangement of people, data, process, communications, and information
technology that interact to support and improve day-to-day operations in a business as well as support the
problem solving and decision making needs of management and users.
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The Information System includes the following
Hardware - Computers, servers and printers
Software - System software's and application soft wares
Documentation and training materials - The materials created by Systems Analyst to help users to
use the software.
Specific job roles - The roles associated with the overall system, such as the people who run the
computers and the software operating.
Controls - which are the parts of the software written to prevent fraud and theft
People - Who uses the software in order to do their job.
Information Technology is a contemporary term that describes the combination of computer technology (hard
ware and software) with telecommunications technology (data, image, and voice networks).
Types (classes) of information systems
1. Transaction processing systems
2. Management information systems
3. Decision support system
4. Expert systems
5. Office automation systems
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Transaction processing systems (TPS)
TPS is information system application that captures and process data about business transaction. Transaction
processing systems: - Process business exchanges, Maintain records about the exchanges, Handle routine, yet
critical tasks, Perform simple calculations.
Management Information System
Management Information System is an information system application that provides for management oriented
reporting. These reports are usually generated on a predetermined schedule and appear in a prearranged format.
Produced information based on accepted management or mathematical/statistical models. Examples are:
financial statements, Materials requirements planning MIS is normally produced from a shared database that
stores data from many data including TPS.
MIS can present
Detailed information: for operations management and regulatory requirements (government)
Summary information: consolidates raw data to quickly indicate trends and possible problems. Show
totals and trends.
Exception information: filters data to report exceptions to some rules or criteria. E.g. Low inventory
products.
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Decision Support system
Decision Support system is an information system application that provides its users with decision oriented
information whenever a decision making situation arises. When applied to executive managers these systems
are sometimes called Executive Information system (EIS).
Decision Support system provide useful information to support decision making process. Usually designed to
support unstructured decisions (those decision making situations that cannot be predicted in advance).
Decision Support system has three parts, the first part is composed of a database, extracted from a TPS or MIS.
The second part consists of mathematical or graphical models of business processes. The third part is made up
of a user interface that provides a way for the decision maker to communicate with the Decision Support
system.
Expert System
Expert System is a programmed decision making information system that captures and reproduces the
knowledge and expertise of an expert problem solver or decision maker and then simulates the “thinking” or
“actions” of that expert?
Address the critical need to duplicate the knowledge and expertise of experienced problem solver. Experts
possess knowledge that cannot be duplicated. Imitate the logic and reasoning of the expert within their field.
Expert systems are implemented with artificial intelligence technology that captures, stores, and provides
access to the reasoning of the experts. The ES asks questions, and the end user supplies the answers, rules
applied on the answers and the ES provides a recommendation. Like any other information systems, ES require
data and information but ES are unique in their requirement of rules that simulate the reasoning of the experts
who use the data and information. The focus on developing and ES is acquiring the knowledge of the expert in
the particular problem domain. Knowledge engineers perform knowledge acquisition.
Office Automation
Office Automation Support the wide range of business office activities that provide for improved work flow
and communications between workers, regardless of whether or not those workers are located in the same
office. Includes Word-processing, Electronic messages (email), Workgroup computing, Fax (facsimile)
processing etc. Office Automation systems are built using personal computer technology and software.
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