UNIT 1

Fundamentals of Information Systems

Objectives

On completion of studying this unit, you are expected to:

•Define technology.

•Define data, information's and information Systems.

• Identify attributes of information.

•Be familiar with business information Systems.

1.1. Introduction to Information and Technology

Technology: refers to all the means for people use their inventions and discoveries to satisfy their needs
and desires. The practical application of knowledge, especially in a particular area. Technology is all about
using the technical and scientific knowledge we have to help solve problems or to make life better.

Information communication Technology: is the use of modern technology to aid the capture,
processing, storage and retrieval & communication of information in the form of numerical data, text,
sound or image. The information technology department of a large company would be responsible for
collecting, processing, storing information, protecting, transmitting and later retrieving information as
necessary.

Information Communication Technology, as defined by the Information Technology Association of

America: (ITAA), is "the study, design, development, implementation, support or management of
computer-based information systems, particularly software applications and computer hardware."
Encompassing the computer and information systems industries, information technology is the capability
to electronically input, process, store, output, transmit, and receive data and information, including text,
graphics, sound, and video, as well as the ability to control machines of all kinds electronically.

It is comprised of computers, networks, satellite communications, robotics, videotext, cable television,

electronic mail ("e-mail"), electronic games, and automated office equipment. The information industry
consists of all computer, communications, and electronics-related organizations, including hardware,
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software, and services. Completing tasks using information technology results in rapid processing and
information mobility, as well as improved reliability and integrity of processed information.

 It is the study of information handling and use in a society by means of modern technology.
 It is a wide variety of items and abilities used in the creation, manipulation & dispersal of information.
 It is the contemporary term that describes the combination of both computer (hardware and software)
and high speed communications (data, image, text, audio) technology (I.e. it merges computer and
high speed communication links.
 Information Communication Technology has three main integral components.
 Computer
 Communication and network
 The know-how
 Computer :- is a general purpose, electronic and programmable machine that processes
information automatically in accordance with the instruction that you provide it.
 Communication and network :- the study of network architecture and data transmission.
 Know how :- knowing how to do something well. It includes: -

 Familiarity with the tools of information communication technology (ICT)

 The skills needed to use these tools
 Understanding when to use ICT to solve a problem.
Principle of Information Communication Technology
 To solve problems
 To unlock creativity
 To make people more effective than they would be.

Information Technology's Role Today

Every day, people use computers in new ways. Computers are increasingly affordable; they continue to be
more powerful as information-processing tools as well as easier to use.

Computers in Business One of the first and largest applications of computers is keeping and managing
business and financial records. Most large companies keep the employment records of all their workers in
large databases that are managed by computer programs. Similar programs and databases are used in such
business functions as billing customers; tracking payments received and payments to be made; and
tracking
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supplies needed and items produced, stored, shipped, and sold. In fact, practically all the information
companies need to do business involves the use of computers and information technology.

On a smaller scale, many businesses have replaced cash registers with point-of-sale (POS) terminals.
These POS terminals not only print a sales receipt for the customer but also send information to a
computer database when each item is sold to maintain an inventory of items on hand and items to be
ordered. Computers have also become very important in modern factories. Computer-controlled robots
now do tasks that are hot, heavy, or hazardous. Robots are also used to do routine, repetitive tasks in
which boredom or fatigue can lead to poor quality work.

Computers in Medicine Information technology plays an important role in medicine. For example, a
scanner takes a series of pictures of the body by means of computerized axial tomography (CAT) or
magnetic resonance imaging (MRI). A computer then combines the pictures to produce detailed three-
dimensional images of the body's organs. In addition, the MRI produces images that show changes in
body chemistry and blood flow.

Computers in Science and Engineering Using supercomputers, meteorologists predict future weather by
using a combination of observations of weather conditions from many sources, a mathematical
representation of the behavior of the atmosphere, and geographic data.

1.2. Data and information

Most people use data and information interchangeably. But data and information are not the same.

Data: can be defined as raw facts about an entity. Entities are things such as objects, people, observations,
events. Data are representations of facts. They are raw facts in isolation describing the business
transaction. These facts covey meaning but generally are not useful by themselves. They describe the
fundamental components and events of a business system. They are valuable resources for a company.
They are raw materials for information and are they subjected to further processing.

Information: is the output element of a data processing system. It is a refined and processed data.
Information is a processed and organized data that man can understand and get knowledge out of it. It is
data that has been manipulated to be useful to us for the action we take & the decision we make.

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It tells people something they do not already know or confirms something that they suspect. Information is
the life blood of any business. It plays an important role in the day today management of a business and
the decision making process.

Information = f (data, processing)

Information is a function of data and processing

Knowledge: - Knowledge is built from scratch by the learner through experience. One gains
knowledge through context (experiences) and understanding. Information is static, but knowledge is
dynamic as it lives within us.

Wisdom is the ultimate level of understanding. As with knowledge, wisdom operates within us. We
can share our experiences that create the building blocks for wisdom, however, it need to be
communicated with even more understanding of the personal contexts of our audience than with
knowledge sharing.

Data and information deal with the past. They are based on the gathering of facts and adding context.
Knowledge deals with the present. It becomes a part of us and enables to perform. However, when we
gain wisdom, we start dealing with the future as we are now able to vision and design for what will be,
rather than for what is or was.

Data processing: is the process of converting data into information. The following are basic data
processing activities.

1. Data collection: data processing activity that involves getting data from the origin to the system.
2. Data recording: the process of expressing data in a form that is recognizable by either a person or a
machine.
3. Data classification: a process of categorizing all items of data according to common characteristics
and features.
4. Data sorting: the arrangement of data items in a desired sequence.
5. Data store: retaining the data for future reference.
6. Retrieving data: refers to finding a specific stored data.
7. Summarizing data: is the process of condensing data.
8. Data communication: distributions of information to the specific end users.
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Sources of information
Sources of information are generally categorized as:
 Documentary source of information
 Non documentary source of information
Documentary source of information may again categorize as primary, secondary or tertiary depending on
their originality and their proximity to the source or origin.
I- Primary Sources
Primary sources - are original records created at the time historical events occurred. They present
information in its original form, neither interpreted nor condensed nor evaluated by other writers. These
sources serve as the raw material to interpret the past; they provide the resources necessary for historical
research. They are from the time period involved and have not been filtered through interpretation.
Primary sources present original thinking; report on discoveries, or share new information.

Primary sources of information allow the learner to access original and unedited information. A primary
source requires the learner to interact with the source and extract information. A primary source is an
original document containing firsthand information about a topic. Primary sources come firsthand from
the source or person and are first hand sources; For example - suppose there had been a car accident. The
description of the accident which a witness gives to the police is a primary source because it comes from
someone actually there at the time. The story in the newspaper the next day is a secondary source because
the reporter who wrote the story did not actually witness it. The reporter is presenting a way of
understanding the accident or an interpretation.

Some examples of primary sources:

 Letters and correspondence

 Experimental research results
 Speeches
 Meetings, conferences and symposia.
 Newspaper articles (may also be secondary)
 Dissertations (may also be secondary)
 Photographs and works of art
 Patents
 Internet communications on email, and
 Sets of data, such as census statistics
newsgroups
 Works of literature (such as poems and
fiction)
 Diaries
 Interviews, surveys and fieldwork

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II - Secondary Sources:
A secondary source is information about primary, or original, information, which usually has
been modified, selected, or rearranged for a specific purpose or audience.
 Describe, interpret, analyze and evaluate the primary sources.
 Comment on and discuss the evidence provided by primary sources.
 Secondary sources analyze, interpret, and discuss information about the primary source.
 Secondary sources are edited primary sources, second-hand versions. They represent
someone else's thinking.
 Contains commentary on or discussion about a primary source.
 Secondary sources are second-hand sources.
 The most important feature of secondary sources is that they offer an interpretation of
information gathered from primary sources.

Some examples of secondary sources:

 Bibliographies (may also be tertiary)  Monographs (other than fiction and

 Commentaries autobiography)
 Dictionaries and encyclopedias (may  Newspaper and popular magazine
also be tertiary) articles (may also be primary)
 Dissertations (more usually primary)  Review articles and literature reviews
 Textbooks (may also be tertiary)
III - Tertiary Sources
These consist of information, which is a distillation and collection of primary and secondary
sources.
 Works which index, organize and compile citations to, and show you how to use,
secondary (and sometimes primary) sources.
 Materials in which the information from secondary sources has been "digested" -
reformatted and condensed, to put it into a convenient, easy-to-read form.
 Sources which are once removed in time from secondary sources

Some examples of tertiary sources:

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  Almanacs and fact books  Guidebooks, manuals etc
 Bibliographies (also secondary)  Handbooks and data compilations
 Chronologies (also secondary)
 Dictionaries and encyclopedias  Indexing and abstracting tools used to
(may also be secondary) locate primary & secondary sources
 Directories (may also be secondary)

1.3. Attributes of Information

The characteristics of valuable information
 Accessible-information should be easily accessible by authorized users so they can obtain
it in the right formal and at the right time to meet their needs.
 Accurate-information is error free
 Complete-contains all the important facts
 Economical-information should also be relatively economical to product
 Flexible-can be used for a variety of purposes
 Relevant –important to decision makers

1.4. Business Information Systems

As a prospective managerial end user you should have a general understanding of the major ways
information systems are used to support each of the functions of business. The term business
information systems is used to describe a variety of types of information systems (transaction
processing, information reporting, decision support, etc.) that support the functions of business
such as accounting, finance, marketing, or human resource management.

Information systems can be grouped into business function categories, however, in the real world
information systems are typically integrated combinations of functional information systems.
Such systems support business processes, such as product development, production,
distribution, order management, customer support, and so on. There is a strong emphasis in
many organizations to develop such composite or cross-functional information systems that
cross the boundaries of traditional business functions in order to reengineer and improve vital
business processes. These organizations view cross-functional information systems as a
strategic way to share information
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resources and improve the efficiency and effectiveness of a business, thus helping it attain its
strategic objectives.

Applications of information systems in the functional areas of business include:

 Production/Operations IS
 Marketing IS
 Financial IS
 Accounting IS
 Human Resource Management IS

Business firms are turning to Internet technologies to integrate the flow of information among
their internal business functions and their customers and suppliers. Companies are using the
World Wide Web and their intranets and extranets as the technology platform for their cross-
functional and inter-organizational information systems.

In addition, many companies have moved from functional mainframe legacy systems to cross-
functional client/server network applications. This typically has involved installing enterprise
resource planning (ERP) or supply chain management (SCM) software. Instead of focusing on
the information processing requirements of business functions, ERP software focuses on
supporting the supply chain processes involved in the operations of a business.

Unit Summary

In today's era technology is the base thing for life of human being which refers to all the means
for people use their inventions and discoveries to satisfy their needs and desires. The practical

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application of knowledge, especially in a particular area. Technology is all about using the
technical and scientific knowledge we have to help solve problems or to make life better.

By using the of modern technology we can access information's about some business company
through the process of capturing, processing, storing and retrieving & communication of
information in the form of numerical data, text, sound or image. The information technology
department of a large company would be responsible for collecting, processing, storing
information, protecting, transmitting and later retrieving information as necessary.

Review Questions
1. What is the difference between data and information?
2. What is data processing and list the steps involved in data processing?
3. List the three main integral components of ICT
4. List and describe at least 5 characteristics of computer.
5. What is the application of Information Systems in business area?
6. What are the source of information's? discuss briefly.

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