INFORMATION SYSTEMINFORMATION SYSTEM

Information SystemInformation System

• Interrelated components working Interrelated components working together to collect, process, store, together to collect, process, store, and disseminate information to and disseminate information to support decision making, support decision making, coordination, control, analysis, and coordination, control, analysis, and visualization in an organization.visualization in an organization.

• Data- Streams of raw facts representing events occurring in Data- Streams of raw facts representing events occurring in organizations or the physical environment before they have organizations or the physical environment before they have been organized and arranged into a form that people can been organized and arranged into a form that people can understand and use.understand and use.

• Information- Data have been shaped into a form that is Information- Data have been shaped into a form that is meaningful and useful to human beings.meaningful and useful to human beings.

• Input- The capture or collection of raw data from within the Input- The capture or collection of raw data from within the organization or from its external environment for organization or from its external environment for processing in an information system.processing in an information system.

• Processing- The conversion, manipulation, and analysis of Processing- The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans.raw input into a form that is more meaningful to humans.

• Output- The distribution of processed information to the Output- The distribution of processed information to the people or activities where it will be used.people or activities where it will be used.

• Feedback- Output that is returned to the appropriate Feedback- Output that is returned to the appropriate members of the organization to help them evaluate or members of the organization to help them evaluate or correct input. correct input.

A business perspective on A business perspective on Information SystemInformation System

From a business perspective , an From a business perspective , an information system is an information system is an organizational and management organizational and management solution, based on information solution, based on information technology, to a challenge posted by technology, to a challenge posted by the environment.the environment.

The Major Roles of IS:-The Major Roles of IS:-

Support Strategies

for Competitive Advantage

Support Business

Decision- Making

SupportBusiness Processes and Operations

Support Business ProcessesSupport Business Processes

For example, most retail stores now use For example, most retail stores now use computer based information system to computer based information system to help them-help them-

• Record customer purchasesRecord customer purchases

• Keep track of inventoryKeep track of inventory

• Pay employeesPay employees

• Evaluate sales trendsEvaluate sales trends

Support Decision MakingSupport Decision Making

Decisions on what lines of merchandise Decisions on what lines of merchandise need to be added or discontinued-need to be added or discontinued-

• Kind of investment they requireKind of investment they require

• Ways to gain an advantage over other Ways to gain an advantage over other retailers in the competitionretailers in the competition

Support Competitive Support Competitive AdvantageAdvantage

Gaining a strategic advantage over Gaining a strategic advantage over competitors requires innovative use of competitors requires innovative use of information technology.information technology.

• Can install touch-screensCan install touch-screens

• With link to their website for online With link to their website for online shoppingshopping