CHAPTER 1
AN INTRODUCTION TO INFORMATION SYSTEMS IN
ORGANIZATIONS
1.1.
1.2.
Introduction to Information Systems
Information System in Organizations
1.1 Introduction to Information Systems
1.1.1 Definition of Information System
Information systems are interrelated components working together to collect
data, process, store, and disseminate information to support decision making,
coordination, control, analysis, visualization (creating mental picture) etc in an
organization.
1.1.2 Components of Information Systems
The components that must come together in order to produce an information
system is:
1.
2.
3.
4.
5.
6.
Computer Hardware
Computer Software
Telecommunication Systems and Networks
Databases and Data Warehouses
Human Resources
Procedures
1. Computer Hardware
Computer hardware is the physical components that a computer system
requires to function. It encompasses everything with a circuit board that
operates within a PC or laptop; including the motherboard, graphics card,
CPU (Central Processing Unit), ventilation fans, webcam, power supply,
and so on.
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2. Computer software
Software, instructions that tell a computer what to do. Software comprises
the entire set of programs, procedures, and routines associated with the
operation of a computer system. The term was coined to differentiate
these instructions from hardware—i.e., the physical components of a
computer system.
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3. Telecommunication system and networks
Telecommunication networks are transmission systems enabling
information to be transmitted in analogue or digital form between various
different sites by means of electromagnetic or optical signals. The
information may consist of audio or video data or some other type of
data. Whereas company network is designed to share resources within
the company itself. The detailed discussion will be given in chapter 3
4. Databases and data warehouses
A database is a data structure that stores organized information. Most databases
contain multiple tables, which may each include several different fields. For example, a
company database may include tables for products, employees, and financial records.
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Examples of information held in database
 Employee, customer and supplier information
 Patient health records
 Criminal records
 students, parents and staff records in school
 members of social media sites
 etc
Note: A data warehouse contains all of the data in whatever form that an
organization needs
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5. Human Resources
 The people that are needed to run the information system and the
procedures
 The component that most influence the success or failure of information
systems.
Examples
 Programmers
 Systems Analysts
 Systems designers
 Project managers
 Network specialists
 Trainers
 Computer operators
 chief information officer (CIO)
 operations managers,
 database administrators
 computer security specialists
 Tactical managers
 Senior mangers
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 Executives etc
6. Procedures
The policies/rules/ regulations that govern the operation of an information
system
– Operating Procedures (using Apps)
– Backup and Recovery Procedures
– Security Procedures
– Development Procedures
Example: Rules and regulations that must be followed to do payroll in a Payroll
information systems
What Is ICT/IT?
Information technology (IT) is the use of modern technology to aid the : Capture,
 Processing,
 Storage and Retrieval
And
Communication of information, in the form of numbers, text, sound, Still
image/graphic, video, or the combination of them
IT  Computer technology (hardware and software) + Telecommunications
Components of IT
1. Computing Devices
2. Communication Networks
3. know-how (the practical skill and knowledge necessary to do something)
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Functions and Application of IT
The Functions of IT:
There are four basic functions of IT.
1. Capture: Compiling detailed records of activities.
Example when a book is taken from the library
2. Processing and Generation of information: Converting, analyzing,
computing and synthesizing all forms of data and information.
3. Storage and retrieval: Retaining information for further use and
Locating and copying stored data or information for further
processing or for transmission to another user.
4. Transmission: Distributing information over a communication network
Question:
List down some application Of IT/ICT that you have seen in your day to day life
1.2
Information System in Organizations
Question: How many different kinds of Information System are there in an
organization?
Answer: Depending on how you create your classification, you can find almost
any number of different types of information system in an organization
•
One of the oldest and most widely used systems for classifying information
systems is known as the Pyramid Model
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•
As most organizations are hierarchical, the way in which the different
classes of information systems are categorized tends to follow the
HIERARCHY
•
Classification information systems based on the Pyramid Model (Three
level model )
Reading Assignment: You are expected to explain the above information
systems on preliminary level.
Exercise:
What is the difference between Information Systems (IS) and Information
Technology (IT)? Support your answer with example
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