INDORE INDIRA SCHOOL OF CAREER STUDIES

BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

Information Systems:
Information Concepts: Concept of Data and information
Data: Data consists of raw facts, such as an employee’s name and number of hours worked in week,
inventory part numbers. Several types of data can be used to represent these facts. Ex: Alphanumeric,
image, audio, and video.
Information: Information can be defined as the data which is organized and presented at a time and
Place so that the decision maker may take necessary action. Information in other words is the result/product
of processing data. Information is one of the most valuable & important resources of an organization.
The transformation process from data to information is such that the Input data (resources) passes through
the transformation process which selects, organize and manipulate data & the result or the output obtained
is the finished products.
Knowledge: an understanding of a set of information and ways that information can be made useful to
support a specific task or reach a decision.
Process: It is a set of logically related tasks performed to achieve a defined outcome or result.
The Characteristics of Valuable Information:
Accurate, Complete, Economical, Flexible, Reliable, Relevant, Simple, Timely, Verifiable, Assessable,
Secure.

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 INDORE INDIRA SCHOOL OF CAREER STUDIES
BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

System:
A system is a set of elements or components that interact to accomplish specific goals. These elements are
inputs, processing mechanisms, outputs, and feedback. The elements themselves and the relationships
among them determine how the system works.
System performance can be measured as the effectiveness, a measure of the extent to which a system meets
its goals, and efficiency, a measure of what is produced divided by what is consumed.
Information systems:
An information system (IS) is a set of interrelated components that collect (input), transform (process), and
disseminate (spread) (output) data and information, and provide a feedback mechanism to meet an
objective.
Input: Input refers to the act of gathering and capturing raw data. It can be a manual or automated process.
Processing: Processing refers to the conversion or transformation of data into useful outputs.
Output: Output refers to the production of useful information, mostly in the form of documents and
reports.
Feedback: the term feedback is used to describe the output used to make changes to input or processing
activities.
Types of Information System:
The information system can be manual as well as computerized. Both the systems have input, processing,
output, and feedback components. The computerized information system uses a computer, a manual
information system does not uses computer.
Manual Information Systems: A system which does not use any computer devices. All data is kept on y
paper. Ex: Before accounts, payroll and spreadsheet applications were maintained by people on paper.
People used to have handwritten letters or used typewriters instead of word processors. Graphs and
diagrams would have been drawn by hand instead of using computer software to do them.
Computer-Based Information System:
A computer-based information system (CBIS) consists of the following components that are configured to
collect, manipulate, store, and process data into information:
• Hardware • Software • Databases • Telecommunications • People • Procedures
The term hardware is used to describe the physical computer equipment used in a CBIS, while software is
defined as the set of programs that control the operation of the computer. A database is an organized
collection of facts and information, and most managers and executives believe that it is one of the most
valuable and important parts of a CBIS. Telecommunications is the electronic transmission of signals for
communications and enables organizations to carry out their processes and tasks through effective
computer networks. People are the most important element in a CBIS because they manage, run, program,
and maintain the system. Finally, the term procedure refers to the strategies, policies, methods, and rules
for using the CBIS.
Types of Computer-Based Information System:

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 INDORE INDIRA SCHOOL OF CAREER STUDIES
BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

For most businesses, there are a variety of requirements for information. Senior managers need information
to help with their business planning. Middle management needs more detailed information to help them
monitor and control business activities. Employees with operational roles need information to help them
carry out their duties.
So, businesses have several "information systems" operating at the same time.
1). Executive Support Systems: An Executive Support System ("ESS") is designed to help senior
management make strategic decisions. It gathers (collects), analyses and summarizes the key (important)
internal and external information used in the business. ESS typically involves lots of data analysis and
modeling tools such as "what-if" analysis to help strategic decision-making.
2). Management Information Systems: A management information system ("MIS") is mainly concerned
with internal sources of information. MIS usually take data from the transaction processing systems and
summarize it into a series of management reports. MIS reports are generally used by middle management
and operational supervisors.
3). Decision-Support Systems: Decision-support systems ("DSS") are specifically designed to help
management make decisions in situations where there is uncertainty about the possible outcomes of those
decisions. DSS comprise tools and techniques to help collect relevant information and analyze the options
and alternatives. DSS often involves use of complex spreadsheet and databases to create "what-if" models.
4). Knowledge Management Systems: Knowledge Management Systems ("KMS") is used to help
businesses create and share information. These are typically used in a business where employees create
new knowledge and expertise - which can then be shared by other people in the organization to create
further commercial opportunities. Good examples include firms of lawyers, accountants and management
consultants. KMS are built around systems which allow efficient categorization and distribution of
knowledge.
5). Transaction Processing Systems: Transaction Processing Systems ("TPS") are designed to process
routine transactions efficiently and accurately. A business will have several TPS. For example: Billing
systems to send invoices to customers, Systems to calculate the weekly and monthly payroll and tax
payments, Production and purchasing systems to calculate raw material requirements, Stock control
systems.
6). Office Automation Systems: Office Automation Systems are systems that try to improve the
productivity of employees who need to process data and information. Ex: The wide range of software
systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office
XP) or systems that allows employees to work from home or while moving.
Need for Information Systems:
An information system is also a system but it is different from other kinds of systems because its objective
is to monitor and document the operations of other systems, which we can call target systems. The main
functions of an information system may be input, processing, output, storage and control at work place.
Business Information Systems
Businesses utilize information systems to improve their operations at all levels. Nearly all workers, from
top management to production line employees, come in contact with computerized systems on a daily
basis. This results in a variety of systems functioning in different areas.
Electronic and Mobile Commerce
E-commerce involves any business transaction executed electronically between companies (business-to-
business, B2B), companies and consumers (business-to-consumer, B2C), consumers and other consumers
(consumer-to-consumer, C2C), business and the public sector, and consumers and the public sector.

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 INDORE INDIRA SCHOOL OF CAREER STUDIES
BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

Mobile commerce (m-commerce) refers to business transactions that are carried out using wireless
communication devices.
Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning
Another family of business information systems is the transaction processing system (TPS).
TPSs are used to manage and help to carry out common business transactions such as sales to customers
and payments to employees and suppliers. Related to the TPS is an enterprise resource planning (ERP)
system. This is a set of integrated programs that is capable of managing a company’s important business
operations for an entire organization. The scope of an ERP system may vary from company to company,
but most provide integrated software to support the manufacturing and finance business functions of an
organization.
Information and Decision Support Systems
The information collected using a TPS can be transformed into routine information for managers and
decision makers through the use of a management information system (MIS). These systems are designed
to provide a variety of reports. Decision support systems (DSS) use the data collected by a TPS to support
problem-specific decision-making. A DSS operates from a managerial perspective and is often designed to
take managerial decision-making styles into consideration. Whereas an MIS helps an organization "does
things right," a DSS helps a manager "do the right thing?"
Another type of decision support system supports groups rather than managers. A group decision support
system is also called a group support system. In addition to the DSS elements, these systems also include
software, called groupware, to help groups make effective decisions.
Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert
Systems, and Virtual Reality
Newer technologies and specialized systems are also used by businesses. Among these are knowledge
management systems (KMSs), artificial intelligence (AI) systems, and virtual reality. A KMS is an
organized collection of people, procedures, software, databases, and devices to create, store, share, and use
the organization’s knowledge and experience. AI systems attempt to take on the characteristics of human
intelligence. The subfields of AI include robotics, vision systems, natural language processing, learning
systems, neural networks, and expert systems. Virtual reality attempts to place the user into an artificial,
three-dimensional world that is completely generated by a computer.
Management Information System:
Information is the basis for every decision taken in an organization. The efficiency of management depends
upon the availability of regular and relevant information. So, it is essential that an effective and efficient
reporting system be developed as part of accounting system. The main object of management information
is to obtain the operating results of an organization regularly in order to use them for future planning and
control.
The old techniques are useless in the process of decision taking. Modern management constantly checks for
quantitative information, which can help in analyzing the proposed actions and choosing one as its
decision. Thus, modern management functions are information-oriented more popularly known
as “management by information”. And the system through which information is communicated to the
management is known as “management information system (MIS)”. The management needs full
information before taking any decision. Good decisions can minimize costs and optimize results.
Management information system can be helpful to the management in taking management decisions
smoothly and effectively.
Management information system can be analyzed thus:
1. Management: management covers the planning, control, and administration of the operations of a
concern. The top management handles planning; the middle management concentrates on
controlling; and the lower management is concerned with actual administration.

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 INDORE INDIRA SCHOOL OF CAREER STUDIES
BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

2. Information: information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of the operations of the
concern. Data is processed i.e. recorded, summarized, compared and finally presented to the
management in the form of MIS report.
3. System: data is processed into information with the help of a system. A system is made up of
inputs, processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information to the management for
performing its functions.
OR
Management Information Systems (MIS), referred to as Information Management and Systems, is the
discipline covering the application of people, technologies, and procedures collectively called information
systems, to solving business Problems.

“'MIS' is a planned system of collecting, storing and disseminating data in the form of information
needed to carry out the functions of management.”
The term is commonly used to refer to the group of information management methods tied to the
automation or support of human decision
Making, e.g. Decision Support Systems, Expert Systems, and Executive Information Systems.
Management: Management is art of getting things done through and with the people in formally organized
groups. The basic functions performed by a manager in an organization are: Planning, controlling, staffing,
organizing, and directing.
Information: Information is considered as valuable component of an organization. Information is data that
is processed and is presented in a form which assists decision maker.
System: A system is defined as a set of elements which are joined together to achieve a common objective.
The elements are interrelated and interdependent. Thus every system is said to be composed of subsystems.
A system has one or multiple inputs, these inputs are processed through a transformation process to convert
these input s to output.
Objectives of MIS:
Data Capturing: MIS capture data from various internal and external sources of organization. Data
capturing may be manual or through computer terminals.
Processing of Data: The captured data is processed to convert into required information. Processing of
data is done by such activities as calculating, sorting, classifying, and summarizing.
Storage of Information: MIS stores the processed or unprocessed data for future use. If any information is
not immediately required, it is saved as an organization record, for later use.
Retrieval of Information: MIS retrieves information from its stores as and when required by various
users.
Dissemination (spreading) of Information: Information, which is a finished product of MIS, is
disseminated to the users in the organization. It is periodic or online through computer terminal.
System Development Life Cycle:
The systems development life cycle (SDLC) is a conceptual model used in project management that
describes the stages involved in an information system development project, from an initial feasibility
study through maintenance of the completed application.
an SDLC methodology follows the following steps:
1. The existing system is evaluated. Deficiencies are identified. This can be done by interviewing
users of the system and consulting with support personnel.
2. The new system requirements are defined. In particular, the deficiencies in the existing system must
be addressed with specific proposals for improvement.

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 INDORE INDIRA SCHOOL OF CAREER STUDIES
BCA-SEM-II
INTRODUCTION TO INFORAMTION SYSTEM
UNIT-I

3. The proposed system is designed. Plans are laid out concerning the physical construction, hardware,
operating systems, programming, communications, and security issues.
4. The new system is developed. The new components and programs must be obtained and installed.
Users of the system must be trained in its use, and all aspects of performance must be tested. If
necessary, adjustments must be made at this stage.
5. The system is put into use. This can be done in various ways. The new system can phased in,
according to application or location, and the old system gradually replaced. In some cases, it may
be more cost-effective to shut down the old system and implement the new system all at once.
6. Once the new system is up and running for a while, it should be exhaustively evaluated.
Maintenance must be kept up rigorously at all times. Users of the system should be kept up-to-date
concerning the latest modifications and procedures.