Unit 2: Foundation for Information system for Business

Course Contents:

System, Information System and Information Technology, Types of Information System(TPS, MIS, DSS), Components of Information System and its resources, Contemporary approaches to information system (Technical approach and behavioral approach)

SYSTEM

A system refers to a systemic arrangement of hardware, software, data, procedures, and people that work together to manage, process, store, and disseminate information. These systems are made to efficiently process and distribute relevant information to support management, operations, and decision-making within an organization or any business.

Other definition of system:

  1. A system can be described as a collection of interconnected elements, described by specific boundaries, that function collaboratively to accomplish shared goals through a structured process of receiving inputs and generating outputs.
  2. A system refers to a complex, integrated and structured set of interrelated components or elements that work together cohesively to achieve a specific goal or purpose.

Functions of System

These functions ensure the system’s efficiency, effectiveness, and adaptability. The primary functions of a system include:

functions-of-computer-system
  1. Input: This is the first phase which Involves receiving resources such as data, energy, materials, or information from the external environment. The purpose of input is to provide the necessary elements that the system needs to initiate its processes and other functions.
  2. Process: It is the second phase after receiving input which requires transforming or converting inputs into a more useful form or achieving the desired result.
    Process can be defined as the different series of actions or steps taken to convert inputs into outputs.
  3. Output: Output is the phase which involves delivering the processed resources back to the external environment as meaningful or valuable information.

Apart from this basic functions, there are also other function of system:

  1. Feedback: Collecting information about the output and system performance to evaluate and improve the system’s functioning.
  2. Control: Monitoring and regulating the system’s processes to ensure it operates within desired parameters and achieves its objectives.
  3. Storage: Retaining information, materials, or resources for future use in the system.
  4. Boundary: Defining the limits of the system, distinguishing between the system and its external environment.
  5. Interface: The interface function refers to the point of interaction or exchange between a system and its external environment.
    This includes the mechanisms and processes that manage how inputs are received from the environment and how outputs are delivered back to it. The interface ensures that the system can effectively communicate and interact with external elements, facilitating the smooth flow of resources in and out of the system.

Elements or Components of System

Elements_components_of_computer_system
  1. Hardware:
    The physical devices and equipment involved in the system, such as servers, computers, networking devices, storage devices, and peripherals.
  2. Software:
    The programs and applications that run on the hardware. This includes system software (like operating systems such as Android, macOS, Linux Microsoft Windows) and application software (like word processors, databases, MS PowerPoint, Spreadsheet, TikTok, Instagram, Facebook and enterprise applications).
  3. Data:
    The raw facts and figures that are processed by the system to generate meaningful information. Data is stored in databases and other storage systems and serves as the foundation for analysis and decision-making.
  4. Procedures:
    The set of rules, policies, and processes that govern the operation and proper use of the system by the user or people. Procedures ensure that the system operates smoothly and consistently, guiding how tasks are performed and how data is managed.
    Computer experts typically write manuals that detail these procedures, guidelines. Product manuals are made available by software and hardware makers.
  5. People:
    It is also referred as ‘users’ and ‘human resources’. The users and professionals who interact with the system, including end-users, system administrators, developers, and staff.
  6. Network:
    The communications infrastructure that connects the various hardware components, enabling data transfer and resource sharing. For example: local area networks (LANs), wide area networks (WANs), and the internet.

Information System

An information system (IS) can be any organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization.

Types of Information System

Types-of-Information-System

Contemporary Approaches to Information System (Technical Approach and Behavioral Approach)

Contemporary approaches to information systems refer to the modern methodologies and perspectives used to study, design, implement, and manage information systems. These approaches consider the complexity and multifaceted nature of information systems, recognizing that both technical components and human factors play critical roles in their success.

The study of information systems is essentially multidisciplinary, encompassing a range of theories and perspectives. As shown in below figure, various disciplines contribute to identifying problems, issues, and solutions within this field. Broadly, the study can be categorized into technical and behavioral approaches.

Information systems are fundamentally sociotechnical systems, integrating machines, devices, and tangible technology with significant social, organizational, and intellectual investments to ensure they function effectively. This dual nature shows the importance of both technical expertise and social understanding in the successful implementation and management of information systems.

Contemporary-approaches-to-information-system-technical-approach-and-behavioral-approach

Contemporary approaches to information systems can be broadly categorized into two main perspectives: the technical approach and the behavioral approach. Each provides a distinctive views through which we can understand and analyze the information systems.

1. Technical approaches to information system

The technical approach to information systems focuses on the engineering and technological aspects that is very necessary for the development, implementation, and maintenance of these systems. It includes a variety of disciplines and methodologies which focuses in building powerful, efficient, and scalable systems.

Here’s a detailed breakdown of the major disciplines or key components of the technical approach:

technical-approaches-to-information-system
  • Computer Science: This discipline is concerned with the theoretical foundations of information and computation, as well as practical techniques for their implementation and application. It involves software development, algorithms, data structures, and the development of programming languages.

    Core Principle: Focuses on the theoretical and practical aspects of computation and data processing.
    Key Areas:
    • Theories of Computability: Explores the fundamental limits of what can be computed, including problems that can and cannot be solved algorithmically.
    • Methods of Computation: Involves the design and analysis of algorithms, which are step-by-step procedures for solving computational problems efficiently.
    • Data Storage and Access: Covers the organization, storage, and retrieval of data. This includes databases, data warehousing, and data mining technologies that ensure data is stored efficiently and accessed quickly.
    • Software Development: Involves the creation, testing, and maintenance of software applications. This includes programming languages, development frameworks, and software engineering principles.
    • Artificial Intelligence and Machine Learning: Focuses on creating systems that can perform tasks typically requiring human intelligence, such as learning, reasoning, and pattern recognition.
  • ManagementScience:
    Core Principle: Uses mathematical models and analytical methods to aid in decision-making and problem-solving within organizations.

    Key Areas:
    • Decision-Making Models: Develops models to support decision-making processes by providing structured frameworks for evaluating options and outcomes.
    • Optimization Techniques: Involves creating mathematical models to optimize various aspects of business operations, such as resource allocation, scheduling, and logistics.
    • Management Practices: Applies scientific methods to improve management processes and practices, ensuring efficient and effective use of resources.
    • Quantitative Analysis: Uses statistical and mathematical tools to analyze data and derive actionable insights, helping managers make informed decisions.
  • Operations Research:
    Core Principle: Applies advanced analytical methods to help make better decisions and solve complex problems.

    Key Areas:
    • Optimization Techniques: Focuses on mathematical methods for optimizing selected parameters, such as minimizing costs or maximizing efficiency.
    • Simulation: Uses models to simulate real-world processes and systems, allowing for experimentation and analysis of different scenarios without affecting actual operations.
    • Stochastic Models: Deals with systems that exhibit randomness and uncertainty, using probability and statistics to model and analyze such systems.
    • Applications in Business: Practical applications include inventory control, transportation logistics, supply chain management, and production scheduling. These applications help organizations streamline operations and reduce costs.
2. Behavioral approaches to information system
 behavioral-approaches-to-information-system

The behavioral approach to information systems focuses on the human and organizational aspects of information systems. Unlike the technical approach, which emphasizes mathematical models and physical technology, the behavioral approach investigates how individuals and groups interact with information systems, how these systems impact organizational behavior, and how they can be designed and managed to better fit human needs and organizational contexts.

Here below is a detailed breakdown of the major disciplines or key components of the behavioral approach:

  • Psychology:
    Core Principle: Studies how individuals perceive, use, and are affected by information systems.

    Key Areas:
    • Human-Computer Interaction (HCI): Examines how users interact with computer systems, aiming to improve user interface design for better usability and user satisfaction.
    • Cognitive Psychology: Focuses on how users process information, make decisions, and solve problems when using information systems.
    • Behavioral Change: Investigates how information systems can influence user behavior, including technology adoption and usage patterns.
  • Sociology:
    Core Principle: Analyzes the social dynamics within organizations that affect and are affected by information systems.

    Key Areas:
    • Social Networks: Studies how information flows through social networks within and between organizations, influencing collaboration and knowledge sharing.
    • Organizational Culture: Examines how the values, norms, and practices within an organization impact the adoption and effective use of information systems.
    • Power and Politics: Investigates how information systems can shift power dynamics and influence organizational politics, including issues of control and resistance.
  • Political Science:
    Core Principle: Examines the influence of information systems on governance,

    Key Areas:
    • Regulation and Compliance: Investigates how information systems must comply with legal and regulatory requirements, and how they can be used to ensure compliance.
    • Policy Development: Explores the role of information systems in the development and implementation of organizational policies.
    • Governance and Accountability: Examines how information systems contribute to corporate governance, accountability, and transparency.
  • Economics:
    Core Principle: Explores the economic impacts of information systems on organizations and markets.

    Key Areas:
    • Cost-benefit analysis : It compares the predicted benefits of an information systems project with its implementation and operating expenses to determine its economic viability.
    • Productivity and Efficiency: Examines the effects on labor and capital as well as the ways in which information technology might increase organizational productivity and efficiency.
    • Market behavior : It studies various things like how pricing, competition, and customer behavior are impacted by information systems.

The behavioral approach to information systems is important for understanding and addressing the human and organizational aspects of these systems. The above approach makes sure that information systems are not only technically efficient but also complying with the demands and behaviors of users and organizations through the use of ideas from psychology, sociology, economics, and political science. The effectiveness, acceptability, and sustainability of information systems in real-life scenarios are improved by this broad perspective.

Differences Between Technical and Behavioral Approaches to Information Systems

Here below is a comparison between the technical and behavioral approaches to information systems, highlighting their distinct focuses, methodologies, and objectives:

ConceptTechnical ApproachBehavioral Approach
Core FocusScientific and mathematical aspects of information systemsHuman and organizational aspects of information systems
PrinciplesAlgorithms, computational models, optimization techniquesHuman behavior, organizational culture, social dynamics
Key DisciplinesComputer science, management science, operations researchPsychology, sociology, economics, political science
Main ObjectivesEfficiency, accuracy, scalability, innovationUsability, acceptance, organizational fit, social impact
MethodsMathematical modeling, simulation, software developmentUser-centered design, qualitative analysis, ethnographic studies
Focus on TechnologyEmphasizes hardware and software capabilitiesEmphasizes interaction between users and technology
Decision-MakingData-driven, quantitative methodsContext-driven, qualitative methods
Design PhilosophyOptimization of technical performanceAlignment with human needs and organizational goals
Evaluation MetricsPerformance metrics like speed, efficiency, and reliabilityUser satisfaction, adoption rates, impact on work practices
Examples of TechniquesLinear programming, database management, artificial intelligenceHuman-computer interaction studies, change management, social network analysis

Important Question

  1. How MIS helps decision making? Explain.
  2. Describe the contemporary approach of information system with suitable diagram.
  3. What is EIS?
  4. What do you mean by fixed report produced by MIS?
  5. Explain types of MIS in brief. Do you think hotel needs different types of MIS? Explain your answer.
  6. What are components of Information System?
  7. Explain how MIS can be of value for hotels.
  8. Define Information Technology.
  9. Explain Information System. Explain different types of Information System used in organization.
  10. Define MIS. Explain reasons behind the success and failure of MIS in any organization.
  11. List out any four desirable characteristics of TPS.
  12. Explain the behavioral approach to Information System.