Basic Concepts of

Information System & Technology

1. UNDERSTANDING BASIC CONCEPTS OF INFORMATION SYSTEMS &

TECHNOLOGY

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Data, Information & Knowledge

• Data refers to an elementary description of things, events, activities and transactions that
are recorded, classified and stored but are not organized to convey any specific meaning.
• Information refers to data that have been organized so that they have meaning and value
to the recipient.
• Knowledge consists of data and/or information that have been organized and processed
to convey understanding, experience, accumulated learning, and expertise as they apply to
a current business problem.

Information System: Definitions

“Information system (IS) is a set of interrelated elements or components that collect (input),
manipulate (process), store, and disseminate (output) data and information and provide
corrective reaction (feedback mechanism) to meet an objective.” (Stair & Reynolds 2010,
p.8)
“The information systems is the set of formal procedures by which data are collected,
processed into information, and distributed to users.” (Hall 2011, p.7)

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“An information system is a man-made system that generally consists of an integrated set of
computer-based components and manual components established to collect, store, and
manage data and to provide output information to users.” (Gelinas & Dull 2008, p.13)

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 2. HOW DOES IT IMPACT BUSINESS AND MODERN ORGANIZATIONS?

Business Environment & Business Pressures

 The business environment is the combination of social, legal, economic, physical and
political factors in which business conduct their operations.\
 Three major types of business pressures:
a) Market pressures
Globalization; the changing nature of the workforce; powerful customers
b) Technology pressures
Technological innovation and obsolescence; information overload (the
challenge to access, navigate, and utilize the vast stores of data, information and
knowledge)
c) Societal/political/legal pressures
Social and environmental responsibility; compliance with government
regulations and deregulations

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IT Impacts Towards Business
 Creating Portable Offices. Providing remote access to instant information
 Enabling Better Service. Coordinating remote deliveries
 Creating Leaner, More Efficient Organizations. Allowing more work and customer
satisfaction to be accomplished with fewer people
 Enabling Increased Collaboration. Using collaboration software and other IT
communication devices
 Enabling Global Exchange. Fostering collaboration on a worldwide scale
 Improving Management Processes. Using enterprise resource planning (ERP) to
change the nature of the management process
 Providing Flexibility for Customization. Creating new manufacturing capabilities that
offer customers greater variety (mass customization) and faster delivery cycles
 Providing New Business Opportunities. Creating entirely new businesses where none
existed before
 Improving the World and Our Lives. Advancing medical and diagnostic techniques

3. WHY SHOULD I STUDY INFORMATION SYSTEMS & TECHNOLOGY?

Why should I study Information Systems & Technology?

 Today, every company is a technology company
 You are part of the most connected generation in history – Homo Conexus (The
Connected Humans – MIT Technology Review)
 You are the informed user – a person knowledgeable about IS/IT, and you tend to
get most value from whatever technologies you use
 Technological and social change have reshaped our world and the way we work
 Emerging technologies will be the dominant driver of disruptive change for the
foreseeable future, bringing significant opportunities and threats

4. IMPORTANCE OF INFORMATION SYSTEMS TO SOCIETY

Looking at “work” globally

Over the past 15 years, the same social, political, economic and technological forces
have continued to shape work, but in new ways. In particular, advances in technology—the
Internet, processing power, software and mobile devices—have lowered the barriers to
information. With greater availability and access to information about people and
employers, we have new opportunities to re-think, re-design and re-make the world of
work.