Introduction to Computers and

Information Systems

(Picture Source:
http://aisp.bus.wisc.edu)

Computer
An electronic device that can accept data (input),
process the data accordingly, produce
information (output), and store the information for
future use.
It contains many electric, electronic, and mechanical
components known as hardware.

Computer
The electronic components (hardware) process
data using instructions, which are the steps that
tell the computer how to perform MOVE
a particular
task.
$R1 $R2
ADD

$R2 $R3 $R4

ADD

$R1 $R4 $R5

A collection of related instructions organised for a

common purpose is referred to as a software or
program.

Type of Computers
Desktop
Laptop
Tablet
Server
Smartphone

Data v.s. Information

Computers process data (input) into information
(output).

Data

Processing

Raw Facts:
Employee No.
Working Hours
Part No.
Sales Order

Information
Organised & Processed
Data:
Total Expenses for Staf
Customer Spending
Behavior

Inputs
Keyboards
Desktop / Laptop
On-screen
Virtual

Pointing Devices
Mouse
Touchpad

Voice and Video

Scanners

Outputs
Displays
Visually conveys text, graphics, and video
information.

Printers
Produces text and graphics on a physical medium.

Speakers
Allow you to hear voice.

Memory and Storage

Stores data or information for future use.

Uses of Computer (Technology)

Education
Government
Finance
Retail
Entertainment
Health Care
Travel
etc

Uses of Computer (Technology)

It is widely use in diferent areas for diferent

purposes.

Very often, computer also serves as a component

in a system.

A system is a set of components that interact to

achieve a common goal.

System
For example, businesses use many types of
system:
Billing System
Payroll System
Manufacturing System

Very often, these systems are also information

systems.

Information System (IS)

What is Information System (IS)?
A set of interrelated components that collect,
manipulate, store, and disseminate data and
information and provide a feedback mechanism
to meet an objective.
(Source: Ralph Stair and George Reynolds, Principles of Information
Systems)

It is a feedback mechanism that helps

organisations to achieve their goals, such as
increasing profits or improving customer service.

Information System (IS)

Information systems are everywhere.
ATM
Check-in Kiosk
They collect information from users, send the information
over the network for verification, process the information,
and provide output or feedback back to the users (in this
case, could be in the form of bank note, boarding pass).

The value of information is directly linked to how it helps

decision makers achieve the organisations goals.

Information System (IS)

As mentioned previously, 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 a corrective
reaction (feedback mechanism) to meet an objective.

Inputs

Processing
Mechanis
m
Feedback

Outputs

Input, Processing, Output,

Feedback
Input
Activity of gathering and capturing raw data.

Processing
Converting or transforming data into useful outputs. May
involve calculations, comparing data, and storing data for
future use.

Output
Producing useful information,
documents and reports.

usually

in

the

form

of

Feedback
Information from the system that is used to make changes to
input or processing activities.

Input, Processing, Output,

Feedback
Example: Payroll System
No. of Hours
ID

Hourly Pay
Rate
All Employee
No.

Inputs

Processing
Mechanis
m

Outputs

Feedback
a) Verify the reports and expenses (out of range?)
b) For manager to make specific decisions (to fire
someone?)

Manual v.s. Computerised

IS
When there is a large amount of data, it is not
efficient to collect, process, store, and disseminate
data into information manually.

Computers and IS help make it possible for

organisations to improve the way they conduct
business.

Nowadays, computers (technology) are widely being

used to improve the efficiency and accuracy.

Computer-based IS (CBIS)
A
set
of
hardware,
software,
databases,
telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process
data into information.

Computer-based IS (CBIS)
Hardware
Physical components of a component that perform the input,
processing, storage, and output activities of the computer.

Software
Programs that govern the operation of the computer. For
example, to allow the computer to process payroll, send bills
to customer, provide managers with information to increase
profit, and etc.

Databases
Organised collection of facts and information on, for
instance, customers, employees, inventory, sales, online
purchases, and etc.

Computer-based IS (CBIS)
Telecommunications
Transmission of signals for communications. Enable
organisations to carry out their processes and tasks
through wired or wireless network, and satellite
transmission.

People
Manage, run, program, and maintain the system.

Procedures
Strategies, policies, methods, and rules for using
CBIS. Including the operation, maintenance, and
security of the computer. For example, procedures to
describe when each program should run.

Computer-based IS (CBIS)
The types of CBISs that organisations use can be
classified into four basic groups:

E-Commerce
Transaction Processing System (TPS)
Decision Support System (DSS)
Knowledge Management System (KMS)

Computer-based IS (CBIS)
E-Commerce
Involves
any
business
transaction
executed
electronically between parties such as companies,
companies and consumers, and etc.
Use IS and the internet to perform all business-related
tasks and functions.

Transaction Processing System (TPS)

Handles large volume of business transactions that
occur daily within an organisation.
For example, a Payroll TPS transform numbers of
employee hours worked and pay rates (input) into
paychecks (output).

Computer-based IS (CBIS)
Decision Support System (DSS)
Organised collection of people, procedures,
databases, and devices that help make problemspecific decisions.
Make efective decisions.
Helps a manager to do the right thing.

Knowledge Management System (KMS)

Organised
collection
of
people,
procedures,
databases, and devices used to create, store, share,
and use the organisations knowledge and experience.
For example, shipping company can use KMS to
streamline its transportation and logistics business.

IS in Business
Finance and Accounting
Forecast revenues and business activity, determine the
best sources and uses of funds, manage cash and other
financial resources, analyze investments and perform
audits to ensure that the organisation is financially
sound and that all financial reports are accurate.

Sales and Marketing

Develop new goods and services (product analysis),
select the best location for production and distribution
facilities (place and site analysis), determine the best
advertising and sales approaches (promotion analysis),
and set produce prices to get highest total revenues
(price analysis).

IS in Business
Manufacturing
Process customer orders, develop production schedules,
control inventory levels, and monitor product quality.

Human Resources
Screen applicants, administer performance tests to
employees, monitor employee productivity.

IS in Industry
Investment Firms
To analyse stocks, bonds, options, the future market,
and other financial instruments and provide improved
services to their customers.

Banks
Help make sound loans and good investments as well as
to provide online check payment for account holders.

Transportation Industry
To schedule trucks and trains to deliver goods and
services at the lowest cost.

IS in Industry
Publishing
To analyze markets and to develop
newspapers, magazines, and books.

and

publish

Healthcare Organisations
To diagnose illness, plan medical treatment, track
patient records, and bill patients,

Retail Companies
To help market products and services, manage inventory
levels, control the supply chain, and forecast demand.