Foundations of Information Systems (IS) in business:
In this module we will try to know the basics of IS and the relevance of IS in business. It is better to clarify the basic concepts. For when the foundation is strong, the building will be strong. With this in mind lets start with the foundations
Information
Information can be defined as data which is processed to make it meaningful. For information to be useful, it has to be timely (at the right time), accurate (reliable) and available to the right person (decision maker). Information which does not fulfill any of these criteria is a waste. Thus, information is said to be the lifeblood of business. Disrupted information in normal business activities may lead to huge losses.
System
System is defined by Oxford Dictionary as: a set of things working together as parts of a mechanism or an interconnecting network; a complex whole. A system will have many subsystems. There are many examples of systems around us. The road traffic follow a system, we are part of the social system, we learn in an education system and our body itself is a system composed of many subsystems like the digestive system and respiratory system.
What is an Information System?
An Information System can be said as a structured blend of hardware, software, communications system and people. It also helps an organization to manage and secure its vital business, customer and employee information. A business relies on modern information systems to communicate using physical devices(hardware), in the form of information processing instruction and procedures (software), using the network of communications channels and the data is stored for future use.
An information system can be defined as a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making and control, information system may help managers and workers analyze problems, visualize complex subjects and create new products (Laudon, 2010).
Data & Information:
The relationship of the data and information can be very clearly seen with the help of the diagram below:
The data in its raw state will not be very useful, in fact it may not even make sense for an ordinary person. The data has to be processed in such a way that it increases the understanding and also the relevance to become information. For example, the data showing individual sales record for an entire month may not be very useful to the managers. When the data is processed and say the total sales is shown in the form of a table or a chart it will make more sense.
Information as a Resource:
Information in organizational Functions:
