Information Technology and Systems
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Chapter 3 : Fundamentals Of Information Systems
Defining Information
Classification of Information
Basic Classification
Based on Nature
Based on Usage
Based on Application
Based on Structure
Based on Form
Classification by Professor John Dearden
Other Classifications
Presentation of Information
Methods of Data Collection
Transmission of Information
Summarization and Message Routing
Information Discretion
Benefits of Information
Quality of Information
Errors
Bias
Basics of Information Systems
Functions of Information Systems
Components of Information Systems
Use of Information Systems in Business
Limitations of Information Systems
Information System Design
Chapter Summary
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Information is data that has been processed into a form that is meaningful to
the user. An information system (IS) is an organized combination of people,
hardware, software, communications network, and data resources that
collects, transforms and disseminates information in an organization.
Information systems and technologies have become a vital component of
businesses and organizations. People rely on information systems to
communicate with each other using a variety of physical devices (hardware),
information processing instructions and procedures (software), communication
channels (networks), and stored data (data resources).
Information can be classified into facts, opinions, concepts, procedures,
processes, principles, primary information, and secondary information. Apart
from this, it can also be classified into several types based on its nature,
usage, creation, application, structure, and form. |
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In order to present the information in a proper manner to the user, the data
can be collected through two main methods - primary and secondary. Primary
data collection refers to collecting original data or collecting data
directly from the source. Secondary data collection refers to collecting
data from secondary sources such as books, journals, research reports,
online databases, Internet, etc. The user should check whether this data has
been updated before analyzing the data and drawing conclusions.
The transmission of information between one person and another, takes place
with the help of the communications system. Summarization and message
routing are the two methods that increase the sending and receiving
efficiency of the system. Individuals tend to exercise discretion over the
content or distribution of information by message delay, message
modification or filtering, inference or uncertainty absorption, and
presentation bias.
The benefits of information in organizations include – it helps in
management control, it helps in decision-making, and it helps to build
models, backgrounds, and motivation. Quality of information is also a vital
issue. The term ‘quality'is subjective in nature and hence its parameters
should be clearly defined in order to judge the quality of information. The
various parameters of quality are validity, consistency, reliability,
impartiality, and age. Errors and bias occur as a result of giving too much
importance and preference to the quantity of information rather than the
quality.
An IS accepts data resources as input and processes it and delivers
information products as output. Information systems consist of people
resources (end users and IS specialists), hardware resources (machines and
media), software (programs and procedures), data (data and knowledge bases),
and networks (communications media and network support) to perform input,
processing, output, storage, and control activities that convert data
resources into information products. Some of the important activities
performed by an IS are processing of data into information, storage of data
resources and control of system performance. Information systems perform
three vital roles in any type of organization. They support business
operations, support managerial decision- making, and provide strategic
competitive advantage to the organization. Information systems are
classified into different classes according to their use in a business.
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