Introduction to Information Systems

Introduction to Information Systems

1.1 Information Concepts

Since we are living in an information economy, Information systems are the key to manage business
activities in today's organizations. They provide much value to all stakeholder involved in business

1.1.1. Data vs Information

Data are facts concerning people, place, concept, event, object or thing. it may represent single value or multiple value. Data represent real world thing and have little value.

• Student : Student Name, Address, Gender, Date of Birth
• Account : Account Number, Type, Branch, Balance

Data are converted in to information by carrying out several activities to make them useful for decision making. When the data organized or arranged in a meaningful manner they become information. information has an additional value beyond the data. We can identify four type of data/Information when working with information system.

• Total number of student in Batch 
• Total number of accounts open in each branch

Type of  Data & Information

1. Alphanumeric data ( Numbers, letters, and other Characters )
2. Image data ( Graphic image and picture )
3. Audio data ( Sound, Noise or tones )
4. Video data ( Moving images and pictures )

Data can be converted into information by carrying out some series of activities ( process) on data. These Activities can be mathematical, comparison, logical and/or tabulation operation.

Processing data is done manually or by using devices ( calculator, computer). The result must be useful and valuable than where the data comes from or how it is processed.


The type of information created depends on relationship defined among existing data. The process of defining relationship among data to create useful information requires knowledge.

Knowledge is the awareness and understanding of a set of information and the ways that information can be made useful to support a specific task or each a decision.

1.1.2. The Characteristic of Valuable Information

• Accuracy       - Information must be error free.
• Complete       - Information must contain all important facts.
• Reliable          - Must be produce from the data gathered from reliable sources.
• Secure            - Information must be secure from access by unauthorized user.
• Relevant         - Information must be relevant to the application and users.
• Flexible        - Information can be use several task.
• Simple          - Simple information ease decision making.
• Timely          - Correct Information must be available at right time.
• Verifiable      - Should be able to check the reliability and accuracy of information.
• Accessible      - Able to access the right information by authorized persons.
• Economical   - Need to balance the value of information with the cost.

 1.1.3. The Value Of Information 

The value of information has a direct link to how it helps decision makers achieve their goals. the value of information is calculated with respect to it usage in decision making and return on benefits due to the decision taken. therefore, cost of information has to be deducted from the benefits in order to calculate the value of information.

Cost of information is calculated base on the resources consumed to produce it. the followings are considered to calculate the value of information.

• Cost of acquiring data
• Cost of maintain data
• Cost of generating information
• Cost of communicating information