1.1.3 The Value of Information
The value of information is calculated with respect to its usage in decision making and return on benefits due to the decision taken. Therefore, the cost of information has to be deducted from the benefits in order to calculate the value of information.For example, someone wants to invest in stock market but he/she is not familiar with the business procedure, he can then recruit an assistant to evaluate stock market conditions to determine an investment plan. This assistant will have to gather stock market information and generate reports according to his clients requirements. However, if the return on investment is not significant with respect to cost incurred to produce the investment plan, it is worthless to recruit an assistant for this activity. In other words, the value of investment plan is very low.
1.2 Information System
What is a system? A system is a collection of components which work together to achieve a specific goal. These components are connected to maintain communication when they work together. However, they have independent functionalities. Therefore, each component is another system, named as a subsystem, which carries out tasks to achieve some objectives of the original system.Example 1: The Human Body
Our human body is a complex system which contains several components which acts as subsystems. The human body consists of complex muscle, bone, respiratory, digestive and circulatory subsystems, each providing a specific task of the overall system.
Let’s consider one such subsystem, respiratory which provides oxygen to human body. Some components of the respiratory subsystem such as nasal passages, lungs etc. can be considered as a subsystem. On other hand, respiratory system communicates with digestive system as two independent components of human body.
Example 2: A School
A particular school can be considered as a component of education system in this country (a university may be another one). At the same time, a school itself is a complete system that includes a principal, teachers, equipment and classrooms which are its components. Viewing complex systems as a collection of subsystems may help us handle complexity and improve our understanding of the system.
1.2.1 System Concepts and Components
In abstract terms, a system consists of three main components and few communication links. They are Input, Process and Output. Feedback is one communication link.
 |
| Figure 1.2: Components of a System. |
Example : Car Wash (System Components)
Input: dirty car, water, cleaning ingredients, time, energy, skill, knowledge
Processing mechanism: select the cleaning options: wash only/wash with wax/ wash with wax/ and hand dry
Feedback: your assessment of how clean the car is
Output: clean car
System boundary defines the scope of the system with respect to the environment it operates. Simply, it defines the system by distinguishing it from everything else in the environment.
Example : The Scope (System Boundary) of a School System
We can identify goals, input, processing and output of a school system as follows:
System: School
Goal: Educate students
Input: Children, Teachers, Principal, Resources
Processing: Teaching and learning
Output: Educated students
System types:
Considering various features, we can classify systems into different categories as follows:
- Simple or complex
- open or closed
- stable or dynamic
- adaptive or non-adaptive
- permanent or temporary
Simple vs. Complex
Simple
Has few components, and their relationship or interaction between elements is uncomplicated and straightforward.
Example: A “well” is a simple system that provides water.
Complex
Has many elements that are highly related and interconnected.
Example: A water management and distribution facility of a country which contains many elements such as dams, water tanks, distribution centers etc., is a complex system.
Open vs. Closed
Open
Interacts with its environment. Example: The human body is an open system. The human body interacts with the environment through the 5 senses.(eyes, ears, nose, tongue and skin
Closed
Has no Interaction with the environment. Example: We can consider the process of marking examination scripts as a closed system. The department of examination along with many marking panels gets together and evaluates the students' scripts. This system has no interaction with the environment.
Stable vs. Dynamic
Stable
Undergoes very little change over time.
Example: The Judiciary System of a country can be classified as a stable system. The Judiciary System consists of courts, judges, laws, a judiciary process, etc. which does not change rapidly over time
Dynamic
Undergoes rapid and constant change over time. Example: We can consider the human body as a dynamic system. The human body undergoes rapid and constant change (e.g. heart rate, blood pressure etc.)
Adaptive vs. Non-adaptive
Adaptive
is able to change in response to changes in the environment.
Example: We can classify the human body as an adaptive system as the human body is able to change in response to changes in the environment. For example, when we feel hot, the body sweats and cools us.
Non-adaptive
Is not able to change in response to changes in the environment.
Example: We can consider a building as a non-adaptive system.
Permanent vs. Temporary
Permanent
Exists for a relatively long period of time.
Example: We can consider a “Hospital” as a permanent system as it exists for a long period of time
Temporary
Exists only for a relatively short period of time. Example: We can consider the manufacturing of lanterns for Wesak as a temporary system. The lanterns are constructed and sold by a company/group of people during the months of April and May which is relatively a short period of time when compared to a factory that produces goods throughout the year
1.2.2 Main Components of an Information System
What is an Information System? An information system (IS) is a set of interrelated elements or components that collect (input), manipulate (process) and store, and disseminate (output) data and information and provide a feedback mechanism to meet an objective. Hence Information system consists of four main components, namely input, processing, output and feedback. Their relationship is illustrated in figure 1.4.
This feedback mechanism is very important since it provides to improve the quality of processing as well as the input. Every system including Information system, has a goal to be achieved to fulfill the need of the organization. As a result of this mechanism, organizations can achieve their goals, such as increasing profits or improving customer service.
 |
| figure 1.4 Components of an Information System |
Input
Input describes activities to produce raw materials which will enter into a system from the environment. In information systems, it includes activities of gathering and capturing raw data that should be processed.
Input to a system could take manual or automated method. For example, a scanner at a grocery store that reads bar codes and enters the grocery item and price into a computerized cash register is a type of automated input. Generally, both automated and manual methods of input are active. When the bar code reader fails to identify the item, cashier can enter the code using the keyboard. Regardless of the input method, accurate input is critical to achieving the desired output.
Processing
In information systems, processing part involves converting or transforming input data into useful outputs by making calculations, comparisons and arranging raw data. Sometimes, processing involves storing data for future use. This is a critical part in an information system, and it can be done manually or with the assistance of a computer.
Output
In information systems, output involves producing documents and reports using results of the processing activity. For example, pay slip of each employee prepared based on the company format, reports of total pay to the management, reports to third parties such as Labor Department (EMF contribution) and Inland Revenue Department (Income tax employees).
In some cases, the output of a system could become an input to another system. Often, output from one system can be used as input to control other systems or devices.
The salesperson, customer, and furniture designer can go through several design iterations to meet the customer’s needs. Special computer programs and equipment create the original design and allow the designer to rapidly revise it. Once the last design mock-up is approved the computer creates a bill of materials that goes to manufacture the ordered products.
Output can be produced in different ways using different devices such as display screens, printers etc. It can also be a manual process involving handwritten reports and documents.
Feedback
In information systems, feedback is a kind of output that is used to make changes to input or processing activities. For example, errors or problems might make it necessary to correct input data or changes to the logic of the process.
Feedback is also very important component for managers and decision makers
We will talk about Computer based Information System in the next blog post
Comments
Post a Comment