3.3 Computer based Information Systems

3.3.1 A computer-based information system (CBIS) is a single set of hardware, software,
databases, telecommunications, people, and procedures that are configured to collect, manipulate,store, and process data into information.

All these components of CBIS define the business’s technology infrastructure since it forms
the foundation of organizations information systems.
Lets identify these components in detail.

3.3.2 Hardware
Computer equipment used to perform input processing and output activities.
Hardware components can also categorize based on the input, processing and output
activities. Other than main computer system unit, all other hardware devices are
known as peripherals.

• Input devices
Input devices are used to input data that will be processed by the Information System. They
are connected to computers directly to pass data. Most common input devices are
keyboard and mouse.

Here is the list of common input devices:
The keyboard
The mouse.
Other pointing devices,
Scanning devices,
Magnetic ink character readers,
Smart cards
Optical cards,
Sensors,
Digital cameras etc.

• Processing devices
Processing devices include the central processing unit (CPU) and main memory. They are
inside the system unit.

Lets identify CPU and main memory:

CPU
This has several components and the processor is most important component. It is generally
considered as the “brain of a computer”. It does exactly what the name implies, process
data based on the given instructions. As a result of this processing, input data will be
changed. Speed is the most important parameter in a processor and it is very important for
the faster processing of complex data like video images.
Simply, if the speed is low, the computer will be slow.

The Main/Primary Memory
Also know ans the Primary memory is directly accessible by the processing unit of the
computer. You can store and retrieve data much faster with primary memory compared to
secondary memory.
We will discuss about the processor and the primary memory in detail in Chapter 3.

• Output devices
Results after processing the data, can be stored in the computer or it can be taken out from
the information system. Results are known as output and devices which facilitates distributing
of the output is known as output devices.

Depending on the requirements of the organization output may be produced on printed
paper, visual screen or any other format (non-permanent ways, e.g. a file of data).

Output Type Output Device
Printed on a paper Printers, plotters
Visual Display Monitor
Audio Speakers
Video Monitor + speakers
Software Object Secondary storage devices,
- Floppy Disk, Flash disks

3.3.3 Software
Software consists of computer programs that govern the operation of the computer. It can
be described as the digital instruction set to a computer. CPU needs software to control its
functions as well as to process the input data. Without software computers are dead
hardware. It is the component which gives the computer the power to act as an intelligent
machine.

Software is normally classified into two components called application software and system
software.

Example: MS Windows is a system software which control devices including the CPU. MS
Word is an application software which facilitates users to use computers as word processors.
Application Software

An Application Software also is known as an application package, is a set of programs
designed to carry out operations for a specified purpose or task.

Example:
Microsoft Office (MS Office). It consists of several applications which usually are very
useful to carry out activities in an office environment.

An Accounting Package
It may help an account division to carry out all its activities including payroll of
employees in the organization.

System Software
It generally performs tasks of controlling devices attached to a computer system. It gives life
to hardware devices. Simply, hardware devices together with system software provide the
infrastructure to run/execute application software. Simply, Application software cannot be
run without having system software.

Some software communicates with hardware devices to coordinate activities. E.g. print
drivers. You have to install these drivers to connect to a computer.
System Software allows application software to be run on the computer with less time and
effort. Most important system software of a computer is its operating system. A computer
cannot work without an operating system. It controls all hardware devices and other system
software, plus facilitation to run a particular application software.
Example: Microsoft windows, Linux, Unix

3.3.4 Databases
A database is an organized collection of data and information in an organization.
Data and information are critical for problem solving and decision-making in an
organization. Hence, most managers and executives consider a database to be the most
valuable and important part of a computer-based information system.

We use special application software to create databases. We call these software as
“Database Management Systems” DBMS.

Examples: Access, DBASE.

3.3.5 Telecommunications, Network and Internet:
Communication is described as transmission (i.e. both sending and receiving)of messages
between two parties. We can use electronic medium to this activity. For example, using a
telephone we can communicate with someone far away.

Telecommunications is described as the electronic transmission of signals (i.e. data, voice,
messages) for communications.

Telecommunications enable organizations to connect with their branches, customers and
other parties to set up advanced business environment. For example, you can use a
telephone to book a cab service.

What is the Internet?
The Internet is defined as a network of networks.
The first letter of Internet, I, is always capital letter. It is huge resource and no one owns it as a
private property.

Do you know what a network is?
A network is a group of computers inter-connected through a physical cable. Some
computers in this network act like leaders and we call them servers. Other computers are
called clients.

When the geographical area of the network is not very large, we call them as LAN (Local
Area Network). On the other hand, WAN (Wide Area Network) is a network which is spread
in a large geographical area, sometimes connecting several offices/branches of an
organization.

By connecting computers to each other, we can communicate with one another and share
resources of computers (e.g. data files, programs, physical devices like printers)
Today, Information Systems heavily depend on all these telecommunication, network and
Internet infrastructures. Due to the developments in telecommunications, organizations have
access to wide variety of services irrespective of location and time.

3.3.6 People
Computer based Information systems (CBIS) are designed and developed by a group of
people to another set of people who will use it to do some tasks. Therefore, the role of
people is very significant. We can identify four types of groups who are considered the key
stakeholders of a CBIS.

They are:
- End Users – people who use an information system or the information produced
by a CBIS. Most end users consist of knowledge workers, a term that is used to
describe a group of people who spend most of their time communicating and
collaborating in teams and workgroups. They create, use and distribute
information.
(e.g. employees in an organization, customers).
- Clients – who are spending money to develop a CBIS for an organization
(e.g. managers of the organization)
- Developers – who will design and develop CBIS according to requirements of an
organization
(e.g. software engineers/developers in IT department or software
house/company)
- Development Managers – those who are undertaking the contract to develop
CBIS and manage the development work using developers
(e.g. managers in IT dept. of an organization or managers of software
house/company)

3.3.7 Procedures
Development of a CBIS is not an easy thing. We need to use an engineering approach to
develop such a thing. (e.g. it is like building a big building or bridge, only difference is we
cannot physically see it like a bridge)

After developing a CBIS, it must be used according to some procedures to utilize it to
achieve your objective. Once you have a car, you must know how to drive it as well as basic
procedures to maintain it. Information systems are like that. These procedures include the
strategies, policies, methods, and rules for using a Computer-based information system.

Methods describe the steps to be followed to perform a certain task. E.g. When you want to
take a print out of your transactions in your savings account from the banking Information
System, you must know the method to do it. At the same time, you must have authority to do
so, as others may not be allowed to see details in your savings account except bank staff.
Procedures may include policies of the organization. For example, a policy may describe
which groups of users have access to a certain database.