Computer Based Information Systems
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1.1 Computer Based Information Systems
Suggested retrieval lesson: 20–30 minutes.
Recall first
Before reading, answer from memory:
- What is the difference between data and information?
- Name the five core components of a computer-based information system (CBIS).
- Why is feedback more than merely “output shown on a screen”?
Write a one-line answer to each. Check the explanations below only after committing.
The system from first principles
An information system (IS) is an interconnected set of components that collects, processes, stores, and distributes data to support decision-making, coordination, control, analysis, and visualization. A computer-based information system (CBIS) performs these activities with computer hardware and software. The computer is an enabler, not the whole system: people, procedures, and organizational purpose determine whether the technology produces useful information. This is the standard textbook framing in Rainer & Prince, Laudon & Laudon, and Boddy et al.; OpenStax gives the same five-component model. OpenStax, “Introduction to Information Systems”
Five components
| Component | What it contributes | Example in a shop |
|---|---|---|
| Hardware | Physical devices that input, process, communicate, or store | POS terminal, scanner, server |
| Software | Instructions and applications | POS application, operating system |
| Data | Recorded facts the system can process | Item, price, quantity, time |
| Procedures/processes | Rules for operating the system and doing work | Refund approval procedure |
| People | Users, managers, analysts, developers, administrators | Cashier, store manager, IT staff |
A useful distinction is data → information: data are raw recorded observations; information is processed data placed in a context that reduces uncertainty or supports a decision. “17 units sold” becomes useful information when attached to a product, time period, and comparison such as “17 sold today, 40% above the weekly average.”
Input–process–output–feedback
- Input: capture data from transactions, sensors, forms, or other systems.
- Processing: validate, calculate, classify, combine, or transform the input.
- Output: produce a report, alert, screen, file, or automated action.
- Feedback/control: use output and performance information to adjust inputs, procedures, or processing. Feedback closes the loop; it can reveal errors, trigger replenishment, or change a manager’s decision.
For example, a stock system receives a sale, subtracts one unit, outputs the current balance, and feeds a reorder alert back to purchasing when stock falls below the reorder point. Control is the deliberate comparison of actual performance with a target or rule; feedback is the information used to make that comparison and respond.
System types and management levels
A transaction processing system (TPS) records routine operational transactions such as sales or payroll. A management information system (MIS) summarizes operational data into periodic reports for middle managers. A decision support system (DSS) supports interactive analysis of less-routine decisions. An executive information system (EIS) gives senior leaders strategic summaries. These categories overlap in modern platforms, but the exam distinction is purpose and decision level, not brand name. OpenStax, same chapter
Worked example: a campus canteen
A canteen scans a meal at checkout. The scanner and terminal are hardware; the checkout program is software; meal ID, price, and quantity are data; the rule “manager approves refunds” is a procedure; cashier and manager are people. The sale is input; tax and total are processed; receipt and updated inventory are outputs. When inventory reaches 10 meals, the reorder alert is feedback. Calling only the terminal “the CBIS” loses the people, rules, and control loop that make the system work.
Exercise — classify before revealing
A supervisor asks for: (a) every completed sale stored with a timestamp, (b) a daily total by product, and (c) an interactive simulation of what happens if tomorrow’s demand rises 20%. Identify the most suitable system role for each.
Revealed answer: (a) TPS, because it records transactions; (b) MIS reporting, because it summarizes routine data; (c) DSS, because it supports interactive what-if analysis. One integrated application may provide all three, but the functions remain conceptually distinct.
Exam lens
- CBIS ≠ IT: IT is the technology infrastructure; CBIS includes technology plus people, data, procedures, and processing purpose.
- Data ≠ information: context and processing create information.
- Output ≠ feedback: output is a result; feedback uses results to correct or regulate the system.
- TPS/MIS/DSS/EIS: distinguish by operational, managerial, analytical, and strategic use—not by whether each uses a computer.
Rapid revision checklist
- Define CBIS in one sentence.
- Recall hardware, software, data, procedures, people.
- Trace one transaction through input → processing → output → feedback.
- Explain why a technically correct system can still fail through poor procedures or user fit.
- Distinguish TPS, MIS, DSS, and EIS by user and decision type.
Key takeaways
- A CBIS is a socio-technical system, not a machine alone.
- Its basic loop is input, processing, output, and feedback/control.
- Information is processed, contextualized data that supports action.
- System categories are best separated by purpose, users, and decision horizon.
Sources
- Kelly Rainer & Brad Prince, Management Information Systems (Wiley) — textbook exam framing; no page numbers asserted.
- K. C. Laudon & J. P. Laudon, Management Information Systems: Managing the Digital Firm, 10th ed. (Prentice Hall, 2007) — textbook exam framing.
- D. Boddy & A. Boonstra, Managing Information Systems: Strategy and Organization (Prentice Hall, 2008) — textbook exam framing.
- OpenStax, “Introduction to Information Systems” — supplement for components, system elements, and system types.