PORTFOLIO 2

Data, Information Systems, and Support Systems in
Information Systems

Introduction

Information is central to decision-making and organizational success (Laudon & Laudon, 2022)
Data → Information → Knowledge (DIKW hierarchy) (Ackoff, 1989)
IS integrate technology, people, and processes (Alter, 2002)
Support systems provide structured and unstructured decision-making assistance (Turban, Sharda, & Delen, 2018)

Data

Raw, unprocessed facts, figures, or symbols with no inherent meaning on their own (Shannon, 1948).
Can be qualitative (words, categories) or quantitative (numbers, measurements).
Example: “25, 28, 30” = isolated numbers without context.
On their own, data do not support decision-making until processed (Ackoff, 1989).

Information

Data that has been organized, structured, or processed to provide meaning and relevance (Ackoff, 1989).
It answers basic questions like who, what, where, and when (Rowley, 2007).
Example: Average of “25, 28, 30” = “Average temperature is 27°C.”
Information reduces uncertainty and increases understanding (Shannon, 1948).

Knowledge

Information combined with experience, context, interpretation, and reflection (Alavi & Leidner, 2001).
It answers the question how.
Example: “If the average temperature is 27°C, air conditioning will be needed for office comfort.”
Knowledge guides judgment and decision-making.

Information Systems

An organized combination of people, hardware, software, networks, data resources, and processes that collect, store, process, and distribute information (Laudon & Laudon, 2022).

Supports operational activities, management functions, and decision-making at all organizational levels (Alter, 2002).

IS are both technical (machines, programs) and social (people, organizational structures) (Bostrom & Heinen, 1977).

Transaction Processing Systems

Handle day-to-day transactions essential to running a business (Laudon & Laudon, 2022).
Operate at the operational level of organizations.
Example: Bank ATM withdrawals, payroll systems.
Without TPS, businesses cannot conduct basic operations effectively.

Management Information Systems

Provide summarized, routine information for middle managers (O’Brien & Marakas, 2011).
Focus on structured decisions (well-defined and repetitive).
Use data from TPS to generate reports such as sales summaries, inventory levels, or financial statements.
Example: Monthly sales report used by a regional sales manager.

Decision Support Systems

Designed to help managers with semi-structured and unstructured decisions (Turban et al., 2018).
Incorporate data analysis, modeling, forecasting, and simulations.
DSS are interactive, allowing “what-if” analyses and scenario planning.
Example: Forecasting future demand using market trends.

Analysis

As I made my research, I became aware of how important it is to tell the difference between data, information, and knowledge. I used to think of them as being the same thing, but after learning about the DIKW hierarchy, I realized that data is useless unless it is processed and understood. This got me thinking about how I frequently gather knowledge in my daily life, whether from social media, education, or personal experiences, but the hardest part is interpreting it and using it effectively.

Studying information systems also opened up my mind. I used to think of IS primarily as computers and software, but now I know that it also involves people, organizations, and processes. I came to understand from the technological and social perspective that technology is only useful when people use it effectively. This got me thinking about cooperation and group projects, where having the correct tools is useful, but how well we work together as individuals is what really makes the difference.

I gained a better understanding of how organizations make decisions at many different levels after learning about support systems like TPS, MIS, DSS, and others. The connection of these systems, from managing everyday tasks to executive decision making amazed me. For my part, it got me thinking about how I may apply comparable strategies in my own research beginning with simple facts, turning it into information, and then applying it to make better decisions. This research not only increased my comprehension of IS but also provided me with useful information that I can utilize in my academic and personal life.

References

Ackoff, R. L. (1989). From data to wisdom. Journal of Applied Systems Analysis, 16, 3–9.

Alavi, M., & Leidner, D. E. (2001). Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS Quarterly, 25(1), 107–136.

Alter, S. (2008). Defining information systems as work systems: Implications for the IS field. European Journal of Information Systems, 17(5), 448–469.

Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the digital firm (17th ed.). Pearson.

O’Brien, J. A., & Marakas, G. M. (2011). Management information systems (10th ed.). McGraw-Hill.

Shannon, C. E. (1948). A mathematical theory of communication. The Bell System Technical Journal, 27(3), 379–423.

Turban, E., Sharda, R., & Delen, D. (2011). Decision support and business intelligence systems (9th ed.). Pearson.

Data, Information Systems, and Support Systems in Information Systems