1.2 Digital information system

This subject focuses on the use of a computer, which you already know. However, the computer is just one part of a larger system – the digital information system. The purpose of the information system is to collect and process data and transform it into information – the information processing cycle – which is covered in detail in Section 1.9.

A digital information system consists of the following parts, which will be looked at in detail:

• hardware
• people
• software
• processes
• data.

Hardware

The computer hardware is what you can see in the system – the cold, hard equipment: the PC, the printer, the screen, the keyboard and also things like pen and paper, order forms, etc.

People

People design and code the software programs, control how and when the software works on the hardware, and also use the software and hardware as users of the system. The manager of a store determines how the accounting package is to work and the security of the data. The customer receives the resultant receipt as part of using the system. The efficiency of the system will have a direct effect on the customer.

Software

Software is essential for controlling the hardware and how each part works together. Software is also an integral part of the procedure: accounting software, inventory software, word processing, etc. These programs can be bought retail or custom designed for the requirements of the system.

Processes

The processes are the set of rules or guidelines on how the system should be used; for example, how to enter a sale.

Data

Data are the raw facts and values; for example, item prices, quantity purchased. The data is purchased to become information; for instance, the amount owed at the checkout.