Introduction to information systems in it
- 2. Fundamentals of Information Systems, Third Edition 2 Principles and Learning Objectives • The value of information is directly linked to how it helps decision makers achieve the organization’s goals – Distinguish data from information and describe the characteristics used to evaluate the quality of data
- 3. Fundamentals of Information Systems, Third Edition 3 Principles and Learning Objectives (continued) • Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life – Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver
- 4. Fundamentals of Information Systems, Third Edition 4 Principles and Learning Objectives (continued) • System users, business managers, and information systems professionals must work together to build a successful information system – Identify the major steps of the systems development process and state the goal of each
- 5. Fundamentals of Information Systems, Third Edition 5 Principles and Learning Objectives (continued) • The use of information systems to add value to the organization can also give an organization a competitive advantage – Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage
- 6. Fundamentals of Information Systems, Third Edition 6 Principles and Learning Objectives (continued) • Information systems personnel are the key to unlocking the potential of any new or modified system – Define the types of roles, functions, and careers available in information systems
- 7. Fundamentals of Information Systems, Third Edition 7 Introduction • Information system (IS) – Set of interrelated components: collect, manipulate, disseminate data and information – Provide feedback to meet an objective – Examples: ATMs, airline reservation systems, course reservation systems
- 8. Fundamentals of Information Systems, Third Edition 8 Information Concepts: Data Versus Information • Data: raw facts – Alphanumeric, image, audio, and video • Information – Organized collection of facts – Have value beyond the facts themselves
- 9. Fundamentals of Information Systems, Third Edition 9 Figure 1.2: The Process of Transforming Data into Information Data Versus Information (continued)
- 10. Fundamentals of Information Systems, Third Edition 10 The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information
- 11. Fundamentals of Information Systems, Third Edition 11 The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued)
- 12. Fundamentals of Information Systems, Third Edition 12 What Is an Information System? Figure 1.3: The Components of an Information System
- 13. Fundamentals of Information Systems, Third Edition 13 Computer-Based Information Systems • Manual versus computerized information systems • Computer-based information system (CBIS) – Hardware, software, databases, telecommunications, people, and procedures – Collect, manipulate, store, and process data into information
- 14. Fundamentals of Information Systems, Third Edition 14 Computer-Based Information Systems (continued) Figure 1.4: The Components of a Computer-Based Information System
- 15. Fundamentals of Information Systems, Third Edition 15 Business Information Systems • Most common types of information systems used in business organizations: – Electronic and mobile commerce systems – Transaction processing systems – Management information systems – Decision support systems – Specialized business information systems
- 16. Fundamentals of Information Systems, Third Edition 16 Electronic and Mobile Commerce • E-commerce: any business transaction executed electronically between parties such as: – Companies (B2B) – Companies and consumers (B2C) – Consumers and other consumers (C2C) – Business and the public sector – Consumers and the public sector
- 17. Fundamentals of Information Systems, Third Edition 17 Transaction Processing Systems and Enterprise Resource Planning • Transaction: business-related exchange – Payments to employees – Sales to customers – Payments to suppliers • Transaction processing system (TPS) – A collection of people, procedures, software, databases, devices – Records completed business transactions
- 18. Fundamentals of Information Systems, Third Edition 18 Transaction Processing Systems and Enterprise Resource Planning (continued) Figure 1.7: A Payroll Transaction Processing System The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)
- 19. Fundamentals of Information Systems, Third Edition 19 Enterprise Resource Planning • Integrated programs that manage all business operations • Coordinate planning, inventory control, production, and ordering
- 20. Fundamentals of Information Systems, Third Edition 20 Information and Decision Support Systems: Management Information Systems • Management information system (MIS) – A collection of people, procedures, software, databases, devices – Provides information to managers/decision makers • Primary focus is operational efficiency • MIS outputs – Scheduled reports – Demand reports – Exception reports
- 21. Fundamentals of Information Systems, Third Edition 21 Management Information Systems (continued) Figure 1.8: Functional management information systems draw data from the organization’s transaction processing system
- 22. Fundamentals of Information Systems, Third Edition 22 Decision Support Systems • Decision support system (DSS) – A collection of people, procedures, software, databases, devices – Supports problem-specific decision making • Focus is on decision-making effectiveness
- 23. Fundamentals of Information Systems, Third Edition 23 Decision Support Systems (continued) Figure 1.9: Essential DSS Elements DBMS – Database Management System MMS – Model Management System
- 24. Fundamentals of Information Systems, Third Edition 24 Specialized Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality • Artificial intelligence (AI) systems • Expert systems • Virtual reality systems • Other special-purpose business information systems
- 25. Fundamentals of Information Systems, Third Edition 25 Artificial Intelligence Figure 1.10: The Major Elements of Artificial Intelligence
- 26. Fundamentals of Information Systems, Third Edition 26 Systems Development • Systems development – Creating new or modifying existing business systems • Systems investigation: gain an understanding • of the problem to be solved or opportunity to be addressed • Systems analysis: define problems and opportunities of the existing system
- 27. Fundamentals of Information Systems, Third Edition 27 Systems Development (continued) • Systems design: determine how the new system will work to meet the business needs defined during systems analysis • Systems implementation: create or acquire the various system components defined in the design step, assembling them, and putting the new system into operation • Systems maintenance and review: check and modify the system so that it continues to meet changing business needs
- 28. Fundamentals of Information Systems, Third Edition 28 Organizations and Information Systems • Organization: a collection of people and other resources established to accomplish a set of goals • An organization is a system – Inputs: resources (materials, people, money) – Outputs: goods or services
- 29. Fundamentals of Information Systems, Third Edition 29 Organizations and Information Systems (continued) Figure 1.13: A General Model of an Organization
- 30. Fundamentals of Information Systems, Third Edition 30 Organizations and Information Systems (continued) • Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service
- 31. Fundamentals of Information Systems, Third Edition 31 Organizations and Information Systems (continued) Figure 1.14: The Value Chain of a Manufacturing Company
- 32. Fundamentals of Information Systems, Third Edition 32 Technology Diffusion, Infusion, and Acceptance • Technology diffusion: measure of widespread use of technology • Technology infusion: extent to which technology permeates a department • Technology acceptance model (TAM): specifies factors that can lead to higher acceptance and usage of technology
- 33. Fundamentals of Information Systems, Third Edition 33 Competitive Advantage • Significant, long-term benefit to a company over its competition • Ability to establish and maintain a competitive advantage is vital to a company’s success
- 34. Fundamentals of Information Systems, Third Edition 34 Factors That Lead Firms to Seek Competitive Advantage • Rivalry among existing competition • Threat of new entrants • Threat of substitute products and services • Bargaining power of customers and suppliers
- 35. Fundamentals of Information Systems, Third Edition 35 Strategic Planning for Competitive Advantage • Change the structure of the industry • Create new products or services • Improve existing products or services • Use information systems for strategic purposes
- 36. Fundamentals of Information Systems, Third Edition 36 Strategic Planning for Competitive Advantage (continued) Table 1.5: Competitive Advantage Factors and Strategies
- 37. Fundamentals of Information Systems, Third Edition 37 Strategic Planning for Competitive Advantage (continued) Table 1.5: Competitive Advantage Factors and Strategies (continued)
- 38. Fundamentals of Information Systems, Third Edition 38 Performance-Based Information Systems • Consider both strategic advantage and costs • Use productivity, return on investment (ROI), net present value, and other measures of performance
- 39. Fundamentals of Information Systems, Third Edition 39 Performance-Based Information Systems (continued) Figure 1.15: Three Stages in the Business Use of Information Systems
- 40. Fundamentals of Information Systems, Third Edition 40 Productivity • Output achieved divided by input required • Higher level of output for a given level of input means greater productivity
- 41. Fundamentals of Information Systems, Third Edition 41 Typical IS Titles and Functions • Chief information officer (CIO): uses IS department equipment and personnel • LAN administrators: set up and manage the network hardware, software, and security processes • Internet careers – Strategists – Programmers – Web site operators – Chief Internet officer • Other IS careers
- 42. Fundamentals of Information Systems, Third Edition 42 Summary • Data: raw facts • Information: organized collection of facts • System components: input, processing, output, and feedback • Computer-based information system (CBIS) – Hardware, software, databases, telecommunications, people, and procedures – Collect, manipulate, store, and process data into information
- 43. Fundamentals of Information Systems, Third Edition 43 Summary (continued) • Transaction processing system (TPS): a collection of people, procedures, software, databases, and devices used to record completed business transactions • Management information system (MIS): a collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers
- 44. Fundamentals of Information Systems, Third Edition 44 Summary (continued) • Decision support system (DSS): a collection of people, procedures, software, databases, and devices used to support problem-specific decision making • Systems development: creating or modifying existing business systems • Competitive advantage: significant, long-term benefit to a company over its competition • Primary responsibilities in information systems: operations, systems development, and support