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BUSINESS INFORMATIONBUSINESS INFORMATION
SYSTEMS:SYSTEMS:An OverviewAn Overview
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Digital B!"ine""Digital B!"ine""
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Ol# v"$ Newv"$ ewEconomyEconomy
!" Bu#ing and selling textboo$
%" &egistering for classes
'" Photograph#
(" Pa#ing for )asoline
*" Pa#ing for Transportation
+" Pa#ing for goods
" uppl#ing commercial photos
" Entertainment
." /ecturing 0 Teaching students
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%nowle#ge%nowle#ge&or'er"&or'er"
people 1ho are often called2professionals"3
4n#one 1hose 1or$ in5ol5es
the production and use ofinformation is a $no1ledge1or$er"
These people are increasingl#dependent on IT for their 1or$"
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6h# 7o People 8eedInformation9
Indi5iduals - Enlightenment andentertainment
Businesses - 7ecision ma$ing and
problem sol5ing)athering
toring
anipulating
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
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Data( In)ormation(Data( In)ormation(
an# Sy"tem"an# Sy"tem"7ata 5s" Information7ata
4 2gi5en,3 or fact: a number, astatement, or a picture
The ra1 materials in the production ofinformation
Information7ata that ha5e meaning 1ithin a context
&a1 data or data that ha5e beenmanipulated
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7ata anipulationExample: customer sur5e#&eading through data collected from
a customer sur5e# 1ith ;uestions in5arious categories 1ould be time-consuming and not 5er# helpful"
6hen manipulated, the sur5e#sma# pro5ide useful information"
Data( In)ormation(Data( In)ormation(
an# Sy"tem"an# Sy"tem"
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Data( In)ormation(Data( In)ormation(an# Sy"tem"an# Sy"tem"
)enerating Information
Computer-based Is ta$e data as ra1 material, process it,and produce information as output"
Figure 1.1Input-process-output
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Data( In)ormation( an# Sy"temData( In)ormation( an# Sy"tem
Figure 1.2Characteristics of useful information
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&*at I" a Sy"tem+&*at I" a Sy"tem+
#stem: 4 set of components that 1or$together to achie5e a common goal
ubs#stem: One part of a s#stem 1herethe products of more than one s#stem
are combined to reach an ultimate goalClosed s#stem: tand-alone s#stem that
has no contact 1ith other s#stems
Open s#stem: #stem that interfaces
1ith other s#stems
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a a( n orma on(Sy"tem"
Several subsystems make up this corporate accounting system.
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In)ormation an#In)ormation an#Manager"Manager"
#stems thin$ing
Creates a frame1or$ for
problem sol5ing and decisionma$ing"
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e ene " oe ene " o.!man/0om1!ter.!man/0om1!ter
SynergySynergy #nerg# 6hen combined resources produce
output that exceeds the sum of theoutputs of the same resourcesemplo#ed separatel#
4llo1s human thought to be
translated into e=cientprocessing of large amounts ofdata
2 liti ) . # 0 t t* t2 liti ) . # 0 t t* t
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2!alitie" o) .!man" an# 0om1!ter" t*at2!alitie" o) .!man" an# 0om1!ter" t*at0ontri3!te0ontri3!teto Synergyto Synergy
0 tt
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0om1onent" oom1onent" oIn)ormation Sy"temIn)ormation Sy"tem
I 4 O
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In1!t/4roce""/O!t1!t/In1!t/4roce""/O!t1!t/Storage Device"Storage Device"
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ManagementManagement0*allenge"0*allenge"
6h# information s#stems9Contemporar#
approaches to information
s#stems8e1 role of info s#stems
in organizations
/earning to use info
s#stems: ne1opportunities 1ithtechnolog#
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In)ormationIn)ormationSy"tem"Sy"tem"
de>ned as a set of interrelatedcomponents that collect ?orretrie5e@, process, store, anddistribute information to supportdecision ma$ing and control in anorganization"
contain information about
signi>cant people, places, andthings 1ithin the organization or inthe en5ironment surrounding it"
0 t t )0 t t )
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0onte5t o)0onte5t o)In)ormation Sy"temIn)ormation Sy"tem
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0om1!ter/3a"e#0om1!ter/3a"e#In)ormation Sy"tem"In)ormation Sy"tem"
60BIS760BIS7Aormal s#stems that rel#
on computer technolog#
Aixed de>nitions of data,procedures
Collecting, storing,
processing,disseminating, usingdata
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!.*s:Technical Changes
+s-s:
anagerialControl
s-.s:
Institutional Core4cti5ities
Sco1e o) In)oSco1e o) In)oSy"tem"Sy"tem"
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0ategorie" o)0ategorie" o)
In)ormation Sy"tem"In)ormation Sy"tem"
Transaction processing s#stems?TP@"
O=ce automation s#stems ?O4@"
cialIntelligence ?4I@"
T tiT ti
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an information s#stem that captures andprocesses data generated during anorganizations da#-to-da# transactionsD
TP computerizes an existing manuals#stem to allo1 for faster processing,reduced clerical costs and impro5edcustomer ser5ice"&ecording a business acti5it# such as a
students registration, a customers order,an emplo#ees timecard or a clientspa#ment"
O/TP ?Online TP@- the computerprocesses transactions as the# are entered"
Tran"actionTran"action4roce""ing4roce""ing
Sy"tem 6T4S7Sy"tem 6T4S7
O cece
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an information s#stem thatuses hard1are, soft1are and
net1or$s to enhance 1or$ o1and facilitate communicationsamong emplo#ees"O=ce Producti5it# Tools ?i"e"
O=ce, 6ord, Excel, Po1erpoint@
O ceceA!tomationA!tomation
Sy"tem 6OAS7Sy"tem 6OAS7
M tManagement
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an information s#stem thatgenerates accurate, timel# and
organized information somanagers and other users canma$e decisions, sol5eproblems, super5ise acti5ities,
and trac$ progressD oftenintegrated 1ith TP"
ManagementManagementIn)ormationIn)ormation
Sy"tem 6MIS7Sy"tem 6MIS7
MM t
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ManagementManagementIn)ormationIn)ormation
Sy"tem"Sy"tem"T#pes of Is7ecision upport #stems ?7@
Often ans1er 21hat if93 ;uestionsProduction of reports that recap
dail# sales acti5itiesD list customers1ith past due account balancesD
graph slo1 or fast selling productsDand highlight in5entor# items thatneed reordering
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ManagementManagementIn)ormationIn)ormation
Sy"tem"Sy"tem"Executi5e Information #stems
?EI@
4 special t#pe of 7Can gather information from 5ast
amounts of data for high-le5elexecuti5es
Gighl# useful in control andplanning
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E51ert Sy"temE51ert Sy"teman information s#stem that
captures and stores the $no1ledgeof human experts and then imitates
human reasoning and decision-ma$ing processes for those 1hoha5e less expertiseD one part of anexciting branch of computer
science called arti>cial intelligence
NN
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NewNew
Tec*nologie"Tec*nologie" 8e1 technologies are beingintegrated into traditionals#stems:
Ecommerce uses the 6eb toperform business acti5ities"
Enterprise &esource Planning ?E&P@has the goal of integrating man#diHerent information s#stems 1ithinthe corporation"6ireless and handheld de5ices,
including mobile commerce?mcommerce@"
In ormat onn ormat on
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In ormat onn ormat onSy"tem"Sy"tem"
in B!"ine""in B!"ine""Is in Aunctional Business4reas4ccounting&ecord business transactions,
produce periodic >nancialstatements, and create reportsre;uired b# la1
AinanceOrganize budgets, manage the o1
of cash, anal#ze in5estments, andma$e decisions that could reduceinterest pa#ments and increase
re5enues
In ormat onn ormat on
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In ormat onn ormat onSy"tem"Sy"tem"
in B!"ine""in B!"ine""ar$eting4nal#ze demand for 5arious
products in diHerent regionsand population groups
Guman &esourcesGelp 1ith record $eeping and
emplo#ee e5aluation
In ormat onn ormat on
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In ormat onn ormat onSy"tem"Sy"tem"
in B!"ine""in B!"ine""Is in 7iHerent Business
ectors
anufacturing4llocate resources such as
personnel, ra1 material, and time
Control in5entor#, process customerorders, prepare production
schedules, perform ;ualit#assurance, and prepare shippingdocuments
In)ormationIn)ormation
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In)ormationIn)ormationSy"tem"Sy"tem"
in B!"ine""in B!"ine"")o5ernmentTax authorities, national
insurance and 1elfare agencies,defense departments, economicorganizations, immigrationauthorities
er5iceIs are often the bac$bone of
ser5ice organizations
In ormat onn ormat on
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In ormat onn ormat onSy"tem"Sy"tem"
in B!"ine""in B!"ine""&etailome retail stores ?e"g", 6al-art,
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Ty1e" o) IS vi"/9/vi"Ty1e" o) IS vi"/9/vi"F!nctional Area"F!nctional Area"
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&*y St!#y IS+&*y St!#y IS+
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Managerial I""!e"Managerial I""!e" &ecognizing opportunities for
using IT and 6eb-based s#stems" 6ho 1ill build, operate, and
maintain the information s#stems"
Go1 much IT9 Go1 much and GO6 important is
IT9
Is the situation going to change9 )lobalization"
Ethics and social issues"
T f i h i i