Slide 1

Introduction to Information Systems 1Chapter 1: An Introduction to Information Systems

This chapter presents basic concepts necessary to understand systems and business information systems.Principles and Learning ObjectivesThe value of information is directly linked to how it helps decision makers achieve the organizations goals.

Distinguish data from information and describe the characteristics used to evaluate the quality of data.Name the components of an information system and describe several system characteristics.Identify four basic types of models and explain how they are used.Identify the major steps of the systems development process and state the goal of each.Discuss why it is important to study and understand information systems.

2After completing Chapter 1, you should be able to accomplish the objectives on this slide and the following slide.Information is key in business organizations. The value of information is closely related to how it helps decision makers achieve the organizations goals.Models, computers and information system help make it possible for organizations to improveInformation Systems Management (ISM) is the application of information technology to support the major functions and activities of either a private sector business or public sector institution.

ISM supports the process of collection, manipulation, storage, distribution and utilization of an organization's information resources.

3After completing Chapter 1, you should be able to accomplish the objectives on this slide and the following slide.Information is key in business organizations. The value of information is closely related to how it helps decision makers achieve the organizations goals.Models, computers and information system help make it possible for organizations to improveSystemA set of elements or components that interact to accomplish goals

Input Processing mechanismFeedbackOutputSystem boundaryInformation ConceptsComponents of a System

What Is An Information System?6An information systems is a set of interrelated components that collect, manipulate & disseminate information & provide feedback to meet an objective. When we discuss computer-based information systems, we use the terms input, process and output instead of collect, manipulate and disseminate.A set of interrelated components that collect(or retrieve), process, store, and distribute information to support decision making and control in an organization

What Is an Information System?Information System2.A set of interrelated components that collect, manipulate, and disseminate data and information, and provide feedback to meet an objective

Examples: ATMs, airline reservation systems, course reservation systems Components of an Information System

Data vs. InformationData: raw facts

Information: collection of facts organized in such a way that they have value beyond the facts themselves10The terms data & information are often used interchangeably. However, there is an important distinction: information is value-added data. Data is processed, organized or transformed to become information.

Data are raw facts. For example, if you write down your age & grade on an English test & hand it to me, I see 2 numbers raw data. However, if you include the average age and average test score for your class, the data would have some meaning to me as a teacher it would become information. Interestingly, your name and grade data to me- could very well be information to you. In the context of your life or experiences, those 2 numbers alone would most likely have meaning.

Similarly, a grocery store manager would most likely find a list of every item sold today to be of little use it is data. However, the amount that the stores total sales are over or under planned sales would be information.

Types of Data

Data vs. Information

The Characteristics of Valuable Information

The Characteristics of Valuable Information

System and Modeling Concepts16A system is a set of components that work together to accomplish specific goals. Since systems are complex, models of them are often built to help people understand, improve or design systems.Modeling a SystemA model is an abstraction/approximation that is used to represent reality4 major types of modelsA narrative model is based on wordsLogical, not physicalA physical model is tangibleA schematic model is a graphic representationGraphs and chartsA mathematical model is an arithmetic representation

Modeling a System

System and Modeling Concepts

System Performance and StandardsEfficiency: output/inputEffectiveness: extent to which system attains its goalsPerformance standard: specific objective of a systemSystem Performance and Standards

System Variables and ParametersSystem variable - item controlled by decision-maker

System parameter - value that cannot be controlled Systems Classification

Computer-Based Information Systems (CBIS)24A computer-based information system is an information system that uses computer technology to perform input, processing & output activities. Components of a CBIS

Business Information Systems26The most common organizational business information systems are: electronic commerce systems, transaction processing systems, management information systems, and decision support systems. Some firms also use artificial intelligence systems, virtual reality systems or geographic information systems.Business Information SystemsTransaction Processing Systems (TPS)Enterprise Resource Planning System (ERPS)Customer Relationship Management Systems (CRMS)Electronic Commerce (E-Commerce)Management Information Systems (MIS)Decision Support Systems (DSS)Group Support Systems (GSS) / Group Decision Support Systems (GDSS)Executive Support Systems (ESS) / Executive Information Systems (EIS)Virtual Reality Systems (VRS)Expert Systems (ES) / Artificial Intelligence (AI)

E-CommerceBusiness-to-business (B to B)Business-to-consumer (B to C)Business-to-government (B to G)Government-to-consumer (G to C)Consumer-to-Government (C to G)Consumer-to-Consumer (C to C)Electronic Commerce

Transaction Processing SystemsA transaction processing system (TPS) is an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

Process business exchangesMaintain records about the exchangesHandle routine, yet critical, tasksPerform simple calculationsProvide routing, tracking & imaging capabilities to improve business processesImprove productivityEnterprise Resource Planning (ERP)Integrated programs that can manage a companys entire set of business operations

Often coordinate planning, inventory control, production, and orderingManagement Information Systems (MIS)Management information systems provide routine information to decision makers to make structured, recurring decisions, such as restocking decisions or bonus awards. Management Information Systems focus on operational efficiency.

The main input to an MIS is data collected and stored by transaction processing systems. 32Management information systems provide routine information to decision makers to make structured, recurring decisions, such as restocking decisions or bonus awards. Management Information Systems focus on operational efficiency.The main input to an MIS is data collected and stored by transaction processing systems. An MIS further processes transaction data to produce information useful for specific purposes.

Management Information Systems (MIS)Routine information for routine decisionsOperational efficiencyUse transaction data as main inputDatabases integrate MIS in different functional areasManagement Information Systems (MIS)

MIS OutputsScheduled reportsDemand reportsException reportsKey Indicator reportsDrill-down reportsDecision Support Systems (DSS)DSS- A decision support system is an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making.

Interactive support for non-routine decisions or problemsEnd-users are more involved in creating a DSS than an MISEssential DSS Elements

Special-Purpose Business Information SystemsArtificial Intelligence (AI) SystemsVirtual Reality Systems Expert SystemsOther Special-Purpose Business Information Systems e.g. GIS (Geographic Information Systems

Virtual Reality

Systems Development

Why Learn About Information Systems?Advance in your careerSolve problemsRealize opportunitiesMeet your career goalsComputer and Information System LiteracyComputer literacy - knowledge of computer systems and equipment

Information system literacy - knowledge of how data and information are usedInformation Systems in Functional Areas of BusinessFinance and AccountingSales and MarketingManufacturing

Information Systems in IndustryInvestment firmsBanksPublishing companiesHealthcare organizationsManagement consulting firmsManagement ChallengesDesign competitive and effective systems.

Understand system requirements of global business environment.

Create information architecture that supports organizations goal.Management ChallengesDetermine business value of information systems.

Design systems people can control, understand and use in a socially, ethically responsible manner.Positive Impacts of Information Systems

Faster calculations and paperworkAnalysis of customer purchase patterns and preferencesMore efficient business servicesMedical advancesInstant global distribution of informationNegative Impacts of Information Systems

Automation leading to job eliminationPrivacy concernsSystem outages and shutdownsHealth problems, repetitive stress injuryIllegal distribution of intellectual propertySummaryData - raw factsInformation - data transformed into a meaningful form System - set of elements that interact to accomplish a goal Systems development - creating or modifying existing business systems