An Introduction to Information Systems
Chapter 1
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.
Principles and Learning Objectives
Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business.
Name the components of an information system and describe several system characteristics.
Identify four basic types of models and explain how they are used.
Principles and Learning Objectives
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.
Principles and Learning Objectives
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.
Discuss why it is important to study and understand information systems.
Information Concepts
Information System
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
Data vs. Information
Data: raw facts
Information: collection of facts organized in such a way that they have value beyond the facts themselves
Types of Data
Data vs. Information
The Characteristics of Valuable Information
The Characteristics of Valuable Information
The Characteristics of Valuable Information
System and Modeling Concepts
System
A set of elements or components that interact to accomplish goals
Input
Processing mechanism
Feedback
Output
System boundary
Components of a System
System and Modeling Concepts
System Performance and Standards
Efficiency: output/input
Effectiveness: extent to which system attains its goals
Performance standard: specific objective of a system
System Variables and Parameters
System variable - item controlled by decision-maker
System parameter - value that cannot be controlled
Systems Classification
System Performance and Standards
Modeling a System
Modeling a System
A model is an abstraction that is used to represent reality
4 major types of models
A narrative model is based on words
Logical, not physical
A physical model is tangible
A schematic model is a graphic representation
Graphs and charts
A mathematical model is an arithmetic representation
What Is An Information System?
Components of an Information System
Computer-Based Information Systems (CBIS)
Components of a CBIS
Telecommunications, Networks, and the Internet
Telecommunications, Networks, and the Internet
Business Information Systems
Business Information Systems
Electronic Commerce
Transaction Processing Systems
Management Information Systems
Decision Support Systems
E-Commerce
Business-to-business
Business-to-consumer
Business-to-government
Government-to-consumer
Electronic Commerce
Transaction Processing Systems
A transaction processing system (TPS) is an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.
Process business exchanges
Maintain records about the exchanges
Handle routine, yet critical, tasks
Perform simple calculations
Payroll Transaction ProcessingSystem
Enterprise Resource Planning (ERP)
Integrated programs that can manage a company’s entire set of business operations
Often coordinate planning, inventory control, production, and ordering
Management Information Systems (MIS)
Routine information for routine decisions
Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional areas
Management Information Systems (MIS)
MIS Outputs
Scheduled reports
Demand reports
Exception reports
Decision 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 problems
End-users are more involved in creating a DSS than an MIS
Essential DSS Elements
Special-Purpose Business Information Systems
Artificial Intelligence (AI) Systems
Virtual Reality Systems
Expert Systems
Other Special-Purpose Business Information Systems
The Major Elements of Artificial Intelligence
Virtual Reality
Data Glove
Systems Development
Why Learn About Information Systems?
Advance in your career
Solve problems
Realize opportunities
Meet your career goals
Computer and Information System Literacy
Computer literacy - knowledge of computer systems and equipment
Information system literacy - knowledge of how data and information are used
Information Systems in Functional Areas of Business
Finance and Accounting
Sales and Marketing
Manufacturing
Information Systems in Industry
Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms
Summary
Data - raw facts
Information - data transformed into a meaningful form
System - set of elements that interact to accomplish a goal
Systems development - creating or modifying existing business systems