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Lesson 1

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  • 1. Introduction to Information Systems
  • 2. Data Vs Information <ul><li>Data – Raw facts, No meaningful value </li></ul><ul><li>Information </li></ul><ul><ul><li>Data that has been put into a meaningful and useful context. </li></ul></ul><ul><ul><li>Surprise value </li></ul></ul><ul><ul><li>aggregated, manipulated, and organized . </li></ul></ul><ul><li>Example: Single Railway Track is Data & Information is Rail track Network </li></ul>
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  • 6. Quality of Information <ul><li>Determined by how it motivates human action & contributes to effective decision making: </li></ul><ul><ul><li>Utility of Information </li></ul></ul><ul><ul><ul><li>Form </li></ul></ul></ul><ul><ul><ul><li>Time </li></ul></ul></ul><ul><ul><ul><li>Place </li></ul></ul></ul><ul><ul><ul><li>Possession </li></ul></ul></ul><ul><ul><li>Information Satisfaction </li></ul></ul><ul><ul><li>Error & Bias </li></ul></ul>
  • 7. Information Systems: Turn Data into Information <ul><li>Raw material </li></ul><ul><li>Unformatted information or data </li></ul><ul><li>Generally has no context </li></ul>Examples <ul><li>Processed material </li></ul><ul><li>Formatted information </li></ul><ul><li>Data given context </li></ul>Individual time cards for factory workers entered into the payroll system Department Labor Report, Project Status Report, Employee Payroll Checks
  • 8. What Is an Information System? <ul><li>An information system </li></ul><ul><ul><li>Set of interrelated components </li></ul></ul><ul><ul><li>That collect or retrieve, process, store, and distribute information </li></ul></ul><ul><ul><li>To support decision making and control in an organization. </li></ul></ul><ul><ul><li>To provide a feedback mechanism to meet an objective </li></ul></ul><ul><ul><li>Used to analyze problems, visualize complex subjects, and create new products </li></ul></ul>
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  • 10. Components of an Information System
  • 11. The Role of Information Systems in Business <ul><li>The increased use of cell phones and wireless telecommunications devices </li></ul><ul><li>A massive shift toward online news and information, booming e-commerce and Internet advertising. </li></ul><ul><li>Most of the firm's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. </li></ul><ul><li>Key corporate assets (intellectual property, core competencies, and financial and human assets) are managed through digital means </li></ul>
  • 12. The Role of Information Systems in Business <ul><li>Business responses to changes in their environment are enhanced through digital communications, allowing for time shifting (business being conducted 24x7) & space shifting (business being conducted globally or beyond traditional geographic boundaries). </li></ul><ul><ul><li>Example 1: Most retail stores use IS to help them record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. </li></ul></ul><ul><ul><li>Example 2: Decisions about what lines of merchandise need to be added or discontinued, or about what kind of investment they require, are typically made after an analysis provided by IS </li></ul></ul><ul><ul><li>Example 3: Store management might make a decision to install touch-screen kiosks in all of their stores, with links to their e-commerce website for online shopping. </li></ul></ul>
  • 13. Benefits of Automation – Loan Example
  • 14. Three Primary Uses of Information Systems Automation Providing support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency Organizational Learning (Informing) Providing support to improve day-today operations by creating, acquiring, and transferring knowledge Achieving Strategy Providing support in a way that enables the firm to gain or sustain competitive advantage over rivals
  • 15. Levels of the Organization
  • 16. Who, What, Why: Operational Level
  • 17. Who, What, Why: Managerial Level
  • 18. Who, What, Why: Executive Level
  • 19. Types Of IS
  • 20. 1. Operations Support Systems <ul><li>Focus on the operations of the enterprise </li></ul><ul><li>Objective is to improve the operational efficiency </li></ul><ul><li>Use internal data primarily </li></ul><ul><li>For lower level of management </li></ul><ul><li>Classified into the following categories </li></ul><ul><ul><li>Transaction Processing System </li></ul></ul><ul><ul><li>Process Control System </li></ul></ul><ul><ul><li>Enterprise Collaboration System </li></ul></ul>
  • 21. a) Transaction Processing Systems Focus on the recording and processing of economic events (transactions)
  • 22.  
  • 23. Example: Payroll System (TPS)
  • 24. b) Processing Control Systems <ul><li>Monitor and control industrial processes </li></ul><ul><li>Examples: Petroleum Refining, Power generation etc </li></ul>
  • 25. c) Enterprise Collaboration System <ul><li>Enhance team and workgroup communication and productivity, and include applications that are sometimes called office automation system. </li></ul><ul><li>It facilitates the following activities: </li></ul><ul><ul><li>Producing outgoing documents (using text processors, software as word processing and desktop publishing & hardware as printers) </li></ul></ul><ul><ul><li>storage & retrieval of documents (using document management system) </li></ul></ul><ul><ul><li>transmission of messages (using message communication systems, e-mail, voice mail, videoconferencing and groupware) </li></ul></ul><ul><ul><li>scheduling and meeting management (using video conferencing, electronic calendars with resource management) </li></ul></ul>
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  • 28. 2. Management Support Systems <ul><li>Information System application focus on providing information and support for effective decision making by managers. </li></ul><ul><li>Classified into following categories </li></ul><ul><ul><li>Management Information System </li></ul></ul><ul><ul><li>Decision Support System </li></ul></ul><ul><ul><li>Executive Support System </li></ul></ul>

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