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.

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.

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.

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.

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

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

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

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

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

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

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

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

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

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 Processing System

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

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

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

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

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

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

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

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

Finance and Accounting

Sales and Marketing

Manufacturing

Information Systems in Industry Investment firms Banks Publishing companies Healthcare organizations Management consulting firms

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

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