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Ch01_Business Information Systems:An Overview


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This is an MIS subject presentation covering the first chapter "BUSINESS INFORMATION SYSTEMS:An Overview" .The reference for this presentation is the book entitled "Principles of management Information Systems, Philippine Edition".

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Ch01_Business Information Systems:An Overview

  1. 1. MIS Group 1Amparo, Rose Dominique L.Garcia, Delice Alessandra G.Lubrido, Mac Kiven
  2. 2. Business InformationSystems: An Overview
  3. 3. Learning ObjectivesAfter this chapter, we will be able to: Explain why information technology matters. Define digital information and explain why digital systems are so powerful and useful. Explain why information systems are essential to business. Describe how computers process data into useful information for problem solving and decision making. Identify the functions of different types of information systems in business. Describe careers in information technology. Identify major ethical and societal concerns created by widespread use of information technology.
  4. 4. Topic OutlineI. Gardeners+ : Business Systems and InformationII. Does Information Technology Matter?III.The Power of Digital SystemsIV. The Purpose of Information SystemsV. Data, Information, and Information SystemsVI. From Recording Transactions to Providing Expertise: Types of Information SystemsVII.Information Systems in Business FunctionsVIII.Web Empowered EnterprisesIX. Careers in Information Systems
  5. 5. Gardeners+: BusinessSystems and Information Gardeners+  small business loan for gardening business  obtained by Mary, Amanda and Ed
  6. 6. Gardeners+: Business Systemsand InformationSOLVING PROBLEMS AND MAKING DECISIONS• set up a small office in Ed’s garage with telephone and a personal computer• marketing consists of flyers and advertisements• Julian would distribute business cards• Amanda purchased a small software package• Mary handled all transactions and gardeners feedback• after a week of pilot testing ,and evaluating results they decided to: – add new type of service: a single-job contract – add free confirmation call the day before scheduled work
  7. 7. Gardeners+: Business Systemsand InformationGENERATING BUSINESS INFORMATION flyers ads in newspapers and magazines business cards adjustments to software configuration business suite’s word processing program to create ads, basic forms, and business stationery spreadsheets – keep track of sales, revenues, expenses, taxes, and profit
  8. 8. Gardeners+: Business Systemsand InformationMANAGING DATA contract and subscription systems were functioning well spreadsheet was sufficient for their needsPROBLEM: data transcription was starting to take a toll which leads to falling behind of schedule on their paperworkGATHERING USEFUL INFORMATION FROM CUSTOMERS they went back to initial business models and fed them with real historical rather than projected data they revised the models to include the services they had already added
  9. 9. Does Information Technology Matter?Hackkett Group(a strategic advisory firm) answered YES world’s best performing companies spent 7 % more per employee on information technology  today’s business professionals are expected to know how to develop and use IT significantly  regardless of major field of expertise, those who have the proper IT knowledge and skills stand a better chance of receiving more lucrative job offers and faster promotions
  10. 10. The Power of Digital Systemsdigital systems a system that uses two digits used to represent information that contains numbers or quantities can also represent any information as combinations of zeroes and onesdigital information consists of zeroes and ones representing two states stored and communicated by way of electromagnetic signals (e.g. electricity , magnetism, light)Advantages of Digital System Capable of delivering data and information(e.g. quantities, sound, pictures, videos) original information can be re-created with complete accuracy storage, retrieval, processing, and communication of digital information are extremely fast
  11. 11. The Purpose of InformationSystemsWhy do people need Information? Individuals  Entertainment  Enlightenment Business  Decision making  Problem Solving  Control
  12. 12. Data, Information andInformation SystemsDATA VS. INFORMATION data derived from the Latin datum, literally a given or a fact which might take the form of a number, a statement or a picture is the raw material in the production of information information  are facts or conclusions that have meaning within a contextNOTES: Raw data is rarely meaningful or useful as information To become information, data is manipulated through tabulation, statistical analysis, or any other operation
  13. 13. Data, Information andInformation Systems con’tDATA MANIPULATIONGathering of data of the management of a car manufacturerfrom the customers Demographic data o Gender o Age o Annual income  Complaints about different performance areas  Features that satisfy buyers most  Courtesy of the dealer’s personnel
  14. 14. Data, Information andInformation Systems con’tDATA MANIPULATION  Categorize complaints by topic  Total the number of complaints for each type of dissatisfaction and each car model  Calculate the average age and income of current buyers the company can now generate new information to improve marketing
  15. 15. Data, Information and Information Systems con’tGENERATING INFORMATIONRaw data-processed in anIS to create finaluseful informationProcess-manipulation ofdataComputer-based IS’s-process data toproduce information
  16. 16. Data, Information andInformation Systems con’tFor informationto be used, itmust be: Relevant Complete Accurate Current Cost efficient
  17. 17. Data, Information andInformation Systems con’tWhat is a System? an array of components that work together to achieve a common goal, or multiple goals by accepting input, processing it, and producing output in an organized mannerSystems and Subsystems Subsystems  components of a larger system – with subgoals, all contributing to meeting the main goal  can receive input from, and transfer output to, other systems or subsystems
  18. 18. Data, Information andInformation Systems con’tCLOSED VS. OPEN SYSTEMS Closed system  a system that stands alone, with no connection to another system: nothing flows in from another system, nothing flows out to another systemExample: a small check-producing system – prints and cuts checks whenan employee enters data through a keyboard Open System  a system that interfaces and interacts with other systemsExample: An accounting system that records accounts receivable,accounts payable, and cash flow is open if it receives its payroll figuresfrom the payroll system
  19. 19. Data, Information andInformation Systems con’tINFORMATION SYSTEM (IS)  Consists of all the components that work together to process data and produce informationINFORMATION AND MANAGERS systems thinking  Viewing organization in terms of sub-organizations or subsystems  Creates a framework for problem solving and decision making.  Keeps managers focused on overall goals and operations of business.
  20. 20. Data, Information andInformation Systems con’tINFORMATION AND MANAGERS con’t Information Map  data and information flow within an organization Information Technology  all technologies that facilitate construction and maintenance of information systems
  21. 21. Data, Information andInformation Systems con’tTHE BENEFITS OF HUMAN-COMPUTER SYNERGYSynergy (from the Greek “work together”)  combined resources produce output exceeding the sum of the outputs of the same resources employed separately Allows human thought to be translated into efficient processing of large amounts of data
  22. 22. Data, Information andInformation Systems con’t Qualities of humans and computers that contribute to synergy
  23. 23. Data, Information andInformation Systems con’tINFORMATION SYSTEMS IN ORGANIZATIONS
  24. 24. Data, Information andInformation Systems con’t THE FOUR STAGES OF PROCESSING 1. Input – entering data into the IS 2. Data Processing – changing and manipulating the data in the IS 3. Output – getting information out of the IS 4. Storage – storing data and information
  25. 25. Data, Information andInformation Systems con’tCOMPUTER EQUIPMENT FOR INFORMATION SYSTEMS Input Devices  introduce data into the IS Processor(Computer)  processes data through the IS Output Devices  display Information Storage Devices  store data and information Networking Devices and Communication Lines  Transfer data and information over various distance
  26. 26. Data, Information andInformation Systems con’t Internet
  27. 27. From Recording Transactions to ProvidingExpertise: Types of Information Systems Transaction Processing Systems (TPS)  record data and perform basic processing Supply Chain Management Systems (SCM)  often called enterprise resource planning (ERP) system  involve purchasing, manufacturing, shipping, and billing operations, often supported by an ERP system
  28. 28. From Recording Transactions to ProvidingExpertise: Types of Information Systems con’t Customer Relationship Management Systems (CRM)  help manage an organization’s relationships with its customers  main goals include :  to increase the quality of customer service  to reduce the amount of labor involved in serving customers  to learn as much as possible about the buying habits and service preferences of individual customers Business Intelligence Systems (BI)  Purpose: to glean from raw data relationships and trends that night help organizations compete better
  29. 29. From Recording Transactions to ProvidingExpertise: Types of Information Systems con’t Decision Support and Expert Systems  Decision Support Systems(DSSs)  designed to help make decisions  rely on models and formulas  often answers “what if?” questions  Expert Systems (ESs)  rely on artificial intelligence techniques to support knowledge- intensive decision-making process Geographic Information Systems (GISs)  represent local conditions or features  allow planning, decision-making and monitoring of local conditions and activities
  30. 30. Information Systems inBusiness Functions Accounting  record business transactions, produce periodic financial statements, and create reports required by law Finance  facilitate financial planning and business transactions  organize budgets, manage cash flow, analyze investments, and make decisions that could reduce interest payments and increase revenues from financial transactions
  31. 31. Information Systems inBusiness Functions con’tMarketing  analyze demand for various products in different regions and population groups  help answer questions as “How can an advertising campaign affect our profit?”Human Resource  help with record-keeping, employee evaluation, and employee benefits
  32. 32. Web Empowered EnterprisesE- Commerce  buying and selling goods and services via a telecommunications networkInternet a vast network of computer connected across the globe that can share both information and processingWeb  a way of organizing, presenting and accessing the Information on the Internet
  33. 33. Careers in Information Systems Help Desk Technician  supports end users in their daily use of IT, especially applications  often required to have knowledge of wide variety of PC applications Systems Analyst  Programmer/analysts  start of career of many IT professionals, are then promoted to systems analysts  partly involved in the analysis of business needs and ISs  position that requires a broad range of skills  responsible for searching, planning, and recommending software and systems choices
  34. 34. Careers in Information Systems con’tSystems Analyst con’t  responsible for developing cost analyses, design considerations, implementation timelines, and feasibility studies of a computer system  develops alternative system plans based on 1. analyzing system requirements provided by user input 2. documenting development efforts and system features, and 3. providing adequate specifications for programmers  must possess excellent skills to translate users’ descriptions of business processes into system concepts
  35. 35. Careers in Information Systems con’tDatabase Administrator (DBA)  responsible for the databases and data warehouses of an organization  very sensitive and powerful position  responsible for acquiring database applications  must adhere to federal, state, and corporate regulations to protect the privacy of customers and employeesNetwork Administrator  responsible for acquiring, implementing, managing, maintaining, and troubleshooting local area networks throughout the organization  involved in selecting and implementing network security measures such as firewalls and access codes
  36. 36. Careers in InformationSystems con’t System Administrator  often referred to as “sys admin”  responsible for managing an organization’s computer operating systems  Also responsible for the day-to-day maintenance of an organization’s operating systems (backup, recovery, adding deleting user accounts, software upgrades) Webmaster  responsible for creating and maintaining the organization’s Web site as well as its intranet and extranet
  37. 37. Careers in Information Systems con’tChief Security Officer (CSO)  created because of the growing threat to the information security  persons in this position reports to the chief information officer(CIO)  major challenge: misperception of other executives that IT security is an inhibitor rather than an enabler to operationsChief Information Officer and Chief Technology Officer  Chief Information Officer(CIO)  responsible for all aspects of an organization’s ISs  often, but not always, a corporate vice president  some companies prefer to call this position Chief Technology Officer(CTO)
  38. 38. Careers in Information Systems con’t BUSINESS EXECUTIVE Traits of a successful CIO TECHNOLOGIST -must understand -must understand business processes, current and the market , and the developing IT: does competition. not have to be great -must think like a technician but must CEO and tie IT know to ask the strategy into proper questions corporate strategy about technology ENTREPRENEUR Must be LEADER entrepreneurial, Must know how to proposing inspire staff, foster Chief Information development of new enthusiasm for new Officer products and projects, and lead by services that can be personal example. supported with innovative IT.