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".

1. MIS Group 1
Amparo, Rose Dominique L.
Garcia, Delice Alessandra G.
Lubrido, Mac Kiven

2. Business Information
Systems: An Overview

3. Learning Objectives
After 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. Topic Outline
I. Gardeners+ : Business Systems and Information
II. Does Information Technology Matter?
III.The Power of Digital Systems
IV. The Purpose of Information Systems
V. Data, Information, and Information Systems
VI. From Recording Transactions to Providing Expertise:
Types of Information Systems
VII.Information Systems in Business Functions
VIII.Web Empowered Enterprises
IX. Careers in Information Systems

5. Gardeners+: Business
Systems and Information
Gardeners+
 small business loan for
gardening business
 obtained by Mary, Amanda and
Ed

6. Gardeners+: Business Systems
and Information
SOLVING 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. Gardeners+: Business Systems
and Information
GENERATING 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. Gardeners+: Business Systems
and Information
MANAGING DATA
 contract and subscription systems were functioning well
 spreadsheet was sufficient for their needs
PROBLEM:
 data transcription was starting to take a toll which leads to
 falling behind of schedule on their paperwork
GATHERING 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. 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. The Power of Digital Systems
digital 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 ones
digital 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. The Purpose of Information
Systems
Why do people need Information?
Individuals
 Entertainment
 Enlightenment
Business
 Decision making
 Problem Solving
 Control

12. Data, Information and
Information Systems
DATA 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
context
NOTES:
 Raw data is rarely meaningful or useful as information
 To become information, data is manipulated through tabulation,
statistical analysis, or any other operation

13. Data, Information and
Information Systems con’t
DATA MANIPULATION
Gathering of data of the management of a car manufacturer
from 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. Data, Information and
Information Systems con’t
DATA 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. Data, Information and
Information Systems con’t
GENERATING INFORMATION
Raw data
-processed in an
IS to create final
useful information
Process
-manipulation of
data
Computer-based IS’s
-process data to
produce information

16. Data, Information and
Information Systems con’t
For information
to be used, it
must be:
 Relevant
 Complete
 Accurate
 Current
 Cost efficient

17. Data, Information and
Information Systems con’t
What 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 manner
Systems 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. Data, Information and
Information Systems con’t
CLOSED 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 system
Example: a small check-producing system – prints and cuts checks when
an employee enters data through a keyboard
Open System
 a system that interfaces and interacts with other systems
Example: An accounting system that records accounts receivable,
accounts payable, and cash flow is open if it receives its payroll figures
from the payroll system

19. Data, Information and
Information Systems con’t
INFORMATION SYSTEM (IS)
 Consists of all the components that work together to process data
and produce information
INFORMATION 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. Data, Information and
Information Systems con’t
INFORMATION 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. Data, Information and
Information Systems con’t
THE BENEFITS OF HUMAN-COMPUTER SYNERGY
Synergy (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. Data, Information and
Information Systems con’t
Qualities of humans and computers that contribute to synergy

23. Data, Information and
Information Systems con’t
INFORMATION SYSTEMS IN ORGANIZATIONS

24. Data, Information and
Information 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. Data, Information and
Information Systems con’t
COMPUTER 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. Data, Information and
Information Systems con’t
Internet

27. From Recording Transactions to Providing
Expertise: 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. From Recording Transactions to Providing
Expertise: 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. From Recording Transactions to Providing
Expertise: 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. Information Systems in
Business 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. Information Systems in
Business Functions con’t
Marketing
 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. Web Empowered Enterprises
E- Commerce
 buying and selling goods and services via a telecommunications
network
Internet
a vast network of computer connected across the globe that can
share both information and processing
Web
 a way of organizing, presenting and accessing the Information on
the Internet

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. Careers in Information Systems con’t
Systems 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. Careers in Information Systems con’t
Database 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 employees
Network 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. Careers in Information
Systems 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. Careers in Information Systems con’t
Chief 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 operations
Chief 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. 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.