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Chapter_1_Business_Information_Systems.ppt
- 1. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Management
Information Systems
By Effy Oz & Andy Jones
www.cengage.co.uk/oz
Chapter 1: Business Information
Systems: An Overview
- 2. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Objectives
ā¢ Explain why information systems are
essential to business
ā¢ Describe how computers process data into
useful information for problem solving and
decision making
ā¢ Identify the functions of different types of
information systems in business
- 3. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Objectives (continued)
ā¢ Describe careers in information technology
ā¢ Identify major ethical and societal concerns
created by widespread use of information
technology
- 4. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
The Purpose of Information
Systems
ā¢ Businesses use information systems
ā To make sound decisions
ā To solve problems
ā¢ Problem is any undesirable situation
ā¢ Decision arises when more than one
solution to problem exists
- 5. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
The Purpose of Information
Systems (continued)
ā¢ Problem solving and decision making
require information
ā¢ Keys to success in business are
ā Gathering correct information
ā Storing information
ā Using information
- 6. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Data, Information, and
Information Systems
ā¢ āDataā, āinformationā and āsystemā are
commonly used terms
ā¢ Important to understand their similarities
and differences
- 7. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Data vs. Information
ā¢ Data: a given or fact
ā Can be number, statement, or picture
ā¢ Information: facts or conclusions that have
meaning within context
ā Composed of data that is manipulated
- 8. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Data Manipulation
ā¢ Data is manipulated to make useful
information
ā¢ Survey is common method of collecting
data
ā¢ Raw data is hard to read
ā¢ Information is more useful to business than
data
- 9. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Generating Information
ā¢ A process is manipulation of data
ā¢ Process usually produces information
ā¢ Process may produce more data
ā¢ A piece of information in one context may
be considered data in another context
- 10. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Generating Information
(continued)
- 11. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information in Context
ā¢ Not all information is useful
ā¢ Useful information is
ā Relevant
ā Complete
ā Accurate
- 12. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information in Context
(continued)
ā¢ Useful information is
ā Current
ā Obtained economically (in business)
- 13. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information in Context
(continued)
- 14. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
What Is a System?
ā¢ System: array of components that work
together to achieve goal or goals
ā¢ System
ā Accepts input
ā Processes input
ā Produces output
- 15. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
What is a system? (continued)
ā¢ System may have multiple goals
ā¢ System may contain subsystems
ā¢ Subsystems have sub-goals that meet main
goal
ā¢ Subsystems transfer output to other
subsystems
- 16. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
What is a system? (continued)
ā¢ Closed system: has no connections with
other systems
ā¢ Open system: interfaces and interacts with
other systems
ā Often a subsystem of a bigger system
ā¢ Information system: processes data and
produces information
- 17. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information and Managers
ā¢ Systems thinking: thinking of an organization in
terms of subsystems
ā¢ Database: collection of electronic records
ā¢ Information systems automate exchange among
subsystems
ā¢ Information map: network of information
systems
ā¢ Information technology: technologies that
facilitate construction and maintenance of
information systems
- 18. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
The Benefits of Human-
Computer Synergy
ā¢ Humans are relatively slow and make
mistakes
ā¢ Computers cannot make decisions
ā¢ Synergy: combining resources to produce
greater output
- 19. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
The Benefits of Human-
Computer Synergy (Continued)
- 20. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information Systems in
Organisations
ā¢ Computer-based Information system:
system with computer at centre
ā¢ Certain trends have made information
systems important in business
ā¢ Organisations lag behind if they do not use
information systems
- 21. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Components of information
systems
- 22. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
The Four Stages of Processing
ā¢ Input: collect and introduce data to system
ā Transaction: a business event, usually entered
as input
ā¢ Data processing: perform calculations on input
ā¢ Output: what is produced by the information
system
ā¢ Storage: vast amounts of data stored on (for
example) optical discs
- 23. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Computer Equipment for
Information Systems
ā¢ Input devices: receive input
ā¢ Computer: process data
ā¢ Output: displays information
ā¢ Storage devices: store data
ā¢ Network devices: transfer data
- 24. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Computer Equipment for
Information Systems (continued)
- 25. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
From Recording Transactions to
Providing Expertise: Types of
Information Systems
ā¢ Many types of information systems
ā¢ Capabilities of applications have been
combined and merged
ā¢ Management Information System: supports
planning, control, and making decisions
- 26. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Transaction Processing Systems
ā¢ Most widely used type of system
ā¢ Records data collected at point where
organisation interacts with other parties
ā¢ Encompasses cash registers, ATMs and
purchase order systems
- 27. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Supply Chain Management
Systems
ā¢ Supply chain: sequence of activities
involved in producing and delivering
products
ā Activities include marketing, purchasing raw
materials, manufacturing, shipping, billing,
collection, and after-sale services
ā¢ Also known as enterprise resource
planning (ERP) systems
- 28. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Customer Relationship
Management Systems
ā¢ Customer relationship management:
managing relations with customers
ā Used in combination with telephones to provide
customer service
ā Often linked to Web applications that track
online transactions
- 29. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Business Intelligence Systems
ā¢ Business Intelligence: gather data to help
organisation compete
ā Often contains statistical models
ā Access large pools of data
ā¢ Data warehouse: large database that
usually store transactional records
- 30. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Decision Support and Expert
Systems
ā¢ Decision support system: supports
decision-making
ā Relies on models to produce tables
ā Extrapolates data to predict outcomes
ā¢ Expert system: supports knowledge-
intensive decision-making
ā Uses artificial intelligence
- 31. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Geographic Information Systems
ā¢ Geographic information system: ties data
to physical locations
ā¢ Represents data on a map in different
formats
ā¢ May reflect demographic information in
addition to geographic
ā¢ May use information from GPS satellites
- 32. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Geographic Information Systems
(continued)
- 33. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Information Systems in Business
Functions
ā¢ Functional business area: services within a
company that support main business
ā Includes accounting, finance, marketing, and
human resources
ā Part of a larger enterprise system
- 34. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Accounting
ā¢ Information systems help record
transactions
ā¢ Produce periodic statements
ā¢ Create required reports for legal compliance
ā¢ Create supplemental reports for managers
- 35. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Finance
ā¢ Finance systems facilitate financial
planning and business transactions
ā¢ Tasks include organising budgets, managing
cash flow, analysing investments, and
making decisions
- 36. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Marketing
ā¢ Pinpoint likely customers and promote
products
ā¢ Marketing information systems analyse
demand for products in regions and
demographic groups
ā Identify trends in demand for products/services
ā¢ Web provides opportunity to collect
marketing data
- 37. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Human Resources
ā¢ Human resource management systems aid
record-keeping
ā Must keep accurate records
ā Aids recruiting, selection, placement, and
reward analysis
ā¢ Performance evaluation systems provide
grading utilities
- 38. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Web Empowered Enterprises
ā¢ E-commerce: Buying and selling goods
and services through Internet
ā¢ Internet is a vast network of computers
connected globally
ā¢ Web has a profound impact on information
systems
- 39. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Careers in Information Systems
ā¢ Information technology professionals are
increasingly in demand
ā¢ Networking, system analyst, software
engineering, and database administrator
jobs are increasing in demand
- 40. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Systems Analyst
ā¢ System analyst: designs and updates
information systems
ā¢ Involves analysing system requirements,
documenting development efforts, and
providing specifications for programmers
ā¢ Requires communication and presentation
skills
- 41. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Database Administrator
ā¢ Database administrator: responsible for
databases
ā Develops and acquires database applications
ā Must protect privacy of customers and
employees
ā Responsible for securing the database
- 42. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Data Administrator
ā¢ Data administrator: responsible for
strategic use of databases
ā Ensuring senior management are able to make
full use of internal data
ā Ensuring appropriate external data is collected
and filtered
ā Enabling the use of this internal and external
data to gain competitive advantage
- 43. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Network Administrator
ā¢ Network administrator: acquires,
implements, manages, maintains,
troubleshoots networks
ā¢ Implements security
ā Firewalls
ā Access codes
- 44. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Webmaster
ā¢ Webmaster: creates and maintains Web site
ā¢ Designs and codes the page
ā¢ Demand for Webmasters grows as more
businesses use Web
- 45. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Chief Security Officer
ā¢ Chief security officer: supervises security
of information system
ā¢ Position exists due to growing threat to
information security
ā¢ Reports to chief information officer
- 46. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Chief Information Officer and
Chief Technology Officer
ā¢ Chief information officer: responsible for all
aspects of information system
ā Highest ranking IS officer
ā Responsible for IS as a strategic resource
ā¢ Chief technology officer: has similar duties as
CIO
ā High level corporate officer
ā In charge of all IT needs of the organisation
ā¢ Sometimes the two positions are incorporated into
one
- 47. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Chief Information Officer and
Chief Technology Officer
(continued)
- 48. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Summary
ā¢ Computer-based information systems pervade
almost every aspect of our lives
ā¢ A system is a set of components that work
together to achieve a common goal
ā¢ Subsystem: a system performs a limited task that
produces an end result, which must be combined
with other products from other systems to reach an
ultimate goal
ā¢ Data processing has four stages
- 49. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Summary (continued)
ā¢ Any IS that helps in management is a
management information system (MIS)
ā¢ Many different types of MIS
ā¢ Enterprise application systems (SCM or
ERP) tie together different functional areas
of a business
ā¢ ISs are used in accounting, finance,
marketing, and human resources
- 50. Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
Ā© 2008 Cengage Learning
Summary (continued)
ā¢ The job prospects for IT professionals are
bright
ā¢ IT has created societal concerns