This document provides an overview of key concepts in information systems including data, information, and knowledge; hardware and software components; telecommunications; databases; and the systems development life cycle. It defines data as raw facts, information as organized data that provides value, and knowledge as applying experience and rules to evaluate and incorporate new experiences. The document also describes the components of computer-based information systems and different types of application software used in business.

1. Basics of Information Systems
Material from
Fundamentals of Information Systems, Fourth Edition
By
Ralph Stair and George Reynolds
1

2. Information Concepts:
Data, Information, and Knowledge
• Data: raw facts
– Alphanumeric, image, audio, and video
• Information: collection of facts organized in such a way that
they have additional value beyond the value of the facts
themselves
– Value of Information is directly linked to how it helps
decision makers achieve their organization’s goals and can be
measured
• in time required to make a decision
• Increased profits to the company
2

3. Data, Information, and Knowledge
Figure 1.2: The Process of Transforming Data into Information
3

4. The Characteristics of Valuable
Information
Table 1.2: Characteristics of Valuable Information
4

5. The Characteristics of Valuable
Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)
5

6. What Is an Information System?
Figure 1.3: The Components of any Information System
6

7. Computer-Based Information Systems
 Computer-based information system (CBIS): single
set of hardware, software, databases, telecommunications,
people, and procedures configured to collect, manipulate,
store, and process data into information
7

8. Computer-Based Information Systems
• CBIS components
– Hardware: computer equipment used to perform input,
processing, and output activities
– Software: computer programs that govern the operation of the
computer
– Database: organized collection of facts and information
– Telecommunications: electronic transmission of signals for
communications
– Networks: connect computers and equipment in a building,
around the country, and around the world
8

9. Business Information Systems
 Most common types of information systems used in business
organizations
 Electronic and mobile commerce systems
 Transaction processing systems
 Management information systems
 Decision support systems
 Specialized business information systems
9

10. Electronic and Mobile Commerce
 E-commerce: any business transaction executed electronically
between parties
 Companies (B2B)
 Companies and consumers (B2C)
 Consumers and other consumers (C2C)
 Companies and the public sector
 Consumers and the public sector
10

11. Transaction Processing Systems
 Transaction: business-related exchange
 Payments to employees
 Sales to customers
 Payments to suppliers
 Transaction processing system (TPS): organized
collection of people, procedures, software, databases, and
devices used to record completed business transactions
11

12. Additional Business Information
Systems
• Management Information Systems (MIS)
– provide routine information to managers and decision makers
• Knowledge Management Systems (KMS)
– create, store, share, and use the organization’s knowledge and
experience
• Artificial intelligence (AI)
– field in which the computer system takes on the characteristics of
human intelligence
• Decision support system (DSS)
– used to support problem-specific decision making
12

13. Hardware and Software Basics
13

14. Hardware Components
• Central processing unit (CPU)
– Arithmetic/logic unit (ALU): performs calculations and makes
logical comparisons
– Control unit: accesses, decodes and coordinates data in CPU
and other devices
• Primary memory: holds program instructions and data for
processing
• Secondary storage: more permanent storage
• Input and output devices
• Communications devices
14

15. Hardware Components (continued)
Figure 2.1: Hardware Components
15

16. Processing and Memory Devices:
Power and Speed
• System unit
– Houses the components responsible for processing (the CPU
and memory)
– All other computer system devices are linked either directly or
indirectly into the system unit housing
• Clock speed
– series of electronic pulses produced at a predetermined rate
that affects machine cycle time
– Clock speed is often measured in megahertz (MHz) for millions
or gigahertz(GHz) for billions of cycles per second
16

17. Memory and Storage Characteristics
and Functions
• Types of Memory
– Random access memory (RAM)
• Temporary
• Volatile
– Read-only memory (ROM)
• Usually nonvolatile
• Secondary storage
– Also called permanent storage
– Nonvolatile
– Greater capacity and greater economy than memory
– Measured in bytes: kilo, mega, giga, tera
– Different access methods
• Sequential access: data must be accessed in the order in which it is stored
– Sequential access storage devices (SASDs)
• Direct access: data can be retrieved in any order
– Direct access storage devices (DASDs)
17

18. Secondary Storage Devices
• Magnetic tapes
– Secondary storage used primarily for backups
• Magnetic disks
– Direct access secondary storage, e.g., hard disk
• RAID
– Stores extra bits so that data can be reconstructed if system fails
• SAN
• Provides high-speed connections between data storage devices and
computers over a network Optical disks
– Direct access optical disc, e.g., CD-ROM
• Digital video disk (DVD)
– Stores several gigabytes of data
• Flash memory
– Nonvolatile silicon computer chip
18

19. Input Devices
• Personal computer input devices
– Keyboard, mouse
• Speech-recognition technology
– Input devices that recognize human speech
• Digital cameras
– Input device used with PC to record/store images in digital form
• Terminals
– Input and display devices that perform data entry and input at the same time
• Touch-sensitive screens
– Allow display screens to act as input devices as well as output devices
• Bar-code scanners
– Employs a laser scanner to read a bar-coded label
• Magnetic ink character recognition (MICR) devices
• Code data on banking forms, such as checks Pen input devices
– Activate a command, enter handwritten notes, and draw objects
• Radio Frequency Identification (RFID)
– Employs a microchip with an antenna to broadcast its unique identifier and location to a receiver
19

20. Output Devices
• Display monitors (CRTs)
– Output quality measured by number of pixels and dot pitch
• Liquid crystal displays (LCDs)
– Easier on eyes, use less electricity, take up less space than CRTs
• Organic light-emitting diodes (OLEDs)
– Directly emits light rather than using backlight
• Sharper colors and thinner displays Printers and plotters: hard
copy output
– Printers: laser, inkjet
– Plotters: used for general design work
• Digital audio player
– Stores, organizes, and plays digital music files
20

21. Overview of Software
• Computer programs: sequences of instructions for the
computer
• Documentation: describes program functions
• Systems software: coordinates the activities of hardware
and programs
• Application software: helps users solve particular
problems
21

22. Systems Software

23. Application Software
• Give users the ability to solve problems and perform specific
tasks
• Interact with systems software; systems software then directs
the hardware to perform tasks
• Proprietary software: unique program for a specific
application, usually developed and owned by a single
company
• Off-the-shelf software: existing software program that
can be purchased
• Customized package
23

24. Personal Application Software
 Serves the needs of an individual user
 Includes personal productivity software
 Enables users to improve their personal effectiveness
24

25. Personal Application Software
(continued)
Table 2.7: Examples of Personal Productivity Software
25

26. Personal Application Software
(continued)
Table 2.7: Examples of Personal Productivity Software (continued)
26

27. Workgroup Application Software
 Workgroup application software: support teamwork,
whether people are in the same location or dispersed around
the world
 Groupware: software that helps groups of people work
together more efficiently and effectively
27

28. Enterprise Application Software
 Software that benefits an entire organization
 Enterprise resource planning (ERP) software:
programs that manage a company’s vital business operations
for an entire multisite, global organization
28

29. Enterprise Application Software
(continued)
Table 2.10: Examples of Enterprise Application Software
29

30. Information, Decision Support,
and Specialized Software
 Used in businesses of all sizes and types to increase profits or
reduce costs
 Available in every industry
 Example: analysis to increase the cure rate for cancer
30

31. Data Management

32. Data Management
 Without data and the ability to process it, an organization
could not successfully complete most business activities
 Data consists of raw facts
 For data to be transformed into useful information, it must
first be organized in a meaningful way
32

33. The Hierarchy of Data
• Bit (a binary digit): a circuit that is either on or off
• Byte: eight bits
• Character: basic building block of information
– Each byte represents a character
– Can be an uppercase letter, lowercase letter, numeric digit, or special
symbol
• Field: typically a name, number, or combination of characters
that describes an aspect of a business object or activityRecord: a
collection of related data fields
• File: a collection of related records
• Database: a collection of integrated and related files
• Hierarchy of data: bits, characters, fields, records, files, and
databases
33

34. The Hierarchy of Data
Figure 3.1: The Hierarchy of Data
34

35. Data Entities, Attributes, and Keys
• Entity: a generalized class of people, places, or things
(objects) for which data is collected, stored, and maintained
• Attribute: characteristic of an entity
• Data item: value of an attribute
• Key: field or set of fields in a record that is used to identify
the record
• Primary key: field or set of fields that uniquely identifies
the record
35

36. Data Entities, Attributes, and Keys
Figure 3.2: Keys and Attributes
36

37. The Database Approach
• Traditional approach to database management
– separate data files are created for each application
• Results in data redundancy (duplication)
• Data redundancy conflicts with data integrity
• Database approach to database management:
– pool of related data is shared by multiple applications
• Significant advantages over traditional approach
37

38. The Database Approach to Data
Management
Figure 3.3: The Database Approach to Data Management
38

39. The Database Approach Advantages
Table 3.1: Advantages of the Database Approach
39

40. The Database Approach (continued)
Table 3.1: Advantages of the Database Approach (continued)
40

41. The Database Approach Disadvantages
Table 3.2: Disadvantages of the Database Approach
41

42. Data Modeling and the Relational
Database Model
 When building a database, consider:
 Content: What data should be collected, at what cost?
 Access: What data should be provided to which users and when?
 Logical structure: How should data be arranged to make sense to
a given user?
 Physical organization: Where should data be physically located?
42

43. Data Modeling
• Building a database requires two types of designs
– Logical design
• Abstract model of how data should be structured and arranged to meet an
organization’s information needs
– Data model: a diagram of data entities and their relationships
– Entity-relationship (ER) diagrams: data models that use basic
graphical symbols to show the organization of and relationships
between data
– Physical design
• Fine-tunes the logical database design for performance and cost
considerations
43

44. ER diagram for a Customer Order
Database
44

45. ER diagram Showing the Relationship
between the Manager, Department
and Project
45

46. Implementing the Relational Database
Model
 data elements are placed in two-dimensional tables
(relations), which are the logical equivalent of files
 Each row of a table represents a data entity
 Columns of the table represent attributes
 The domain of the database model consists of all of the
allowable values for data attributes i
46

47. The Relational Database Model
Figure 3.5: A Relational Database Model
47

48. Manipulating Databases
 Selecting: eliminates rows according to criteria
 Projecting: eliminates columns in a table
 Joining: combines two or more tables
 Linking: relates or links two or more tables using common
data attributes
48

49. Manipulating Data (continued)
Figure 3.7: Linking Data Tables to Answer an Inquiry
49

50. Database Management Systems
(DBMS)
• Interface between:
– Database and application programs
– Database and the user
• Creating and implementing the right database system ensures
that the database will support both business activities and goals
• DBMS: a group of programs used as an interface between a
database and application programs or a database and the user
50

51. Overview of Database Types
• Flat file
– Simple database program whose records have no relationship to
one another
• Single user
– Only one person can use the database at a time
– Examples: Access, FileMaker, and InfoPath
• Multiple user
– Allows dozens or hundreds of people to access the same
database system at the same time
– Examples: Oracle, Sybase, and IBM
51

52. Distributed Databases
 Distributed database
 Data may be spread across several smaller databases connected
via telecommunications devices
 Corporations get more flexibility in how databases are
organized and used
 Replicated database
 Holds a duplicate set of frequently used data
52

53. Telecommunications

54. Basic Concepts of Telecommunications
• Telecommunications: electronic transmission of signals for
communications
• Computer network: communications media, devices, and
software needed to connect two or more computer systems
or devices
• Network types: personal area network (PAN), local area
network (LAN), metropolitan area network (MAN), wide
area network (WAN), and international networks
54

55. The Internet
 Internet: collection of interconnected networks, all freely
exchanging information
 Internet Protocol (IP): communication standard that enables
traffic to be routed from one network to another as needed
 Uniform Resource Locator (URL): an assigned address on
the Internet for each computer
55

56. Business Networks
 Intranet: internal corporate network built using Internet and
World Wide Web standards and protocols
 Extranet: network based on Web technologies that links
selected resources of a company’s intranet with its
customers, suppliers, or other business partners
56

57. Systems Development

58. An Overview of Systems Development
 Managers and employees in all functional areas work
together in a business information system
 Users help and often lead the way with development process
 Participants in systems development:
 Determine when a project fails
 Are critical to systems development success
58

59. Participants in Systems Development
• Development team consists of the following:
– Project managers: coordinate system development effort
– Stakeholders: directly or indirectly benefit from the project
– Users: interact with the system regularly
– Systems analysts: analyze and design business systems
– Programmers: modify or develop programs to satisfy user
requirements
– Various support personnel: specialists, vendors
59

60. Information Systems Planning and
Aligning Corporate and IS Goals
 Information systems planning: translating strategic and
organizational goals into systems development initiatives
 Aligning organizational goals and IS goals is critical for any
successful systems development effort
 Determining whether organizational and IS goals are aligned
can be difficult
60

61. Information Systems Planning and
Aligning Corporate and IS Goals
(continued)
Figure 8.2: Information Systems Planning
61

62. Systems Development Life Cycles
• The systems development process is also called a systems
development life cycle (SDLC)
• Common SDLCs
– Prototyping
– Rapid application development (RAD) Systems
• development approach that employs tools, techniques, and
methodologies designed to speed application development
– End-user development any systems
• development project in which the primary effort is undertaken by a
combination of business managers and users
62

63. Systems Development Activities
• Systems investigation:
– problems and opportunities are identified and considered in light of the goals of
the business
• Systems analysis:
– study of existing systems and work processes to identify strengths, weaknesses,
and opportunities for improvement
• Systems design:
– defines how the information system will do what it must do to obtain the
problem solution
• Systems implementation:
– creation or acquisition of various system components detailed in the systems
design, assembling them, and placing the new or modified system into operation
• Systems maintenance and review:
– ensures that the system operates as intended and modifies the system so that it
continues to meet changing business needs
63