An Introduction to Information Systems

Principles and Learning Objectives

The value of information is directly linked to how it helps decision makers achieve the organizations 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.

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.

Information Systems Management (ISM) is the application of information technology to support the major functions and activities of either a private sector business or public sector institution.

ISM supports the process of collection, manipulation, storage, distribution and utilization of an organization's information resources.

Information Concepts

System
A set of elements or components that interact to accomplish goals
Input Processing mechanism Feedback Output System boundary

Components of a System

What Is An Information System?

What Is an Information System?

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

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

Components of an Information System

Data vs. Information

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

Modeling a System
A model is an abstraction/approximation 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

Modeling 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

System Performance and Standards

System Variables and Parameters

System variable - item controlled by decisionmaker System parameter - value that cannot be controlled

Systems Classification

Computer-Based Information Systems (CBIS)

Components of a CBIS

Business Information Systems

Business Information Systems

Transaction Processing Systems (TPS) Enterprise Resource Planning System (ERPS) Customer Relationship Management Systems (CRMS) Electronic Commerce (E-Commerce) Management Information Systems (MIS) Decision Support Systems (DSS) Group Support Systems (GSS) / Group Decision Support Systems (GDSS) Executive Support Systems (ESS) / Executive Information Systems (EIS) Virtual Reality Systems (VRS) Expert Systems (ES) / Artificial Intelligence (AI)

E-Commerce

Business-to-business (B to B) Business-to-consumer (B to C) Business-to-government (B to G) Government-to-consumer (G to C) Consumer-to-Government (C to G) Consumer-to-Consumer (C to C)

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

Workflow Systems
Provide routing, tracking & imaging capabilities to improve business processes Improve productivity

Payroll Transaction Processing System

Enterprise Resource Planning (ERP)

Integrated programs that can manage a companys entire set of business operations Often coordinate planning, inventory control, production, and ordering

Management Information Systems (MIS)

Management information systems provide routine information to decision makers to make structured, recurring decisions, such as restocking decisions or bonus awards. Management Information Systems focus on operational efficiency.
The main input to an MIS is data collected and stored by transaction processing systems.

Management Information Systems (MIS)

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 Key Indicator reports Drill-down 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

Essential DSS Elements

Special-Purpose Business Information Systems

Artificial Intelligence (AI) Systems Virtual Reality Systems Expert Systems Other Special-Purpose Business Information Systems e.g. GIS (Geographic Information Systems

The Major Elements of Artificial Intelligence

Virtual Reality

Systems Development

Why Learn About Information Systems?

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

Information Systems in Functional Areas of Business

Finance and Accounting Sales and Marketing Manufacturing

Information Systems in Industry

Investment firms Banks Publishing companies Healthcare organizations Management consulting firms

Management Challenges
1. 2.

Design competitive and effective systems. Understand system requirements of global business environment. Create information architecture that supports organizations goal.

3.

Management Challenges
4.

Determine business value of information systems. Design systems people can control, understand and use in a socially, ethically responsible manner.

5.

Four powerful worldwide changes that have altered the business environment:

1. 2. 3. 4.

Globalization Rise of the Information Economy Transformation of the Business Enterprise Emergence of the Digital Firm

Positive Impacts of Information Systems

Faster calculations and paperwork Analysis of customer purchase patterns and preferences More efficient business services Medical advances Instant global distribution of information

Negative Impacts of Information Systems

Automation leading to job elimination Privacy concerns System outages and shutdowns Health problems, repetitive stress injury Illegal distribution of intellectual property

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