An Introduction to Information Systems

Chapter 1

Principles of Information Systems, Sixth Edition

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 of Information Systems, Sixth Edition

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 of Information Systems, Sixth Edition

Principles and Learning Objectives

Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.
Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.

Principles of Information Systems, Sixth Edition

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.

Principles of Information Systems, Sixth Edition

Information Concepts

Principles of Information Systems, Sixth Edition

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

Principles of Information Systems, Sixth Edition

Data vs. Information

Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves

Principles of Information Systems, Sixth Edition

Types of Data

Principles of Information Systems, Sixth Edition

Data vs. Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

System and Modeling Concepts

Principles of Information Systems, Sixth Edition

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

Principles of Information Systems, Sixth Edition

Components of a System

Principles of Information Systems, Sixth Edition

System and Modeling Concepts

Principles of Information Systems, Sixth Edition

System Performance and Standards

Efficiency: output/input Effectiveness: extent to which system attains its goals Performance standard: specific objective of a system

Principles of Information Systems, Sixth Edition

System Variables and Parameters

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

Principles of Information Systems, Sixth Edition

Systems Classification

Principles of Information Systems, Sixth Edition

System Performance and Standards

Principles of Information Systems, Sixth Edition

Modeling a System

Principles of Information Systems, Sixth Edition

Modeling a System
A model is an abstraction 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

Principles of Information Systems, Sixth Edition

What Is An Information System?

Principles of Information Systems, Sixth Edition

Components of an Information System

Principles of Information Systems, Sixth Edition

Computer-Based Information Systems (CBIS)

Principles of Information Systems, Sixth Edition

Components of a CBIS

Principles of Information Systems, Sixth Edition

Telecommunications, Networks, and the Internet

Principles of Information Systems, Sixth Edition

Telecommunications, Networks, and the Internet

Principles of Information Systems, Sixth Edition

Business Information Systems

Principles of Information Systems, Sixth Edition

Business Information Systems

Electronic Commerce Transaction Processing Systems Management Information Systems Decision Support Systems

Principles of Information Systems, Sixth Edition

E-Commerce
Business-to-business Business-to-consumer Business-to-government Government-to-consumer

Principles of Information Systems, Sixth Edition

Electronic Commerce

Principles of Information Systems, Sixth Edition

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
Principles of Information Systems, Sixth Edition

Payroll Transaction Processing System

Principles of Information Systems, Sixth Edition

Enterprise Resource Planning (ERP)

Integrated programs that can manage a companys entire set of business operations

Often coordinate planning, inventory control, production, and ordering

Principles of Information Systems, Sixth Edition

Management Information Systems (MIS)

Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas

Principles of Information Systems, Sixth Edition

Management Information Systems (MIS)

Principles of Information Systems, Sixth Edition

MIS Outputs
Scheduled reports Demand reports Exception reports

Principles of Information Systems, Sixth Edition

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

Principles of Information Systems, Sixth Edition

Essential DSS Elements

Principles of Information Systems, Sixth Edition

Special-Purpose Business Information Systems

Artificial Intelligence (AI) Systems Virtual Reality Systems Expert Systems Other Special-Purpose Business Information Systems

Principles of Information Systems, Sixth Edition

The Major Elements of Artificial Intelligence

Principles of Information Systems, Sixth Edition

Virtual Reality

Principles of Information Systems, Sixth Edition

Data Glove

Principles of Information Systems, Sixth Edition

Systems Development

Principles of Information Systems, Sixth Edition

Why Learn About Information Systems?

Advance in your career Solve problems Realize opportunities Meet your career goals

Principles of Information Systems, Sixth Edition

Computer and Information System Literacy

Computer literacy - knowledge of computer systems and equipment

Information system literacy - knowledge of how data and information are used

Principles of Information Systems, Sixth Edition

Information Systems in Functional Areas of Business

Finance and Accounting Sales and Marketing Manufacturing

Principles of Information Systems, Sixth Edition

Information Systems in Industry

Investment firms Banks Publishing companies Healthcare organizations Management consulting firms

Principles of Information Systems, Sixth Edition

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

Principles of Information Systems, Sixth Edition