Fundamentals of Information Systems Chapter 1

Introduction to Information Systems

• An information system (IS) is a set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective.
• Businesses can use information systems to increase revenues and reduce costs.

Information Concepts

• Information is one of an organization's most valuable resources and is often confused with the term data.
• Data refers to raw facts, while information is a collection of facts organized in a way that gives them value beyond the facts themselves.
• Knowledge is the awareness and understanding of a set of information.

Data, Information, and Knowledge

• Data refers to raw facts.
• Information is a collection of facts organized in a way that gives them value beyond the facts themselves.
• Knowledge is the awareness and understanding of a set of information.

Characteristics of Valuable Information

• If an organization's information is not accurate or complete, people can make poor decisions, costing thousands or even millions of dollars.
• Depending on the type of data needed, some characteristics become more important than others.

What is an Information System?

• An information system is a set of interrelated elements that collect (input), manipulate (process), store, disseminate (output) data and information, and provide a corrective reaction (feedback mechanism) to meet an objective.
• An information system can be manual or computerized.

Input, Processing, Output, Feedback

• Input refers to the activity of gathering and capturing raw data.
• Processing converts data into useful outputs.
• Output is the production of useful information, usually in the form of documents and reports.
• Feedback is information from the system that is used to make changes to input or processing activities.

Manual and Computerized Information Systems

• A manual information system is one where data is collected, stored, and processed manually.
• A computerized information system uses computers and technology to collect, store, and process data.

Computer-Based Information Systems

• A computer-based information system is a single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information.
• The technology infrastructure includes all hardware, software, databases, telecommunications, people, and procedures.

Components of Computer-Based Information Systems

• Hardware consists of computer equipment used to perform input, processing, and output activities.
• Software consists of the computer programs that govern the operation of the computer.
• Database is an organized collection of facts and information, typically consisting of two or more related data files.
• Telecommunications refer to the electronic transmission of signals for communication.
• Networks connect computers and equipment to enable electronic communication.
• People are the most important element in most computer-based information systems.
• Procedures include strategies, policies, methods, and rules for using the computer-based information system.

Business Information Systems

• Common types of information systems include those designed for electronic and mobile commerce, transaction processing, management information, and decision support.
• Some organizations employ special-purpose systems, such as virtual reality, that not every organization uses.

Organizations and Information Systems

• An organization is a formal collection of people and other resources established to accomplish a set of goals.
• A value chain is a series of activities that includes inbound logistics and warehouse and storage.
• Supply chain management determines what supplies are required for the value chain.

Risk

• Managers must consider the risks of designing, developing, and implementing systems.
• Information systems can sometimes be costly failures.

Careers in Information Systems

• Degree programs in information systems, computer information systems, and management information systems can lead to various careers.
• Primary responsibilities in information systems include operations, systems development, support, and information service units.

Typical IS Titles and Functions

• Chief information officer (CIO) employs the IS department's equipment and personnel to help the organization attain its goals.
• LAN administrators set up and manage the network hardware, software, and security processes.
• Internet careers include strategists, developers, programmers, and operators.

Other IS Careers

• New and exciting careers have developed in security and fraud detection and prevention.
• Other IS career opportunities include being employed by technology companies.

Working in Teams

• IS professionals should have good communication skills and the ability to work with other people.
• Getting the best team of IS personnel to work on important projects is critical in successfully developing new information systems or modifying existing ones.

Finding a Job in IS

• Developing an online résumé can be critical to finding a good job.
• Job search approaches include on-campus visits, referrals from professors, friends, and family members, and the Internet.

Global Challenges in Information Systems

• Cultural, language, time and distance, infrastructure, currency, product and service, technology transfer, and legal challenges must be considered when working in a global environment.

Why Learn About Database Systems

• Databases are essential for organizations to successfully complete most business activities.
• Without data and the ability to process it, an organization cannot function effectively.

Database Fundamentals

• A database is an organized collection of data.
• A database management system (DBMS) is a group of programs that manipulate the database and provide an interface between the database and its users and other application programs.
• A database administrator (DBA) is a skilled IS professional who directs all activities related to an organization's database.

Hierarchy of Data

• Bit: a binary digit that can have a value of 0 or 1.
• Byte: typically made up of eight bits.
• Character: the basic building block of information.
• Field: a name, number, or combination of characters that describes an aspect of a business object or activity.
• Record: a collection of related data fields.
• File: a collection of related records.
• Database: a collection of integrated and related files.

Data Entities, Attributes, and Keys

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

The Database Approach

• The traditional approach to data management uses separate data files for each operational system.
• The database approach shares a pool of related data across multiple application programs.

Data Modeling and Database Characteristics

• When building a database, an organization must consider:
  • Content: what data should be collected and 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?

Data Center

• A data center is a climate-controlled building or set of buildings that houses database servers and systems that deliver mission-critical information and services.

Data Modeling

• Building a database requires two types of designs:
  • Logical design: an abstract model of how data should be structured and arranged to meet an organization's information needs.
  • Physical design: starts from the logical database design and fine-tunes it for performance and cost considerations.
• Planned data redundancy is done to improve system performance so that user reports or queries can be created more quickly.

Relational Database Model

• The relational model describes data using a standard tabular format.
• Each row of a table represents a data entity (record).
• Columns of the table represent attributes (fields).
• Domain: allowable values for data attributes.
• Manipulating data involves:
  • Selecting: eliminating rows according to certain criteria.
  • Projecting: eliminating columns in a table.
  • Joining: combining two or more tables.
  • Linking: manipulating data to create new information.