Information Systems Chapter 1

Study Notes

An information system (IS) is a set of interrelated elements that collect, manipulate, store, disseminate data and information, and provide feedback to meet an objective.
IS includes input, processing, output, and feedback components.

Information systems can be manual or computerized.
Manual systems: use manual methods to collect, process, and store data, such as investment analysts manually drawing charts and trend lines.
Computerized systems: use computers and software to collect, process, and store data, such as systems that follow stock indexes and markets to suggest when to buy or sell stocks.

A computer-based information system (CBIS) consists of a single set of hardware, software, databases, telecommunications, people, and procedures.
CBIS is configured to collect, manipulate, store, and process data into information.

Hardware: includes computer equipment used for input, processing, and output activities.
Software: includes computer programs that govern the operation of the computer.
Database: an organized collection of facts and information, typically consisting of two or more related data files.
Telecommunications and networks: enables electronic communication between computers and equipment.
People: the most important element in most computer-based information systems.
Procedures: include strategies, policies, methods, and rules for using the CBIS.

Common types of business information systems:
- Electronic and mobile commerce
- Transaction processing systems
- Management information systems
- Decision support systems
Special-purpose systems: used by some organizations, such as virtual reality systems.

E-commerce: any business transaction executed electronically between companies, consumers, and the public sector.
Mobile commerce (m-commerce): the use of mobile, wireless devices to place orders and conduct business.
Electronic business (e-business): uses information systems and the Internet to perform all business-related tasks and functions.

Transaction: any business-related exchange, such as payments to employees and sales to customers.
Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.
Enterprise resource planning: a set of integrated programs that manage vital business operations for an entire organization.

Management information system (MIS): provides routine information to managers and decision makers.
Decision support system (DSS): supports problem-specific decision making, used when information needed to determine action is difficult to obtain.

Knowledge management systems (KMSs): create, store, share, and use the organization's knowledge and experience.
Artificial intelligence (AI): gives computers the ability to think and act like humans.
Expert systems: provide the ability to make suggestions and function like an expert in a particular field.
Virtual reality: simulates a real or imagined environment that can be experienced visually in three dimensions.

Systems development: the activity of creating or modifying existing business systems.
Outsourcing: allows a company to focus on its core business and delegate other functions to companies with expertise in systems development.

Systems investigation: gains a clear understanding of the problem to be solved or opportunity to be addressed.
Systems analysis: defines the problems and opportunities of the existing system.

Systems design: determines how the new system will work to meet business needs.
Systems implementation: acquires and assembles system components, and puts the new system into operation.
Systems maintenance and review: checks and modifies the system to ensure it continues to meet changing business needs.

Information systems have been developed to meet the needs of all types of organizations and people.
Information systems have the potential to improve the way organizations conduct business.

Drawbacks of information systems:
- Personal data can be lost or stolen.
- Raises work concerns, including job loss through increased efficiency.
To protect against threats:
- Install security and control measures.
- Use of information systems raises ethical issues.

Computer literacy: knowledge of computer systems and equipment, and how they function.
Information systems literacy: knowledge of how data and information are used by individuals, groups, and organizations.