Information Systems Chapter 1

Importance of Information Systems

• The value of information is directly linked to how it helps decision makers achieve the organization's goals.
• Studying and understanding information systems is crucial for organizations to improve their business conduct.

Data vs. Information

• Data and information are distinct concepts.
• Characteristics used to evaluate the value of data include:
  • Relevance
  • Accuracy
  • Completeness
  • Timeliness

Components of an Information System

• An information system consists of several components.
• System characteristics include:
  • Hardware
  • Software
  • Data
  • Procedures
  • People

Computer-Based Information System

• A computer-based information system is comprised of:
  • Hardware
  • Software
  • Data
  • Networks
  • People

Types of Business Information Systems

• Basic types of business information systems include:
  • Transaction processing systems
  • Management information systems
  • Decision support systems
  • Executive information systems

System Development Process

• The major steps of the system development process include:
  • Planning
  • Analysis
  • Design
  • Implementation
  • Maintenance
• The goal of each step is to develop a successful information system.

Information Systems and Security

• Information systems and the Internet pose threats to security and privacy.
• Some of these threats include:
  • Hacking
  • Data breaches
  • Cyber attacks
  • Identity theft

Benefits of Information Systems

• Information systems have an expanding role in business and industry, offering enormous benefits.
• These benefits include:
  • Improved efficiency
  • Enhanced decision-making
  • Increased productivity
  • Better customer service### Information Systems
• An Information System (IS) is a set of interrelated elements that collect, manipulate, store, and disseminate data and information to meet an objective.
• Components of an IS:
  • Input
  • Processing
  • Output
  • Feedback

Computer-Based Information Systems (CBIS)

• A single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information.
• Technology infrastructure:
  • Hardware
  • Software
  • Databases
  • Telecommunications
  • People
  • Procedures

Components of CBIS

• Hardware:
  • Computer equipment used to perform input, processing, storage, and output activities.
• Software:
  • Computer programs that govern the operation of the computer.
• Database:
  • Organized collection of facts and information, typically consisting of two or more related data files.
• Telecommunications:
  • The electronic transmission of signals for communications.
• Networks:
  • Connect computers and equipment to enable electronic communication.
• Internet:
  • The world's largest computer network, consisting of thousands of interconnected networks, all freely exchanging information.

Business Information Systems

• Most common types of information systems:
  • Designed for electronic and mobile commerce, transaction processing, management information, and decision support.
  • Special-purpose systems, such as virtual reality, used by some organizations.

Electronic and Mobile Commerce

• E-commerce:
  • Any business transaction executed electronically between companies (business-to-business, B2B), companies and consumers (business-to-consumer, B2C), and consumers and other consumers (consumer-to-consumer, C2C).
• Mobile commerce (m-commerce):
  • The use of mobile, wireless devices to place orders and conduct business.
• E-procurement:
  • The use of information systems and the Internet to acquire parts and supplies.

Enterprise Systems

• Transaction processing systems (TPS):
  • Organized collection of people, procedures, software, databases, and devices used to perform and record completed business transactions.
• Enterprise resource planning (ERP):
  • Set of integrated programs that manages the vital business operations for an entire multisite, global organization.

Information and Decision Support Systems

• Management Information System (MIS):
  • Organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers.
• Decision Support System (DSS):
  • Organized collection of people, procedures, software, databases, and devices that supports problem-specific decision making.

Specialized Business Information Systems

• Knowledge Management Systems (KMSs):
  • Organized collection of people, procedures, software, databases, and devices that creates, stores, shares, and uses the organization's knowledge and experience.
• Artificial Intelligence (AI):
  • Computer system that takes on characteristics of human intelligence, such as robotics, vision systems, natural language processing, and learning systems.

Systems Development

• Systems development:
  • The activity of creating or modifying existing business systems.
• Outsourcing:
  • Allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development.

Systems Investigation and Analysis

• Systems investigation:
  • Gain 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, Implementation, and Maintenance

• Systems design:
  • Determines how the new system will work to meet business needs defined during systems analysis.
• Systems implementation:
  • Creates or acquires various system components defined in system design, assembles them, and puts the new system into operation.
• Systems maintenance and review:
  • Checks and modifies the system so that it continues to meet changing business needs.

Information Systems in Society, Business, and Industry

• Information systems:
  • Developed to meet the needs of all types of organizations and people.
  • Raise concerns about security, privacy, and ethics.

Security, Privacy, and Ethical Issues

• Security:
  • Concerns about unauthorized access to or destruction of data and information.
• Privacy:
  • Concerns about the collection, use, and dissemination of personal information.
• Ethical issues:
  • Concerns about what is generally considered right or wrong.

Computer and Information Systems Literacy

• Computer literacy:
  • Knowledge of hardware, software, databases, and telecommunications, and the ways they function.
• Information systems literacy:
  • Knowledge of how data and information are used by individuals, groups, and organizations, and the ways they are applied.

Information Systems in the Functional Areas of Business

• Functional areas and operating divisions of business:
  • Finance and accounting
  • Sales and marketing
  • Manufacturing
  • Human resource management
  • Legal information systems

Information Systems in Industry

• Industries:
  • Airline and transportation
  • Investment firms and banks
  • Publishing companies
  • Healthcare maintenance organizations (HMOs)
  • Retail companies
  • Power management and utility companies
  • Professional services and management consulting firms