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An information system is a collection of unconnected components.
An information system is a collection of unconnected components.
False
Data represents raw facts.
Data represents raw facts.
True
Knowledge is the manipulation of data in a computer system.
Knowledge is the manipulation of data in a computer system.
False
Feedback from information systems can help businesses achieve their goals.
Feedback from information systems can help businesses achieve their goals.
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Information is the most valuable resource for an organization.
Information is the most valuable resource for an organization.
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Efficiency is the measure of how well a system meets its goals.
Efficiency is the measure of how well a system meets its goals.
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Inputs, processing mechanisms, and outputs are components of a system.
Inputs, processing mechanisms, and outputs are components of a system.
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Inaccurate information can lead to poor decision-making in businesses.
Inaccurate information can lead to poor decision-making in businesses.
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Effectiveness and efficiency are the same concepts in system performance.
Effectiveness and efficiency are the same concepts in system performance.
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An information system does not require feedback to function.
An information system does not require feedback to function.
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An Information System (IS) collects, manipulates, stores, and disseminates data and information.
An Information System (IS) collects, manipulates, stores, and disseminates data and information.
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Artificial Intelligence (AI) does not have the capability to learn from past mistakes.
Artificial Intelligence (AI) does not have the capability to learn from past mistakes.
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Transaction processing systems are used to manage the organization's website.
Transaction processing systems are used to manage the organization's website.
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E-commerce includes any business transaction executed electronically.
E-commerce includes any business transaction executed electronically.
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Knowledge Management Systems (KMSs) create, store, share, and utilize the organization’s knowledge.
Knowledge Management Systems (KMSs) create, store, share, and utilize the organization’s knowledge.
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Feedback mechanisms are not an essential part of Information Systems.
Feedback mechanisms are not an essential part of Information Systems.
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Mobile commerce (m-commerce) refers to the use of fixed-line telephone to conduct business.
Mobile commerce (m-commerce) refers to the use of fixed-line telephone to conduct business.
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Computer-Based Information Systems (CBIS) consist of hardware, software, and procedures.
Computer-Based Information Systems (CBIS) consist of hardware, software, and procedures.
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The Internet is the world’s largest computer network consisting of interconnected networks.
The Internet is the world’s largest computer network consisting of interconnected networks.
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Systems development only focuses on modifying existing business systems.
Systems development only focuses on modifying existing business systems.
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An expert system gives computers the ability to make suggestions like an expert in a particular field.
An expert system gives computers the ability to make suggestions like an expert in a particular field.
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E-procurement is the use of information systems to create visual simulations of environments.
E-procurement is the use of information systems to create visual simulations of environments.
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Transaction processing systems manage and record completed business transactions.
Transaction processing systems manage and record completed business transactions.
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Artificial intelligence does not include any processes that allow machines to learn from past data.
Artificial intelligence does not include any processes that allow machines to learn from past data.
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Information systems can help organizations speed up their workflows but may also introduce security risks.
Information systems can help organizations speed up their workflows but may also introduce security risks.
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Mobile commerce allows businesses to conduct transactions without any physical presence.
Mobile commerce allows businesses to conduct transactions without any physical presence.
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Knowledge management systems are organized collections used to create, store, share, and utilize knowledge.
Knowledge management systems are organized collections used to create, store, share, and utilize knowledge.
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The Intranet is a public network that allows everyone to access company resources.
The Intranet is a public network that allows everyone to access company resources.
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The feedback mechanism in an information system is optional.
The feedback mechanism in an information system is optional.
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Enterprise Resource Planning (ERP) systems integrate programs to manage business operations across multiple sites.
Enterprise Resource Planning (ERP) systems integrate programs to manage business operations across multiple sites.
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An information system consists of components that do not interact with each other.
An information system consists of components that do not interact with each other.
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Data and information are often considered the same in organizational contexts.
Data and information are often considered the same in organizational contexts.
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Knowledge is the awareness and understanding of how to use data effectively.
Knowledge is the awareness and understanding of how to use data effectively.
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Efficiency in a system is assessed by the output produced relative to the input consumed.
Efficiency in a system is assessed by the output produced relative to the input consumed.
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Feedback is an unnecessary component of an information system.
Feedback is an unnecessary component of an information system.
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Effective information systems do not rely on accurate and complete data.
Effective information systems do not rely on accurate and complete data.
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The goal of an organization is not influenced by the feedback of its information systems.
The goal of an organization is not influenced by the feedback of its information systems.
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Inputs, processing, and outputs are the core components of a system.
Inputs, processing, and outputs are the core components of a system.
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An organization’s inefficient use of information can lead to significant financial losses.
An organization’s inefficient use of information can lead to significant financial losses.
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A system's effectiveness refers to the production results rather than the system goals.
A system's effectiveness refers to the production results rather than the system goals.
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Study Notes
Information Systems
- An Information System (IS) is a collection of components that gather, process, and disseminate data and information.
- ISs provide feedback for organizations to reach their goals, increase revenue, and cut costs.
Data, Information, and Knowledge
- Data: Raw facts without context or meaning.
- Information: Organized collection of facts, providing value beyond the individual facts themselves.
- Process: A set of logically connected tasks performed to achieve a specific result.
- Knowledge: Understanding and awareness of information and its utility in supporting a task.
Characteristics of Valuable Information
- Inaccurate or incomplete information can lead to poor decisions, resulting in significant financial losses.
- The importance of different information characteristics varies depending on the type of data needed.
- Accurate: Data should be correct and free from errors.
- Complete: Information should contain all relevant facts needed for a decision.
- Relevant: Information must be useful to the decision-making process.
- Timely: Information must be available when needed.
- Economical: The cost of gathering and distributing information should be reasonable.
System Concepts
- System: Interacting elements or components working together to achieve objectives.
- Inputs: Resources that are used to generate outputs.
- Processing Mechanisms: Transform inputs into outputs.
- Outputs: Results of the system's processing activities.
- Feedback: Information used to evaluate system performance and adjust operations.
System Performance and Standards
- Efficiency: Ratio of outputs to inputs. Measures how effectively resources are utilized.
- Effectiveness: How well a system achieves its goals. Measures if the system is fulfilling its purpose.
- System Performance Standard: Specific objective of the system; for example, a goal to process customer orders within 24 hours.
Information Systems Defined
- An information system (IS) is a collection of interconnected elements that gather, manipulate, store, disseminate data and information, and provide feedback to achieve a specific objective.
Core Components of an Information System
- Input: Gathering raw data
- Processing: Transforming data into useful outputs
- Output: Producing information, often in the form of documents or reports
- Feedback: Using information from the system to adjust input or processing activities
Computer-Based Information Systems (CBIS)
- A single, integrated set of hardware, software, databases, telecommunications, people, and procedures designed for data collection, manipulation, storage, and processing into information.
- Increasingly incorporated into products and services (e.g., vehicle diagnostic systems).
Technology Infrastructure
- The foundation of every CBIS, including hardware, software, databases, telecommunications, people, and procedures.
Key CBIS Components
- Hardware: Computer equipment for input, processing, storage, and output.
- Software: Programs that control the operation of the computer.
- Database: An organized collection of facts and information, typically comprising multiple related data files.
- Telecommunications: Electronic transmission of signals for communication.
- Networks: Interconnected computers and equipment enabling electronic communication.
- Internet: The world's largest computer network, consisting of thousands of interconnected networks freely exchanging information.
- Web: A network of links on the internet to documents containing text, graphics, video, and sound.
- Intranet: An internal network for exchanging information and collaboration within an organization.
- Extranet: A network based on web technologies allowing authorized outsiders (e.g., business partners, customers) to access specific resources of a company's intranet.
- People: The most crucial element in most CBIS.
- Procedures: Strategies, policies, methods, and rules for using the CBIS.
Business Information Systems
- Focus on electronic and mobile commerce, transaction processing, management information, and decision support.
- Some organizations may use specialized systems like virtual reality.
Electronic and Mobile Commerce
-
E-commerce: Any business transaction executed electronically, including:
- Business-to-business (B2B)
- Business-to-consumer (B2C)
- Consumer-to-consumer (C2C)
- Business and public sector
- Consumers and public sector
- Mobile commerce (m-commerce): Conducting business using mobile, wireless devices.
- E-procurement: Acquiring parts and supplies using information systems and the internet.
- Electronic business (e-business): Utilizing information systems and the internet to perform all business-related tasks and functions.
Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning
- Transaction: Any business-related exchange (e.g., employee payments, customer sales).
- Transaction processing system (TPS): A structured collection of people, procedures, software, databases, and devices used to perform and record completed business transactions.
- Enterprise resource planning (ERP): A set of integrated programs to manage vital business operations for multi-site, global organizations. Typically providing integrated software for manufacturing and finance.
Information and Decision Support Systems
- Management Information System (MIS): A collection of people, procedures, software, databases, and devices providing routine information to managers and decision-makers. Focuses on operational efficiency and generates standard reports from TPS or ERP data.
- Decision support system (DSS): A collection of people, procedures, software, databases, and devices supporting problem-specific decision-making. Emphasizes effective decisions and is used when problems are complex, and required information is difficult to obtain..
Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality
- Knowledge management systems (KMSs): A collection of people, procedures, software, databases, and devices to create, store, share, and use an organization's knowledge and experience.
-
Artificial intelligence (AI): A computer system exhibiting characteristics of human intelligence.
- Robotics: Machines taking over complex, dangerous, repetitive or boring tasks.
- Vision systems: Allowing devices to see, store and process images.
- Natural language processing: Computers understanding and acting on verbal or written commands.
- Learning systems: Enabling computers to learn from past mistakes or experiences.
- Neural networks: Allowing computers to recognize and act on patterns or trends.
- Expert systems: Giving computers the ability to make suggestions and function like experts in a particular field. Contains a knowledge base of data, rules, procedures, and relationships.
- Virtual reality: A simulation of real or imagined environments experienced visually in three dimensions.
Systems Development
- The process of creating or adapting existing business systems.
- Increased demand for mobile applications.
- Outsourcing: Delegating systems development functions to companies with specialized expertise, allowing businesses to concentrate on their core strengths.
Systems Development Phases
- Systems investigation: Analyzing the problem to be solved or opportunity to be addressed.
- Systems analysis: Defining the problems and opportunities of the existing system.
- Systems design: Determining how the new system will operate to fulfill business needs defined during the analysis phase.
- Systems implementation: Creating or acquiring system components, assembling them, and launching the new system.
- Systems maintenance and review: Regularly checking and modifying the system to adapt to changing business demands.
Information Systems in Society, Business, and Industry
- Information systems are developed to address the needs of various organizations and individuals.
- The widespread use of information systems introduces security threats from unethical individuals.
Security, Privacy, and Ethical Issues in Information Systems and the Internet
- Computer- related mistakes and waste are significant concerns.
- Ethical considerations focus on what is generally considered right or wrong.
- Individual privacy is a critical social issue, as personal information can be accidentally disclosed, lost, or stolen.
- Many internet sites collect personal and financial information.
- Social networks can pose challenges in the workplace.
- To protect privacy and data, implement security and control measures.
- Numerous laws have been enacted to protect individuals from privacy invasion.
- Information systems raise work-related concerns, such as job loss due to increased efficiency and potential health issues.
Computer and Information Systems Literacy
- Computer literacy: Knowledge of hardware, software, databases, and telecommunications, and their functionality.
- Information systems literacy: Understanding how data and information are used by individuals, groups, and organizations. Encompasses the application and rationale behind this technology.
Information Systems in the Functional Areas of Business
- Functional areas and operating divisions of a business:
- Finance and accounting
- Sales and marketing
- Manufacturing
- Human resource management
- Legal information systems
Information Systems in Industry
- Industries using information systems:
- Airline and transportation industry
- Investment firms and banks
- Publishing companies
- Healthcare maintenance organizations (HMOs)
- Retail companies
- Power management and utility companies
- Professional services and management consulting firms
Global Challenges in Information Systems
- Cultural and language challenges: Differences in communication styles and language can affect information systems implementation.
- Time and distance challenges: Working across time zones and geographic distances can impact collaboration and project management.
- Infrastructure challenges: Varied levels of technology infrastructure and internet connectivity can pose hurdles.
- Currency challenges: Fluctuating currency exchange rates can affect costs and pricing.
- Product and service challenges: Global markets require adaptation of products and services to different cultural and regulatory contexts.
- Technology transfer issues: Sharing knowledge and technology across borders can be complex due to intellectual property rights and cultural sensitivities.
- State, regional, and national laws: Different legal frameworks can impact data privacy, security, and usage.
- Trade agreements: International agreements can affect how information systems are used and shared.
Introduction to Information Systems
- Information System (IS) is a set of interconnected components that gather, manipulate, and distribute data and information, giving feedback to meet an objective.
- IS feedback helps companies reach their goals, boost revenue, and lower costs.
Information
- Information is one of a company's most valuable resources.
- Often confused with data.
Data, Information, and Knowledge
- Data: Raw facts.
- Information: A collection of facts organized in a way that gives value beyond the facts themselves.
- Process: A set of logically connected tasks completed to reach a specific outcome.
- Knowledge: Awareness and understanding of a set of information and its applications to support a task.
- Data, information, and knowledge are related and build upon each other. Data and knowledge are used to gain insights from information, while data is organized to create information, and information supports knowledge.
Characteristics of Valuable information
- Inaccurate or incomplete information can lead to poor decisions, costing companies significant money.
- The importance of different information characteristics will vary depending on the type of data needed.
System Concepts
- System: A collection of components or elements working together to reach goals.
-
System Components Include:
- Inputs: Resources used by the system.
- Processing Mechanisms: Transform inputs into outputs.
- Outputs: Results produced by the system.
- Feedback: Provides information to adjust the system.
System Performance and Standards
- Efficiency: What is produced divided by what is consumed.
- Effectiveness: How well a system reaches its goals.
- System Performance Standard: Specific objectives of a system, like reducing cost or improving quality.
What is an information system?
- An IS is a collection of elements that input, process, store, disseminate information, and provide feedback to achieve a goal.
- Input: raw data is gathered and captured.
- Process: this data is converted into useful outputs.
- Output: information is produced, usually as documents and reports.
- Feedback: information from the system is used to make changes to input or processing activities.
Computer-Based Information Systems (CBIS)
- A CBIS uses hardware, software, databases, telecommunications, people, and procedures to collect, manipulate, store, and process data into information.
- Technology infrastructure: all the parts of the CBIS working as a set of shared resources.
- Hardware: equipment used for input, processing, storage, and output.
- Software: programs that direct the computer’s operations.
- Database: organized collection of facts and information.
- Networks: connect computers to enable electronic communication.
- Internet: the world's largest computer network, made of interconnected networks exchanging information.
- Web: network of links to documents containing text, graphics, video, and sound.
- Intranet: internal network for people within an organization to share information and work on projects.
- Extranet: network that allows authorized outsiders to access an organization's intranet.
- People: the most important element in most CBIS.
- Procedures: strategies, policies, methods, and rules for using the CBIS.
Business Information Systems
- Most common types: electronic and mobile commerce, transaction processing, management information, and decision support.
- Special-purpose systems: virtual reality.
Electronic and Mobile Commerce
- E-commerce: business transactions executed electronically, including business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), business-to-government, and consumer-to-government.
- Mobile commerce (m-commerce): using mobile devices to conduct business.
- E-procurement: acquiring parts and supplies through systems and the internet.
- Electronic business (e-business): using information systems and the internet for all business tasks and functions.
Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning
- Transaction: business-related exchange.
- Transaction processing system (TPS): organized collection of resources used to perform and record transactions.
- Enterprise resource planning (ERP): set of integrated programs managing vital operations for a global organization.
Information and Decision Support Systems
- Management Information System (MIS): provides routine information to managers and decision-makers, focusing on operational efficiency, and generating standard reports.
- Decision support system (DSS): supports problem-specific decision-making, focuses on effectiveness, and is used when problems are complex or information needed for action is hard to obtain.
Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality
- Knowledge management systems (KMSs): create, store, share, and use an organization’s knowledge and experience.
- Artificial intelligence (AI): computer systems taking on human intelligence characteristics.
- Expert systems: give computers the ability to suggest and function like experts in specific fields.
- Virtual reality: simulating real or imagined environments experienced visually in 3D.
Systems Development
- Activity of creating or modifying business systems with an increasing focus on mobile applications.
- Outsourcing: companies focus on their specialties and delegate other functions to companies with specific expertise in systems development.
Systems Investigation and Analysis
- Systems investigation: understanding the problem to be solved or the opportunity to be addressed.
- Systems analysis: defining the problems and opportunities of the current system.
Systems Design, Implementation, and Maintenance and Review
- Systems design: determining how the new system will function to meet business needs defined during systems analysis.
- Systems implementation: creating or acquiring system components defined in the design, assembling them, and putting the new system into operation.
- Systems maintenance and review: checking and modifying the system to ensure it continues meeting changing business needs.
Information Systems in Society, Business, and Industry
- Information systems are developed to meet the needs of all organizations and people.
- Increasing speed and widespread use of IS exposes users to various threats from unethical actors.
Security, Privacy, and Ethical Issues in Information Systems and the Internet
- Computer-related mistakes and waste are a concern.
- Ethical issues: concerns about what is right or wrong.
- Individual privacy is a critical social issue: personal information can be disclosed, lost, or stolen.
- Social networks can cause problems in the workplace.
Computer and Information Systems Literacy
- Computer literacy: knowledge of hardware, software, databases, and telecommunications and how they function.
- Information systems literacy: knowledge of how data and information are used by individuals, groups, and organizations, encompassing why and how technology is 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, and legal information systems.
Information Systems in Industry
- Industries using information systems: airlines 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.
Global Challenges in Information Systems
- Cultural and language challenges.
- Time and distance challenges.
- Infrastructure challenges.
- Currency challenges.
- Product and service challenges.
- Technology transfer issues.
- State, regional, and national laws.
- Trade agreements.
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Description
Test your knowledge on Information Systems and their components. This quiz covers key concepts such as data, information, knowledge, and the characteristics of valuable information. Understand how these elements contribute to organizational success.
