Introduction to Information Systems

Introduction to Information Systems

• Information systems are a set of interconnected components that collect, manipulate, and disseminate data and information. They use hardware and software that people and organizations use to collect, process, create, distribute information.

Key Concepts

• Data: Raw material, numbers and strings of letters with no precise context or meaning.
• Information: Data that has been processed, organized, and given meaning. It's useful for decision making, problem solving, and understanding phenomena. It gives context to data.
• Knowledge: A body of guidelines, rules, and awareness used to manipulate and organize data to solve problems. It includes understanding information and how to utilize it to reach a solution.

Types of Information

• Descriptive: Details of current events, like a weather report.
• Diagnostic: Explains why something is happening, like analyzing system failure.
• Predictive: Forecasts future events, such as sales projections.
• Prescriptive: Suggests actions to take, like recommendations based on data analysis.

Translating Data to Information

• Grouping
• Labeling
• Sorting
• Graphing
• Statistics

Characteristics of Valuable Information

• Relevant
• Complete
• Accurate
• Current/Timely
• Economical
• Accessible

Components of Computer-Based Information Systems

• Hardware
• Software
• People
• Telecommunications
• Databases
• Procedures

Concept of An Information System

• Data flows into an information system.
• Information system processes the data and outputs information.
• Processed information is outputted.

Structure of an Information System

• Databases of internal and external data
• Manufacturing DSS
• Business transactions
• Transaction processing systems
• Databases of valid transactions for each
• Human resource MIS
• Benefit reports
• Summary reports
• Training test scores
• Job applicant profiles
• Operational databases
• Needs and planning reports
• Manufacturing ES

Performance of Information Systems

• Efficiency: Output/Input ratio.
• Effectiveness: Achievement of goals.

Benefits of Information Systems

• Improved Efficiency and Productivity: Streamlines tasks, automates processes, speeds up operations, and reduces manual intervention
• Enhanced Decision Making: Provides real-time data and advanced analytics, allowing for informed decisions based on accurate, up-to-date information
• Better Customer Service: Efficient customer data management, streamlined communication, and personalized responses lead to higher customer satisfaction and loyalty
• Enhanced Data Management and Security: Organizing, storing, and securing data while adhering to regulations, ensuring data integrity.
• Improved Collaboration and Communication: Facilitate better collaboration and communication between organizations and within organizations. Uses shared platforms and tools.
• Competitive Advantage: Leverages advanced IS to gain a competitive edge through innovation and better market insights and enhanced operational capabilities.
• Cost Reduction: Automates processes, improves resource management, reducing operational costs and improving efficiency.
• Scalability and Flexibility: Adapts to changing business environments without major overhauls. Allows for quicker growth and scaling.
• Enhanced Marketing and Sales: Better targeted campaigns, sales tracking, and customer engagement leading to higher conversion rates.
• Compliance and Risk Management: Complying with industry standards, regulations, and minimizing risks by managing data risks (e.g using compliance, financial transaction monitoring, anti-money laundering regulations).

Types of Business Information Systems in an organization

• Executive Support Systems (ESS)
• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS)

• Software systems or combinations of software and hardware that support transaction processing.
• Features: Rapid response, reliability, inflexibility, controlled processing.

Office Automation Systems (OAS)

• Varied computer machinery and software to create, collect, store, manipulate, and relay office information for accomplishing basic tasks.
• Examples: Workflow management and task scheduling.

Management Information Systems (MIS)

• Provides information needed to manage an organization efficiently and effectively.
• Examples: Flight information systems, student information systems.

Decision Support Systems (DSS)

• Supports business or organizational decision-making activities.
• Examples: Price evaluation systems, potential drilling sites

Executive Support Systems (ESS)

• Helps senior executives with information and decision making.
• Also called Executive Information Systems (EIS).
• Provides market and sales analysis and agent call monitoring and evaluation
• Key data to help executive decisions.

Information Systems in the Functional Areas of Business

• Functional areas and operating divisions of business, including sales, marketing, customer services, finance, and accounting, human resource management.

Information Systems in Industry

• Industries include airline, investment firms, banking, transportation, publishing, healthcare, retail, power companies, professional services, and management consulting firms.

Logistics

• Collaborative planning, forecasting, inventory and order management, and transportation management.

Global Challenges in Information Systems

• Standards, culture, language, time and distance, technology and infrastructure, currency and exchange rates, laws and legal aspects, privacy, permission, confidentiality

Information Technology & Business Trends

• Artificial intelligence (AI), Machine Learning (ML), Internet of Things (IoT), cloud computing, big data analytics, blockchain technology, cybersecurity enhancements, edge computing, 5G technology, robotic process automation (RPA), and digital transformation.