Principles of Information Systems: What is an Information System?

What is an Information System?

• An information system (IS) is a set of interrelated elements that collect, manipulate, store, and disseminate data and information.
• It provides a corrective reaction (feedback mechanism) to meet an objective.

Components of an Information System

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

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.
• Increasingly, companies are incorporating CBIS into their products and services.

Technology Infrastructure

• Includes all hardware, software, databases, telecommunications, people, and procedures.
• Configured to collect, manipulate, store, and process data into information.
• Forms the foundation of each CBIS.

Components of a Computer-Based Information System

• Hardware: computer equipment used to perform input, processing, storage, and output activities.
• Software: 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: 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.

Business Information Systems

• Most common types of information systems: 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.

Electronic and Mobile Commerce

• E-commerce: any business transaction executed electronically between companies, companies and consumers, business and the public sector, and consumers and the public sector.
• 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): a 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): provides routine information to managers and decision makers.
• Decision Support System (DSS): supports problem-specific decision making.

Specialized Business Information Systems

• Knowledge management systems (KMSs): create, store, share, and use the organization's knowledge and experience.
• Artificial intelligence (AI): computer systems that take on characteristics of human intelligence.
• Expert systems: give computers the ability to make suggestions and function like an expert in a particular field.
• Virtual reality: simulation of a real or imagined environment that can be experienced visually in three dimensions.

Systems Development

• The activity of creating or modifying existing business systems.
• More mobile applications are expected.

Information Systems in Society, Business, and Industry

• Information systems have been developed to meet the needs of all types of organizations and people.
• Speed and widespread use open users to a variety of threats from unethical people.

Security, Privacy, and Ethical Issues

• Computer-related mistakes and waste are a concern.
• Ethical issues concern what is generally considered right or wrong.
• Individual privacy is an important social issue.

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.

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: airline and transportation, investment firms and banks, publishing companies, healthcare maintenance organizations, retail companies, power management and utility companies, and 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, and trade agreements.

Summary

• Data: raw facts.

• System: a set of elements that interact to accomplish a goal.

• Components of an information system: input, processing, output, and feedback.

• Components of a computer-based information system (CBIS): hardware, software, databases, telecommunications, people, and procedures.

• E-commerce: any business transaction executed electronically between parties.

• Transaction processing system (TPS): handles the large volume of business transactions.

• Decision support system (DSS): organized collection of people, procedures, software, databases, and devices that help make problem-specific decisions.### Information Systems

• Information systems are used in almost every profession, including entrepreneurs, small companies, and large multinationals, and in various fields such as accounting, marketing, and management.

• Information systems are indispensable tools to help achieve career goals.

Definition of Information System

• 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.
• IS feedback can help organizations achieve their goals, increase revenues, and reduce costs.

Information Concepts

• Information is one of an organization's most valuable resources, often confused with the term data.
• Data refers to raw facts, whereas information is a collection of facts organized in a way that they have value beyond the facts themselves.

Data, Information, and Knowledge

• Data is raw and unorganized, whereas information is organized and has value.
• Process refers to a set of logically related tasks performed to achieve a defined outcome.
• Knowledge is the awareness and understanding of a set of information and the ways it can be made useful to support a task.

Characteristics of Valuable Information

• If an organization's information is not accurate or complete, it can lead to poor decisions, resulting in significant financial losses.
• The characteristics of valuable information depend on the type of data needed.

System Concepts

• A system is a set of elements or components that interact to accomplish goals.
• Components of a system include inputs, processing mechanisms, outputs, and feedback.
• System performance can be measured by efficiency (what is produced divided by what is consumed) and effectiveness (the extent to which a system attains its goals).
• System performance standards are specific objectives of the system.