Systems and Information Value

• The value of information is tied to how well it assists decision-makers in achieving organizational objectives
• Computers and information systems enable organizations to improve their business practices constantly
• Understanding the potential effects of information systems can lead to a successful career that helps organizations and society
• System users, managers, and IT professionals need to collaborate to create effective information systems
• Information systems need to be used with care, so that society, business and industry benefit greatly

Defining Systems

• A system consists of interacting elements or components working toward a common goal
• Systems include inputs, processing mechanisms, outputs, and feedback loops
• Input is processed to create output
• Systems are automatic car washes, building heating, and the human body

Elements of Information

• Information is a collection of facts (processed data), which can exist as text, numbers, images, audio, or video
• Data is a closely associated term often used interchangeably

Characteristics of an Information System (IS)

• An IS gathers and captures data as input
• An IS is a set of interconnected components that collect, manipulate, and store information
• An IS disseminates output information, and offers feedback to meet objectives
• Processing converts or transforms input into helpful outputs
• Outputs are useful information in documents and reports
• Feedback acts as information from the system to adjust inputs or processing

Valuable Information

• Information should be accessible, accurate, complete, economical, flexible, reliable, relevant, secure, simple, timely, and verifiable

Types of Information Systems

• Information systems can be manual or computerized
• A computer-based information system (CBIS) consists of hardware, software, databases, telecommunications, personnel, and procedures to collect, manipulate, store and process information

Hardware Components

• Hardware includes input, outputs, processing, storage and communication

Software Types

• Software programs govern computer operations
• System software manages basic operations i.e. Microsoft Windows
• Application software allows specific tasks like word processing i.e. Microsoft Excel

Databases

• Databases are organized information collections with two or more linked data files
• Databases store customer, employee, inventory, sales, and purchase data
  • Rows are records
  • Columns are attributes

Telecommunications

• Telecommunication enables organizations to perform computer network tasks through the electronic transmission of communication signals
• Networks connect computers locally (LAN), nationally (WAN), or globally (MAN) for electronic communication
• The Internet is the world's largest network of interconnected networks

People in IS

• People are the most important part of computer-based information systems
• People include users and IS personnel who manage, run, program, and maintain the system

IS Procedures

• Procedures are strategies, policies, methods and rules for using the CBIS i.e. operation, maintenance, and security
• Effective approaches help firms use opportunities and prevent disasters, while poor ones waste time/cause inadequate disaster responses

Business Information Systems

• Common IS systems are for electronic/mobile commerce, transaction processing, management information, and decision support
• Systems help employees do routine tasks
• Systems are integrated and delivered by one software package i.e. enterprise resource planning packages process transactions, deliver data, and support decisions

E-Commerce

• E-commerce is any electronic business transaction
• Types of e-commerce
  • B2B: business-to-business between companies
  • B2C: business-to-consumer between businesses and consumers
  • C2C: consumer-to-consumer between consumers

M-Commerce

• M-commerce involves transactions anywhere, anytime through wireless communications using handhelds, phones, laptops, or other devices

Enterprise Resource Planning (ERP)

• An ERP system is integrated programs that manage critical business operations for a multi-site, global organization
• ERP systems handle the transaction processing, management information, and decision support system functions
• Used to schedule inventory, manufacturing, and product building to meet customer demand

Transaction Processing System (TPS)

• A Transaction Processing System is an Operational System
• Operational systems help organizations perform and integrate key tasks like payments, inventory, billing, and supply orders
• A transaction processing system (TPS) uses people, procedures, software, databases, and devices used to record completed business transactions
• A transaction is any business-related exchange like payments to employees and sales to customers

Management Information System (MIS)

• MIS provides routine information to decision-makers
• MIS focuses on operational efficiency
• The output of a TPS is the input to an MIS
• MIS standard reports are from TPS data

Decision Support System (DSS)

• DSSs support problem-specific decision-making
• A human is still in charge of making judgments
• Decision support systems are used when the problem is complex and information is difficult to obtain

Specialized Business Information Systems

• Knowledge management systems (KMS) are an organized collection of components to create, store, share, and use knowledge/experience
• Artificial Intelligence seeks to mimic computers' human qualities with robotics, and natural language processing
• Virtual reality simulates environments with three dimensions

Systems Development

• Is the creation or modification of business systems
• Involves investigation
• Involves needs analysis
• Involves design
• Involves implementation
• Involves maintenance

Security, Privacy, and Ethical Issues

• Security and privacy concerns remain with computer users
• Cyberbullying is a common problem
• Criminals seek to steal financial information online
• Some people feel that unethical conduct is caused by computers
• Security and control measures can be installed to guard against these and other threats

Security and Control:

• These measures include:
  • Firewalls
  • Anti-virus software
  • Password protection.
  • Physical and security procedures

Global Challenges in IS

• International trade and cultural exchange leads to globalization
• The associated challenges are:
  • Cultural
  • Language
  • Time
  • Infrastructure
  • Currency
  • Product and service
  • Technology transfer
  • National law
  • Trade agreements

Key Terms

• Information is facts organized to have value
• A system is elements interacting to achieve a goal
• Information System (IS) components are input, processing, output, and feedback
• A computer-based information system (CBIS) integrates hardware, software, databases, telecommunications, people, and procedures to process data into information
• A transaction processing system (TPS) organizes people, procedures, software, databases, and devices to record completed business transactions
• Management information system (MIS) organizes components to provide routine information to managers and decision-makers
• Decision support system (DSS) supports problem-specific decision making
• Systems development is creating/modifying existing business systems