Lecture_01.pptx

Lecture 1 Principles of Information Systems, Eleventh Edition Chapter 1 An Introduction to Information Systems Principles of Information 1 Systems, Eleventh Edition  Principles and Learning Objectives...

Lecture 1 Principles of Information Systems, Eleventh Edition Chapter 1 An Introduction to Information Systems Principles of Information 1 Systems, Eleventh Edition  Principles and Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization’s goals – Discuss why it is important to study and understand information systems – Distinguish data from information and describe the characteristics used to evaluate the value of data Principles of Information Systems, 2 Eleventh Edition  Principles and Learning Objectives (continued) Computers and information systems help make it possible for organizations to improve the way they conduct business – Name the components of an information system and describe several system characteristics Principles of Information Systems, 3 Eleventh Edition  Principles and Learning Objectives (continued) Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career and in organizations that reach their goals – List the components of a computer- based information system – Identify the basic types of business informationPrinciples systems and discuss of Information Systems, who uses them, how they are used, and what Eleventh Edition 4  Principles and Learning Objectives (continued) System users, business managers, and information systems professionals must work together to build a successful information system – Identify the major steps of the systems development process and state the goal of each Principles of Information Systems, 5 Eleventh Edition  Principles and Learning Objectives (continued) Information systems must be applied thoughtfully and carefully so that society, businesses, and industries can reap their enormous benefits – Describe some of the threats that information systems and the Internet can pose to security and privacy – Discuss the expanding role and benefits of information systems in business and industry Principles of Information Systems, 6 Eleventh Edition  Why Learn About Information Systems? Information systems used in almost every profession including: – Entrepreneurs – Small companies to large multinationals – Accounting, marketing, management Information systems: – Indispensable tools to help you achieve your career goals Principles of Information Systems, 7 Eleventh Edition  Introduction Information system (IS): – A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective Businesses: – Information system feedback can help organizations achieve their goals, increase revenues and reduce costs Principles of Information Systems, 8 Eleventh Edition  Information Concepts Information: – One of an organization’s most valuable resources – Often confused with the term data Principles of Information Systems, 9 Eleventh Edition  Data, Information, and Knowledge Data: – Raw facts Information: – Collection of facts organized in such a way that they have value beyond the facts themselves Process: – Set of logically related tasks performed to achieve a defined outcome Knowledge: – Awareness and understanding of a set of information and the ways it can be made useful to support a task Principles of Information Systems, 10 Eleventh Edition Data, Information, and Knowledge (continued) Principles of Information Systems, 11 Eleventh Edition Data, Information, and Knowledge (continued) Principles of Information Systems, 12 Eleventh Edition Data, Information, and Knowledge (continued) Principles of Information Systems, 13 Eleventh Edition  The Characteristics of Valuable Information If an organization’s information is not accurate or complete: – People can make poor decisions, costing thousands, or even millions, of dollars Depending on the type of data you need: – Some characteristics become more important than others Principles of Information Systems, 14 Eleventh Edition The Characteristics of Valuable Information (continued) Principles of Information Systems, 15 Eleventh Edition  System Concepts System: – Set of elements or components that interact to accomplish goals Components of a system: – Inputs – Processing mechanisms – Outputs – Feedback Principles of Information Systems, 16 Eleventh Edition System Concepts (continued) Principles of Information Systems, 17 Eleventh Edition  System Performance and Standards Efficiency: – Measure of what is produced divided by what is consumed Effectiveness: – Measure of the extent to which a system attains its goals System performance standard: – Specific objective of the system; e.g. produce no more than 1 % defective parts Principles of Information Systems, 18 Eleventh Edition  What is an Information System? Information system (IS) is a set of interrelated elements that: – Collect (input) – Manipulate (process) – Store – Disseminate (output) data and information – Provide a corrective reaction (feedback mechanism) to meet an objective Principles of Information Systems, 19 Eleventh Edition What is an Information System? (continued) Principles of Information Systems, 20 Eleventh Edition  Input, Processing, Output, Feedback Input: – Activity of gathering and capturing raw data Processing: – Converting data into useful outputs Output: – Production of 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 Principles of Information Systems, 21 Eleventh Edition  Computer-Based Information Systems Single set of hardware, software, databases, telecommunications, people, and procedures: – That are configured to collect, manipulate, store, and process data into information Increasingly, companies are incorporating CBIS into their products and services – CBIS integrated into VW vehicles to determine if something is wrong with car, recommend needed repair work, check on available parts to make repair, and schedule service appointment with the dealer Principles of Information Systems, 22 Eleventh Edition  Computer-Based Information Systems Technology infrastructure: – Includes all hardware, software, databases, telecommunications, people, and procedures Configured to collect, manipulate, store, and process data into information Set of shared resources that form the foundation of each CBIS Principles of Information Systems, 23 Eleventh Edition  Computer-Based Information Systems (continued) Principles of Information Systems, 24 Eleventh Edition  Computer-Based Information Systems Hardware: (continued) – Consists of computer equipment used to perform input, processing, storage, and output activities Software: – Consists of the computer programs that govern the operation of the computer Database: – Organized collection of facts and information, typically consisting of two Principles of Information Systems, 25 or more relatedEleventhdata files Edition  Computer-Based Information Systems (continued) Telecommunications – The electronic transmission of signals for communications Networks – Connect computers and equipment to enable electronic communication Internet – World’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information Principles of Information Systems, 26 Eleventh Edition  Computer-Based Information Systems Web (continued) – Network of links on the Internet to documents containing text, graphics, video, and sound Intranet: – Internal network that allows people within an organization to exchange information and work on projects Extranet: – Network based on Web technologies that allows selected outsiders, such as business partners and customers, to access authorized resources of a company’s intranet Principles of Information Systems, 27 Eleventh Edition  Computer-Based Information Systems People: (continued) – The most important element in most computer-based information systems Procedures: – Include strategies, policies, methods, and rules for using the CBIS Principles of Information Systems, 28 Eleventh Edition  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 Principles of Information Systems, 29 Eleventh Edition Business Information Systems (continued) Principles of Information Systems, 30 Eleventh Edition  Electronic and Mobile Commerce E-commerce: – Any business transaction executed electronically between: Companies (business-to-business, B2B) Companies and consumers (business-to- consumer, B2C) Consumers and other consumers (consumer- to-consumer, C2C) Business and the public sector Consumers and the public sector Principles of Information Systems, 31 Eleventh Edition  Electronic and Mobile Commerce (continued) Mobile commerce (m-commerce): – The use of mobile, wireless devices to place orders and conduct business e-procurement – Use of information systems and the Internet to acquire parts and supplies E-commerce: – Offers many advantages for streamlining work activities Electronic business (e-business): – Uses information systems and the Internet to perform all business-related tasks and Principles of Information Systems, 32 functions Eleventh Edition Electronic and Mobile Commerce (continued) Principles of Information Systems, 33 Eleventh Edition  Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning Transaction: – Any business-related exchange, such as payments to employees and sales to customers Transaction processing system (TPS): – Organized collection of people, procedures, software, databases, and devices used to perform and record completed Principles business transactions of Information Systems, 34 Eleventh Edition  Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning (continued) Enterprise resource planning: – Set of integrated programs that: Manages the vital business operations for an entire multisite, global organization – Most ERP systems provide integrated software to support manufacturing and finance Principles of Information Systems, 35 Eleventh Edition  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 Focuses on operational efficiency Provide standard reports generated with data and information from the TPS or ERP Principles of Information Systems, 36 Eleventh Edition Information and Decision Support Systems (continued) Principles of Information Systems, 37 Eleventh Edition  Information and Decision Support Systems (continued) Decision support system (DSS): – Organized collection of people, procedures, software, databases, and devices that support problem-specific decision making – Focus is on making effective decisions – Used when problem is complex and information needed to determine appropriate action is difficult to obtain Principles of Information Systems, 38 Eleventh Edition Information and Decision Support Systems (continued) Principles of Information Systems, 39 Eleventh Edition  Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Knowledge management Reality systems (KMSs): – Organized collection of people, procedures, software, databases, and devices to: Create, store, share, and use the organization’s knowledge and experience Artificial intelligence (AI): – Computer system takes on characteristics of human intelligence Principles of Information Systems, 40 Eleventh Edition Specialized Business Information Systems (continued) Principles of Information Systems, 41 Eleventh Edition  Specialized Business Information Systems (continued) Artificial Intelligence – Robotics Machines take over complex, dangerous, routine or boring tasks – Vision systems Allows devices to see, store and process images – Natural language processing Involves computers understanding and acting on verbal or written commands Principles of Information Systems, 42 Eleventh Edition  Specialized Business Information Systems (continued) Artificial Intelligence (continued) – Learning systems Allow computers to learn from past mistakes or experiences – Neural networks Allow computers to recognize and act on patterns or trends Principles of Information Systems, 43 Eleventh Edition  Specialized Business Information Systems (continued) Expert systems: – Give computer ability to make suggestions and function like an expert in a particular field – Knowledge base contains data, rules, procedures, and relationships used by expert system Virtual reality: – Simulation of a real or imagined environment that can be experienced visually in three dimensions Principles of Information Systems, Eleventh Edition 44  Systems Development Systems development: – The activity of creating or modifying existing business systems – More mobile applications expected Outsourcing: – Allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development Principles of Information Systems, 45 Eleventh Edition Systems Development (continued) Principles of Information Systems, 46 Eleventh Edition  Systems Investigation and Analysis Systems investigation: – Gain clear understanding of the problem to be solved or opportunity to be addressed Systems analysis: – Defines the problems and opportunities of the existing system Principles of Information Systems, 47 Eleventh Edition  Systems Design, Implementation, and Maintenance Systems design: and Review – Determines how new system will work to meet business needs defined during systems analysis Systems implementation: – Create or acquire various system components defined in system design, assemble them, and put the new system into operation Systems maintenance and review: – Checks and modifies the system so that it continues to meet changing business needs Principles of Information Systems, 48 Eleventh Edition  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 opens users to a variety of threats from unethical people Principles of Information Systems, 49 Eleventh Edition  Security, Privacy, and Ethical Issues in Information Systems and the Internet Computer-related mistakes and waste are a concern Ethical issues concern what is generally considered right or wrong Individual privacy an important social issue – Personal information can be inadvertently disclosed, lost or stolen – Many Internet sites collect personal and financial information Principles of Information Systems, 50 Eleventh Edition  Security, Privacy, and Ethical Issues in Information Systems and the Internet To protect against threats to your privacy and data: – Install security and control measures Number of laws have been passed to protect people from invasion of their privacy Use of information systems: – Raises work concerns, including job loss through increased efficiency and potential health problems Principles of Information Systems, 51 Eleventh Edition  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 – Encompasses how and why this technology is applied Principles of Information Systems, 52 Eleventh Edition 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 Principles of Information Systems, 53 Eleventh Edition  Information Systems in Industry Industries: – Airline and transportation industry – Investment firms and banks – Publishing companies – Healthcare maintenance organizations (HMOs) – Retail companies – Power management and utility companies – ProfessionalPrinciples services and management of Information Systems, 54 consulting firms Eleventh Edition  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 Principles of Information Systems, 55 Eleventh Edition  Summary Data: – Raw facts System: – 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) include: – Hardware, software, databases, telecommunications and the Internet, people, and procedures Principles of Information Systems, 56 Eleventh Edition  Summary (continued) E-commerce involves: – Any business transaction executed electronically between parties such as companies (business-to-business), companies and consumers (business-to- consumer), business and the public sector, and consumers and the public sector Transaction processing system (TPS): – Handles the large volume of business transactions that occur daily within an Principles of Information Systems, Eleventh Edition 57  Summary (continued) Decision support system (DSS): – Organized collection of people, procedures, software, databases, and devices that help make problem-specific decisions Systems development: – Creating or modifying existing business systems Computer and information systems literacy: Principles of Information Systems, 58 Eleventh Edition –