Chap 1.pdf

1. 1. What is information? • Data consists of raw facts, such as an employee number, total hours worked in a week, inventory part numbers, or sales orders. • Information is a collection of facts organized so that they have additional value beyond the value of the individual facts • Knowledge is the...

1. 1. What is information? • Data consists of raw facts, such as an employee number, total hours worked in a week, inventory part numbers, or sales orders. • Information is a collection of facts organized so that they have additional value beyond the value of the individual facts • Knowledge is the awareness and understanding of a set of information and the ways that information can be made useful to support a specific task or reach a decision The value of Information • The value of information is directly linked to how it helps decision makers achieve their organization’s goals. • Valuable information can help people and their organizations perform tasks more efficiently and effectively. The Characteristics of Valuable Information Characteristics Definitions Accessible Information should be easily accessible by authorized users so they can obtain it in the right format and at the right time to meet their needs. Accurate Accurate information is error free. In some cases, inaccurate information is generated because inaccurate data is fed into the transformation process Complete Complete information contains all the important facts Economical Information should also be relatively economical to produce. Flexible Flexible information can be used for a variety of purposes. Relevant Relevant information is important to the decision maker Reliable The reliability of the information depends on the reliability of the datacollection method or the source of the information Secure Information should be secure from access by unauthorized users. Simple Too much information can cause overload and inability to choose the really important one. Timely Timely information is delivered when it is needed Verifiable Can be checked to make sure information is correct, perhaps by checking many sources for the same information. 1.2. What is a System? • A system is a set of elements or components that interact to accomplish goals. • Systems have inputs, processing mechanisms, outputs, and feedback. System performance and standards • Efficiency is a measure of what is produced divided by what is consumed. It can range from 0 to 100 percent. • Effectiveness is a measure of the extent to which a system achieves its goals. It can be computed by dividing the goals actually achieved by the total of the stated goals • A system performance standard is a specific objective of the system. After standards are established, system performance is measured and compared with the standard. Variances from the standard are determinants of system performance. 1.3. What is information system? • An information system (IS) is a set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective. • Feedback is information from the system that is used to make changes to input or processing activities. • Feedback is also important for managers and decision makers Input is the activity of gathering and capturing raw data. Processing means converting or transforming data into useful outputs. Processing can involve making calculations, comparing data and taking alternative actions, and storing data for future use. Processing data into useful information is critical in business settings. Output involves producing useful information, usually in the form of documents and reports. 1.4. A computer-based information system (CBIS) • A computer-based information system (CBIS) is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. Components of CBIS • Hardware consists of computer equipment used to perform input, processing, and output activities. • Software consists of the computer programs that govern the operation of the computer. • A database is an organized collection of facts and information, typically consisting of two or more related data files. • Telecommunications is the electronic transmission of signals for communications, which enables organizations to carry out their processes and tasks through effective computer networks. • Networks connect computers and equipment in a building, around the country, or around the world to enable electronic communication • The Internet is the world’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information Components of CBIS (Cont.) • People can be the most important element in most computer-based information systems. They make the difference between success and failure for most organizations. Information systems personnel include all the people who manage, run, program, and maintain the system. • Procedures include the strategies, policies, methods, and rules for using the CBIS, including the operation, maintenance, and security of the computer. 2. 1. Business information systems • The most common types of information systems used in business organizations are those designed for electronic and mobile commerce, transaction processing, management information, and decision support. In addition, some organizations employ specialpurpose systems, such as virtual reality, that not every organization uses. Together, these systems help employees in organizations accomplish routine and special tasks—from recording sales, processing payrolls, and supporting decisions in various departments, to providing alternatives for large-scale projects and opportunities. 2.2. Types of business information systems 2.3. Comparing business information systems 3. System development • Systems development is the activity of creating or modifying business systems. • Developing information systems to meet business needs is highly complex and difficult—so much so that it is common for IS projects to overrun budgets and exceed scheduled completion dates. • One strategy for improving the results of a systems development project is to divide it into several steps, each with a well-defined goal and set of tasks to accomplish. System development Steps What is the problem? Is it worth solving? What must the information system do to solve the problem? How will the information system do what it must do to obtain the problem solution? What/Where are the resources? And how to place them into operation? How to ensure the system operation? How to modify the system to meet the changing business needs? Principles • The value of information is directly linked to how it helps decision makers achieve the organization’s goals. • Computers and information systems are constantly making it possible for organizations to improve the way they conduct business. • 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 organizations that reach their goals. • System users, business managers, and information systems professionals must work together to build a successful information system. • Information systems must be applied thoughtfully and carefully so that society, business, and industry around the globe can reap their enormous benefits.