Lecture 1 - Introduction(1).pdf

Principles of Information Systems, Thirteenth Edition Chapter 1 An Introduction to Information Systems 1 Objectives After completing this chapter, you will be able to: 1. Distinguish data from information and knowle...

Principles of Information Systems, Thirteenth Edition Chapter 1 An Introduction to Information Systems 1 Objectives After completing this chapter, you will be able to: 1. Distinguish data from information and knowledge, and describe the characteristics of quality data 2. Identify the fundamental components of an information system and describe their function 3. Identify the basic types of business information systems  Data, Information, and Knowledge Exploring the distinctions between them in the world of sales: Data Raw sales transactions Example: individual sales transactions recorded on a specific date Data lacks context and interpretation Information Organizing and processing raw sales data so that it has additional value beyond the value of the individual facts Example: aggregating daily sales to calculate weekly and monthly totals Information reveals visible trends in sales patterns Knowledge: Integrating various sales information Example: analyzing historical sales data to identify seasonal trends, considering external factors like promotions and economic conditions Knowledge allows for a deeper understanding of trends, beyond surface-level insights 3 Data, Information, and Knowledge 4  The Value and Quality of Information Valuable information helps people perform tasks more efficiently and effectively Inaccurate data can result in loss of potential new customers and reduced customer satisfaction 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 For example, accuracy and completeness are critical for data used in accounting for the management of company assets 5 Characteristics of Quality Information 6  What is an Information System? An information system (IS) is a set of interrelated elements that: Collect (input) Process Store Disseminate data and information Provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and objectives 7  Types of Feedback: 1) User Feedback A system can collect feedback from users regarding their experience, satisfaction, and suggestions for improvement This can be done through surveys, user feedback forms, or online reviews User feedback helps identify usability issues, functionality gaps, or areas where the system can be enhanced to better meet user needs 8  Types of Feedback: 2) Error Reporting When errors or exceptions occur within the system, a feedback mechanism can be in place to capture and report them This feedback helps identify the root causes of errors, troubleshoot issues, and implement corrective actions to prevent future occurrences Source: https://carldesouza.com/turning-off-dynamics-365-error-report/ 9  What is an Information System? A computer-based information system (CBIS) is a single set of hardware, software, databases, networks, people, and procedures 10  People Good systems can boost job satisfaction and worker productivity Information systems personnel include all the people who manage, run, program, and maintain the system 11  Procedures Procedure defines the steps to achieve a specific end result, such as Enter a customer order Pay a supplier invoice When using a CBIS, it’s important to follow procedures for operating, maintaining, and securing the system 12  Procedures: More examples User authentication procedure: outlines the steps for users to log in securely to the system. It may include instructions on providing usernames, passwords, and any additional authentication factors Data backup procedure: defines the process of regularly creating backup copies of data stored in the CBIS. It may include details on selecting backup media, and verifying the integrity of backed-up data Data retention procedure: specifies the guidelines for retaining and disposing of data within the CBIS. It may include the duration of data retention based on legal, or business needs 13  Information Systems in Organizations To ensure the successful implementation and utilization of information systems, organizations should focus on: Well-trained workers System support Better teamwork Redesigned processes New decision rights 14  Redesigned Processes (Reengineering) vs Continuous Improvement Reengineering Also called Business Process Reengineering (BPR) Involves the radical redesign of business processes, organizational structures, and information systems to achieve a breakthrough in business results ”‫خالد الغنيم يروي حكاية أول تعاون لشركة "علم" مع "الجوازات‬.‫د‬ - https://twitter.com/i/status/1642286268598853633 Continuous improvement Constantly seeking ways to improve business processes and add value to products and services 15 16 Reengineering and Continuous Improvement © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service 16 or otherwise on a password-protected website for classroom use. 17 Reengineering and Continuous Improvement © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service 17 or otherwise on a password-protected website for classroom use.  Business Information Systems Information systems are used in all functional areas of business organization, such as: Accounting and finance Customer service Human resources Manufacturing Research and development Sales and marketing 18  Business Information Systems Information systems are also used in nearly every industry, such as: Agriculture Finance Health care Mining Professional services Retail 19  Types of Information Systems This lecture will cover various types of information systems: Transaction Processing Systems (TPS) Management Information Systems (MIS) ERP Systems Knowledge Management Systems (KMS) Other types Decision Support Systems (DSS) Geographic Information Systems (GIS) Learning Management Systems (LMS) - Which can be considered as a type of KMS 20  1) Transaction processing system (TPS) Transaction Any business-related exchange, such as payments to employees and suppliers and sales to customers Transaction processing system (TPS) An organized collection of people, procedures, software, databases, and devices Used to perform and record completed business transactions Example: Point-of-Sale (POS) System in a retail store that records sales transactions, updates inventory levels, and processes customer payments 21  2) Management Information Systems (MIS) Management information system (MIS) Organized collection of people, procedures, software, databases, and devices Provides routine information to managers and decision makers Focuses on operational efficiency Provides standard reports generated with data and information from the TPS Example: Sales dashboard that provides visualized data on sales performance, customer demographics, and product trends, aiding managers in informed decision- making 22  3) ERP Systems Enterprise resource planning (ERP) A set of integrated programs/modules - Human resource management - Customer relationship management (CRM) - Financial management - Warehouse management - And more Manages the vital business operations for the entire organization 23  4) Knowledge Management Systems Knowledge management systems (KMSs) An organized collection of people, procedures, software, databases, and devices that: - Stores and retrieves knowledge - Improves collaboration Examples: - Customer support: provide agents/employees with a knowledge base (‫ )قاعدة معرفة‬to resolve customer issues quickly and effectively - Product development: share best practices, lessons learned, and technical expertise across teams to accelerate innovation - Document management with SharePoint 24  Electronic Commerce E-commerce involves the exchange of money for goods and services over electronic networks Forms of e-commerce: Business-to-Business (B2B) - Alibaba, Sary Business-to-Consumer (B2C) - Amazon, NiceOne, and Floward Consumer-to-Consumer (C2C) - eBay, etsy, and Soum Government-to-Citizen (G2C) Government-to-Business (G2B) Government-to-Government (G2G) 25  Electronic Commerce Many organizations use both: Buy-side e-commerce to purchase goods and services from suppliers Sell-side e-commerce to sell products to their customers Successful e-commerce solutions are designed to be highly scalable Can be upgraded to meet unexpected user traffic Key decision for a new e-commerce company Deciding between hosting its own website or utilizing a third-party web service provider, such as Salla or Zid 26  Summary The value of information is directly linked to how it helps decision makers achieve the organization’s goals Information systems are composed of fundamental components that must be carefully assembled and integrated to work well together Organizations employ a variety of information systems to improve the way they conduct business and make fact-based decisions 27