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An Introduction to Information Systems in Organizations

An Introduction to Information Systems in Organizations. Chapter 1. Learning Objectives. What is information? What are the differences between data and information? How can you evaluate the quality of data? When is information valuable?. Learning Objectives.

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An Introduction to Information Systems in Organizations

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  1. An Introduction to Information Systems in Organizations Chapter 1 Fundamentals of Information Systems, Second Edition

  2. Learning Objectives • What is information? • What are the differences between data and information? • How can you evaluate the quality of data? • When is information valuable? Fundamentals of Information Systems, Second Edition

  3. Learning Objectives • What is an information system? • What are the basic types of business information systems? • Who uses them for which purposes? • What are their benefits? Fundamentals of Information Systems, Second Edition

  4. Learning Objectives • How do you develop information systems? • What are the major steps? • Who are involved in these steps? • What does each step accomplish? Fundamentals of Information Systems, Second Edition

  5. Learning Objectives • What are the value-added processes in the supply chain? • How do information systems help these processes? • How can the costs of an organization be lowered? How can an organization offer better service? • What is a competitive advantage? • Can organizations that use information systems to gain an advantage? Fundamentals of Information Systems, Second Edition

  6. Learning Objectives • What roles are involved in designing, developing, and maintaining information systems? • What are the functions of each role? • What careers are available in information systems? Fundamentals of Information Systems, Second Edition

  7. Information Concepts Fundamentals of Information Systems, Second Edition

  8. Information System • A set of interrelated components that • Collect data • Manipulate data • Disseminate data & information • Provide feedback to meet an objective. • Examples: ATMs; airline reservation systems; course reservation systems Fundamentals of Information Systems, Second Edition

  9. Data vs. Information • Data: Raw facts • Example: Name, last name, courses registered • Information: Collection of facts organized in such a way that they have value beyond the facts themselves • Example: Number of people that register for a course is more than a the course quota. Fundamentals of Information Systems, Second Edition

  10. The Process of Transforming Data into Information • Easy to come up with arbitrary transformations (easy to generate information) • Difficult to come up with a useful transformation (difficult to generate valuable information) Fundamentals of Information Systems, Second Edition

  11. Characteristics of Valuable Information (1) • Accurate: Does not contain errors • Complete: Contains all related facts • Economical: Time-wise and Cost-wise • Flexible: Can be used for different purposes • Reliable: The combined data is correct Fundamentals of Information Systems, Second Edition

  12. Characteristics of Valuable Information (2) • Relevant: Can be used by the organization • Simple: Easily understandable and usable • Timely: Delivered when it can still be used • Verifiable: Can be derived and confirmed again • Accessible: Those that want to use the information can locate and receive it • Secure: Accessible only to authorized individuals Fundamentals of Information Systems, Second Edition

  13. The Components of an Information System • Wrong price • Missing course • Scan barcodes • Type user name • Calculate price • Look up schedule • Print receipt • Display schedule Fundamentals of Information Systems, Second Edition

  14. Computer-Based Information Systems (CBIS) Fundamentals of Information Systems, Second Edition

  15. Components of a CBIS Fundamentals of Information Systems, Second Edition

  16. Components of a CBIS • Hardware - computer equipment used to perform input, processing, 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. • People - the most important element in most computer-based information systems. • Procedures - include the strategies, policies, methods, and rules for using the CBIS. Fundamentals of Information Systems, Second Edition

  17. Telecommunications, Network, and the Internet • Telecommunications - the electronic transmission of signals for communications. • Networks - used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communications. • Internet - the world’s largest computer network, actually consisting of thousands of interconnected networks Fundamentals of Information Systems, Second Edition

  18. Business Information Systems Fundamentals of Information Systems, Second Edition

  19. Business Information Systems • Electronic Commerce • Transaction Processing Systems and Enterprise Resource Planning (ERP) • Information and Decision Support Systems • Special-Purpose Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality Fundamentals of Information Systems, Second Edition

  20. E-Commerce • Business-to-consumer • Example: Bookstore selling books to customers (amazon.com) • Business-to-business • Example: A data processing company handling data services for a company (adp.com) • Consumer-to-consumer • Example: A customer selling goods to another customer (e-bay.com) Fundamentals of Information Systems, Second Edition

  21. E-Commerce Greatly Simplifies the Purchasing Process Fundamentals of Information Systems, Second Edition

  22. Transaction Processing Systems and ERP • Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business transactions. • Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization. Fundamentals of Information Systems, Second Edition

  23. A Payroll Transaction Processing System Fundamentals of Information Systems, Second Edition

  24. Management Information System (MIS)(Help do things right) Report on number of components that need to be sold Report on number of components produced Report on budget Fundamentals of Information Systems, Second Edition

  25. Decision Support Systems (DSS) (Help do the right thing) • Organizations often have to make decisions. • DSSs help making decisions for particular problems. • The focus of a DSS is on decision-making effectiveness. Fundamentals of Information Systems, Second Edition

  26. Essential DSS Elements Fundamentals of Information Systems, Second Edition

  27. Special-Purpose Business Information Systems • Artificial intelligence (AI) systems • Virtual reality systems • Improve personal experience • Virtual tour of a real-estate • Expert systems • Improve business intelligence • Suggest products Fundamentals of Information Systems, Second Edition

  28. The Major Elements of Artificial Intelligence Fundamentals of Information Systems, Second Edition

  29. A Head-Mounted Display Fundamentals of Information Systems, Second Edition

  30. Systems Development The activity of creating or modifying existing business systems. • Systems Investigation • Systems Analysis • Systems Design • Systems Implementation • Systems Maintenance and Review Fundamentals of Information Systems, Second Edition

  31. Organizations and Information Systems Fundamentals of Information Systems, Second Edition

  32. A General Model of an Organization Material, money Goods, services • Organization - a formal collection of people and various other resources established to accomplish a set of goals Fundamentals of Information Systems, Second Edition

  33. The Value Chain of a Manufacturing Company Fundamentals of Information Systems, Second Edition

  34. Information Systems in Supply Chain Management • Where does the information system stand? • Outside the process • Supports monitoring, reporting, etc. • Inside the process • Participate actively by creating service Fundamentals of Information Systems, Second Edition

  35. Technology Diffusion, Infusion, and Acceptance • Technology Diffusion - a measure of how widely technology is spread throughout an organization. • Technology Infusion - is the extent to which technology permeates an area or department. • Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization Fundamentals of Information Systems, Second Edition

  36. Competitive Advantage A significant and (ideally) long-term benefit to a company over its competition. • Factors That Lead Firms to Seek Competitive Advantage • Rivalry among Existing Competitors • Threat of New Entrants • Threat of Substitute Products and Services • Bargaining Power of Customers and Suppliers Fundamentals of Information Systems, Second Edition

  37. Strategic Planning for Competitive Advantage • Altering the Industry Structure • Creating New Products and Services • Improving Existing Product Lines and Services • Using Information Systems for Strategic Purposes Fundamentals of Information Systems, Second Edition

  38. Competitive Advantage Factors and Strategies Fundamentals of Information Systems, Second Edition

  39. Performance-Based Information Systems • Productivity= Achieved Output/ Required Input • Quality: Satisfy customers’ needs • Return on Investment and the Value of Information Systems • Earnings Growth: Increase in Profit • Market Share: Company Sales/Total Market • Customer Awareness and Satisfaction: Measure by surveys • Total Cost of Ownership: Includes setting up, training, maintaining, and so on Fundamentals of Information Systems, Second Edition

  40. Three Stages in the Business Use of IS Fundamentals of Information Systems, Second Edition

  41. Roles, Functions, and Careers in the Information Systems Department • Operations • Make sure IS works efficiently • Start, stop, maintain hardware • System & network operators, data-entry operators • Systems Development • Identify needs • Produce programs • System analyst, computer programmer • Support • Administration and assistance • Train users; help maintain the system • Web and database administrators; help-desk staff Fundamentals of Information Systems, Second Edition

  42. The Three Primary Responsibilities of Information Systems Fundamentals of Information Systems, Second Edition

  43. Typical IS Titles and Functions • The Chief Information Officer • LAN Administrators • Internet Careers Fundamentals of Information Systems, Second Edition

  44. Why Learn About Information Systems? • Advance in your career • Solve problems • Realize opportunities • Meet your career goals Fundamentals of Information Systems, Second Edition

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