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Fundamentals of Information Systems Fourth Edition

Fundamentals of Information Systems Fourth Edition. Chapter 1 An Introduction to Information Systems in Organizations. Why Learn About Information Systems in Organizations?. Information systems (ISs) can cut costs and increase profits Students in most fields need to know ISs

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Fundamentals of Information Systems Fourth Edition

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

  2. Why Learn About Information Systems in Organizations? • Information systems (ISs) can cut costs and increase profits • Students in most fields need to know ISs • Management major might be hired to design a system to improve productivity • Biochemistry major might be hired to conduct drug research using computer techniques Fundamentals of Information Systems, Fourth Edition

  3. Introduction • Information system (IS) • Set of interrelated components: collect, manipulate, store, and disseminate data and information • Provides feedback to meet an objective • Examples: ATMs, airline reservation systems, course reservation systems Fundamentals of Information Systems, Fourth Edition

  4. Information Concepts: Data, Information, and Knowledge • Data: raw facts • Alphanumeric, image, audio, and video • Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves Fundamentals of Information Systems, Fourth Edition

  5. Data, Information, and Knowledge (continued) Table 1.1: Types of Data Fundamentals of Information Systems, Fourth Edition

  6. Data, Information, and Knowledge(continued) Figure 1.1: Defining and Organizing Relationships Among Data Creates Information Fundamentals of Information Systems, Fourth Edition

  7. Data, Information, and Knowledge (continued) Figure 1.2: The Process of Transforming Data into Information Fundamentals of Information Systems, Fourth Edition

  8. The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information Fundamentals of Information Systems, Fourth Edition

  9. The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued) Fundamentals of Information Systems, Fourth Edition

  10. The Value of Information • Value of information is directly linked to how it helps decision makers achieve their organization’s goals • For example, value of information might be measured in: • Time required to make a decision • Increased profits to the company Fundamentals of Information Systems, Fourth Edition

  11. What Is an Information System? Figure 1.3: The Components of an Information System Fundamentals of Information Systems, Fourth Edition

  12. Input, Processing, Output, Feedback • Input: the activity of gathering and capturing raw data • Processing: converting or transforming data into useful outputs • Output: production of useful information, usually in the form of documents and reports • Feedback: output that is used to make changes to input or processing activities Fundamentals of Information Systems, Fourth Edition

  13. Manual and Computerized Information Systems • An information system can be: • Manual • Example: developing patterns and trends on graph paper for stock analysis • Computerized • Example: using program trading to track the market and trade large blocks of stocks when discrepancies occur Fundamentals of Information Systems, Fourth Edition

  14. Computer-Based Information Systems • Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information Fundamentals of Information Systems, Fourth Edition

  15. Computer-Based Information Systems (continued) Figure 1.4: The Components of a Computer-Based Information System Fundamentals of Information Systems, Fourth Edition

  16. Computer-Based Information Systems (continued) • CBIS components • Hardware: computer equipment used to perform input, processing, and output activities • Software: computer programs that govern the operation of the computer • Database: organized collection of facts and information • Telecommunications: electronic transmission of signals for communications • Networks: connect computers and equipment in a building, around the country, and around the world Fundamentals of Information Systems, Fourth Edition

  17. Computer-Based Information Systems (continued) • CBIS components (continued) • Internet: world’s largest computer network • People: manage, run, program, and maintain the system • Procedures: strategies, policies, methods, and rules for using a CBIS Fundamentals of Information Systems, Fourth Edition

  18. BusinessInformation Systems • Most common types of information systems used in business organizations • Electronic and mobile commerce systems • Transaction processing systems • Management information systems • Decision support systems • Specialized business information systems Fundamentals of Information Systems, Fourth Edition

  19. BusinessInformation Systems (continued) Figure 1.5: Business Information Systems Fundamentals of Information Systems, Fourth Edition

  20. Electronic and Mobile Commerce • E-commerce: any business transaction executed electronically between parties • Companies (B2B) • Companies and consumers (B2C) • Consumers and other consumers (C2C) • Companies and the public sector • Consumers and the public sector Fundamentals of Information Systems, Fourth Edition

  21. Electronic and Mobile Commerce (continued) Figure 1.8: Electronic Business Fundamentals of Information Systems, Fourth Edition

  22. Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning • Transaction: business-related exchange • Payments to employees • Sales to customers • Payments to suppliers • Transaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions Fundamentals of Information Systems, Fourth Edition

  23. Transaction Processing Systems (continued) Figure 1.9: A Payroll Transaction Processing System Fundamentals of Information Systems, Fourth Edition

  24. Enterprise Resource Planning • Integrated programs capable of managing a company’s vital business operations for an entire multisite organization • Coordinate planning, inventory control, production, and ordering Fundamentals of Information Systems, Fourth Edition

  25. Information and Decision Support Systems • An effective TPS provides a number of benefits to a company • A TPS can speed business activities and reduce clerical costs • Data stored in TPSs is used to help managers make better decisions Fundamentals of Information Systems, Fourth Edition

  26. Management Information Systems • Management information system (MIS) • Organized collection of people, procedures, software, databases, and devices • Provides routine information to managers/decision makers • Primary focus is operational efficiency Fundamentals of Information Systems, Fourth Edition

  27. Management Information Systems (continued) Figure 1.10: Management Information System Fundamentals of Information Systems, Fourth Edition

  28. Decision Support Systems • Decision support system (DSS) • Organized collection of people, procedures, software, databases, and devices • Supports problem-specific decision making • Focus is on decision-making effectiveness Fundamentals of Information Systems, Fourth Edition

  29. Decision Support Systems (continued) Figure 1.11: Essential DSS Elements Fundamentals of Information Systems, Fourth Edition

  30. Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality • Knowledge management systems (KMSs): an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience • Artificial intelligence (AI): field in which the computer system takes on the characteristics of human intelligence Fundamentals of Information Systems, Fourth Edition

  31. Artificial Intelligence Figure 1.12: The Major Elements of Artificial Intelligence Fundamentals of Information Systems, Fourth Edition

  32. Expert Systems • Give the computer the ability to make suggestions and act like an expert in a particular field • Allow organizations to capture and use the wisdom of experts and specialists • The knowledge base contains the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome Fundamentals of Information Systems, Fourth Edition

  33. Virtual Reality • Simulation of a real or imagined environment that can be experienced visually in three dimensions • Immersive virtual reality • Applications that are not fully immersive • Can be a powerful medium for communication, entertainment, and learning Fundamentals of Information Systems, Fourth Edition

  34. Systems Development • Systems development: creating or modifying existing business systems • Systems development can be: • Performed in-house • Outsourced • To improve results of a systems development project, it is divided into several steps Fundamentals of Information Systems, Fourth Edition

  35. Systems Development (continued) Figure 1.14: An Overview of Systems Development Fundamentals of Information Systems, Fourth Edition

  36. Systems Investigation and Analysis • Systems investigation: gain understanding of the problem to be solved or opportunity to be addressed • Systems analysis: defines problems and opportunities of the existing system Fundamentals of Information Systems, Fourth Edition

  37. Systems Design, Implementation, Maintenance, and Review • Systems design: how the new system will work to meet the business needs defined during systems analysis • Systems implementation: creating or acquiring the various system components defined in the design step, assembling them, and putting the new system into operation • Systems maintenance and review: check and modify the system so that it continues to meet changing business needs Fundamentals of Information Systems, Fourth Edition

  38. Organizations and Information Systems • Organization: collection of people and other resources established to accomplish a set of goals • An organization is a system • Inputs: resources (materials, people, money) • Outputs: goods or services Fundamentals of Information Systems, Fourth Edition

  39. Organizations and Information Systems (continued) Figure 1.15: A General Model of an Organization Fundamentals of Information Systems, Fourth Edition

  40. Organizations and Information Systems (continued) • Value chain: series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service Fundamentals of Information Systems, Fourth Edition

  41. Organizations and Information Systems (continued) Figure 1.16: The Value Chain of a Manufacturing Company Fundamentals of Information Systems, Fourth Edition

  42. Organizations and Information Systems (continued) • Supply chain management (SCM) • Determines required supplies, needed quantities, processing, and shipment • Customer relationship management (CRM) • Helps company manage all aspects of customer encounters, including marketing, advertisement, sales, service, and maintaining loyalty Fundamentals of Information Systems, Fourth Edition

  43. Careers In Information Systems • Degree programs • Degrees in information systems • Business degrees with a global or international orientation • Computer systems are making IS professionals’ work easier • Opportunities in information systems are not confined to single countries Fundamentals of Information Systems, Fourth Edition

  44. Roles, Functions, and Careers in the IS Department • Primary responsibilities in information systems • Operations: focuses on the efficiency of IS functions • Systems development: focuses on development projects and ongoing maintenance and review • Support: provides user assistance, data administration, user training, and Web administration Fundamentals of Information Systems, Fourth Edition

  45. Roles, Functions, and Careers in the IS Department (continued) Figure 1.19: The Three Primary Responsibilities of Information Systems Fundamentals of Information Systems, Fourth Edition

  46. Typical IS Titles and Functions • Chief Information Officer (CIO) • Employs IS department’s equipment and personnel to help the organization attain its goals • LAN administrators • Set up and manage the network hardware, software, and security processes Fundamentals of Information Systems, Fourth Edition

  47. Typical IS Titles and Functions (continued) • Internet careers • Internet strategists and administrators • Internet systems developers • Internet programmers • Internet or Web site operators • Certification • Examples: Microsoft Certified Systems Engineer, Certified Information Systems Security Professional (CISSP), and Oracle Certified Professional Fundamentals of Information Systems, Fourth Edition

  48. Other IS Careers • New and exciting careers have developed in security and fraud detection and prevention • Chief Information Security Officer • Chief Security Officer • Chief Privacy Officer • Working for a large consulting firm such as Accenture, IBM, and EDS • Developing or selling products for a hardware or software vendor • Video game development Fundamentals of Information Systems, Fourth Edition

  49. Global Challenges in Information Systems • Cultural challenges • Language challenges • Time and distance challenges • Infrastructure challenges • Currency challenges Fundamentals of Information Systems, Fourth Edition

  50. Global Challenges in Information Systems (continued) • Product and service challenges • Technology transfer issues • State, regional, and national laws • Trade agreements Fundamentals of Information Systems, Fourth Edition

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