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This introductory chapter explores the transformative power of Information Technology (IT) and Information Systems (IS) in modern organizations. IT has created a massively interconnected world, enabling real-time communication, collaboration, and competition among individuals and businesses. The chapter highlights the capabilities of information systems, including data storage, automation of processes, and the importance of delivering the right information to the right people at the right time. Additionally, it discusses various types of information systems, including Management Information Systems and Enterprise Resource Planning, which facilitate operational efficiency.
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CHAPTER 1 Introduction to Information Systems
Chapter Opening Case- Revolution The Power of the People is much stronger then People in Power! An example of the far-reaching effects of IT on individuals and organizations
Information Technology IT is making our world smaller, enabling more and more people to communicate, collaborate and compete…
We are…or it is… • Massively interconnected • 24 / 7 / 365 • Real time • Rapidly changing • Information intensive
Capabilities of Information Systems • Store huge amounts of information in small space • Allow quick, inexpensive access to vast amounts of information worldwide
Capabilities of Information Systems • Automate semiautomatic business process and manual tasks • Interpret vast amounts of data and numerical computations quickly and efficiently
MIS- Management Information Systems The planning for and the development, management and use of information technology tools…
IT vs IS • Information Technology Any computer based tool that people use to work with information and to information processing needs of an organization.
IT vs IS • Information Systems • Collects, processes, stores, analyzes and disseminates information of the specific purpose. • rightinformation to the • right people and the • right time in the • right amount in the • right format
transactions that are recorded, classified and stored but are not organized to convey any specific meaning Data Information meaning and value Knowledge accumulated learning and expertise as they apply to a current problem or activity.
Types of Information SystemsFigure 1.4 Information Systems Inside an Organization Functional Area information systems
Information Technology Services IT Components IT Personnel develop IS systems oversee security and risk manage data • Hardware • Software • Networks • Database
Functional Area Systems • A collection of application programs within an area is called Functional Area Systems • Accounting • Finance • POM- Production/ Operations/ Management • Marketing • Human Resources IS
Accounting Systems • Forecast revenues and business activity
Marketing • Product analysis: developing new goods and services
POM • Customer orders
Human Resources • Hire new employees
Two Information Systems that support the entire organization • Enterprise Resource planning- connects all functional areas together • Transaction Processing system- captures data from every where and everything ( more about these in later chapter)
Information Systems between Organizations • Once you figured out your information systems within the walls of your company • streamline your business so you can purchase supplies and sell goods • stay competitive
Information Systems between Organizations • Supply Chain Management: • Suppliers of raw materials factories warehouses • YOU • Flow of: • Materials • Information • Money
Information Systems between Organizations Customer Relationship Management A customer focused strategy that concentrates on customers requirements for products and services, and provide a responsive service through systems.