principles of information systems - chapter 1

Principles of Information Systems, Sixth Edition

An Introduction to Information Systems

Chapter 1

Principles of Information Systems, Sixth Edition

Principles and Learning Objectives

• The value of information is directly linked to how it helps decision makers achieve the organization’s goals.

– Distinguish data from information and describe the characteristics used to evaluate the quality of data.

Principles of Information Systems, Sixth Edition

Principles and Learning Objectives

• Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business.

– Name the components of an information system and describe several system characteristics.

– Identify four basic types of models and explain how they are used.

Principles of Information Systems, Sixth Edition

Principles and Learning Objectives

• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.

– Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.

Principles of Information Systems, Sixth Edition

Principles and Learning Objectives

• System users, business managers, and information systems professionals must work together to build a successful information system.

– Identify the major steps of the systems development process and state the goal of each.

– Discuss why it is important to study and understand information systems.

Principles of Information Systems, Sixth Edition

Information Concepts

Principles of Information Systems, Sixth Edition

Information System

A set of interrelated components that collect, manipulate, and disseminate data and information, and provide feedback to meet an objective

• Examples: ATMs, airline reservation systems, course reservation systems

Principles of Information Systems, Sixth Edition

Data vs. Information

• Data: raw facts

• Information: collection of facts organized in such a way that they have value beyond the facts themselves

Principles of Information Systems, Sixth Edition

Types of Data

Principles of Information Systems, Sixth Edition

Data vs. Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition

System and Modeling Concepts

Principles of Information Systems, Sixth Edition

System

A set of elements or components that interact to accomplish goals

• Input • Processing mechanism• Feedback• Output• System boundary

Principles of Information Systems, Sixth Edition

Components of a System

Principles of Information Systems, Sixth Edition

System and Modeling Concepts

Principles of Information Systems, Sixth Edition

System Performance and Standards

• Efficiency: output/input• Effectiveness: extent to which system attains its

goals• Performance standard: specific objective of a

system

Principles of Information Systems, Sixth Edition

System Variables and Parameters

• System variable - item controlled by decision-maker

• System parameter - value that cannot be controlled

Principles of Information Systems, Sixth Edition

Systems Classification

Principles of Information Systems, Sixth Edition

System Performance and Standards

Principles of Information Systems, Sixth Edition

Modeling a System

Principles of Information Systems, Sixth Edition

Modeling a System

• A model is an abstraction that is used to represent reality– 4 major types of models

• A narrative model is based on words– Logical, not physical

• A physical model is tangible• A schematic model is a graphic representation

– Graphs and charts

• A mathematical model is an arithmetic representation

Principles of Information Systems, Sixth Edition

What Is An Information System?

Principles of Information Systems, Sixth Edition

Components of an Information System

Principles of Information Systems, Sixth Edition

Computer-Based Information Systems (CBIS)

Principles of Information Systems, Sixth Edition

Components of a CBIS

Principles of Information Systems, Sixth Edition

Telecommunications, Networks, and the Internet

Principles of Information Systems, Sixth Edition

Telecommunications, Networks, and the Internet

Principles of Information Systems, Sixth Edition

Business Information Systems

Principles of Information Systems, Sixth Edition

Business Information Systems

• Electronic Commerce• Transaction Processing Systems• Management Information Systems• Decision Support Systems

Principles of Information Systems, Sixth Edition

E-Commerce

• Business-to-business• Business-to-consumer• Business-to-government• Government-to-consumer

Principles of Information Systems, Sixth Edition

Electronic Commerce

Principles of Information Systems, Sixth Edition

Transaction Processing Systems

A transaction processing system (TPS) is an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

• Process business exchanges• Maintain records about the exchanges• Handle routine, yet critical, tasks• Perform simple calculations

Principles of Information Systems, Sixth Edition

Payroll Transaction ProcessingSystem

Principles of Information Systems, Sixth Edition

Enterprise Resource Planning (ERP)

• Integrated programs that can manage a company’s entire set of business operations

• Often coordinate planning, inventory control, production, and ordering

Principles of Information Systems, Sixth Edition

Management Information Systems (MIS)

• Routine information for routine decisions• Operational efficiency• Use transaction data as main input• Databases integrate MIS in different functional

areas

Principles of Information Systems, Sixth Edition

Management Information Systems (MIS)

Principles of Information Systems, Sixth Edition

MIS Outputs

• Scheduled reports• Demand reports• Exception reports

Principles of Information Systems, Sixth Edition

Decision Support Systems (DSS)

• DSS- A decision support system is an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making.

– Interactive support for non-routine decisions or problems

– End-users are more involved in creating a DSS than an MIS

Principles of Information Systems, Sixth Edition

Essential DSS Elements

Principles of Information Systems, Sixth Edition

Special-Purpose Business Information Systems

• Artificial Intelligence (AI) Systems• Virtual Reality Systems • Expert Systems• Other Special-Purpose Business Information

Systems

Principles of Information Systems, Sixth Edition

The Major Elements of Artificial Intelligence

Principles of Information Systems, Sixth Edition

Virtual Reality

Principles of Information Systems, Sixth Edition

Data Glove

Principles of Information Systems, Sixth Edition

Systems Development

Principles of Information Systems, Sixth Edition

Why Learn About Information Systems?

• Advance in your career• Solve problems• Realize opportunities• Meet your career goals

Principles of Information Systems, Sixth Edition

Computer and Information System Literacy

• Computer literacy - knowledge of computer systems and equipment

• Information system literacy - knowledge of how data and information are used

Principles of Information Systems, Sixth Edition

Information Systems in Functional Areas of Business

• Finance and Accounting• Sales and Marketing• Manufacturing

Principles of Information Systems, Sixth Edition

Information Systems in Industry

• Investment firms• Banks• Publishing companies• Healthcare organizations• Management consulting firms

Principles of Information Systems, Sixth Edition

Summary

• Data - raw facts• Information - data transformed into a

meaningful form • System - set of elements that interact to

accomplish a goal • Systems development - creating or modifying

existing business systems