Information Systems in Business

Lecture : 01

UOITCBusiness Information Technology Department

Dr. Alla Talal Yassin

Vital component of successful businesses

Helps businesses expand and compete

Businesses use IS and IT To improve efficiency and effectiveness of business processes

For managerial decision making

For workgroup collaboration

Why study Information Systems and Information Technology?

Objectives of Information systems

• The use of information systems facilitates better decision making in the company.

management is able to review all the present practices and norms and formulate new ones for the future.

Information systems are used across all realms and functions of the business.

management is able to better control its people and processes and attain organizational goals.

A system Is a set of interrelated components

With a clearly defined boundary

Working together to achieve a common set of objectives

What is a system?

What is a System?

ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

What is an Information System?

An organized combination of PeopleHardwareSoftwareCommunications networksData resourcesPolicies and procedures

That stores, retrieves, transforms, and disseminates information in an organization

What is an Information System?

The Components of a Computer-Based Information System

Types of Information Systems

Transaction

Processing

Systems

Process

Control

Systems

Enterprise

Collaboration

Systems

Operations

Support

Systems

Management

Information

Systems

Decision

Support

Systems

Executive

Information

Systems

Management

Support

Systems

Information Systems

Need of information systems

Utilization of large quantity of data and information.

Decision Support Data and information Information flexibility Information Security Information Sharing Smooth running of operations

IS is all the components and resources necessary to deliver information and functions to the organization

IT is hardware, software, networking and data management

In theory, IS could be paper based But we will focus on Computer-Based Information Systems (CBIS)

Information System (IS) versus Information Technology (IT)

Computer-Based Information Systems

Computer-based information system (CBIS)

A single set of hardware, software, databases, telecommunications, people, and procedures that are

configured to collect, manipulate, store, and process data into information

Examples: a company’s payroll systems, order entry system, and inventory control systems

Basic Concepts

• A computer-based IS is a whole that consists of (1) data, (2) computer hardware and software (information technologies), and (3) procedures applied to data, software & hardware.*

ENVIRONMENT

keyboard, mouse

hardware

data storage;processors for

transforming datarunning software

screen, printer

hardware

Data Transformed & OrganizedData

INPUT part PROCESSING part OUTPUT part

• Data are the heart of IS. Inputted data are different than outputted data.

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Objectives of information system

Information should be accurate, timely, right, right format, right people and to filter unwanted and unnecessary information.

SMART Ratio: Specific, Measurable, Agreed, Realistic, and Time Specific.

Judging the performance of the system.

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IS Knowledge Framework for Business Professionals :

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Major Roles of Information Systems

Support of Strategic

AdvantageSupport of Managerial

Decision Making

Support of Business Operations

Foundation Concepts: fundamental behavioral, technical, business and managerial concepts

Information Technology: Hardware, software, networks, data management and Internet-based technology

Business Applications: Major uses of the IS in the organization

Development Processes: How to plan, develop and implement IS to meet business opportunities

Management Challenges: The challenges of effectively and ethically managing IT

What should a Business Professional know about IS?

Support of business processes and operations.

Support of decision making by employees and managers.

Support of strategies for competitive advantage.

Fundamental Roles of IS in Business

What is an Information System?

Input ofData

Resources

Input ofData

Resources

Processing Data

Processing Data

Output ofInformation

Products

Output ofInformation

Products

Control of System PerformanceControl of System Performance

Storage of Data ResourcesStorage of Data Resources

What does IS do for a business?

Principles of Information Systems, Ninth Edition

Decision Making as a Component of Problem Solving (continued)

Trends in Information Systems

Developing IS Solutions

Information systems model

Components of an ISPeople Resources

End users: the people who use the IS or the information from the IS

IS specialists: the people who develop and operate IS

Hardware ResourcesAll physical devices used in information

processingMachines, data media, peripherals

Software ResourcesAll information processing instructions

including programs and proceduresSystem software, application software and

procedures

Classifications of IS by scopeFunctional business systems

Focus on operational and managerial applications of basic business functions

Examples: support accounting, finance or marketing

Strategic information systemsHelp get a strategic advantage over its customers

Examples: shipment tracking, e-commerce web systems

Cross-functional information systemsSystems that are combinations of several types of

information systemsProvide support for many functions

Measuring success of an ISEfficiency

Minimize cost, time and use of information resources

EffectivenessSupport business strategies

Enable business processesEnhance organizational structure and culture

Increase the customer and business valueWhat’s the difference between Efficiency

and Effectiveness?

IS ActivitiesInput of data resources

Data entry activitiesProcessing of data into informationE.g., calculate, compare, sort, classify,

summarizeOutput of information products

Messages, reports, forms and graphic imagesStorage of data resources

Data elements and databasesControl of system performance

Monitoring and evaluating feedback

Recognizing ISAs a business professional, you should be

able to look at an IS and identifyThe people, hardware, software, data and

network resources they useThe type of information products they produceThe way they perform input, processing,

output, storage and control activities