C H A P T E R

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C H A P T E R
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• Introduction to Information
• Systems

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Information Concepts
The latest technology in information systems
Voice Activate Information System 2 min Voice
Activate Information System 1min Smart Garbage
Can 2 min Inventory Control 6 min Human Chips
3 min Cat herders (Just for fun.) 1 min
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Information Concepts
The body of guidelines and procedures used to
select, organize, and manipulate data to make it
suitable for a specific task.
A collection of facts organized in such a way
that they have additional value beyond the value
of facts themselves.
Raw facts
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Information Concepts

• KNOWLEDGE
• Knowing the value of tracking sales for future
  ordering.
• INFORMATION
• Total sales of every item for the day, week,
  month, and year.
• DATA
• Recorded sale of every item.

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Data vs. Information
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Data vs. Information
INFORMATION The number of hamburgers sold from
1030 am to 1100 am on the average. 2
Hamburgers were sold during this half hour
period, on the average.
DATA A record of each hamburger sold during the
week.
KNOWLEDGE Not a lot of people like to eat
hamburgers early in the morning. Should we open
our hamburger stand at 1030 am or wait until
1100 am?
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Data vs. Information
QUESTION Would you open your hamburger stand at
1030 am to sell 2 hamburgers? ANSWER Probably,
no.
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Types of Data
Data Represented by
Alphanumeric Data Numbers, letters, etc. Image
Data Graphics images or pictures Audio
Data Sound Video Data Moving images or pictures
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Characteristics of Valuable Information
Characteristics Definitions
Accurate Error free. Errors GIGO bad
programs. Complete Has all important
facts. Economical Are the costs worth
it? Flexible Can the information be used in
a variety of situations? Reliable Is the source
reliable?
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Characteristics of Valuable Information
Characteristics Definitions
Relevant Passenger hair color is not
relevant to a captain of a ship. Simple The
information should be presented in a simple
way. Timely Last months weather forecast is
of no interest to a pilot today. Verifiable Can
you check the correctness of the
information.
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Characteristics of Valuable Information
Characteristics Definitions
Accessible Information should be easily
accessible by authorized persons and in
the right format. Secure Information should be
access by authorized person only.
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System and Modeling Concepts
SYSTEM
A set of elements or components that interact to
accomplish goals.
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System and Modeling Concepts
Goals
Elements
Inputs
Outputs
Process
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Components of a System
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System Classifications and Primary Characteristics
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System Performance Standards

• Efficiency
• A measure of what is produced divided by what is
  consumed.
• Effectiveness
• A measure of the extent to which a system
  achieves its goals.
• Performance Standard
• A specific objective of the system.

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System Performance Standards
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System Variables and Parameters

• System Variable
• A quantity or item that can be controlled by the
  decision maker.
• System Parameter
• A value or quantity that cannot be controlled by
  the decision maker.

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Modeling a System

• Model
• An abstraction or an approximation that is used
  to represent reality
• Model Types
• Narratives - words
• Physical - tangible
• Schematic - graphical
• Mathematical - arithmetic

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Four Types of Models
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Four Types of Models
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Information System (IS)

• Information System
• A set of interrelated elements or components that
  collect (input), manipulate (process), and
  disseminate (output) data and information and
  provide a feedback mechanism to meet an objective.

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Input, Processing, Output, Feedback
Output that is used to make changes to input or
processing activities
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Computer-Based Information Systems (CBIS)

• Computer-Based Information Systems
• Composed of hardware, software, databases,
  telecommunications, people, and procedures that
  are configured to collect, manipulate, store, and
  process data into information.

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Computer-Based Information Systems (CBIS)

• Elements 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
• Organized collection of facts and information.

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Computer-Based Information Systems (CBIS)

• Elements of a CBIS (continued)
• Telecommunications
• Electronic transmission of signals for
  communications that enables organizations to link
  computer systems into effective networks.
• Networks
• Used to connect computers and computer equipment.

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Computer-Based Information Systems (CBIS)

• Elements of CBIS (continued)
• Internet
• The worlds largest telecommunications network.
• Intranet
• A network that uses Internet technology within an
  organization.

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Computer-Based Information Systems (CBIS)

• Element of a CBIS (continued)
• People
• The most important elements in most CBIS.
• Procedures
• Strategies, policies, methods, and rules for
  using CBIS.

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Computer-Based Information Systems (CBIS)
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Business Information Systems

• Transaction
• Any business related exchange.
• Transaction processing system (TPS)
• An organized collection of people, procedures,
  software, databases, and devices used to record
  completed business transactions.

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Transaction Processing System
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E-Commerce

• E-Commerce
• Any business transaction executed electronically
  between parties.

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Management Information System
Too much overtime.

• Management Information System
• Organized set of people, procedures, databases,
  and devices used to provide ROUTINE information
  to managers and decision makers.

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Decision Support Systems
The DSS supports locating the new assembly plant
in Ireland.

• Decision Support Systems (DSS)
• A set of people, procedures, databases, and
  devices used to support problem-specific decision
  making.

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Information Systems
Decision Support Systems
Management Information System
Transaction Processing System
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Artificial Intelligence (AI)
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Artificial Intelligence (AI)

• Artificial Intelligence (AI)
• A field that involves computer systems taking on
  the characteristics of human intelligence.

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Robotics

• Robots
• Work 7 days a week, 24 hours/day.
• No benefit package.
• Never complains.
• Seldom makes mistakes.
• Always shows up for work.
• Has no hangover on Mondays.
• Works for about 10.00 day.
• Does not take coffee breaks.
• Always does what it is told.

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Expert Systems
I said you DONT get the loan.

• Expert Systems (ES)
• Gives the computer the ability to make
  suggestions and act like an expert in a
  particular field

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Systems Development

• Systems Development at
• Whirlpool Corporation

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Systems Development

• Systems Development
• The activity of creating or modifying existing
  business systems.

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Systems Development
Five Steps in Systems Development
Investigation
Analysis
Design
Implementation
Review
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Systems Development

• Systems Investigation
• The purpose is to gain a clear understanding of
  the problem to be solved or opportunity to be
  addressed.

George, Whirlpool wants you to investigate
exactly what the problem is and determine if it
is worth solving.
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Systems Development

• Systems Investigation
• Whirlpool had a PROBLEM responding QUICKLY to
  competitors or their own price changes.
• It took weeks to adjust prices.
• When a competitor dropped its price, Whirlpool
  had to send out thousands of faxes and overnight
  packages.
• When Whirlpool increased its prices, retail
  distributors got very upset when they were billed
  higher than expected.

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Systems Development

• Systems Analysis
• Defines what the information system must do to
  solve the problem.
• Put a team together to carefully examine the
  existing systems problems and opportunities and
  suggest solutions.

Analysis Team Members
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Systems Development

• Systems Design
• Determines how the new system will work to meet
  the business needs defined during systems
  analysis.
• In this stage the system is designed, much like
  an architect would design a building.
• The system is not built at this time, it is
  designed.

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Systems Development

• Systems Implementation
• Creating or acquiring the various system
  components defined in the design step, assembling
  them, and putting the new system into operation.
• Hardware, software, people, procedures, database,
  communications.

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Systems Development

• System Maintenance and Review
• Check and modify the system so that it continues
  to meet changing business needs.

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Literacy
I know a lot about computer hardware and
software but I dont know how to apply it to my
business needs.

• Computer Literacy
• A knowledge of computer systems and equipment and
  the ways they function.

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Literacy
I need to know how to apply this
computer technology to my business needs.

• . Information Systems Literacy
• A knowledge of how data and information are used
  by individuals, groups, and organizations.

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Information Systems in the Functional Areas of
Business

• Functional Areas and Information Systems
• Financial information systems
• Accounting information systems
• Marketing information systems
• Manufacturing information systems
• Human resources management information systems
• Legal information systems

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Information Systems in Industry

• Airline industry
• Investment firms
• Banks and savings and loan companies
• Transportation industry

• Publishing companies
• Health care organizations
• Retail companies
• Power management utility companies

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Information Systems in Industry
Show Video on Retail Marketing (8 minutes).
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Review question on Retail Marketing Video.
1. Which company uses a touch screen to let
customers place deli orders that are filled
while the customer does other shopping. a. Kroger
b. Stop Shop c. Safeway d. Raleys e. Bel
Air Market
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Test on Retail Marketing Video.
Review question on Retail Marketing Video.
2. Which company uses Microdynamics CAD system
for merchandising and selling clothes? a. Wards
b. Sears c. Speigel d. Penneys e. Mens
Warehouse
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Test on Retail Marketing Video.
Review question on Retail Marketing Video.
3. This company uses a touch screen for
displaying flooring styles. a. Manington
Mills b. Home Depot c. Goodwin
Flooring d. Floorcraft Linoleum e. Carpet Mill
Outlet
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Information Systems in Industry
Show Video on Cat Herders (1 minute).
Cat herders - 4
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