An Introduction to Information Systems in Organizations

1
An Introduction to Information Systems in
Organizations

• Chapter 1

2
Principles and Learning Objectives

• The value of information is directly linked to
  how it helps decision makers achieve the
  organizations goals.
• Distinguish data from information and describe
  the characteristics used to evaluate the quality
  of data.

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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.

4
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.

5
Principles and Learning Objectives

• The use of information systems to add value to
  the organization can also give an organization a
  competitive advantage.
• Identify the value-added processes in the supply
  chain and describe the role of information
  systems within them.
• Identify some of the strategies employed to lower
  costs or improve service.
• Define the term competitive advantage and discuss
  how organizations are using information systems
  to gain such an advantage.

6
Principles and Learning Objectives

• Information systems personnel are the key to
  unlocking the potential of any new or modified
  system.
• Define the types of roles, functions, and careers
  available in information systems.

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Information Concepts
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Information System

• A set of interrelated components that collect,
  manipulate disseminate data information
  provide feedback to meet an objective.
• Examples ATMs airline reservation systems
  course reservation systems

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Data vs. Information

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

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The Process of Transforming Data into Information
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Characteristics of Valuable Information
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The Components of an Information System
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Computer-Based Information Systems (CBIS)
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Components of a CBIS
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Components 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 - an organized collection of facts and
  information, typically consisting of two or more
  related data files.
• People - the most important element in most
  computer-based information systems.
• Procedures - include the strategies, policies,
  methods, and rules for using the CBIS.

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Telecommunications, Network, and the Internet

• Telecommunications - the electronic transmission
  of signals for communications.
• Networks - used to connect computers and computer
  equipment in a building, around the country, or
  around the world to enable electronic
  communications.
• Internet - the worlds largest computer network,
  actually consisting of thousands of
  interconnected networks

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Business Information Systems
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Business Information Systems

• Electronic Commerce
• Transaction Processing Systems and ERP
• Information and Decision Support Systems
• Special-Purpose Business Information Systems
  Artificial Intelligence, Expert Systems, and
  Virtual Reality

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E-Commerce

• Business-to-business
• Business-to-consumer
• Consumer-to-consumer

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E-Commerce Greatly Simplifies the Purchasing
Process
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Transaction Processing Systems and ERP

• Transaction processing system (TPS) - an
  organized collection of people, procedures,
  software, databases, and devices used to record
  completed business transactions.
• Enterprise Resource Planning (ERP) System - a set
  of integrated programs capable of managing a
  companys vital business operations for an entire
  multisite, global organization.

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A Payroll Transaction Processing System
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Functional Management Information Systems Draw
Data from the Organizations TPS

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Decision Support Systems (DSS)

• An organized collection of people, procedures,
  software, databases, and devices used to support
  problem-specific decision making.
• The focus of a DSS is on decision-making
  effectiveness.

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Essential DSS Elements
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Special-Purpose Business Information Systems

• Artificial intelligence (AI) systems
• Virtual reality systems
• Expert systems

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The Major Elements of Artificial Intelligence
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A Head-Mounted Display
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Data Glove