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.

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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.

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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
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Systems Development

• The activity of creating or modifying existing
  business systems.
• Systems Investigation
• Systems Analysis
• Systems Design
• Systems Implementation
• Systems Maintenance and Review

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Organizations and Information Systems
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A General Model of an Organization
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The Value Chain of a Manufacturing Company
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Technology Diffusion, Infusion, and Acceptance

• Technology Diffusion - a measure of how widely
  technology is spread throughout an organization.
  
• Technology Infusion - is the extent to which
  technology permeates an area or department.
• Technology Acceptance Model (TAM) - specifies the
  factors that can lead to higher acceptance and
  usage of technology in an organization

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Competitive Advantage

• A significant and (ideally) long-term benefit to
  a company over its competition.
• Factors That Lead Firms to Seek Competitive
  Advantage
• Rivalry among Existing Competitors
• Threat of New Entrants
• Threat of Substitute Products and Services
• Bargaining Power of Customers and Suppliers

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Strategic Planning for Competitive Advantage

• Altering the Industry Structure
• Creating New Products and Services
• Improving Existing Product Lines and Services
• Using Information Systems for Strategic Purposes

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Competitive Advantage Factors and Strategies
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Performance-Based Information Systems

• Productivity
• Quality
• Return on Investment and the Value of Information
  Systems
• Earnings Growth
• Market Share
• Customer Awareness and Satisfaction
• Total Cost of Ownership

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Three Stages in the Business Use of IS
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The 10 Best Places to Work for IS
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Roles, Functions, and Careers in the Information
Systems Department

• Operations
• Systems Development
• Support

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The Three Primary Responsibilities of Information
Systems
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Typical IS Titles and Functions

• The Chief Information Officer
• LAN Administrators
• Internet Careers

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Why Learn About Information Systems?

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

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Summary

• Data - raw facts
• Information - data transformed into a meaningful
  form
• Systems development - creating or modifying
  existing business systems
• Organization - a formal collection of people and
  various other resources established to accomplish
  a set of goals