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Information Concepts:
Data, Information, and Knowledge
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Data: raw facts
Alphanumeric, image, audio, and video
Information: collection of facts organized in such a
way that they have additional value beyond the
value of the facts themselves
Value of Information is directly linked to howit helps decision makers achieve their organizations
goals and can be measured in time required to make a decision
Increased profits to the company
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Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
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The Characteristics of Valuable
Information
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Table 1.2: Characteristics of Valuable Information
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The Characteristics of Valuable
Information (continued)
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Table 1.2: Characteristics of Valuable Information (continued)
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What Is an Information System?
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Figure 1.3: The Components of any Information System
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Computer-Based Information
Systems
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Computer-based information system (CBIS):single set of hardware, software, databases,
telecommunications, people, and procedures
configured to collect, manipulate, store, and
process data into information
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Computer-Based Information
Systems
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CBIS components
Hardware: computer equipment used to
perform input, processing, and output
activities
Software: computer programs that governthe operation of the computer
Database: organized collection of facts and
information Telecommunications: electronic
transmission of signals for communications
Networks: connect computers and
equipment in a building, around the country,
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BusinessInformation Systems
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Most common types of information
systems used in business
organizationsElectronic and mobile commerce
systems
Transaction processing systemsManagement information systems
Decision support systems
Specialized business information
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Electronic and Mobile Commerce
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E-commerce: any business transaction
executed electronically between parties
Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector
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Transaction Processing Systems
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Transaction: business-related
exchange
Payments to employeesSales to customers
Payments to suppliers
Transaction processing system (TPS):organized collection of people,
procedures, software, databases, and
devices used to record completed
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Additional Business Information
Systems
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Management Information Systems (MIS)
provide routine information to managers and
decision makers
Knowledge Management Systems (KMS) create, store, share, and use the organizations
knowledge and experience
Artificial intelligence (AI)
field in which the computer system takes on the
characteristics of human intelligence
Decision support system (DSS)
used to support problem-specific decisionmakin
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HARDWARD/ SOFTWARE BASICS
Hardware Components
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Central processing unit (CPU)
Arithmetic/logic unit (ALU): performs
calculations and makes logical comparisons
Control unit: accesses, decodes andcoordinates data in CPU and other devices
Primary memory: holds program instructions
and data for processing
Secondary storage: more permanent storage Input and output devices
Communications devices
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Hardware Components
(continued)
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Figure 2.1: Hardware Components
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Processing and Memory Devices:
Power and Speed
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System unit
Houses the components responsible for
processing (the CPU and memory)
All other computer system devices are linkedeither directly or indirectly into the system unit
housing
Clock speed
series of electronic pulses produced at a
predetermined rate that affects machine cycle
time
Clock speed is often measured in megahertz
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Memory and Storage Characteristics
and Functions
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Types of Memory Random access memory (RAM)
Temporary Volatile
Read-only memory (ROM)
Usually nonvolatile Secondary storage
Also called permanent storage Nonvolatile Greater capacity and greater economy than memory Measured in bytes: kilo, mega, giga, tera Different access methods
Sequential access: data must be accessed in theorder in which it is stored Sequential access storage devices (SASDs)
Direct access: data can be retrieved in any order
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Secondary Storage Devices
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Magnetic tapes Secondary storage used primarily for backups
Magnetic disks Direct access secondary storage, e.g., hard disk
RAID (Redundant Array of Inexpensive Disks) Stores extra bits so that data can be reconstructed
if system fails
SAN (Storage Area Network)
Provides high-speed connections between data
storage devices and computers over a networkOptical disks Direct access optical disc, e.g., CD-ROM
Digital video disk (DVD) Stores several gigabytes of data
Flash memory
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Input Devices
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Personal computer input devices Keyboard, mouse
Speech-recognition technology Input devices that recognize human speech
Digital cameras Input device used with PC to record/store images in digital
form
Terminals Input and display devices that perform data entry and input at
the same time
Touch-sensitive screens Allow display screens to act as input devices as well as outputdevices
Bar-code scanners Employs a laser scanner to read a bar-coded label
Magnetic ink character recognition (MICR) devices Code data on banking forms, such as checks Pen input devices
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Output Devices
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Display monitors (CRTs) Output quality measured by number of pixels
and dot pitch
Liquid crystal displays (LCDs)
Easier on eyes, use less electricity, take up lessspace than CRTs
Organic light-emitting diodes (OLEDs)
Directly emits light rather than using backlight
Sharper colors and thinner displays Printersand plotters: hard copy output
Printers: laser, inkjet
Plotters: used for general design work
Digital audio player
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Overview of Software
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Computer programs: sequences of
instructions for the computer
Documentation:describes programfunctions
Systems software:coordinates the
activities of hardware and programs Application software: helps users
solve particular problems
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Systems Software
Controlling operations of computer hardware
Supports application programs problem-solvingcapabilities
Different types of systems software include: Operating systems programs that control the hardware and
interface with applications Common hardware functions
Get input (e.g., keyboard) Retrieve data from disks and store data on disks Display information on a monitor or printer
User interface Allows individuals to access and command the computer system
Command-based user interface: uses text commands Graphical user interface (GUI): uses icons and menus to send
commands to the computer system
Utility programs
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Application Software
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Give users the ability to solve problems and
perform specific tasks Interact with systems software; systems software
then directs the hardware to perform tasks
Proprietary software: unique program for aspecific application, usually developed and owned
by a single company
Off-the-shelf software: existing software
program that can be purchased Customized package
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Personal Application Software
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Serves the needs of an individualuser
Includes personal productivity
software
Enables users to improve their
personal effectiveness
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Personal Application Software
(continued)
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Table 2.7: Examples of Personal Productivity Software
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Personal Application Software
(continued)
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Table 2.7: Examples of Personal Productivity Software (continued)
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Workgroup Application Software
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Workgroup application software:
support teamwork, whether people are in
the same location or dispersed around theworld
Groupware: software that helps groups of
people work together more efficiently andeffectively
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Enterprise Application Software
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Software that benefits an entireorganization
Enterprise resource planning (ERP)
software: programs that manage acompanys vital business operations for
an entire multisite, global organization
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Enterprise Application Software
(continued)
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Table 2.10: Examples of Enterprise Application Software
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Information, Decision Support,
and Specialized Software
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Used in businesses of all sizes and types
to increase profits or reduce costs
Available in every industryExample: analysis to increase the cure
rate for cancer
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Data Management
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Data Management
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Without data and the ability toprocess it, an organization could not
successfully complete most
business activities
Data consists of raw facts
For data to be transformed intouseful information, it must first be
organized in a meaningful way
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The Hierarchy of Data
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Bit (a binary digit): a circuit that is either on or off Byte: eight bits
Character: basic building block of information Each byte represents a character
Can be an uppercase letter, lowercase letter,numeric digit, or special symbol
Field: typically a name, number, or combinationof characters that describes an aspect of abusiness object or activityRecord: a collection of
related data fields File: a collection of related records
Database: a collection of integrated and relatedfiles
Hierarchy of data: bits, characters, fields,records, files, and databases
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The Hierarchy of Data
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Figure 3.1: The Hierarchy of Data
D t E titi Att ib t d
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Data Entities, Attributes, and
Keys
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Entity: a generalized class of people,places, or things (objects) for which data is
collected, stored, and maintained
Attribute: characteristic of an entity Data item: value of an attribute
Key: field or set of fields in a record that is
used to identify the record Primary key: field or set of fields that
uniquely identifies the record
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Data Entities, Attributes, and Keys
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Figure 3.2: Keys and Attributes
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The Database Approach
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Traditional approach to database
management
separate data files are created for each
application
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity
Database approach to databasemanagement:
pool of related data is shared by multiple
applications
Si nificant advanta es over traditional
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The Database Approach to Data
Management
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Figure 3.3: The Database Approach to Data Management
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The Database Approach
Advantages
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Table 3.1: Advantages of the Database Approach
e a a ase pproac
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e a a ase pproac(continued)
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Table 3.1: Advantages of the Database Approach (continued)
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Disadvantages
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Table 3.2: Disadvantages of the Database Approach
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Data Modeling and the Relational
Database Model
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When building a database, consider:Content: What data should be collected, at
what cost?
Access: What data should be provided towhich users and when?
Logical structure: How should data be
arranged to make sense to a given user?
Physical organization: Where should databe physically located?
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Data Modeling
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Building a database requires two types of designs Logical design
Abstract model of how data should be structured
and arranged to meet an organizations
information needs Data model: a diagram of data entities and
their relationships
Entity-relationship (ER) diagrams: data
models that use basic graphical symbols toshow the organization of and relationships
between data
Physical design
Fine-tunes the logical database design forerformance and cost considerations
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ER diagram for a Customer Order
Database
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ER diagram Showing the
Relationship between the Manager,
Department and Project
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I l ti th R l ti l
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Implementing the Relational
Database Model
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data elements are placed in two-dimensional tables (relations),
which are the logical equivalent of
files
Each row of a table represents a
data entity
Columns of the table represent
attributes
The domain of the database model
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The Relational Database Model
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Figure 3.5: A Relational Database Model
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Manipulating Databases
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Selecting: eliminates rows according to criteria Projecting: eliminates columns in a table
Joining: combines two or more tables
Linking: relates or links two or more tables usingcommon data attributes
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Manipulating Data (continued)
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Figure 3.7: Linking Data Tables to Answer an Inquiry
D t b M t S t
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Database Management Systems
(DBMS)
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Interface between:Database and application programs
Database and the user
Creating and implementing the rightdatabase system ensures that thedatabase will support both businessactivities and goals
DBMS: a group of programs used as aninterface between a database andapplication programs or a database and
the user
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Overview of Database Types
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Flat file Simple database program whose records
have no relationship to one another
Single user
Only one person can use the database at a
time
Examples: Access, FileMaker, and InfoPath
Multiple userAllows dozens or hundreds of people to
access the same database system at the
same time
Examples: Oracle, Sybase, and IBM
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Distributed Databases
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Distributed databaseData may be spread across several smaller
databases connected via
telecommunications devices
Corporations get more flexibility in how
databases are organized and used
Replicated database
Holds a duplicate set of frequently used data
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Telecommunications
B i C t f
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Basic Concepts of
Telecommunications
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Telecommunications: electronic transmissionof signals for communications
Computer network: communications media,
devices, and software needed to connect two
or more computer systems or devices
Network types: personal area network (PAN),
local area network (LAN), metropolitan area
network (MAN), wide area network (WAN),and international networks
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The Internet
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Internet: collection of interconnected networks, allfreely exchanging information
Internet Protocol (IP): communication standard
that enables traffic to be routed from one network
to another as needed
Uniform Resource Locator (URL): an assigned
address on the Internet for each computer
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Business Networks
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Intranet: internal corporate network built usingInternet and World Wide Web standards and
protocols
Extranet: network based on Web technologies
that links selected resources of a companysintranet with its customers, suppliers, or other
business partners
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Systems Development
An Overview of Systems
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An Overview of Systems
Development
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Managers and employees in all functional areaswork together in a business information system
Users help and often lead the way with
development process
Participants in systems development:
Determine when a project fails
Are critical to systems development success
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Participants in Systems Development
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Development team consists of the following: Project managers: coordinate system development
effort
Stakeholders: directly or indirectly benefit from the
project Users: interact with the system regularly
Systems analysts: analyze and design businesssystems
Programmers: modify or develop programs to satisfyuser requirements
Various support personnel: specialists, vendors
Information Systems Planning and
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Information Systems Planning and
Aligning Corporate and IS Goals
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Information systems planning: translatingstrategic and organizational goals into systems
development initiatives
Aligning organizational goals and IS goals is
critical for any successful systems developmenteffort
Determining whether organizational and IS goals
are aligned can be difficult
Information Systems Planning and
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y gAligning Corporate and IS Goals
(continued)
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Figure 8.2: Information Systems Planning
Systems Development Life
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Systems Development Life
Cycles
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The systems development process is also calleda systems development life cycle (SDLC)
Common SDLCs
Prototyping
Rapid application development (RAD) Systems development approach that employs tools, techniques, and
methodologies designed to speed application development
End-user development any systems
development project in which the primary effort isundertaken by a combination of business managers and
users
Systems Development Activities
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Systems Development Activities
Systems investigation: problems and opportunities are identified andconsidered in light of the goals of the business
Systems analysis: study of existing systems and work processes to
identify strengths, weaknesses, and opportunitiesfor improvement
Systems design: defines how the information system will do what it
must do to obtain the problem solution
Systems implementation: creation or acquisition of various system
components detailed in the systems design,assembling them, and placing the new or modifiedsystem into operation