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Principles of Information Systems,Eighth Edition

An Introduction toInformation Systems

Session Slides

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Principles of Information Systems, Eighth Edition 2

Why Learn About IS?

• Information systems used in most professions

 – Sales reps, Managers, Corporate lawyers

• Indispensable for achieving career goals

• Information system (IS)

 – A set of interrelated components that collect,manipulate, and disseminate data and information,and provide feedback to meet an objective

 – Examples: ATMs, airline reservation systems, coursereservation systems

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Principles of Information Systems, Eighth Edition 4

1. Information Concepts

• Information is one of an organization’s most

valuable resources. Information is different fromdata

• Data: raw facts

• Information: collection of facts organized in such a

way that they have value beyond the factsthemselves

• Knowledge: awareness and understanding of a

set of information and ways that information can be

made useful to support a specific task or reach a

decision

1

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Principles of Information Systems, Eighth Edition 11

3. What Is An Information System? 

• Input: activity of gathering and capturing raw data

• Processing: converting or transforming data into

useful outputs

• Output: production of useful information, usually in

the form of documents and reports

• Feedback: output that is used to make changes toinput or processing activities

3

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Principles of Information Systems, Eighth Edition 12

Computer-Based Information Systems

• An informationsystem can be:

 – Manual

 – Computerized

• Computer-based

information system

(CBIS)

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

that are configured tocollect, manipulate,store, and process datainto information3

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Principles of Information Systems, Eighth Edition 13

4. Business Information Systems

• Most common types of 

information systems

used in business

organizations

 – Electronic and mobile

commerce systems – Transaction processing

systems

 – Managementinformation systems

 – Decision support

systems

4

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Principles of Information Systems, Eighth Edition 18

3. Management Information Systems

• Management

information system

(MIS): an organized

collection of people,

procedures, software,

databases, anddevices that provides

routine information to

managers and

decision makers

• Primary focus of anMIS is operational

efficiency4

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Principles of Information Systems,Eighth Edition

IS in Organizations(The digital firm)

Session Slides

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Principles of Information Systems, Eighth Edition 3

1. Organizations and IS

• Organization: a formal

collection of people andother resources established

to accomplish a set of goals

• An organization is a system

- has inputs, processing

mechanisms, outputs, and

feedback

 – Inputs to the system:resources such as

materials, people, andmoney

 – Outputs to the environment:goods or services1

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Principles of Information Systems, Eighth Edition 4

Organizations and IS (2)• Value chain: series (chain) of 

activities that includes

 – inbound logistics

 – warehouse and storage

 – Production

 – finished product storage

 – outbound logistics

 – marketing and sales

 – customer service

• Upstream management: management of 

 – raw materials

 – inbound logistics

 – warehouse and storagefacilities

• Downstream management: 

management of  – finished product storage

 – outbound logistics

 – marketing and sales

 – customer service1

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Principles of Information Systems, Eighth Edition 6

Traditional Organizational Structure

• A hierarchical structure

• Major department heads report to a president or top-level manager 

• Managerial pyramid shows the hierarchy of 

decision making and authority

1

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Principles of Information Systems, Eighth Edition 8

Project & Team Organizational Structures

• Project organizational structure: centered on

major products or services – Many project teams are temporary

• Team organizational structure: centered on

work teams or groups

 – Team can be temporary or permanent, dependingon tasks

1

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Principles of Information Systems, Eighth Edition 13

2. Competitive Advantage

• Significant and (ideally) long-term benefit to a

company over its competition

• Ability to establish and maintain competitive

advantage is vital to the company’s success

2

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Enterprise Systems

Session Slides

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9Principles of Information Systems, Eighth Edition

An Overview of Enterprise Systems:Transaction Processing Systems and

Enterprise Resource Planning (2)

Figure 9.1: TPS, MIS/DSS, and Special Information Systems in Perspective

1

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16Principles of Information Systems, Eighth Edition

Transaction Processing Activities (2)

• Transaction processing cycle

– Data collection

– Data editing

– Data correction

– Data manipulation

– Data storage

– Document production

2

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29Principles of Information Systems, Eighth Edition

Order Processing Systems

Figure 9.7: Traditional TPS Systems That Support the Order ProcessingBusiness Function

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30Principles of Information Systems, Eighth Edition

Order Processing Systems (2)

Table 9.3: IPO of the Traditional TPS Systems That Support Order Processing

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12Principles of Information Systems, Eighth Edition

Traditional Transaction ProcessingMethods and Objectives (2)

Figure 9.3: Integration of a Firm’s TPSs1

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MIS and DSS

Session Slides

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17Principles of Information Systems, Eighth Edition

MIS in Perspective

Figure 10.3: Sources of Managerial Information2

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25Principles of Information Systems, Eighth Edition

Functional Aspects of the MIS (2)

Figure 10.6: An Organization’s MIS3

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30Principles of Information Systems, Eighth Edition

Marketing Management InformationSystems

• Marketing MIS: supports managerial activities in

product development, distribution, pricing

decisions, and promotional effectiveness

• Subsystems

 – Marketing research

 – Product development

 – Promotion and advertising

 – Product pricing

 – Sales analysis

3

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31Principles of Information Systems, Eighth Edition

Marketing Management InformationSystems (2)

Figure 10.9: Overview of a Marketing MIS3

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45Principles of Information Systems, Eighth Edition

5. Components of a Decision SupportSystem

Figure 10.15: Conceptual Model of a DSS

5

• Database• Model base

• Dialogue manager: user interface that allowsdecision makers to:

 – Easily access andmanipulate the DSS

 – Use common businessterms and phrases

• Access to the Internet,networks, and other computer-based systems

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42Principles of Information Systems, Eighth Edition

A Comparison of DSS and MIS

4