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An Introduction to

Information Systems

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Principles and Learning Objectives

The value of information is directly linked to howit helps decision makers achieve theorganizations goals.

Distinguish data from information and describe thecharacteristics used to evaluate the quality of data.

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Principles and Learning Objectives

Models, computers, and information systems areconstantly making it possible for organizations toimprove the way they conduct business.

Name the components of an information system anddescribe several system characteristics.

Identify four basic types of models and explain how

they are used.

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Principles and Learning Objectives

System users, business managers, andinformation systems professionals must worktogether to build a successful information

system.

Identify the major steps of the systems developmentprocess and state the goal of each.

Discuss why it is important to study and understandinformation systems.

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Information Systems Management (ISM) is theapplication of information technology to supportthe major functions and activities of either a privatesector business or public sector institution.

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ISM supports the process of collection,manipulation, storage, distribution andutilization of an organization's informationresources.

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Information Concepts

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System

A set of elements or components that interact toaccomplish goals

Input

Processing mechanism

Feedback

Output

System boundary

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Components of a System

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What Is An Information

System?

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A set of interrelated components that collect

(or retrieve), process, store, and distributeinformation to support decision making and

control in an organization

What Is an Information System?

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Information System

A set of interrelated components that collect,

manipulate, and disseminate data andinformation, and provide feedback to meet an

objective

Examples: ATMs, airline reservation systems,

course reservation systems

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Components of an InformationSystem

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Data vs. Information

Data: raw facts

Information: collection of facts organized in

such a way that they have value beyond thefacts themselves

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Data vs. Information

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The Characteristics of ValuableInformation

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The Characteristics of ValuableInformation

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The Characteristics of ValuableInformation

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System and Modeling

Concepts

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Modeling a System

A model is an abstraction/approximationthat is used to represent reality 4 major types of models

A narrative model is based on words Logical, not physical

A physical model is tangible

A schematic model is a graphic representation

Graphs and chartsA mathematical model is an arithmeticrepresentation

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Modeling a System

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System and Modeling Concepts

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System Performance and Standards

Efficiency: output/input

Effectiveness: extent to which system attains its

goalsPerformance standard: specific objective of asystem

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System Performance and Standards

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System Variables and Parameters

System variable - item controlled by decision-maker

System parameter - value that cannot becontrolled

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Systems Classification

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Computer-Based

Information Systems(CBIS)

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Components of a CBIS

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Business Information

Systems

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Business Information Systems

Transaction Processing Systems (TPS)

Enterprise Resource Planning System (ERPS)

Customer Relationship Management Systems (CRMS)

Electronic Commerce (E-Commerce)

Management Information Systems (MIS)Decision Support Systems (DSS)

Group Support Systems (GSS) / Group Decision SupportSystems (GDSS)

Executive Support Systems (ESS) / ExecutiveInformation Systems (EIS)

Virtual Reality Systems (VRS)

Expert Systems (ES) / Artificial Intelligence (AI)

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E-Commerce

Business-to-business (B to B)

Business-to-consumer (B to C)

Business-to-government (B to G)

Government-to-consumer (G to C)

Consumer-to-Government (C to G)

Consumer-to-Consumer (C to C)

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Electronic Commerce

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Transaction Processing Systems

A transaction processing system (TPS) is an organized

collection of people, procedures, software, databases,and devices used to record completed business

transactions.

Process business exchanges

Maintain records about the exchanges

Handle routine, yet critical, tasks

Perform simple calculations

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Workflow Systems

Provide routing, tracking & imagingcapabilities to improve business processes

Improve productivity

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Payroll Transaction ProcessingSystem

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Enterprise Resource Planning (ERP)

Integrated programs that can manage acompanys entire set of business operations

Often coordinate planning, inventory control,production, and ordering

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Management Information Systems (MIS)

Routine information for routine decisions

Operational efficiencyUse transaction data as main input

Databases integrate MIS in different functionalareas

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Management Information Systems (MIS)

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MIS Outputs

Scheduled reports

Demand reports

Exception reportsKey Indicator reports

Drill-down reports

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Decision Support Systems (DSS)

DSS- A decision support system is an organizedcollection of people, procedures, software,databases, and devices used to supportproblem-specific decision making.

Interactive support for non-routine decisions orproblems

End-users are more involved in creating a DSS thanan MIS

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Essential DSS Elements

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Special-Purpose Business InformationSystems

Artificial Intelligence (AI) Systems

Virtual Reality Systems

Expert Systems

Other Special-Purpose Business InformationSystems e.g. GIS (Geographic Information

Systems

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The Major Elements of ArtificialIntelligence

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Virtual Reality

Systems Development

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Systems Development

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Why Learn About InformationSystems?

Advance in your career

Solve problems

Realize opportunities

Meet your career goals

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Computer and Information SystemLiteracy

Computer literacy - knowledge of computersystems and equipment

Information system literacy - knowledge ofhow data and information are used

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Information Systems in FunctionalAreas of Business

Finance and Accounting

Sales and Marketing

Manufacturing

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Information Systems in Industry

Investment firms

Banks

Publishing companiesHealthcare organizations

Management consulting firms

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Management Challenges

1. Design competitive and effective systems.

2. Understand system requirements of global

business environment.

3. Create information architecture that supportsorganizations goal.

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Management Challenges

4. Determine business value of informationsystems.

5. Design systems people can control,understand and use in a socially, ethicallyresponsible manner.

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Four powerful worldwide changes that havealtered the business environment:

1. Globalization

2. Rise of the Information Economy

3. Transformation of the Business Enterprise

4. Emergence of the Digital Firm

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Positive Impacts of Information Systems

Faster calculations and paperworkAnalysis of customer purchase patterns andpreferencesMore efficient business servicesMedical advancesInstant global distribution of information

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Negative Impacts of Information Systems

Automation leading to job elimination

Privacy concernsSystem outages and shutdowns

Health problems, repetitive stress injury

Illegal distribution of intellectual property

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Summary

Data - raw facts

Information - data transformed into ameaningful form

System - set of elements that interact toaccomplish a goal

Systems development - creating or modifyingexisting business systems